Could you think of working for yourself in a more pliable career where you can set your own timeline with an annual earning potential of about $100,000 or even more?
There are various, almost countless, reasons to select real estate as your career. But then, there are always two sides to each story, and a real estate career is nothing short of any difference.
When you compare real estate to other careers with similar earnings potential, it looks relatively unrigid to become a real estate agent or broker.
There are lots of perequisites too—like becoming your own boss, meeting new people, especially of higher class, and assisting individuals through one of life’s biggest landmarks.
Yet, building a successful real estate career is much more work than many individuals can envisage. We will inspect the job to assist you in deciding if a career as a real estate agent or broker is worth it. .
Before then, let’s take a few key points on the career before having to outline or consider some questions to be answered to better understand a career in real estate:
Key Points
- Fact is, you become fulfilled and there’s a financial reward for working as a real estate agent or broker. However, it must be noted that it’s not as easy as you may think.
- A career in real estate calls for drumming up business, promoting yourself, tracking leads, handling complex paperwork, making provision for customer service, and much, much more.
- They pay most real estate agents or brokers only based on commission, thus, there is the prospect of working without a paycheck.
To better understand the career of a real estate agent, the following questions would be the guide you need:
- Who are real estate agents?
- What are the duties of a real estate agent?
- How do you become a real estate agent?
- What are the real estate agent earnings?
- Is becoming a real estate agent worth it?
Table of contents
- Who Are Real Estate Agents?
- What Are The Duties Of Real Estate Agent?
- How Do You Become A Real Estate Agent?
- What Are Real Estate Agent Earnings?
- Is Becoming A Real Estate Agent Worth It?
- How Long Does it Take to Become a Real Estate Agent?
- How Much Does it Cost to Become a Real Estate Agent?
- How to Become a Successful Real Estate Agent
- Queries
- Frequently Asked Questions (FAQs)
Who Are Real Estate Agents?
Real estate agents and brokers simply assist clients purchase, selling, and renting properties.
According to the Bureau of Labor Statistics (BLS), there’s been a forecast that the number of real estate agent and broker jobs will increase by 2% between 2019 and 2029, which is not faster than the 4% average for every occupation.
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What Are The Duties Of Real Estate Agent?
A real estate agent’s day can hold diverse tasks and duties. Some of them have to do with written documents and forms, and others call for individual skills.
The following comes as a sampling of some duties a real estate agent might expect to take on during an average day. They:
- file real estate documents, like agreements and lease records
- organize appointments, showings, and open houses
- create and distribute promotional materials, like flyers and newsletters
- create monthly, quarterly, and annual budgets
- develop marketing plans for listings
- create and build on client databanks
- research active, pending, and sold listings and draft Comparative Market Analysis (CMA) reports
- update websites and social media profiles
How Do You Become A Real Estate Agent?
There isn’t any national real estate license, therefore you’ll have to meet your state’s unparalleled licensing requirements.
You may visit your state’s real estate regulatory office website for information, or check out the regulatory agency directory from the Association of Real Estate License Law Officials (ARELLO).
These are the general steps to becoming a real estate agent:
- Take a pre licensing course
- Take (and pass) the licensing exam
- Activate your real estate license
- Join a real estate brokerage
Real estate agents always work under the canopy of a licensed real estate broker.
Eventually, you may desire to become a broker yourself, in which case you’ll have to meet supplemental educational and experience conditions. When you must have bought your broker license, you can now start working independently and hire sales agents to work for you.
In almost all cases, you can expect to spend about 4-6 months getting your real estate agent license. And you’ll need some money, too. Right between the licensing course, exam, and startup expenses (think: several Listing Service fees, sales signs, business cards, websites, open house signs, etc.), you might desire to budget anywhere from $1,000 to $3,000 to start commencement.
While you decide if a career in real estate is right for you, ensure you put into consideration whether you have the time and money to get your license and cover your startup costs.
What Are Real Estate Agent Earnings?
The fact is, most of the real estate agents and brokers don’t earn a salary. Rather, they make their money through commissions, which are normally based on a percentage of the selling price of the property, or less frequently, a flat fee.
