Real estate holds a special allure for young individuals starting their careers. In fact, many people advocate for beginning a career in real estate right after graduating from high school and wonder whether a four-year degree is necessary to pursue a career in this field. Here, we outline the education requirements to become a real estate agent and the benefits of having a degree compared to attending university.
General Education Requirements to Become a Real Estate Agent
Unlike many other professions, becoming a real estate agent does not require a four-year degree. Typically, it takes four to six months to become a real estate agent, depending on the specific requirements of the state. Although requirements may vary from state to state, most states require candidates to:
- Be at least 18 years old
- Be a legal citizen of the United States
- Have a high school diploma or equivalent
- Complete pre-licensing coursework
- Participate in and pass the real estate exam
Real Estate Education Requirements by State
To become a real estate agent, you need a state license and must pass the state's exam. Each state has its own regulations regarding real estate licensing requirements, and this process can vary from one state to another. The requirements of the pre-licensing process are determined by the Commission or Department of Real Estate of each state. Holding a license in a specific state allows you to operate as a legal real estate agent within that state.
The Difference between a Real Estate Agent and a Real Estate Broker?
Although these two roles share many daily responsibilities, the main difference lies in the license and experience.
A real estate agent is what most people think of when it comes to the real estate industry. Agents are individuals who hold a real estate business license and can legally sell real estate within their state. They are responsible for interacting with clients, organizing open houses, and handling tasks related to selling a property. This is the starting point for those looking to enter this industry.
A real estate broker, on the other hand, holds a license to own a real estate company. This individual must take a broker's certification exam and, upon meeting the licensing requirements, can independently sell real estate or choose to open a managing broker company and supervise other agents. An agent cannot work independently and must work under the supervision of a licensed broker.
While this definition applies in most states, there are some exceptions. It is always best to check the specific requirements of your state to clarify.
The Benefits of a Real Estate License vs. a Four-Year Degree?
A four-year college degree, although a great experience for many, is not always suitable for everyone, especially in a generation faced with more financial and societal uncertainties than previous generations. Four years is a long time, and many individuals have found that attending college is not a guaranteed safety net for securing a job. A recent survey found that nearly 40% of college graduates feel their degree is not worth it, mainly because they cannot obtain a job in their chosen field or do not use the degree in their career.
Even when the final degree is beneficial, there is often time and money wasted before reaching that point: 80% of students actually change their major when they reflect on what they want and who they want to become. Going to college has been costly, even without adding extra semesters to pursue a different major.
Many students fear not being able to afford tuition and worry that after graduation, they will be burdened with debt or have to work to pay off their loans. The cost of living and moving adds further strain on severe financial situations, to the point where over 25% of college programs have a negative return on investment (ROI) for students.
All these factors have led a generation of young individuals to understand that a college education may not be the right choice for them. The truth is, over half of students and their families are willing to consider alternatives to college, and careers in real estate are becoming a top choice.
The Benefits of Becoming a Real Estate Agent?
Compared to concerns about college, having a real estate license and starting a career in the real estate industry can be a sound financial move. A career in real estate brings many benefits, both in the short and long term.
Short-Term Benefits
If you choose not to attend a four-year college, a job in the real estate industry allows you to start your career immediately. This is a great short-term benefit, allowing you to enter the workforce without debt and get a head start in the industry.
The cost of the real estate licensing process (ranging from $100 to $1,000) is also significantly lower than the cost of a college degree, with additional benefits when it comes to increasing your income, as 92% of real estate agents report feeling optimistic about their financial future in this line of work.
However, this does not mean that you do not need to prepare to secure a job in real estate. Education and training are essential parts of starting a career in real estate, but this learning can be done alongside a job that generates income, meaning you do not have to put your life on hold.
Long-Term Benefits
Compared to the negative ROI of many college degrees, the long-term ROI of a career in real estate has a brighter story. Real estate is one of the highest-paying industries you can enter without a college degree, with an average salary of $49,040, and that number increases as you accumulate experience.
Moreover, working in the real estate industry offers the potential for unlimited earning potential. There is no fixed limit to your ROI. If you build relationships with clients and have a reputation for quality, you can have unlimited opportunities to work on high-value projects and assets.
Believe it or not, even if you eventually leave the real estate industry to pursue another job, that experience can still translate to your new career. While a degree holder may sound good on paper, a four-year program may lack the practical skills and knowledge needed to succeed in a job. Employers often have to provide additional training to recent graduates, and they are increasingly seeking new candidates with more real-life experience rather than classroom experience.
Is Real Estate Right for Me?
The good news is that you do not have to choose between studying and a job in real estate. Whether you want a four-year college degree or not, a real estate job will provide learning opportunities in many ways, through both life experiences and continuous learning programs. The world does not demand a college degree, so do not pursue one just to fulfill an obligation. There are many career paths, such as real estate, that can bring an equally rewarding sense of accomplishment.
