A strong personality, ability to solve problems, friendly demeanor and organization skills are personal traits needed to becoming a licensed real estate agent. However, personal traits alone are not enough to get you the job of a real estate agent. You cannot submit a resume and charm the boss (or in this case, broker) with your skills to give you a shot at the position. You must first become licensed within your state.
Every state holds different qualifications for becoming licensed. First and foremost, you must have a high school diploma, and be at least 18 years old. You also must have no criminal record, or outstanding judgments against you. If you meet these criteria, and you feel you have the time to put forth in taking classes, you can try your hand at real estate.
SCHOOLING AND CLASSES.
You must choose a real estate school that offers pre-licensing courses. In most states, you must take the classes first; you cannot skip ahead to taking the exam. The classes will focus on different aspects of real estate, including legal, financial, appraisals, and ethics. These classes will prepare you for the exam which you will need to take. You will need to draw on your math and statistical skills for finance and appraisal, and you will need to put your creative thinking into gear for legal and ethics courses. These classes can average between $300 to $1800 depending on the school and state which you are attending.
FIND A BROKER.
In most states, before you can take the exam, you must have a broker agreement. Upon taking the test and passing, the state needs to send your license to a broker. You are not permitted to hold your license independently. A broker is the person who you will be working under, so it is important that you find a broker and company that you are comfortable with. It is best to meet with at least three different brokers, with three different companies before making your decision. Typically, there is a form that needs to be completed by your potential broker before you are permitted to take the exam.
TAKE THE EXAM.
This if often the most difficult part of becoming licensed. It is estimated that nearly 55% of those taking the exam will fail their first time. With those numbers in mind, if you fail the first time, do not be ready to give up yet! The test most likely has a fee attached with it, probably under $100, which you will need to pay each time you take it. There is a little incentive to not have to retake the exam too many times! Once you take the exam and pass, you are ready to work. Check with your broker about waiting until your actual license arrives from the state. Each will have their own requirements for that.
JOINING A BOARD.
Now that you have passed your exam, there are a few things left to do. Talk with your broker about joining a Board of Realtors. Typically each county has one, as well as each large city. You can join more than one if you like, but remember there are annual fees for each. The average annual board fee across the country is $350.
BECOMING INSURED.
It is very important to hold Errors and Omissions insurance, often referred to as E&O; coverage. This will cover an agent if there is ever a contract dispute or legal issue. Don’t think you will not need this, mistakes do happen! This coverage runs about $400 a year.
Now that you have fulfilled all these requirements, check with your broker to make sure there aren’t any additional ones. Every state is different, and each company has their own requirements as well. Remember to note any continuing education requirements that may be needed in the upcoming years.
Becoming a licensed real estate agent is an exciting time, and can be a rewarding career, both personally and financially. Once you are assured that you are ready to work, get out there and start selling!