Typically, they pay commissions only when you’ve done a transaction settlement. Ultimately, this implies that you could work hard for days, weeks, or even months without taking home any money at all. Like other commission-based jobs, it can end up being a feast or famine.
When you close a sale, you rarely keep all the commissions. The reason is that they normally share commissions with the other agents and brokers. In a general real estate transaction, for instance, they might split the commission four ways:
- Listing agent: The agent who took the listing from a seller
- Listing broker: The broker the listing agent works for
- Buyer’s agent: The agent who represents the buyer
- Buyer’s agent’s broker: The broker the buyer’s agent works for
For instance, let’s assume a sales agent takes a listing on a $200,000 house with a 6% commission. The house then sells for the asking price, thus the listing agent’s broker and buyer’s agent broker will each get $6,000—half of the $12,000 commission.
Next, the brokers split the commissions with their sales agents—let’s say, 60% for the sales agent and 40% to the broker. Thus, every sales agent receives $3,600 ($6,000 X 0.6), and every broker keeps $2,400 ($6,000 X 0.4). The ultimate commission breakdown would be:
- Listing agent—$3,600
- Listing broker—$2,400
- Buyer’s agent—$3,600
- Buyer’s agent broker—$2,400
Is Becoming A Real Estate Agent Worth It?
If you do not find it discomforting with these realities—and you enjoy hard work, are a self-beginner, and like the thought of making your own timeline—a career in real estate might be ideal for you. If you can sell enough properties, you will earn a very comfortable living.
A career as a real estate agent or broker can be both challenging and financially rewarding. But have it in mind that there are various unequaled opportunities for anyone who desires to work in the industry.
You could be an agent or appraiser, or a professional or investor. You might as well choose to work strictly with residential properties or probably you’re more interested in commercial buildings.
Whatever you choose, ensure you meet the job requirements and prepare for hard work.
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How Long Does it Take to Become a Real Estate Agent?
The criteria of your state determine the time to get a real estate license. A real estate license typically requires 60 to 90 hours of formal education, as well as preparing and taking the licensing exam.
This means that becoming a licensed agent can take anywhere from three to six months.
Most jurisdictions need you to find a real estate broker that will sponsor you for your first two to three years as an agent once you get your license.
Of course, the training you must complete depends on the brokerage you join and state laws — for example, for your first real-world experience, you might choose a national franchise, a local or boutique brokerage, or even a virtual brokerage.
The time to train and come up to speed before becoming a completely independent agent varies depending on the brokerage you pick, but you should budget at least six months to a year.
How Much Does it Cost to Become a Real Estate Agent?
You’re probably wondering how much money you’ll need to get started once you’ve become an agent.
The cost of becoming a licensed real estate agent varies by state and school course, but you should expect to spend between $500 and $1,200 in total. This covers the cost of your education, license application expenses, fingerprints, and background check fees, and state licensing test fees.
If you work for a commission-based brokerage, though, you’ll most likely have to rely on your savings until you’ve closed your first deal.
To be safe, set aside enough money to last six to a year until you’ve established yourself as an agent and close enough deals to make a livelihood.
Another option is to look for a brokerage that provides a salary rather than commissions or to find a side job until you’re happy with the amount of money you’re making from real estate.
How to Become a Successful Real Estate Agent
Simple few steps to become a successful Real Estate Agent:
1. Take the real estate salesperson exam
You’ll need to take the real estate salesperson exam once you finish any required coursework. Schedule your exam as soon as possible after you finish your education when everything you’ve learnt is still fresh in your mind.
Most state real estate tests comprise 75 questions and take approximately an hour and a half to complete. Several states have free or low-cost exam prep programs or courses, so check to see if yours does.
Check with your state’s real estate regulatory authority for further information on how to register for the real estate licensure exam in your state.
For additional information on how to register for your state’s exam, Google your state + “real estate salesperson exam.”
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2. Find a broker to mentor you
You’ll need to find a real estate broker who can act as your mentor once you’ve passed the exam. They will refer to you as a real estate salesperson rather than a real estate broker, which means you are not yet qualified to function as an independent agent. Instead, you must work for someone who will sponsor you.
