Becoming a Real Estate Agent: A Challenging but Attainable Dream
There are a couple of million real estate agents working in the U.S. at any given time and Google analytics shows that thousands more conduct searches about a career in real estate every month. It’s not surprising since the potential income of a great realtor can reach close to $200,000 a year and the career allows much more autonomy and schedule flexibility than many jobs.
But becoming a realtor isn’t as simple as many people believe, and only about a tenth of all working realtors will reach that six-figure income. The reality is that real estate agents average about $50,000 a year and those making more are working their butts off for it. If other aspects of the job appeal to you, and you’re not afraid of hard work and long hours, becoming a realtor can be a great choice. Here’s what you need to know.
Training and Education
One of the appealing aspects of a career in real estate is that it doesn’t require you to spend the time and money to get a degree. Now, it may be very beneficial for you to have a degree in marketing or business, especially if you hope to run your own shop, but it isn’t a requirement.
Real estate agents are required to be licensed in the state in which they practice. In order to get licensed you’ll need to take a pre-licensure realtor course. If you check out your state’s government site, you should be able to find a list of state-approved courses. There are plenty of scams out there, so be sure to find a legitimate course.
The amount of time it takes to complete this course will vary by state but usually ranges somewhere in the 60 to 120 hour range. The cost of the course should be in the $300 to $400 range, so if it costs a lot less or a lot more than that you might want to question the source. In these courses you’ll learn all the basics of a career in real estate from understanding what is MLS and how to use it to state regulations that you need to abide by.
Licensure
Once you’ve taken your realtor courses, you’ll need to take your state’s licensing exam. The good news is that the process is pretty simple. You should be able to find out everything you need to know about testing on your state’s government website. It also isn’t expensive to test, again running in the low hundreds. The test itself is usually about 200 multiple choice questions that will cover topics pertaining to both federal and state regulations.
So, what’s the bad news? Well, first-time failure rates can run as high as 50%. In most states, you can take the test as many times as you can afford for about 2 years. After that period of time, if you still haven’t passed, you’ll be required to take your pre-licensing course again. So, not passing on the first couple of attempts could end up costing you hundreds of dollars and a lot of time. Once you’ve passed your test you’ll need to activate your license through your state’s website at a cost of around $500 and you’re technically ready to go.
Next Steps
Although not an actual requirement, you should definitely consider becoming a member of the National Association of Realtors. You don’t have to, but non-membership can put you at a disadvantage to member realtors.
You’ll also want to buy a membership to your local MLS. The cost of this membership varies extremely depending on which area you will be working in, so start saving for it before you need it.
Finally, you’ll need to sign up with a brokerage that is tasked with supervising your professional activity to ensure that you are following regulations and operating fairly. Not all brokerages are the same, so consider carefully prior to joining.
Becoming a realtor is easier than getting a master’s degree, but it certainly isn’t easy. It is however something you can achieve while maintaining your current job and for a pretty low financial investment, so you can try it out without a high level of stress or consequence.
