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In the past two years, he has become popular in his real estate career. In the U.S. alone, the number of people obtaining real estate licenses increased by 60% from 2020 to 2021. Google Trends data shows that by 2021, the most searched job is “how to become a real estate agent.” This comes amid the Great Retirement, which forced millions to leave their jobs in search of better opportunities.
As a realtor who has been in the industry for more than two decades, this interest results from the flexibility and autonomy this job offers, significantly as we recover from the effects of the global pandemic. Generally, a real estate agent helps people buy, sell, and rent homes, office or business space, or luxury real estate. If you start as a real estate agent, you work for yourself. You organize your hours, find your clients, develop your network, and close your deals. In addition, you are involved in day-to-day activities such as identifying potential buyers, preparing legal documents, coordinating exhibitions, and creating marketing and promotional materials.
However, being an agent also includes elements similar to a traditional nine-to-five job: most people work for a firm, work with fellow agents, and find supportive mentors.
While it’s a flexible — and often lucrative — profession, to build a truly successful career as a real estate agent, you need to understand the realities of the industry. For those thinking of going this route, here’s what you need to know:
You don’t need a college degree, but you will need (at least one) real estate license.
The first step is often to obtain a license. A real estate license allows agents and brokers to represent clients in buying or selling real estate. Each state in the U.S. has its real estate commission for licensing, and each has its unique requirements.
The general rule is that real estate agents must be licensed in the state where they live or where they wish to work. Unfortunately, you can only be an agent in another state if you’re licensed in that region. Recently, however, some U.S. states have become more relaxed in their procedures and removed these obstacles. For example, if you live and practice in New York, Connecticut, or Pennsylvania, your license is valid in all three states.
When applying for a license, research the market to understand what opportunities you’d like (and might have) if you obtained one. Here are the basic steps you’ll need to take in most states:
Complete your pre-licensure course courses at an approved real estate institution—a school, online, or state program. The hours you need to spend on coursework can range from 40 to 150+ hours.
After completing—and sometimes during—your coursework, your state’s real estate board will collect your biometrics (fingerprints and other data) and a full background check. This is to ensure that all agents are accountable to the law.
The final stage is the licensing exam. You will usually need to submit an application fee and register through your state or a third-party exam provider such as PSI. Some states even allow you to take the exam before you complete the required course, which can help speed up the process.
It can take four to six months to obtain a real estate license successfully. The more time, effort, and hard work you put into the process, the easier it will be. You may need to take time away from your current job (or school) to study and prepare for the exam.
Pro Tip: If you know you want to quit your current job and focus on getting your license, start saving now. This will help you get by for a while.
You have to be financially ready to take such a step.
Real estate is sometimes portrayed as a get-rich-quick scheme, but that couldn’t be further from the truth. You may be successful as a real estate professional. The median salary for a full-time agent in 2020 is $129,996. However, you will earn this salary later.
Getting a license requires an upfront investment of money and time — much like paying for college before getting a job. New agents can face a sizable bill (though much smaller than student loans) from training and taking exams to brokerage fees and marketing expenses. Although some real estate companies cover licensing fees, you may have to pay them back through commission distributions and smaller checks.
Therefore, evaluate and
