Requirements For Real Estate Agents
All real estate agents need to be licensed in their state. Additionally, most states require agents to work under the supervision of a broker. To maintain a real estate license, agents need to complete several continuing education hours and submit a renewal application.
Some states allow agents to work without brokers. Check your state’s requirements to see if you can operate as an independent real estate agent. Being an independent real estate agent means that you may be able to set your own commission prices, potentially increasing the amount you earn from each sale.
Brokers can provide valuable services throughout the sales process, including listing and advertising the property and negotiating sales. In some cases, their services are worth the cost.
How Competitive Is Real Estate What About Technologys Effects On The Real Estate Industry
Real estate is a competitive industry, but, just like any other sales job, networking and developing relationships are key to a successful career. However, in the 21st century, competition is not only with other realtors but with technology itself. Customers can find a plethora of information on properties before even reaching out to a real estate agent or brokerage. On the other hand, technology allows agents to market themselves and conduct business on their social media platforms. Learn how to leverage the competition to your advantage and show how you differ from the rest.
Real Estate Classes And Exam
Before you can take the real estate license exam, you will take classes in subjects like real estate fundamentals, real estate law, and mortgage financing.
You can take these courses at a community college, state college, or university to earn a certificate, an associate degree, or a bachelors degree in real estate. Pressed for time and need a flexible schedule? You can also take real estate classes online.
Need some help paying for your classes? Check out these real estate agent scholarships that can help cover some of the cost of your education.
The number of required hours and classes you must complete are different in every state, but usually include 60 to 90 hours, and take anywhere from three to six months.
Along with your passing your real estate license exam, some states also require you pass a background check. Furthermore, you must renew your license every two to four years by taking continuing education courses.
For additional information about how to become a real estate agent, see:
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Consider What It Means To Be A Real Estate Agent
Before you embark on a career as a real estate agent, you need to consider whether it will be the best career choice for you. Real estate requires you to adapt to flexible work hours, have top-notch organizational and communication skills, and be interested in the housing markets statistics and trends.
Create A Plan For The Future
22. Draft a business plan you probably arent going to know what to include in your plan initially, but setting some basic goals and a budget for the next 90 days is the perfect place to start.
23. Outline your goals for each week setting realistic goals will keep you on track and can help you avoid feeling overwhelmed. You can also review your goals with your broker or mentor to get additional feedback and make sure youre on the right track.
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Real Estate Agent Requirements
To be a real estate agent, most states require you to:
- be at least 18 years old
- complete a number of hours of real estate courses
- pass a licensing exam
In some states, you must be sponsored by a broker while working to get your license. Real estate companies may provide additional training when you join them and will have you work with an experienced agent while you learn the ropes.
Invest In An Accountant
Taxes comprise a significant portion of a real estate investors yearly expenses. Understanding current tax laws can be complicated and take time away from the business at hand. Sharp real estate investors retain the services of a qualified, reputable accountant to handle the businesss books. The costs associated with the accountant can be negligible compared to the savings that a professional can bring to the business.
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What’s It Like To Be A Real Estate Agent
A Real Estate Agent may specialise in the sale, purchase or leasing and management of residential, commercial, industrial or agricultural property whether it be existing dwellings, off the plan or vacant lots of land.
Tasks and duties
- Seeking out prospective vendors and identifying potential buyers.
- Promoting sales of properties through brochures, open houses, print and online listings.
- Presenting properties and accompanying prospective buyers during property inspections.
- Writing vendor reports, appraising properties, preparing contracts and documents, negotiating terms between buyers and sellers and facilitating settlements.
- Advising clients on market conditions, prices, mortgages, legal requirements and related matters, such as construction work, financing, maintenance, repairs, and appraisals.
- Developing networks of solicitors, lenders, and tradespeople to whom clients may be referred.
As a Real Estate Agent, you are in the people business so face-to-face meetings and phone calls are a big part of the job. You will be responsible for presenting properties in the best possible light, highlighting their key selling attributes in order to obtain the best price for the vendor whilst being remunerated in commissions.
Many Real Estate Agents work on weekends, particularly those in residential sales, as this is the time when auctions and open inspections typically occur.
