As a profession, real estate can offer countless growth opportunities for those willing to work hard and learn the business's ropes.
If you have a passion for building relationships, strong communication skills, and a general curiosity for the world of real estate, then this career path could be the right fit for you. However, like any other job, becoming an agent has its challenges.
Although most states don’t require you to have a college degree to earn your license, you will still need a considerable amount of education and training before you can represent clients on your own. Real estate software can help you facilitate key functions real estate professionals perform.
If you’re up for the challenge – keep reading.
How to become a real estate agent
- Meet your state’s minimum requirements
- Enroll in a real estate license school
- Complete required coursework
- Pass the licensing exam
- Find a broker or brokerage firm
In this article, we’ll cover the main steps you need to take to become a real estate agent. Let's get started.
Steps to becoming a real estate agent
Whether you’re fresh out of school or have 10 years of experience doesn't matter. Anyone can become a real estate agent regardless of background or experience level. Tenacity, people skills, and hard work will get you much farther in real estate than a lengthy resume.
People hire agents to help them navigate the complicated and often lengthy process of buying and selling property. This requires agents to have expert knowledge of housing regulations and be well-versed in the legality of the mortgage lending process. But as you can guess, becoming a subject matter expert doesn’t happen overnight. Education will take up most of your time as you start on the path to becoming a fully licensed agent.
Below, we’ve outlined the five steps you’ll need to take to kickstart your career.
Note: Although the following steps will generally apply to most people, always double-check the unique licensing requirements for the state where you live and plan to work.
Step 1: Familiarize yourself with the minimum requirements for your state
You’ve finally decided to take the plunge and get your real estate license, but what now? In the U.S., real estate agents must have a state-issued license to represent clients to buy and sell property and be compensated for it.
Before formally kicking off the learning process, the first step is to check with your state to see the minimum requirements to earn a license. Most states require at least a high school diploma (or equivalent G.E.D.) and usually have a minimum age requirement. From there, you’ll want to identify exactly how many hours of coursework you’ll need to complete before applying to take a final licensing exam so you can lay out your school schedule over the next several weeks.
Step 2: Enroll in a real estate license school
Now that you know you meet your state’s minimum requirements, it’s time to start learning! You’ll have the option of enrolling in an in-person or online real estate license school. Online programs have become increasingly popular in recent years since they allow students the flexibility to learn at their own pace and in the comfort of their preferred study space.
Real estate school programs are equipped to provide you with all the resources you’ll need to pass your exam. Pricing will vary drastically from school to school, so it’s important to find a program that fits your needs and budget.
Step 3: Complete the required coursework
Once you’re enrolled in a real estate license school, you can start working on chipping away at your required coursework. As mentioned, the hours you need to take will vary based on your state. