Favored by many, becoming a real estate agent means that you will be getting paid well while enjoying the freedom to choose however you want to run your business. Your salary, nonetheless, will be commission-based, and you will most probably not be earning an income immediately. Fortunately though, as long as the population is increasing, so will be real estate properties. This mean that you will have more properties to market and sell as a real estate agent.
Then comes the question: How to become a real estate agent? Below we have broken down what it takes to answer how to become a real estate agent, so just follow these steps to unleash your new real estate career!
Step 1: Do A Whole Lot of Research
If you are looking into ways of how to become a real estate agent, expect to do a lot of research prior to that: either by reading books about working in real estate, looking for a brokerage that you can seek some preliminary advice from, or reaching out to real estate experts. As you accumulate real estate knowledge and decide to immerse in the trading of real estate properties, it is highly recommended that you seek out to a mentor. Either an experienced realtor, or a real estate agent, or even a real estate lawyer, a good mentor will teach you the real estate principles and the real estate agent job’s best practices.
Remember, this very first step is of utmost importance, as much as are taking the exam and finding your first clients. Doing your research will help you understand the real estate market and assess the way of how to become a real estate agent.
Step 2: How to Become a Real Estate Agent? Take a Pre-Licensing Course
Real estate laws and commissions vary by state. Make sure to check your state’s real estate commission’s website to understand thoroughly the requirements of pre-licensing training. A pre-licensing course will prepare you to become a professional real estate agent. It will teach you about the principles and practices of real estate, along with the legal aspects of the business. The amount of training hours required to be eligible to take the exam depends on the state. Texas, for example, requires 180 hours of training, while New York requires 75 hours of training. Normally the cost of pre-licensing courses ranges between $200 and $300. You can further choose to take the course online or in person — very flexible to accommodate to your specific needs.
Step 3: Take the Exam
The exam assesses how well you know federal real estate laws and general real estate principles. It is about 90 minutes in length and has approximately 80 multiple-choice questions. The passing score generally differs by state but wavers around 70%. Please note that you will not be eligible to take the exam if two years had passed after you have taken the training course. Once you pass the exam, you have to submit an application and pay the fees associated with it. Expect to get your license issued in about 1 to 4 weeks. You no longer need to know how to become a real estate agent because you are officially one, so have a happy journey!
Related: How to Become a Successful Real Estate Agent
However, becoming officially licensed as a real estate agent is not the end of the learning journey. To the contrary, you should continue building up your knowledge immediately, and one of the best ways to do that is through a top coaching program. To find the best one for you, read GrowthHouse’s Guide to the Top 30 Real Estate Coaching Programs: How to Choose the One for You.
Step 4: Consider Becoming a Realtor
A realtor is a trademarked term describing a real estate agent who is a member of the National Association of Realtors. Realtors enjoy an array of benefits ranging from access to real estate market data, through discounts on education courses, to transaction management services. Additionally, using Realtor in your signature and business card will give you more credibility while gaining more reputation. In order to become one, you must join your local real estate board or association, take an online course on the ethics code, and pass an exam. For more information, visit the NAR website.
Step 5: Find a Brokerage
A real estate brokerage is an agency or an office where real estate brokers and real estate agents work. All real estate agents must work under the umbrella of a brokerage, as required by the state. If you plan to start your career at a brokerage and not your own, look for one whose vision and mission align with your personality. Take into account the size of the brokerage and its reputation too.
Since your salary will be based on a commission, brokerages can hire as many agents as the place can fill, but it is their responsibility to portray their image in the best way possible. Brokerages do so by investing in their real estate agents and ensuring that they have access to tools necessary to market and sell real estate properties. Some brokerages, additionally, require new real estate agents to take additional training that they offer.
Related: Is Real Estate a Good Investment: Why or Why Not?
Step 6: Do Not Forget Good Planning and Budgeting
The earning you will be making from being a real estate agent is not the normal monthly salary. In fact, you will be earning a commission-based income. It is highly recommended that you budget and save income for the initial phase of becoming a real estate agent. Save enough money to at least get you through the first 6 months of the job. Once you make your first transaction, you will become more confident and earn more commission.
As far as the fees for enrolling in real estate, they are estimated from $1,500 to $2,000. The costs cover licensing courses, business cards, signs, advertising, association fees, and exam fees.
Related: What Are the Top 9 Reasons to Become a Real Estate Investor?
Starting a new career can be difficult, but as you put the time and effort, you will get to places you had never imagined you would get before. How to become a real estate agent? Follow the steps aforementioned and kick start your career.