The real estate industry offers a diverse and fulfilling career path for those interested in becoming a real estate broker. As a broker, your role is to guide clients through the complex world of real estate transactions. Whether you represent sellers or buyers, your expertise is crucial in helping them achieve their goals. If you’re considering a career in real estate but have no prior experience, here’s a step-by-step guide to get started.
Advantages of Pursuing a Career as a Real Estate Broker
Working as a real estate broker brings a wealth of benefits. Firstly, you can expect a dynamic work environment with each day bringing new clients and different properties to explore. This variety keeps things interesting and exciting. Additionally, being your own boss allows you the flexibility to create a work schedule that suits your lifestyle.
Beyond the intrinsic rewards, there’s also the financial aspect to consider. According to the U.S. Bureau of Labor Statistics, the median pay for real estate agents is around $51,220. However, with further education, testing, and experience, you can elevate your earnings to an average of $59,720 as a real estate broker. The top 10% of agents even earned over $112,410 in 2020. The potential for financial success in this field is undeniable.
How to Kickstart Your Journey as a Real Estate Broker
Becoming a licensed real estate broker requires an investment of both time and money. The specific requirements vary by state, but here’s a general overview of the steps you’ll need to take:
Step 1: Familiarize Yourself with State Requirements
Since there is no national real estate license, you must meet the specific licensing requirements of your state. Start by visiting your state’s real estate regulatory office website or consult the Association of Real Estate License Law Officials’ directory for regulatory agencies.
Step 2: Complete a Prelicensing Course
To qualify for the real estate licensing exam, you’ll need to enroll in a pre-licensing course from an accredited real estate licensing school. The availability of online courses, brick-and-mortar schools, and community colleges may vary depending on your state. Consider programs that offer cost and time-saving options.
Step 3: Pass the Licensing Exam
Once you’ve completed the pre-licensing course, you’ll need to schedule, register, and pay for the licensing examination. The exam typically includes two sections: a national portion covering real estate principles and practices, and a state-specific portion on local real estate laws. Exam formats may differ across states.
Step 4: Activate Your License
After successfully passing the exam, you’ll need to submit an application along with any required documents and fees to your state’s real estate agency. Once your application is approved, you’ll receive your real estate license certificate. Remember, you cannot work as a real estate agent until your license is officially issued.
Step 5: Consider Becoming a Realtor
While the terms “real estate agent” and “realtor” are often used interchangeably, they have distinct meanings. Realtors belong to the National Association of Realtors (NAR) and adhere to its strict Code of Ethics. Membership offers benefits such as business tools, real estate market research, educational opportunities, and discount programs. Being a realtor can enhance your credibility within the industry.
Step 6: Join a Brokerage Firm
As a licensed real estate broker, you’ll need to associate yourself with a brokerage firm. Brokers oversee real estate transactions and ensure agents adhere to legal and ethical standards. Your income will likely be derived from a percentage of the commissions earned by your brokerage. Keep in mind that there will be expenses involved, such as marketing materials, desk fees, and annual license renewals.
The Bottom Line
Obtaining a real estate license requires dedication, but it paves the way for a rewarding career in the industry. You’ll have the opportunity to create a flexible work schedule that suits your lifestyle. While some brokers choose to work part-time, dedication and availability are key factors to achieving success in the field. Are you ready to embark on a career as a real estate broker? Learn more about the industry and get started at Garrity Traina.