Understanding Your Market Will Take You Far
Top-earning real estate agents have one thing in common: They know their local real estate market. Beyond the official requirements and formal information youll learn throughout your coursework, you need to understand your local market to understand what potential buyers want. Say youre working as an agent in El Paso. Your clients will frequently ask you questions like:
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Build An Online Presence
Customers choose real estate services based on the brand, the real estate professional behind the brand, and that persons reputation. Your website is often the first contact point between you and potential clients. Make that first impression a good one with a well-designed site.
According to a study on homebuyers, 90% start their search online, and 40% contact a real estate agent after researching the web. You must be on the Internet to compete in the real estate market.
Ensure that your website design truly embodies your real estate brand. Visitors should understand who you are, the services you offer, and your qualifications and reputation.
Your real estate website design and marketing copy should project your personal or brokers brand voice and identity. Here are some suggestions:
- If you work as a real estate agent, include a photo and bio. Homebuyers want to know the person behind the site.
- Be authentic and avoid marketing happy talk. Speak the same language as your customers.
- Include high-quality examples of sales youve closed, and make sure to include social proof wherever possible.
- Give site visitors an easy way to get in contact with you.
Budget For Additional Costs
Paying for the coursework and splitting your commission with your broker are obvious fees, but wait, theres more! Outside of those, youll need to factor in the fees that go with any organizations/associations/groups you are a part of. For example, you might pay fees to a local realtor association and access to the local Multiple Listing Service. It doesnt matter which brokerage you choose these fees are paid regardless.
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Learn From The Best: How Barbara Corcoran Bounced Back
OK. Now that youve got some tools to help build your resilience, lets take a look at another real-world example from Barbara Corcorans improbable rise to success. In this TEDx talk, she goes over exactly how she picked herself up and turned a humiliating public speaking failure into a career-defining moment. I highly doubt Corcoran knew about any of the tools we talked about when she bounced back, but as youll see, she used almost all of them.
Start Your Real Estate Career
Congratulations on taking steps to begin your Arizona real estate career as a Salesperson or Broker. The steps below are intended to assist you in exploring the licensing requirements, and provide you with the steps to submit your application.
Real Estate License Candidates should review the Candidate Handbook, .
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More Money Less Problems
Making more money could arguably be called the most important incentive when it comes to changing careers. 65% of people surveyed said they got their real estate license because they thought real estate would offer them the opportunity to earn a living. The unlimited income potential is yet another way in which real estate careers offer unmatched flexibility.
Since real estate agents have the flexibility to control their commission-based income, theyre not limited to a specific hourly wage or salary. In fact, 57% of agents surveyed said that they have earned more than they expected in their work as a real estate agent. Working smart can increase your income without requiring more of your time.
Consider Becoming A Realtor
Many people use the terms real estate agent and realtor interchangeably, but these terms differ. Though both are licensed to help buyers and sellers throughout the real estate transaction process, Realtors are members of the National Association of Realtors and subscribe to its strict Code of Ethics.
The National Association of Realtors is the largest trade association in the U.S., representing 1.5 million members who are salespeople, brokers, property managers, appraisers, counselors, and other participants in the residential and commercial real estate industries.
Though membership is optional at a cost of approximately $185, being a realtor can add to your credibility as a real estate agent. Youll also have access to a variety of benefits, including:
- Real estate market data, research, and statistics
- Educational opportunities
- Discount programs geared toward helping you succeed in business
Realtors have access to Realtors Property Resource , the largest online real estate database in the U.S., built from public records and assessment information. It includes information on zoning, permits, mortgage and lien data, schools, and a large database of foreclosures.
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A Career In Real Estate
As a career, real estate really is what you make it. There are so many different kinds of real estate careers, from residential to commercial, business broking and buyers agent just to name a few. We often hear that real estate professionals enjoy the flexibility and lifestyle this profession can provide. Check out a few more of the benefits of a real estate career below:
Decide Your Legal Business Structure
Most real estate agents operate as self-employed business owners affiliated with a licensed real estate brokerage firm. In this case, agents run their independent businesses but under the supervision of a licensed managing broker.
Opening your brokerage has some similar considerations, but with an expanded focus. In most states, opening your real estate brokerage firm also requires a special type of real estate license. In both cases, you are starting a business.
Brokerage seeking entrepreneurs generally select one of four legal business structures: sole proprietorship, partnership, limited liability company , or a corporation. Heres a basic breakdown of each:
- Sole proprietorship this is the most basic business entity. A sole proprietorship means that one person is solely responsible for a business profits and debts.
