Are you interested in pursuing a career as a real estate agent? It's an exciting opportunity to join the fast-growing real estate industry. The US Bureau of Labor Statistics projects that the overall employment of real estate brokers and sales agents will grow 5% from 2021 to 2031, with about 54,800 openings for these professionals each year.
However, there's a lot of hard work involved in becoming a successful real estate agent — more than many realize. To succeed, you should thoroughly understand the real estate business, develop the right skills and knowledge before working with clients, and master several essential topics for success.
That's why taking a comprehensive and rigorous pre-licensing course is critical, which will provide you with the necessary training and knowledge required for success in real estate. In this article, we look at seven topics every real estate agent should master in their pre-licensing training. Let's get started!
Who Is a Real Estate Agent?
Real estate agents are licensed professionals who help clients buy and sell residential or commercial properties. They are knowledgeable about local housing markets, zoning laws, and other factors that affect the buying and selling of properties.
Here are some of the critical responsibilities of a real estate agent:
- Prepare and present offers, counteroffers, and other documents on behalf of buyers or sellers.
- Negotiate the terms of sales agreements to ensure the best interests of their clients are met.
- Conduct property inspections and appraisals to determine value.
- Educate buyers and sellers about their rights and responsibilities.
- Monitor the closing process, ensuring all documents are signed, titles are transferred, and payments are made.
General Requirements to Become a Real Estate Agent
Real estate agents must meet specific requirements to become licensed professionals. These requirements vary by state but are essential for a successful real estate career. The following prerequisites are necessary to ensure agents are knowledgeable and prepared to take on real estate activities.
- Be at least 18 or 19 years old (depending on the state)
- Have legal US residency
- Complete your required pre-license education
- Pass your state real estate license examination
Do Real Estate Agents Need a Degree?
In most cases, a degree is not required to become a real estate agent. However, many states do have minimum education requirements. Depending on the state, some need agents to have at least a high school diploma or GED.
Additionally, some states may require agents to take college-level courses or obtain a degree in the real estate field. Ultimately, it's essential to check the education requirements of your state before pursuing a career in real estate.
What Is the Purpose of Real Estate Pre-Licensing Training?
Real estate pre-licensing training quips aspiring agents with the knowledge and skills needed for a successful career. With successful completion of the coursework, agents have a strong foundation for a successful career in real estate.
Here are the key reasons why real estate pre-licensing training is essential:
1. Understand the Real Estate Market
Pre-licensing training gives agents an overview of the real estate market, giving them the knowledge to help clients make informed decisions. Agents learn about current trends in the market, economic indicators, and factors that can impact a property's value.
2. Know Your State Laws and Regulations
Each state has its laws and regulations governing real estate. Agents need to understand the rules and how to navigate the industry. Pre-licensing training gives agents the knowledge they need to comply with state laws.
3. Learn Professional Practices
Real estate pre-licensing training provides agents the skills they need to succeed in the industry. For you to be a successful real estate agent, there are certain professional practices that you must learn. These include:
- Ethical standards
- Communication techniques
- Negotiation strategies
4. Become Familiar With Technology
The real estate industry is rapidly changing, and technology plays a significant role in buying and selling. Agents should understand how to use new technologies and tools to serve their clients better. Pre-licensing training helps agents become familiar with these essential skills.
7 Topics You Should Master in Your Pre-Licensing Training
Real estate pre-licensing training is an essential requirement for aspiring real estate professionals. To be successful in the industry, agents must have a comprehensive understanding of seven key topics covered in pre-licensing courses.
The following seven topics are critical for you to master in your pre-licensing training:
1. Modern Real Estate Practice
Pre-licensing training introduces agents to the fundamentals of modern real estate practice. This includes an overview of real estate principles, procedures, forms, and documents and a review of local, state, and federal regulations governing the industry. Agents also learn about using online applications to facilitate buying and selling.
2. Real Property
A thorough understanding of real property is essential for any professional in the real estate industry. Pre-licensing training provides agents with a comprehensive overview of the different types of real estate properties, such as residential, commercial, and industrial. Agents will learn about the various methods used to appraise and value real estate and the various methods used to finance and insure the property.
Understanding real property will also allow agents to provide sound advice and guidance to their clients. This knowledge is essential for agents to serve their clients better, enabling them to anticipate potential issues and problems during a real estate transaction.
3. Home Ownership
Home ownership is one of the most critical subjects in pre-licensing training. Agents must understand the legal requirements and the process of buying, selling, and transferring property. Agents should also be knowledgeable about the different types of residential properties, including single-family homes, condominiums, townhouses, and manufactured homes.
Mastering home ownership equips agents with the knowledge and skills to help their clients navigate through the process of buying or selling a home from start to finish, including:
- The importance of working with qualified professionals, such as lenders and appraisers, when buying or selling a home.
- Knowing the different types of residential properties and their advantages and disadvantages.
- Understanding local market trends, such as supply and demand, and how they can affect a real estate transaction.
4. Real Estate Brokerage and Law of Agency
Real estate agents licensed to practice in the state must understand the laws of the agency. Pre-licensing training covers the basics of real estate brokerage and how it applies to a real estate transaction. Agents will learn about agency relationships between brokers, buyers, sellers, and tenants.
