How To Become A Real Estate Agent
Whether it’s a change of profession or a dream job, entering the world of real estate is a good career choice.
Do you love sizing up different houses and apartments whenever you go out? Or watch reality housing shows night after night? Do you enjoy a new challenge each day?
If you love housing and have a knack for understanding the property market, you’ll make an excellent real estate agent.
Real estate is suited to an outgoing person who has a way with words when dealing with people and properties. As a real estate agent, you will need to find the perfect home for all your clients.
If you’re considering becoming a real estate agent, you will need to take a real estate licensing exam. Follow our steps to becoming a licensed realtor by taking real estate courses on the license application and professional real estate.
We’ll share the advantages and disadvantages of real estate, and you can assess whether it is the right career for you. A real estate education can help you on this new career path.
You might even be thinking of starting your own business in real estate. We’ll cover the steps to starting a successful real estate brokerage.
What is a real estate agent?
A real estate agent is essentially someone who aims to sell real estate. As the middleman between buyers and sellers, licensed real estate agents negotiate property transactions to get the best price.
Real estate agents work with an associated broker, who is a more experienced and qualified person. They also spend a lot of time coordinating with banks, mortgage brokers, surveyors, and solicitors.
From overseeing residential real estate to commercial, real estate agents need a real estate salesperson license. It is a legal requirement to have a sales license before you start assisting in selling, buying, and renting property.
There are several different areas of real estate to specialize in residential sales or lettings and commercial sales or lettings. Usually, a real estate agent focuses on one.
Often working weekends and evenings to suit their clients, agents spend most of their time with people.
What does a real estate agent do?
A typical working day of a real estate agent involves working in and out of the office. Traveling around to see properties and taking prospective buyers with you is a large part of the job.
Social skills are a must. Real estate agents spend plenty of time talking to people, in particular, trying to please clients. A friendly, outgoing attitude will encourage all parties to trust your judgment and advice.
Before selling or renting a property, a real estate agent or broker will inspect, taking information and photographs. They will also talk to the sellers about the property and whether it has any special features that will help it sell. Or anything that might disadvantage it.
A real estate sales agent will value the property. Then they promote the property on the market. They advise the buyers and sellers in negotiations. Overseeing every aspect of the real estate transaction, they liaise with everyone from loan and mortgage brokers to home inspectors.
A letting agent will vet tenants by doing reference checks and credit checks. They will also ensure that the rented property meets health and safety standards. They often act as property management, collecting rent, addressing issues, and drawing up contracts.
An estate agent needs to stay up to date with the property market trends. Knowing what is fashionable in real estate investing is critical. A real estate agent dealing with commercial real estate similarly often acts as a property manager.
Is a real estate agent a good career?
After hearing all about what a real estate agent does, are you still interested? If you think it’s the path for you, then you might be wondering about whether it’s a good career choice.
A career in real estate is highly dependent on your passion for the job. It is one of the best career paths for anyone who loves housing, people, and hard work.
As real estate agents are essentially business owners, the work can be challenging and the hours long. You will also regularly work unsociable hours, like weekends or evenings. A real estate career can be challenging, from managing or helping to manage an office to completing volumes of paperwork.
However, it is an exciting and diverse job. No day will be the same, and each client and property will be different.
Before you launch your real estate career, you have to pass a real estate exam. Before setting up your real estate business, you will have a study period to prepare yourself for the job.
There are courses and real estate schools to help you succeed in passing your exam. The point of agent licensing is fully equipped to do the job.
You can also join an association of realtors. The National Association of Realtors (NAR) is a different membership you can join that gives your business more credibility. Real estate sales agents who are part of the NAR abide by a code of ethics for fair housing. The coder helps reassure clients of your reliability, and it is an excellent way to boost your career.
Becoming a real estate agent is a good career choice. If you’re willing to work hard and enjoy spending time with people, it can be a rewarding job.
How do real estate agents get paid?
Real estate agents primarily earn their income through real estate commissions. Agents take a percentage of the transaction fee upon selling or letting a property on behalf of real estate clients.
The commission percentage can also be a flat fee, and clients can negotiate the commission rates. Typically, the seller pays the commission, usually between 4% — 6% of the transaction price.