- Partnership a partnership is a shared responsibility between two or more people who hold personal liability for a business.
- Limited Liability Company a structure that permits owners, partners, or shareholders to limit personal liability but still includes tax and flexibility benefits associated with a partnership.
- Corporation this is an entity legally considered separate from its owners. That means that corporations are permitted to own property, be held liable, pay taxes, and enter contracts.
If you start in business on your own and opt not to incorporate or form an LLC, by default, you are a sole proprietor.
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What Is An Accountant
The term accountant refers to a professional who performs accounting functions such as account analysis, auditing, or financial statement analysis. Accountants work with accounting firms or internal account departments with large companies. They may also set up their own individual practices. After meeting state-specific educational and testing requirements, these professionals are certified by national professional associations.
Is Being A Real Estate Agent Worth It
Only you can determine if being a real estate agent would be rewarding for you. As weve laid out, there are many pros to a career in real estate, including salary/earning potential, a flexible schedule, and plenty of room for growth and leadership opportunities. While determining whether or not the challenges and obstacles of a career in real estate feel worthwhile is your decision to make, a career in real estate is certainly a great option if youre looking for a new, exciting, and versatile career path.
Find your state, and get started with online real estate classes today.
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Take The Licensing Exam
Your instructor should explain how to schedule, register, and pay for the licensing exam. The average cost of the test is $100-$300. Exams are computerized and consist of two parts: a national portion on general real estate principles and practices, and a state-specific section that covers your states real estate laws.
The exams are multiple-choice format, and the number of questions and time allotted for the exam vary by state. Each section is scored separately, and you must receive a passing grade on both sections to pass. If you fail one or both sections, youll have the opportunity to retake the exam. Each state has its own rules regarding the number of times you may retake an exam, how long you must wait between exams and the deadline for completing any retakes.
Real Estate Agents Schedules: The Cons
Having a flexible schedule in real estate means being adaptable and responsive to the clients needs. With a career in real estate, you tend to work when everyone else is notthat includes weekends. Can you drop everything and be attentive to their needs if a client calls, even if its time you usually spend with your friends or family?
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Real Estate Careers: The Pros
In most states, you can complete the required real estate courses, become a licensed real estate agent, and start your new career in just a matter of weeks or months . The process is different based on location, yet it usually takes months to complete a course and final exams and then study for your licensing exam. After the licensing exam, you will activate your license. Then, as a real estate agent, you can either work for yourself or a brokerage. However, when you are starting out, working for a brokerage is the best way to test your real estate skills and build your network of clients. For your knowledge, some brokerages do have extra training, so you learn how it operates and its branding.
Form A Real Estate Llc
A limited liability company refers to a business structure set up to protect business costs from interfering with an investors personal finances. The designation allows investors to purchase and own real estate, without involving personal liability. Each state has different fees and regulations associated with establishing an LLC, though the overall process is largely the same:
Confirm the regulations in your state before getting started
Choose a unique business name
File an Article of Organization with your state
Create an operating agreement for the business
Publish an intent to file
Apply for a tax identification number through the IRS
After you form your LLC, a few other permits may be required before you can officially open for business. Confirm with your state what these are, and youll be on your way to securing your first deal.
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If You Are A New Agent With Exp Realty We Would Also Recommend:
24. Activate your lead generation website and start sharing your new website and/or local company listings on Facebook and other social media sites.
25. Create a list of interesting links from your KVCore lead gen site and post them on your new Facebook business page and Twitter. Examples include open houses this weekend, price reductions on Mondays, homes that were just listed this week, and complimentary home valuation posts.
26. Attend Fast Start orientation classes for new real estate agents and the eXp New Agent University.
27. Schedule a consultation with your sponsor and/or mentor.
28.Add your picture and bio to all the eXp Realty agent rosters and referral networks .
29. Check out the full line up of classes each week at EXPcloud.com
30.Ask for buyer leads! Many agents in your area may have extra KVCore website leads that they would be willing to share with you in return for a referral fee.
31.Offer to host an open house. You can visit eXp Workplace, find your state or city, and add a post that you are willing to host open houses this weekend. This is a great way to find and connect with potential home buyers.
Editors note: This articlewas created by Kerry Lucasse, Founder of Building Better Agents and REALTOR at eXp Realty.Information deemed reliable but is subject to change.