Real estate is a very lucrative industry, with high returns and promising future; it’s a no wonder many people want in. If you are considering joining the 2 million plus real estate licensees in America, but are wondering how to go about the process, then you are in the right place. This article will highlight some steps on how you can become a real estate agent.
Buying and selling estate is not an easy task as many would love to assume. The industry is notoriously tough for newcomers. So much so that about 87% of all newbies fall within the first five years. That’s why you need to analyze the pros and cons of joining real estate first before hopping right in.
Without further ado, here is how to become a real estate agent
Research the requirements of your state
Each state has a unique licensing requirement, so you’ll need to find out what yours is. The best place to start is the real estate regulatory office website of your state, which you can easily find by searching “(state name) real estate regulatory office” online. The requirements of each state differ in terms of age, fees and application process, education requirements, background checks, pre-licensing training, post-licensing requirements and so on.
Take a pre-licensing training
You’ll need to take a pre-licensing course from an approved institution before sitting for the real estate licensing test. The course covers everything you need to know about real estate, including real estate principles, practices and the legal aspect of the business. It takes about 60 hours in some states, and 135 in others to complete. You can check your state’s real estate commission’s site for more information on licensing and certified institutions. These courses are available online or in person – whichever you pick will depend on your preference and needs.
Take a licensing exam
Once you are through with the course, you will need to take a licensing exam, which features two sections: one on federal real estate laws and general principles and the other on state-specific laws. The two feature 60-100 multiple-choice questions, including some calculations. Note that about 50% of people fail this test on their first attempt and that you only have two years to retake the test. Otherwise, you’ll have to retake the pre-licensing course. It’s therefore important to prepare adequately so you won’t have to resit the exam. One of the best ways to do this is by using a real estate prep guide which prepares you psychologically and also gives you a feel of how the real exam will be.
Become a realtor
A realtor has more credibility than a real estate agent because they are members of the National Association of Realtors and adhere to its codes of ethics. Being a realtor opens you up to a range of benefits, business tools, research & statistics, real estate market data, discount programs and educational opportunities designed to help you succeed in business.
Join a real estate broker
You’ll need to work under an overseeing broker to practice legally as a real estate agent. Brokers are accredited by the state to supervise real estate activities and make sure that the agents are complying with the specified legal and ethical standards.