Thousands of people in the United States claim each month how to become a real estate agent, as they consider that millions of real estate agents in the United States join. It’s exciting!
However, buying and selling real estate is not as easy as it seems. And it is a well-known complex industry for beginners; Some real estate experts, like veterinarian Tom Ferry, have estimated that most new real estate agents will drop within the first five years.
All this means that you must carefully weigh the risks and benefits of participating in this profession. To make sure you know in advance what you need to invest in time and money, you should follow these steps.
How do I become a real estate agent?
- Listen to real estate courses before issuing a license
- Pass the owner’s license exam
- Activate the owner license
- Consider becoming a Real Estate Agent®
- Registration at a real estate agency
How much do real estate agents make?
Not to mention the rather tempting fact that real estate can be a lucrative area. According to the Bureau of Labor Statistics, real estate agents earn an average of $51,000 a year, and the top 10% of agents can earn more than triple that.
“We can make as much money as doctors and lawyers, and they spend tens of thousands of dollars on their diplomas,” said Rae Wayne, a real estate agent with Team Bizzy Blondes in Los Angeles.
However, this does not mean that the process is easy. Here is an overview on how to get there.
Step 1: Listen to the pre-licensing course
Price: 200 to 300 USD
States require individuals to complete pre-licensing training with a certified institution before taking a real estate licensing exam. The number of hours of training required can vary widely by jurisdiction: in Virginia, for example, real estate agents must complete 60 hours of pre-licensing training, and in California 135 hours.
The course teaches you the principles of ownership (concepts such as ‘mortgage’, ‘deposit’, and ‘charge’), real estate practices (such as real estate valuation), and the legal aspects of business. Visit your state’s real estate commission website for information on licensing requirements and a list of accredited pre-licensing agencies.
Pre-licensed courses can be taken in person or online, so consider your learning habits before deciding where to enroll. (Some people concentrate better in class, Wayne notes.)
Step 2: Pass the Licensing Exam
Price: $100 to $300
Visit the State Real Estate Commission website for instructions on how to register for the licensing exam. (Most states outsource test administration to third-party testing centers.) The exams are generally divided into two parts: one for federal property laws and general property principles, and the other for specific state laws. Both typically consist of 60 to 100 multiple-choice questions, including math questions that require a calculator (such as a prorated fee for a specific asset). Most prelicensing courses offer student hearings, and many real estate companies post hearings online.
So what are the chances of you succeeding? In some states, like Florida, 50 percent failed for the first time. The advantage is that you can normally finish your studies as many times as you want during a two-year period. However, after two years, graduates will have to retake pre-licensing education.
Step 3: Activate the owner license
Pass the exam? Congratulations! Here’s what you need to do to communicate with your customers:
Activate your license on your state’s real estate commission website. Activation fees vary, but generally range from $200 to $400.
For more records, please pay for a local service membership. Membership in a local MLS is necessary because you need a system for listing properties that will then be distributed on sites like realtor.com®. This service also makes it easy to retrieve real estate tax information, analyze market trends, and review offers prior to entering the market.
Step 4: Consider becoming a Realtor®
To become a full-fledged real estate agent, a licensed real estate agent qualified for this widely respected title must be a member of the National Association of Realtors®. Without exceptions. So what are the benefits of this?
NAR membership offers many benefits, including access to real estate market data, discounts on training courses, and transaction management services. Credibility is also enhanced by the ability to use ownership in your business card and marketing security.
Step 5: Sign in to a real estate agency
To become a real estate agent and legally participate in the real estate business, you must work under the direction of a real estate agent. Real estate agents are licensed by the state to oversee real estate transactions and ensure real estate agents (that’s you!) meet required legal and ethical standards. Think of it as a form of protection, similar to how a stockbroker at a licensed company should work to trade stocks, not just stocks. Eventually, you can also apply for permission to become a broker, but you only have a few years of mediation.
Don’t expect to walk in and earn an hourly wage – most brokers only pay commissions to their agents. In other words, you don’t get paid until you complete the deal, and you usually don’t make any profit. Because of this compensation structure, brokers are often happy to hire new agents because it costs the company nothing. So be sure to find a brokerage firm that will hire you for on-the-job training.
How Long Does it Take to Become a Real Estate Agent?
On average, it takes four to six months to complete the required real estate courses and pass the licensing exam. However, there are several factors that influence how long it takes to become a broker. These factors include whether you attend real estate courses online or in the classroom, the state in which you obtain a real estate license, and the number of times you must pass license verification.