Real estate brokers receive the commission. The difference between agents and brokers is that agents are salespeople working under a broker, and a real estate agent cannot work or take commission independently.
A real estate broker can work independently and hire agents to work for them within the real estate industry. Commissions go directly to the real estate broker who splits the money between themselves and agents working with the transaction.
How much of the commission you get as a real estate agent depends on the agreement with the broker. More experienced agents can receive a higher proportion of the commission, such as a 50/50 or 70/30 split.
Real estates commissions occur after the brokering of the transaction. If the sale is not closed, the agent may not earn their income. Sometimes, however, the seller is still liable to pay. For example, if they pull out or commit fraud.
Rather than a fixed income, real estate agents make money based on the number of sales they make. If you enjoy your job and work hard at it, the sky’s the limit with how much you can make.
How much do real estate agents make?
So how much do real estate agents make? The Bureau of Labor Statistics suggests that the average salary of all brokers and agents is $51,220 per year.
However, agents and brokers earn different amounts. Brokers tend to earn an average of $60,370, while a real estate salesperson will earn $49,040.
Some agents will get paid a base salary alongside the commission, depending on the companies commission structure.
How to become a real estate agent?
Becoming a real estate agent can take up to six months, and shorter than many careers requiring a degree but more prolonged than those needing no qualifications. Of course, the time depends on how quickly you pass the state exam to get your license.
It is important not to rush the study period to pass the real estate exam the first time. There are several licensing requirements you need to meet before you can take the real estate salesperson exam.
First, you need to be at least 18 or 19 years of age. The age depends on the state, and some only accept applicants aged 19 or over. It would help if you also were a legal US citizen.
There are also education requirements before you take your real estate salesperson license exam, and you have to take a real estate prelicensing course. Although varying from state to state, this typically involves a background check and a certain number of hours of coursework.
You can fulfill your hours by completing a real estate agent course online— for example, a Complete Commercial Real Estate Loan Closing Checklist Online Webinar. Online courses can be time-consuming, so make sure you factor study time into your daily routine. Extra courses will also look good on your resume.
You then need to complete the real estate exam to get your license. Try to submit your application to test soon after you have finished your coursework. Tests typically consist of around 75 questions and take an hour and a half to complete. Some states might differ, so make sure you check your local area’s requirements.
It would help if you found someone with a real estate broker license to mentor you when you pass the exam. Brokers have a higher level of qualifications and are allowed to complete transactions independently.
You want to find the right broker for you. As with any job, check out their reputation and reviews. It is good to find a broker who will support you in your career. You don’t want to work for an agency that will keep you at the bottom of the career ladder.
Look for a broker and find someone who works in the real estate field that you want to join. Don’t reach out to a commercial broker because they offer a good commission if you want to work with residential.
You also have to find someone who suits your style of working. As with any boss, they can make or break the enjoyment of your career.
Once you have become a real estate agent, you might be considering stepping up to the next level and opening your own business. Some states require brokers to have several levels of experience and extra qualifications. So, you need to ensure your success as an agent before becoming a broker.
How to be a successful real estate agent?
Becoming a successful real estate agent requires commitment and hard work. The first thing to do to improve your standing is to join the national association or realtors.
The NAR has a real estate regulatory code of ethics required by realtors to prove your credibility and trustworthiness. You have to pay a fee to join the NAR, but the benefits can significantly improve the success of your real estate career.
You can also join state associations to understand your local market better. The NAR can boost your real estate reputation from networking with fellow real estate agents to accessing education and resources. You will also gain community support from real estate professionals to help you grow your career.
Another way to be a successful real estate agent is to learn and improve yourself constantly. Enrolling in learning courses is a great way to become a better agent and meet real estate appraisal standards. Many online courses offer flexible study to shape your job.
You can also aim to get your broker's license. As a managing broker, you can run your own business and take on other agents, which can widen your network and real estate possibilities. You might also want to take an online course to meet the educational requirements of a designated broker license.
There are ways to make yourself a better real estate agent daily, requiring minimal effort or time commitment. Practicing the art of communication is vital. Maintaining a friendly, polite, and professional attitude with clients, brokers, and surveyors will get you a long way.
