- You can become a real estate agent in about four to six months, depending on where you live. Online prelicensing classes can speed up the process.
- Requirements vary by state, but the general steps are to take a real estate prelicensing course, take the licensing exam, activate your license, and join a brokerage.
- Only real estate agents who are members of the National Association of Realtors (NAR) can use the title Realtor. All Realtors must subscribe to NAR’s strict Code of Ethics.
Why Become a real Estate Agent ?
Working as a real estate agent offers a great deal of assortment. With different clients and different homes, you won ’ triiodothyronine be doing the lapp thing every sidereal day. You get to meet and work with lots of people, be your own bos, and enjoy the gratification of helping buyers and sellers through one of life ’ mho major milestones .
The money can be full, besides. The medial pay up for a real estate of the realm agent is about $ 51,220 per class, according to 2020 data ( the most recent available ) from the U.S. Bureau of Labor Statistics. For real number estate brokers—who have extra education, testing, and have requirements—that calculate jumps to $ 59,720. overall, the highest 10 % of agents earned more than $ 112,410 in 2020, and some agents earn much more than that .
Another fringe benefit : Getting into the field is easy. Compared to early careers with like earnings potential, getting your real estate license is a relatively immediate and low-cost process—and you don ’ t need a college degree .
Steps to Becoming a real Estate Agent
If you want to become a actual estate agent, you ’ re looking at an upfront investment of money and clock time, both of which deviate depend on where you get your license. Though the specific requirements differ by submit, here ‘s a general summation of how to become a real estate agent .
step 1 : Research Your State ’ randomness Requirements
Estimated cost : loose
There ’ s no such thing as a national real estate license, so you must meet your state ’ mho unique license requirements. A good place to start your research is your state ’ mho real estate regulative office web site, which you can find through an on-line search for “ [ your state ] real estate regulative office ” or by visiting the Association of Real Estate License Law Officials ( ARELLO ) ‘s regulative agency directory .
Each state typically has specific requirements for :
- Education requirements (such as a high school diploma or GED)
- Prelicensing courses and post-licensing requirements
- Exams and exam eligibility
- Application process and fees
- Background checks and fingerprinting
- Continuing education
- How to achieve the next level of licensing
- Reporting criminal history
Some states have multiplicative inverse license agreements with early states, which means you can get your license in one department of state and use it in another without having to take an extra license interrogation .
New York, for model, has reciprocity with nine states ( some states have reciprocity for brokers only ) : arkansas, Colorado, Connecticut, Georgia, Massachusetts, Mississippi, Oklahoma, Pennsylvania, and West Virginia. As with regular license requirements, each state has its own process for obtaining a license through reciprocity .
step 2 : Take a Prelicensing Course
Estimated price : $ 350+
No matter where you live, you have to take a pre-licensing naturally from an accredited real estate of the realm licensing school before you sit for the real estate license examination. The necessitate phone number of hours varies by department of state. In California, for case, applicants must take three real estate classes totaling 135 hours. In New York and Georgia, the courses take 75 hours ; in Florida, the path takes merely 63 hours. And in Texas, you need 180 hours of coursework .
Most states offer respective ways to fulfill the prelicensing course requirements, including on-line classes, brick-and-mortar real estate schools, and classes at community colleges. You may be able to save money ( and time ) by enrolling in one type of class program over another, so it pays to shop around .
Choose the method acting that works best for your memorize style and agenda. besides, do your research and be selective when it comes to picking a course of study. The choice of the instructors and materials will influence how well prepared you are to take the examination .
step 3 : Take the Licensing Exam
Estimated price : $ 100– $ 300
Your teacher should explain how to schedule, cash register, and pay for the license examination ( if not, visit your state ’ mho real estate commission web site ). Exams are computerized and consist of two parts : a national dowry on general very estate of the realm principles and practices, and a state-specific segment that covers your state of matter ’ mho real estate laws. The exams are multiple-choice format, and the total of questions and time allotted for the examination deviate by state .
Each section is scored individually, and you must receive a legislate grade on both sections to pass. If you fail one or both sections, you ’ ll have the opportunity to retake the examination. Each state of matter has its own rules regarding the number of times you may retake an examination, how long you must wait between exams, and the deadline for completing any retakes .
step 4 : Activate Your very Estate Agent License
Estimated cost : $ 200– $ 400
When you pass the examination, it ‘s clock to submit an lotion and any necessitate documents and fees to your state ’ s actual estate of the realm regulative organization .
When your application is approved, the express will mail your real estate of the realm license security, and your name will be searchable under the licensees ‘ section of its web site. Keep in mind that you ’ re not allowed to work as a actual estate agent before your license is issued by the department of state ’ s real number estate authority—so hold off until you have that license in your bridge player .
pace 5 : Consider Becoming a realtor
Estimated cost : $ 185
many people use the terms real estate of the realm agent and Realtor interchangeably, but they actually differ .
Though both are licensed to help buyers and sellers throughout the real number estate transaction procedure, Realtors are members of the National Association of Realtors ( NAR ) and subscribe to its nonindulgent Code of Ethics .
The National Association of Realtors is the largest deal affiliation in the U.S., representing 1.3 million members who are salesperson, brokers, property managers, appraisers, counselors, and other participants in the residential and commercial real estate of the realm industries .
Though membership is optional, being a realtor can add to your credibility as a real estate of the realm agent. As a Realtor, you ’ ll besides have access to a diverseness of benefits, including :
- Business tools
- Real estate market data, research, and statistics
- Educational opportunities
- Discount programs geared toward helping you succeed in business
For model, Realtors have access to Realtors Property Resource ( RPR ), the largest on-line actual estate database in the U.S., built from public record and judgment information. It includes information on partition, permits, mortgage and spleen data, schools, and a bombastic database of foreclosures .
step 6 : Join a actual Estate brokerage
Estimated price : $ 25– $ 500+ Per Month
As a real estate agent, you work under the umbrella of a supervising broker who is licensed by the country to oversee real estate transactions and make certain you ( and the other real number estate agents ) follow the command legal and ethical standards. In general, you won ’ triiodothyronine earn an hourly wage. alternatively, the brokerage will likely pay you a percentage of the commissions it collects from your real estate transactions .
Depending on the arrangement you have with your brokerage house, you may have to pay for desk fees, technical school fees ( for example, for your web site ), business cards, marketing materials, and other convention costs of doing business. You ’ ll besides have early erstwhile and ongoing expenses, such as renewing your license each year, continuing education, safe-deposit fees, and Multiple Listing Service memberships .
Costs can easily add up to respective thousand dollars per class, so it ’ south authoritative to factor them into your budget when deciding if a career in real estate is correct for you.
The Bottom Line
Getting a real estate license takes fourth dimension and money, but it can help secure a rewarding job in the real estate industry. Keep in mind that a career as a real estate agent can be a flexible as you want it to be. You can limit your hours to mornings three days a week or never work on weekends. The tradeoff, of course, is that this will greatly limit your ability to be successful .
Though you can work part-time as a real estate agent, most successful practitioners treat it as a full-time business, making themselves available to clients throughout the week and on weekends .
For increased flexibility and career opportunities, you may finally decide to get your broke license. You may besides want to consider the diverseness of real number estate designations and certifications available, including those particular to mortgages, appraisals, residential place, commercial place, and place management. These designations can enhance your career and marketability as a real estate professional and increase your earning likely .