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A real estate career refers to a profession in the buying, selling, renting, or managing of properties such as homes, apartments, commercial buildings, and land. Real estate professionals include real estate agents, brokers, appraisers, property managers, and real estate developers, among others. A career in real estate can be rewarding and challenging, offering opportunities for professional growth and financial success. However, it requires hard work, strong communication skills, and knowledge of the local real estate market, among other factors.
A real estate agent or broker career offers high earning potential and is comparatively easier to pursue than other similar professions. This career has several perks, including independence, networking opportunities, and the satisfaction of helping people through significant life milestones. However, a thriving real estate career requires substantial effort, dedication, and a better understanding of the profession’s nuances. To determine if a career as a real estate agent or broker is suitable for you, let’s explore the profession more closely.
Steps to Become a Real Estate Agent
Here are the general steps to becoming a real estate agent:
Research state requirements:
Before becoming a real estate agent, it’s essential to research the eligibility criteria and requirements set by the state where you want to practice. Each state has different pre-licensing education requirements, age limits, residency requirements, and background checks, which may include criminal history and financial solvency.
In some states, applicants need a certain level of formal education or work experience, while in others, they may need to complete specific pre-licensing coursework. Knowing the requirements for your state is crucial in making informed decisions about your career path and investment in education and training. You can typically find the relevant state requirements on the website of the state’s real estate commission or licensing board.
Complete pre-licensing education:
Completing pre-licensing education is an essential step to becoming a real estate agent. It’s important to note that the pre-licensing education requirements vary from state to state. Typically, pre-licensing coursework covers topics such as real estate principles and practices, contracts, property management, finance, and real estate law. The number of hours required to complete the pre-licensing coursework also varies by state.
Many states offer pre-licensing coursework online, making it convenient to complete the required education from home. After completing the pre-licensing coursework, aspiring real estate agents must pass a state-administered pre-licensing exam. Passing the exam requires a thorough understanding of the coursework and the state-specific regulations. Therefore, it’s essential to select a reputable and approved pre-licensing education provider and to prepare adequately for the exam to increase your chances of passing.
Pass the licensing exam:
Passing the real estate licensing exam is a crucial step in becoming a licensed real estate agent. The exam tests the knowledge and skills gained through pre-licensing education and assesses an individual’s ability to conduct real estate transactions. The licensing exam is typically divided into two parts: a national portion and a state-specific portion. The national portion covers general real estate concepts that are applicable across the United States, while the state-specific portion covers state-specific real estate laws and regulations.
To pass the exam, it’s important to study and prepare adequately, as the exam can be challenging. Many states provide study materials and practice exams to help aspiring agents prepare for the licensing exam. Passing the exam demonstrates a level of competence and knowledge required to practice as a licensed real estate agent, allowing individuals to move on to the next steps toward building a successful career in real estate.
Register with the state:
Once an individual has successfully passed the real estate licensing exam, the next step is to register with the state and obtain a real estate license. The licensing process typically involves submitting an application to the state’s real estate commission or licensing board, which may require additional information such as proof of pre-licensing education completion and exam scores.
The application may also require the submission of fingerprints and background checks. It’s important to note that real estate licenses need to be renewed periodically, and continuing education requirements may also be necessary to maintain the license’s validity. Obtaining a real estate license allows individuals to legally conduct real estate transactions in their state and work as a licensed real estate agent under a broker or start their brokerage. The license provides credibility and enables individuals to build their careers and reputation in the real estate industry.
Consider a broker:
After obtaining a real estate license, an individual needs to decide whether to work under a licensed broker or start their brokerage by obtaining a broker’s license. Working under a licensed broker provides new real estate agents with the opportunity to learn the ropes of the business, gain practical experience, and build their network. The broker provides guidance, support, and resources, making it easier for new agents to get started in the real estate industry.
On the other hand, obtaining a broker’s license allows agents to start their brokerage, set their own rules, and operate independently. However, starting a brokerage requires a higher level of experience, knowledge, and resources than working under a broker. It also comes with more responsibilities, such as managing transactions, overseeing agents, and ensuring compliance with state regulations. It’s important to consider the advantages and disadvantages of both options and evaluate personal goals, experience, and resources to determine which path is the right fit.
Join a real estate brokerage:
Joining a reputable brokerage that aligns with your career goals and values is an essential step to building a successful real estate career. When selecting a brokerage, it’s important to consider factors such as the brokerage’s reputation, size, culture, and training programs. Working with a reputable brokerage provides new agents with access to an established network of clients, resources, and industry expertise.
The brokerage’s culture and training programs also play a significant role in an agent’s success. A supportive and collaborative work environment, along with access to training and development opportunities, can help new agents grow and gain the skills and knowledge needed to succeed in the industry. Moreover, joining a brokerage that aligns with your career goals and values can help you stay motivated and engaged in your work, making it easier to achieve success in the long run. It’s essential to research and considers multiple options and evaluates the pros and cons to make an informed decision that will benefit your career in the long term.
Gain experience:
Working under a real estate broker provides new agents with valuable practical experience, helping them build their skills, learn the local market, and build their network. Brokers are experienced real estate professionals who can provide guidance, support, and advice to new agents as they begin their careers. Working under a broker also provides access to the brokerage’s resources, including marketing materials, administrative support, and networking opportunities.
New agents can learn from their colleagues’ experiences and leverage their network to find clients and build relationships with other professionals in the industry. As new agents gain experience and establish themselves in the industry, they may have the opportunity to take on more responsibilities and work more independently, with the support and guidance of their broker. Working under a real estate broker is an essential step in building a successful real estate career, and it provides a solid foundation for long-term success in the industry.
Keep learning:
In the real estate industry, it’s essential to keep learning and staying updated on industry trends, regulations, and best practices. Real estate laws and markets are constantly evolving, and staying current on these changes can help agents provide better service to their clients and stay ahead of the competition. Continuing education courses, workshops, and industry events are great ways to stay informed about the latest industry developments and network with other professionals.
Reading industry publications, attending webinars, and following industry leaders on social media can also provide valuable insights and knowledge. In addition to staying current on industry trends, it’s also essential to have a solid understanding of the local market. Knowing market conditions, trends, and pricing strategies can help agents provide accurate advice to their clients and make informed decisions about their own businesses. By keeping learning and staying up to date on industry trends and regulations, real estate agents can improve their skills and knowledge and build a successful and sustainable career in the industry.
Please note that specific requirements may vary by state, and it’s advisable to check with the state’s real estate commission for precise eligibility criteria and steps.