However, don't just practice charming clients, but ensure you take the time to listen to them appropriately. Listening to and understanding their concerns and acting on them will make you a more trustworthy person.
Similarly, maintain relationships with previous clients. You might think that if you have done your job right, every client will be happy in their new home forever. Yet, circumstances change, and you want to form an excellent impression so that previous clients will enlist your help should they move again.
Improving your communication skills, networking with others in real estate, and continually learning will make you a successful agent.
How hard is it to be a real estate agent?
It can be hard work being a real estate agent, and you can expect to put a lot of effort in from the less certain income to growing your business.
The lack of regular income or salary can sometimes be stressful. As commission depends on your success as a real estate agent, you can never let yourself have an off day.
Your income as a real estate agent relies on the market. Sometimes, the sales prospects might be limited, so it is a good idea to have a strong business plan in case of such events.
Finding a sponsoring broker can also be a challenge. There are many brokers to work for, but finding the right one for you is hard. Make sure you take time to get the right fit.
Getting your real estate license is the first hard step. The Due Diligence Process in Commercial Real Estate Online Course might help to avoid struggling as a new agent.
Ensure you follow a due diligence process to avoid disciplinary action. Taking courses helps you meet continuing education requirements.
Another challenge with the job is the variety of tasks. Not only are you a salesperson, but you have to run a business. Understanding marketing and budgets while selling properties require versatility.
While the job can be challenging, it can also be enriching and has excellent opportunities for career growth.
How do you gain real estate experience?
Starting your career in the real estate industry might seem daunting if you have no experience. Luckily, the prelicensing courses and ongoing learning for real estate licenses can get you fully prepared. Also, prior experience is not needed to get into real estate.
However, it will benefit you to have some work experience in administrative or customer service roles. Administrative and organizational skills will help with the clerical duties that estate agents and brokers deal with daily. Customer service abilities will help you charm buyers and sellers.
But do not worry if you haven’t got prior experience. There are other ways to improve your organizational and communication skills.
You will get a good idea of the work and skills needed by shadowing real estate brokerages. Become familiar with different brokerages in your local area so that you can establish relationships early.
Real estate agents can also get experience taking online real estate courses. Take online classes if you’re interested in the industry but not ready to apply for your sales agent license. Online courses offer additional information that will help you in your career.
How to study to be a real estate agent?
As an aspiring real estate agent, studying to pass the exam requires a certain number of classroom hours. In your prelicensing coursework, you will learn about real estate principles, real estate law, and exam prep. Pass rates differ in each state.
The course requirements of your prelicensing education will make passing your exam easy. You can complete school online to get the passing score for your license exams.
Some good exam tips are to make sure not to put too much pressure on yourself. As long as you set yourself a good study schedule, there is no need to stress. Make sure to start preparing for the exam early. If you can, reach out to others also taking the test so you can support each other.
Once you have passed the exam, continuing education is essential with post-licensing courses.
You can also study to get your broker license. As one of the real estate brokers, you can work independently by upgrading your license. There are online real estate school prep courses that meet qualifying education standards.
Courses for Success offer real estate license online courses, such as our Real Estate Investing (Self-Paced Tutorial) Online Certificate Course. It offers flexible working hours and covers investing in foreclosures, managing a rehab project, and building your real estate team.
The course will teach you how to keep your real estate business flourishing throughout the good and bad times. The course helps you to approach your next deal with confidence and enter the real estate industry. Throughout the course, you will receive one-on-one assistance and a certificate to add to your resume.
Why Courses for Success?
Courses for Success offers over 10,000 online courses, all of which aim to help you in your personal development and career progression. Not only that, but you can also study them anywhere and at any time, and take them at your own pace, too.
You don’t need career diplomas or specific experience to get started. From our coding courses and trading courses to design courses and developer courses, every course we offer will help boost your prospects, no matter who you are.
Beyond just the education itself, students will be issued a certificate online after completing each of the learning courses they do. Our Real Estate Investing courses are no exception. Industry leaders recognize our online real estate investing certificates and you could make a name for yourself by signing up for a Courses for Success short course today.