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Have you been considering a career in real estate? Do you long for the flexible hours or the ability to run your own business? This article is here to help you get started! Being a successful real estate agent in Chicago, IL, Atlanta, GA, or anywhere in the U.S. is more than just throwing up a couple of “for sale” signs. It takes a lot of intentional time, energy, and focus to market yourself, cultivate relationships with your clientele, and learn the ins and outs of the industry. While becoming a real estate agent is fairly simple, the process varies from state to state, so you’ll want to make sure you complete the correct steps for your state. Keep reading below to discover if the real estate world is right for you and what steps to take to get you there.
Is Real Estate Right For You?
The first question to ask yourself is whether or not a career in real estate is a good fit for you. There are a lot of pros to being a real estate agent, but it is a competitive industry. You’ll need to always stay on your toes and discover new ways to make your business stand out. Here are some of the characteristics that will serve you well as a real estate agent:
- Self-Motivated
- Engaging Personality
- Detail-Oriented
- Excellent at Networking
- Have a Thirst For Knowledge
- Plugged Into The Community
Real estate isn’t all about market trends and numbers; it’s primarily about the connections you make with home buyers, sellers, and other professionals in the community. The ability to go the extra mile for your clients by recommending a contractor or throwing them a closing day celebration will set you apart from the hundreds of other real estate agents in your area. If you are interested in the ever-evolving housing market of the U.S. and enjoy connecting with others in your community, real estate could be the perfect fit.
Research State Requirements
Once you’ve decided that being a real estate agent is right for you, do some research on your state’s requirements for licensure. Typically they require that you are at least 18 years of age and hold a high school diploma or GED, have completed a specific number of real estate education course hours, and pass the state licensing exam. However, certain states require you to be a part of a Real Estate Brokerage and others don’t. Some require practice exams at the end of each course, others allow you to jump straight to the final exam. To ensure that you are taking the correct steps, check out your state’s requirements and follow them to a tee.
Complete Required Education Courses
No matter where you are getting your license, you are required to take a number of relevant real estate courses. Some states will require as little as 60 hours and others up to 300. This series of continuing education courses will cover everything from the basics of real estate to purchase agreements and contract negotiations. Here are the required amount of course hours for different states in the U.S:
The CE Shop is one of the most popular real estate education providers in the U.S., but many colleges, universities, and brokerages also offer certification courses. You can either take these online or in-person, so the process works with your schedule. The cost of the courses will depend on where you take them, but most will cost you around $350 or more.
Pass Your State’s Real Estate Exam
Once you have completed your education hours, the final real estate licensure exam will determine whether you qualify for your real estate license or not. This can have anywhere from 50 to 300 questions and there is a specific score you have to get in order to pass depending on your state. In Michigan and California, the passing rate is 70%, but the passing rate in New Mexico is 75%. With that said, make sure you know what you need to pass the exam before you go in so that you know what to expect from your score.
If you don’t pass the licensure exam the first time, you will be able to take it again! However, there may be a maximum number of attempts, and you will need to pay the exam fee again in order to retake it. Exam fees can range from $100 to $300, so prepare to the fullest before taking it to avoid having to pay that fee multiple times.
Activate Your Real Estate License
Congrats! You have passed your exam and are now ready to apply for your real estate license. In some cases, you’ll need to bring all required application paperwork to the exam and if you pass, the exam proctor will send off your application for you. However, more often than not you will need to send your application off on your own. For the application process, here is what you will need in most scenarios:
- The completed application
- Your passing test score report
- Application fee (varies by state)
In some states such as Arizona and Kansas, you will be required to affiliate with a registered broker in your state. Sometimes you will do this before you submit your application and other times you can do this afterwards; instructions for applying will be on your application and/or on your state’s real estate board website.
Sign On With a Licensed Broker (Varies from state to state)
If you do have to be affiliated with a broker (or simply choose to be), don’t make the decision lightly. You’ll want to choose one that has a dependable reputation, offers helpful tools for its members, and ideally, adheres to RESO standards. Here are some things to keep in mind when choosing a brokerage:
- What is their local and national reputation?
- What systems do they use?
- What types of agents are they looking for?
- Do they provide education and training for agents?
- Do they provide marketing materials and potential leads?
- What benefits do they have?
- What is their commission structure?
- Is there opportunity for growth?
BONUS: Decide If You Want To Be a REALTOR
What’s the difference between a REALTOR and a real estate agent? A REALTOR is a licensed agent who is an active member of the National Association of Realtors (NAR). The NAR is America’s largest trade association, and they aim to help their members have success in their profession and provide tools, support, and education to make it happen.
Not only does becoming a REALTOR allow you to have an advocate in the industry, but it brings credibility to your business. When you are a member of the NAR, home buyers and sellers will see that REALTOR title on your business card and immediately know that you are an agent they can trust.
If you want to join the National Association of REALTORS, obtain your real estate license first. Once you have that, join a local REALTOR association, pay the one-time application fee, and make sure to keep up with your annual membership dues.
