Do you dream of working in the real estate industry? Would you like to have flexible hours and the opportunity to run your own business? This article will help you get started! Becoming a successful real estate agent in the United States is more than just putting up a few "for sale" signs. It requires time, energy, and focus to promote yourself, build relationships with clients, and learn the ins and outs of the industry. While becoming a real estate agent is relatively easy, the process varies from state to state, so you'll need to ensure you follow the correct steps for your state. Keep reading this article to discover if the real estate world is right for you and what steps you need to take to become a part of it.
Is the Real Estate Industry Right for You?
The first question you need to ask yourself is if a career in real estate is suitable for you. Being a real estate agent has many advantages, but it is a competitive field. You will need to be constantly vigilant and find new ways to make your business stand out. Here are some characteristics that will be useful as a real estate agent:
- Self-motivated
- Friendly personality
- Attention to detail
- Excellent networking skills
- Desire for knowledge
- Connected to the community
In the real estate industry, it's not just about market trends and numbers; it's primarily about the connections you establish with buyers, sellers, and other professionals in the community. The ability to go the extra mile for your clients, whether it's recommending a contractor or organizing a celebration on closing day, will set you apart from the hundreds of agents in your area. If you're interested in the ever-evolving US real estate market and enjoy interacting with people in your community, the real estate sector could be perfect for you.
Research State Requirements
Once you've decided that becoming a real estate agent is right for you, take some time to research the requirements in your state for obtaining a license. Typically, you will need to be at least 18 years old and have a high school diploma or equivalent. You'll also need to complete a certain number of hours of real estate training courses and pass the state exam to obtain your license. However, some states require you to be affiliated with a real estate agency, while others do not. Some states have practical exams at the end of each course, while others allow you to go straight to the final exam. To ensure you're taking the right steps, consult the requirements for your state and follow them precisely.
Complete the Required Training Courses
Regardless of where you obtain your license, you'll need to complete a series of relevant real estate courses. Some states require as few as 60 hours, while others require up to 300 hours. These courses cover everything from the fundamentals of the real estate industry to purchase agreements and contract negotiations. Here is the required number of course hours for different states in the United States:
The CE Shop is one of the most popular providers of real estate training in the United States, but many colleges, universities, and brokerages also offer certification courses. You can take these courses online or in-person, depending on your schedule. The cost of the courses will vary depending on where you take them, but most will cost around $350.
Pass the State Real Estate Exam
Once you've completed your training hours, the final exam to obtain your real estate license will determine if you're eligible to receive it. The exam can have anywhere from 50 to 300 questions, and there is a specific score you must achieve to pass, depending on your state. In Michigan and California, the passing rate is 70%, while in New Mexico, it's 75%. Make sure you know what you need to pass the exam before taking it, so you have an idea of what score to expect.
If you don't pass the license exam on your first attempt, don't worry! You can retake it. However, there may be a maximum number of attempts allowed, and you'll have to pay the exam fee again. Exam prices can range from $100 to $300, so make sure you're well-prepared to avoid having to pay this fee multiple times.
Activate Your Real Estate License
Congratulations! You've passed the exam and are ready to apply for your real estate license. In some cases, you'll need to bring all the necessary documentation to the exam, and if you pass, the exam proctor will submit the application on your behalf. However, you may need to submit the application yourself. In most cases, these are the documents you'll need to provide:
- Completed application
- Exam score report
- Application fee (varies by state)
In some states, such as Arizona and Kansas, you'll be required to affiliate with a registered broker in your state. Sometimes, you'll do this before submitting the application, while other times you can do it afterward. Instructions for affiliating will be included in your application and/or on the real estate council website in your state.
Affiliate with a Licensed Broker (Varies by State)
If you need to affiliate with a broker (or just decide to do so), don't make the decision lightly. You'll want to choose one with a reputable reputation, useful tools for its members, and ideally, RESO compliance. Here are some things to consider when choosing a broker:
- What is their local and national reputation?
- What systems do they use?
- What type of agents are they looking for?
- Do they provide education and training for agents?
- Do they provide marketing materials and potential leads?
- What advantages do they offer?
- What is their commission structure?
- Are there growth opportunities?
BONUS: Decide if You Want to Become 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 the largest trade association in the United States, and its goal is to help its members succeed in their profession by providing them with tools, support, and training.
Becoming a REALTOR® not only gives you an advocate in the industry but also adds credibility to your business. When you're a member of the NAR, homebuyers and sellers will see that REALTOR® title on your business card and immediately know that you're an agent they can trust.
If you want to join the National Association of Realtors, first obtain your real estate license. Once you have it, join a local real estate agents' association, pay the one-time application fee, and make sure you stay up to date with annual dues.