Becoming a real estate agent doesn’t happen overnight. It takes a good investment of money, time, and energy. Ask any real estate agent for their thoughts on what it’s like to actually work in this industry and you will get answers all over the board.
So, that’s my first question for you. Why are you considering real estate as a career?
Maybe you’re in it for the money. Real Estate can most certainly be lucrative. When you do your job really well and consistently bring in high-end homes, that’s one way to earn decent commissions that can pad your bank account.
Maybe you love the idea of flexibility. Real estate agents appear to make their own hours, to pick and choose when they work. (Word to the wise … We also work crazy hours that include working a lot of weekends!)
Or, my favorite reason, you want to try real estate is because you want to help people achieve their dream of becoming a homeowner. Me, too. That is a gift that pays you in rewards that cannot be measured by dollar signs.
If you’re going into real estate and you truly want to make a career out of it, then you can’t go into it with one toe. You can’t be halfway in and expect your career to advance and flourish.
That brings me to the subject of the day! Let’s talk about the steps it takes for you to become a real estate agent.
8 Steps to Become a Real Estate Agent
1. Decide to Become a Real Estate Agent
This step sounds incredibly basic, but believe me, it’s necessary. I’ve already given you a hint as to why. You can’t just do real estate halfway unless you’re only considering this a little side hustle. If real estate is going to be your career, you need to choose it.
Once you choose real estate as your career, you need to be all in. When you are all in, you have taken the first step to developing the mindset to do what it takes to stay in the game of real estate for the long haul.
You’ll need to be mentally committed to this work to stay in it through the ups and downs and to have the mental fortitude to keep moving forward through the valleys. Indecisiveness will not help you reach the top. So you must decide that you will be a real estate agent.
2. Review Your State’s Licensing Requirements
This is important because the requirements vary from state to state. Agents who have moved to a different state will tell you that this is a step you cannot ignore! There is no such thing as getting a generalized real estate license that covers you no matter where you work.
So, you have to be certain that you meet the exact requirements set forth by your particular state. You will need to jump online and check out your state’s real estate regulatory office website. You can find it easily by looking up the Association of Real Estate License Law Officials, otherwise known as ARELLO, and selecting their regulatory agency directory.
Once you take a peak at this directory, you’ll see that your state (like every other state) has particular requirements for the following:
- Background checks and fingerprinting
- Education requirements
- Continuing education
- Age
- Pre Licensing courses
- Post-licensing required courses
- Exams and exam eligibility
- Application process and fees
- Requirements/steps for achieving the next level of licensing
- Reporting criminal history
Now, there are exceptions. Certain states have corresponding licensing agreements with other states. This works to your advantage because you can obtain your real estate license in state A and be able to use it in state B without going through all of the additional exams required in other states.
If you happen to be a New Yorker, this is especially good news. New York shares reciprocity with nine states! These states are nearby Connecticut, Massachusetts, West Virginia, and Pennsylvania, as well as Georgia, Mississippi, Colorado, and Oklahoma.
3. Participate in a Pre Licensing Course
Yep. You can’t be a real estate agent without taking classes. Get used to it! This will be part of your career as an agent. It makes no difference which state you call home, every single state deems it necessary for you to participate in a pre-licensing course offered by an accredited real estate licensing school.
You can expect to pay somewhere in the neighborhood of $350. The requirements for this course will be different in every state, as I’ve already mentioned. In some states, you’ll take courses that total a little over sixty hours, while in other states, you’ll need to take as much as 135 hours (Thank you, California!).
Fortunately, in most states, you don’t have to go sit in a classroom to finish your hours. The majority of states have made online classes available along with classes at local community colleges and in-person coursework at real estate schools.
4. Complete the Licensing Exam
Once you’ve taken all of the required hours and completed your pre-licensing coursework, it’s time to put all that knowledge to the test. You have to complete your licensing exam. Your course instructor is responsible for telling you exactly how to schedule your exam, where/how to register, and how to pay for your licensing exam.
You can plan on paying anywhere from $100 to $300 for your exam. Your exam will be taken on a computer. It is divided into two sections. One of these sections is the national portion which covers general practices and principles. The other section is specifically created for your state and tests you on all of the real-estate laws within its borders.
I hope you love multiple choice because that’s the type of test you’ll be taking! Again, the length of this test is different in each state. The two sections will be given their own test score. You will need to earn a passing grade on both sections in order to qualify for your license.
If you don’t pass both sections, then you must take the exam again. Something important to note is that every state has its own particular rules for how many times you’re allowed to retake the exam, the deadline for retakes, and the length of time you must wait before retakes.
5. Real Estate License Activation
Hopefully, you pass your exam with flying colors and you can begin the activation process right away. So, after you achieve your passing grade, you can submit the required documents and payment to the state real estate regulatory organization. It will typically cost you a few hundred dollars.
Then you wait.
If you are approved, your state will send your official real estate license paperwork via snail mail. Upon receiving it, you can look at the organization’s website and find your name listed as an official licensee. (Wehoo! You did it!)
Until everything is official, you absolutely cannot go to work as a real estate agent. Don’t get yourself in trouble before you’re officially supposed to start!
When your application is approved, the state will mail your real estate license certificate to you, and your name will be searchable under the licensees section of its website. Keep in mind that you’re not allowed to work as a real estate agent before your license is issued by the state’s real estate authority.
6. Decide if You’ll Be a Realtor
Wait. What? Didn’t I just become a realtor? No. You are not a realtor at this point. You, my friend, are a real estate agent. They are not the same thing. To be a realtor, you must be a member of the National Association of Realtors and abide by all the rules.
The NAR isn’t required, but it will make you appear a bit more legitimate, and it comes with a few benefits. Through NAR, you have market data, additional education opportunities, and business tools—to name a few.
7. Find a Brokerage
You don’t want to just float around in the wind out there with no guidance or support. That is not a good idea when you are getting started in real estate. Finding a brokerage that you trust is a great step in getting your career moving in the right direction.
As a newbie, a good brokerage will show you the ropes. In doing this, you can expect them to support you, encourage you, and offer solid guidance as you build your real estate career. They know all the ins and outs, they have access to clients, and they are a resource for any questions you might have.
8. Put Yourself Out There
Okay, so I know this step might make you cringe or want to shrink just a little. That’s okay. But it doesn’t mean this step is going to disappear. You can’t hide and expect clients to be seeking you out. That’s not how it works.
You worked hard to get to this point. It’s time for other people to know it! So, make up some business cards. Send out emails. Get on social media. And start writing what you know.
You could put together a helpful newsletter or blog with useful tips for potential or existing homeowners. It doesn’t need to be about you. It needs to be a way to serve them and bring value to their lives.
Finally …
That’s it. Those are the basics for getting started as a real estate agent. You don’t have to be a college graduate. You don’t have to be a genius.
But you do need to remember the first step. You must decide to do it.
You can’t decide it looks good and call yourself a real estate agent overnight. It’s a decision that is followed by hard work and dedication. And to be excellent, you’ll need to keep choosing to work at it over and over again.
If real estate is the right career choice for you, I wish you much success and reward as you pursue this amazing career path.
