If you’ve ever dreamed about becoming a real estate agent, the current market could be influencing you to follow this path more than ever before. While it can be a lucrative and fulfilling job with freedom and flexibility, it’s not easy to become a real estate agent. Even more than that, building your brand and your business can be incredibly challenging.
The following are things to know as far as the process of becoming a real estate agent.
Minimum Requirements
Once you’ve decided that being a real estate agent is a path you want to pursue, you have to meet the minimum requirements. You don’t need a bachelor’s degree in the U.S., but you’ll probably need a high school diploma or GED depending on your state. Even if you don’t need a high school diploma for the license itself, the real estate course you have to take may require it.
All states also require that you meet a minimum age standard, which is either 18 or 19.
The first step you need to take overall, if you’re considering a career in real estate, is to know what your state’s requirements are. This will dictate the specifics of your path, and every state is different.
The Course and Exam
You will usually have to take a certain number of hours of instructional time, as mandated by your state. The real estate course might take place in a classroom setting, or you can opt for an online course. Some states may have a minimum of 40 hours of instruction time, and others have up to 300 hours.
Once you’ve chosen a course or real estate school, you’ll have to complete the pre-licensing coursework.
Some of the bigger name companies like Coldwell Banker offer classes, often at a discounted fee if you work for them after you get your license.
You’ll have to take a real estate license exam following the completion of your coursework. This is a state test, and it’ll cover a lot of ground, including how to work with clients, negotiations, and it will make sure you understand how to follow real estate law.
Each state will have a minimum score you must get to pass. You can retake it if you don’t pass the first time, but some states will outline a period of time you have to wait before you can retake it, or maybe a maximum number of attempts available.
On-the-Job Experience
Once you’ve passed your licensing exam, it’s time to start working. What you’ll need to do is work under a licensed broker who is experienced. The idea is that you’re, in turn, learning from their experience. The specifics of how you work are up to you in many ways. For example, you might work on a team, or you could work on your own at a brokerage.
What to Keep In Mind
There are a few things to keep in mind initially as you decide whether or not real estate could be the right career for you.
First, you have to understand that you need some money set aside while you’re getting started in your new career. You’re not going to earn anything until you close your first deal. Plan to have at least enough money for six months’ expenses set aside, and maybe more because you might not close a deal right away even after you’re working. Some brokerages do pay a salary, or you might have to keep working another job while you start building your career in real estate.
You’ll also have to know not just the basics of real estate, but you’ll have to delve in and learn your market. That’s where on-the-job experience comes in. You can’t learn everything you need to know about real estate from the class alone. Real estate is about continuously learning and growing in your career.
Finally, if you’re someone who has trouble with change or isn’t very adaptable, it’s unlikely you’ll thrive in a real estate career. Real estate is constantly changing and is affected by so many variables. If you’re someone who doesn’t do well in these situations, it’s a career you’re probably going to find isn’t right for you. There are downturns, and everything from the local economy to the federal unemployment rate are all going to influence the real estate market.