They will fill out some documentation for you to turn in to the state when you apply for your real estate license.
Check out your boss and the agency while looking for a real estate broker to work with, just like you would with any other job. Examine the agency’s evaluations and inquire about other real estate firms to see whether this is the fit for you.
If you want to work your way up the real estate ladder and eventually become a broker or a commercial real estate agent, make sure the firm you’re considering will help you do so.
How to Find a Real Estate Broker
Here are some more suggestions for finding the perfect real estate broker to mentor you:
Get a sense of who in your neighborhood has the best reputation: Inquire about the opinions of other real estate agents or people who have recently worked with different agencies. You should try to work with a broker who has an excellent track record in the industry.
Find a real estate brokerage that specializes in the type of property you want to sell: If you want to sell waterfront properties, for example, look for a brokerage that has a large portfolio of waterfront properties.
Select a real estate broker who can provide time and administrative assistance to freshly licensed real estate agents: Inquire with seasoned real estate agents about whoever they would recommend, as they are likely to have firsthand knowledge from their own experiences.
Work with a brokerage that offers a fair commission structure and can assist you with marketing, administration, and other tasks. After all, a large commission payout is fantastic, but if you have to earn it by doing your own marketing, admin work, and other tasks, it might not be the best deal.
Find a brokerage that will work with you as an independent contractor or as an employee, depending on your preferences. You should also inquire about the responsibilities that come with working with the brokerage (for example, will you market fees if you quit early?)
After you’ve found the suitable brokerage, your state may need you to work for three to five years before you may open your own real estate company.
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That leads us to the next step…
3. Think about going solo
You’re almost there if you want to learn how to become a real estate agent. As a real estate salesperson, you have the option of working for one firm or moving up the ladder by hopping from broker to broker.
If you wish to start your own real estate company, though, you’ll want to check out the information in the next section!
Queries
- How Hard Is It To Become A Real Estate Agent?
Real estate agents can make a lot of money and have a lot of freedom. That doesn’t mean it is such a flexible or an easy career or that everyone becomes successful in it. It actually takes hard work, dedication, and perseverance to become a successful real estate agent. In order to become an agent, you need to take classes, pass a test, and find a broker to work for.
- Real Estate Agent Salary
From statistics, and on average, real estate agents make about $84,459 each year according to salaries reported by some sources.
- Highest Paying Real Estate Career
Here are some of the Highest Paying Real Estate Careers with good salaries :
- Home Inspector. If you already have a good major job and are looking for a side gig to enhance your income, you can work as a home inspector.
- Real Estate Lawyer.
- Real Estate Broker.
- Commercial Real Estate Agent.
- Property Manager.
- Corporate Real Estate Manager.
Frequently Asked Questions (FAQs)
Realtor” is the symbol of a professional in the real estate business. Many individuals use the term Realtor synonymously with ‘real estate agent’ or ‘salesperson’. This assumption isn’t correct. Not every real estate agent is a Realtor.
MLS actually stands for Multiple Listing Service. The MLS is a network of real estate listings in an area or a region, where purchasers can (through a Realtor or the Internet) check what is available in their price range. Also, with the components they are looking for.
DOM stands for “Days on Market”. This number lets buyers see how long the property has been for sale.
A real estate broker is an agent who may open and run their own agency. All real estate offices must, by law, have one chief broker.
The closing is the apex of everything in a real estate transaction. It’s where the title, which is known as the deed, transfers from seller to buyer.
Conclusion
The real estate profession has broadened and offers one of the widest career selections in today’s world of business.
Assisting individuals purchase and selling homes, office buildings, industrial property and corporation farmland, property management, land development, mortgage banking, urban planning, real estate counseling, appraisal, and research are all facets of a career in real estate.
Just know that regardless of its unavoidable troubles that you won’t be making a wrong decision should you trail the path of becoming a real estate agent.
References
- https://www.investopedia.com – Is a Career in Real Estate Right For You?
- https://clarkeagency.net/faqs/ – FAQ’s – Real Estate Frequently Asked Questions
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