Understanding fiduciary duties and how they apply to a real estate transaction is also crucial for agents to master in pre-licensing training. Brokers must act in the best interest of their clients, which involves providing sound advice, being honest and transparent about transactions, and avoiding conflicts of interest.
Agents should also grasp the laws and regulations governing real estate brokerage in the state. This includes knowing when an estate broker can legally conduct a transaction without obtaining a license, such as in a for-sale-by-owner transaction. Agents must also know the state's licensing requirements for estate brokers.
5. Fair Housing Laws
Getting familiar with fair housing laws helps agents ethically protect the rights of buyers and sellers in real estate transactions. Fair housing laws protect consumers from discrimination based on race, color, religion, national origin, sex, disability, or familial status when buying, selling, or renting a home. Knowing these laws gives agents the tools to work ethically and comply with the law when representing their clients.
The implications of fair housing laws go beyond the legal requirements. Agents need to understand that fair housing is about more than just avoiding discrimination. It's about creating an inclusive environment where all buyers and sellers feel respected and valued.
The various resources available to help agents stay up-to-date on fair housing laws, such as the US Department of Housing and Urban Development (HUD) website, are covered in pre-licensing training. Fair housing requirements also need to be applied when advertising or marketing properties. It is illegal to make discriminatory statements or exclude specific groups of people when promoting a property for sale or rent.
6. Ethics of Practice as a Sales Agent or Broker
Real estate agents must understand and abide by ethical business practices to succeed. Pre-licensing training covers the various ethical requirements that agents must comply with when conducting real estate transactions. Agents should strive to adhere to the following ethical standards:
- Acting in good faith and with honesty: Truthfulness, accuracy, and transparency build trust between buyers, sellers, and brokers. Agents should always be honest about facts related to the property and market conditions.
- Avoiding conflicts of interest: Real estate agents must act in the best interest of their clients and avoid any activities or interests that could put them at odds with their fiduciary duties.
- Maintaining confidentiality: Agents must protect confidential information shared by clients and other parties involved in the transaction, such as financial information and personal details.
- Adhering to a Code of Conduct: Agents must abide by the code of conduct established by their local and state real estate board. This includes following industry guidelines and standards when dealing with clients, other agents, and the public.
7. Legal Descriptions, Contracts, and Listing Agreements
Understanding the complexities of these documents is a necessary part of being an effective real estate agent. You need to have a handle on them to be confident in your work. Let's have a look at each:
Legal Descriptions
Legal descriptions identify a property and provide information about its boundaries. This is an essential part of real estate law, and agents must understand the legal background questions related to any property they are dealing with. Knowing how to read a legal description, as well as how to write one, is essential for agents in their pre-licensing training.
Contracts
For real estate professionals, contracts are the bedrock of their business. They provide proof of a legally binding agreement between two parties for the purchase and sale of a property. Pre-licensing training covers the basics of contract law, including what elements must be included in a valid contract, how to interpret them, and how to draft contracts that protect both buyer and seller.
Real estate agents must also be familiar with the concept of original proof, which refers to a document or piece of evidence considered authentic and reliable. This includes contracts, deeds, and other documents used in real estate transactions. Agents must understand how to use original proof when verifying the facts related to a property or transaction.
Listing Agreements
Listing agreements are contracts between real estate brokers and sellers that outline the terms and conditions of listing a property for sale. These contracts typically include the commission structure, marketing plan, and pricing strategy. Pre-licensing training should cover how to correctly draft and execute a listing agreement and handle any disputes arising during the process.
How to Master Your Pre-Licensing Training Topics
Mastering the pre-licensing topics propels you to success as a real estate agent. With the proper guidance and dedication, anyone can become a competent and knowledgeable real estate professional.
Here are seven tips to help you master your pre-licensing training topics:
- Create a study plan: Develop a comprehensive study plan that outlines the topics you need to learn, how much time you can devote to studying each day, and what resources you will use.
- Participate in study groups: Working in groups can help you stay focused and motivated and provide an opportunity to get feedback from other students.
- Review the material frequently: Review and practice the material you are learning often so it becomes second nature.
- Attend classes in-person or online: Choose an option that works best for you and attend regularly to stay on top of the coursework.
- Ask questions: Don’t be afraid to ask questions if something is unclear. This will help ensure you fully understand the material and can apply it correctly in real-world situations.
- Take practice exams: It helps you become familiar with the types of questions you’ll be asked in the real estate licensing exam and how to answer them accurately.
- Seek mentors: Connect with experienced real estate professionals and use their advice and feedback to refine your skills.
Your Real Estate Success Starts Here
Real estate pre-licensing courses provide aspiring agents with the necessary skills and knowledge to become successful in the real estate industry. With topics ranging from modern real estate practice to legal descriptions, these courses cover the fundamentals of understanding the market, familiarizing yourself with state laws and regulations, and learning professional practices.
You can set yourself up for real estate success by mastering these seven essential topics. So don't hesitate to start your pre-licensing course and get one step closer to becoming a licensed real estate agent.
