A career in real estate is lucrative, in demand, and can be very fulfilling if you find the right niche. But before you can start selling properties, you’ve got to get your license. A real estate license legitimizes your authority as a realtor and enables you to operate within this competitive industry as an approved professional.
The laws around obtaining a real estate license vary depending on where you are in the world. However, we’re going to focus on the US. We’ll provide you with eight simple steps anyone can follow if they want to pursue a career in the real estate industry and start earning an income from brokering, selling, and renting prime real estate.
What Is A Real Estate License?
A real estate license is a professional license that enables you to legally sell, manage, rent, or broker property on the real estate market, typically on behalf of an official agency or brokerage. However, real estate licenses can also be obtained by independent brokers who want to work on a freelance basis.
The most important point to note about a real estate license is that you can’t legally operate as a real estate broker without one. These licenses are necessary for pursuing a career as a realtor.
Once you have obtained your license, you will be able to operate as a professional real estate broker—and start earning as one, too. With the average US realtor’s salary being just over $80k, it’s no wonder why so many people are attracted to this popular career path. Here’s how you can start yours:
Step 1: Research the requirements in your state
Real estate licensing regulations differ from state to state. So, you need to find out what is required in the state that you live or want to work in.
You’ll need to check with your local real estate commission to determine what basic documents and application details are needed for a preliminary license application. In most states, this is what they will ask you to provide:
- To be 18 years or older
- Proof of residence in your state of application
- Proof of college-level education in the real estate field
- Criminal background check
Once you can tick all these boxes, you’re well on your way to progressing. Just be aware of what other bits of data or documents your state may require beforehand.
Step 2: Complete the educational requirements
To get a license in this field, you need to complete a number of classes. These classes will test your knowledge and understanding of real estate brokerage and help you reach a higher level of proficiency that can increase your chances of passing the upcoming exam.
In most states, it costs about $350 to complete these classes. Depending on which state you’re in, you may be able to take either online or in-person classes, both of which are approximately 72 hours long in total.
Step 3: Apply to and pass the real estate license exam
Your class instructor will be able to point you in the right direction for taking your actual real estate exam. Before you take it, you’ll need to pay a $100-$300 fee, which once again varies by state. The real estate license exam is largely multiple choice.
The exam is split into two sections, both of which you must pass to be successful. If you fail either or both of those sections, you will be able to retake the exam. However, the number of times you can retake the exam also depends on which state you perform it in.
Step 5: Apply for the license itself
Only once you have passed the real estate licensing exam can you start the process of applying for the license itself. This entails submitting your test results, application details, and proof of payment for all of your fees. The application will require another fee of between $50 and $100.
After you have submitted your application, it will be assessed by the authorities and processed within one week or two months, depending on the state you live in. If your application is successful, they will deliver it to you via mail or allow you to collect it as soon as possible.
Step 6: Identify a real estate agency you want to work for
Now that you have achieved your goal of obtaining a professional real estate license, you can start the process of looking for an employment opportunity at a local real estate agency or brokerage.
It’s a good idea to look for an agency that specializes in the kind of property you are naturally interested in, whether that’s commercial offices, trendy apartments, or family home residences. The more naturally interested you are in the property, the easier it will be to connect with clients and form relationships.
Other factors to look out for when seeking employment are company culture, commission rates, and what kind of benefits are on offer.
Step 7: Become a part of NAR
While obtaining your real estate license is enough to get you operating professionally, joining the National Association of Realtors (NAR) will further enhance your credibility. Plus, it gives you access to other realtor’s listings, allowing you to be included in the country’s best deal opportunities.
Becoming a member of NAR after you’ve got your real estate license will also increase your earning potential. If you’re in the real estate business for the long haul, it’s well worth the extra bit of paperwork and occasional fee.
Step 8: Renew your license as needed
Real estate licenses expire every two to four years. They’re much harder to reapply for than they are to renew, so make sure you’re always on top of your expiry dates.
Build a Career In Real Estate
Whether you attend an online real estate school in Texas or take in-person classes in New York, becoming a real estate agent is a surprisingly simple process.
As long as you understand the requirements set by your state and region, all you have to do is follow the guidelines, apply yourself to your training, and get your license. Once done, you can embark on a new career with plenty of opportunities.
