Learning how to become a real estate agent is easy but rewarding. Follow simple steps that take a few months to transform your life.
The global real estate market is currently valued at more than $7 billion, with an excepted growth rate of 1.8%. So, are you wondering how to become a real estate agent?
You’re not alone, as many view this as a lucrative job opportunity.
Luckily, you’ve found this article, as we’ll explain in detail how to become one, the associated costs, the challenges you might face, and the benefits of pursuing this career choice.
A real estate agent is a sales agent who helps buyers and sellers in the real estate market.
Agents help you find potential commercial and residential spaces if you're a buyer.
If you’re a seller, they’ll help you get the best price for your property and walk you through the negotiation process.
These agents usually work with agencies and real estate brokerage firms that assign them to work and help them secure a deal. They have various responsibilities.
Realtors or real estate agents make an average of $96,214 annually in the United States.
An agent with one or two years of experience makes about $86,742, while a realtor with more than ten years of experience makes $113,811 per year.
Working for some of the industry's most established firms and agencies means you can make more money.
Real estate agents aren’t brokers, so they can’t work independently, but if you work for an established broker, you might make more than $140,000 per year.
You can make more money in certain states, given the same number of years of experience.
Real estate agents get the highest salaries in West Virginia, New York, and Vermont.
In West Virginia, a realtor makes $111,744 a year. Realtors in Hawaii, Maine, and Louisiana make less than the national average.
The amount of money you make as a real estate agent depends on the following factors.
Statistics show that in 2021, there was a 60% increase in the number of real estate agents.
Many people consider becoming real estate agents for the following reasons.
To become a real estate agent, you don’t have to be a college graduate.
Yet, each state has a preset list of requirements that you should meet to become a real estate agent.
If you want to hold the title of a realtor, you should join the National Association of Realtors.
Every state has specific requirements regarding education, prelicensing and post-licensing requirements, exams, the application process, and background checks.
As a beginner real estate agent, working on continuing education and the next level of licensing can open doors to more and better job opportunities.
You should be at least 18 years old to pursue a career as a real estate agent. In most states, holding a high school degree is enough, and in some cases, you can become an agent even if you haven’t received your diploma as long as you meet the minimum age requirement.
Some states offer reciprocal licensing agreements, so you can get your real estate license in one state and work in another.
A pre-license education is a must, no matter where you live. You must take this mandatory course to be eligible for the exam that qualifies you for your license.
Course requirements vary by state, so you need only 63 hours in Florida but 135 hours in California.
In most states, you can attend this course online or face-to-face at community colleges or real estate schools.
After the prelicensing course, you should take and pass a real estate exam.
The licensing exam is usually multiple-choice, but the number of questions varies according to the state.
In general, the exam will be divided into two parts. The first part is general about national real estate principles, and the second is state specific.
You should pass both sections to be eligible for the real estate license. If you don’t, you can retake the exam. Each set has a different set of rules regarding resitting the exam.
Every applicant should get a background check at most 60 days before applying for the license. You can obtain this from the local sheriff’s office or police station.
In most cases, you’ll be denied your license if you have been convicted of a serious offense, a Tier II or Tier III sex offense, or a financial felony relating to real estate.
In some states, you must sign up for post-licensing real estate education to change your license status from probationary to full.
These requirements can help you land better job opportunities with a sponsoring broker.
Once you’ve passed the exam, you should apply for the license and have your documents finalized. Your state will email the approval.
Becoming a realtor adds to your credibility in the market and provides better business tools, market data, educational opportunities, and access to exclusive information.
As a realtor, you’ll gain access to the Realtors Property Resource, which offers valuable information regarding permits, zoning, mortgage, and foreclosures.
This depends on what you want to do in the future, as the market keeps changing. You can work with digital real estate investors or even join crowdfunding for real estate.
The cost of becoming a real estate agent can amount to several thousand dollars, so you need to consider this before deciding if this is the right job for you.
In some states, like Ohio, the cost is more than $1000, while in Vermont, it can be as little as $400.
The average prelicensing cost is $350 in most states, while the test costs between $100 and $300.
The application costs an average of $25 to $30 in most states and the background check costs around $100.
If you wish to become a realtor, you’ll pay a membership fee of $185. After that, you can consider joining a brokerage.
In this case, you’ll endure monthly costs that include your business cards, marketing your services, supplies, cameras for real estate, listing services memberships, and continuing education. These costs vary depending on where you work.
Becoming a licensed real estate agent is relatively easy compared to other career options with similar earning potential.
You don’t need specific education, and you can quickly get your license and start working with clients through brokerage firms.
Colorado is the most challenging state to get your real estate license in because you must take two 200-hour courses and pass two exams.
You also need to meet the other requirements. In other states, it’s not that difficult.
Applying for your license and getting it takes four to six months, depending on where you live and plan to work as a real estate agent.
In some cases, you might spend more time if you’re unable to pass the test on the first take.
Once you’ve passed the exam, you might spend a few more months to land a job opportunity with a reputable brokerage firm.
Becoming a successful real estate agent in a competitive market takes time, patience, and dedication.
Becoming a real estate agent can be the first step in a successful career that provides you with financial stability.
Statistics show that 84% of licensed realtors own their primary residency, while 37% own at least one secondary property.
Since starting your career as a real estate agent is easy, this profession is constantly increasing in popularity.
You can become an agent by following these simple steps.
Let Google be your friend and search your state’s requirements for becoming a real estate agent.
You'll be eligible for the following steps if you’re above 18 and have met the state’s requirements.
Each state lists the educational requirements for real estate agents. You can attend classes online or face-to-face to understand the basics of the profession.
The courses also teach you about state-specific laws, helping you qualify for the license.
Research community colleges and real estate schools for classes and attend them regularly.
If you can’t physically attend a class, most states will allow you to take it online.
Once you have completed your course, you’ll have to take an exam. The exam is usually easy to pass, and if you fail, you can retake it.
You might have to wait for a specific period before you’re allowed to retake the exam.
After passing your exam, you should fill in an application at the state’s real estate regulatory organization, submit your background check and any other documents, and await a reply.
Finally, you’ll receive an email stating that your license is approved.
You’re not a broker, so you can’t work independently. Instead, you should work for a real estate broker, who oversees every real estate transaction. In most cases, you’ll be paid a commission.
You can search online and review job listings until you find a suitable opportunity. Your chances might be better if you choose to take extra courses.
You don’t have to hold a college degree to become a real estate agent. In most states, a high school diploma is enough, and in some cases, you can apply for a license before getting your certificate.
A business or finance degree can significantly improve your chances as a real estate agent and realtor in a competitive market.
You don’t have to have any real estate experience to become an agent.
Yet, if you want to work with a successful brokerage firm, you should consider training and apprenticeship positions. These opportunities will teach you about the business, and you’ll be able to build a network.
Find side hustles, part-time jobs, and gigs similar to this one
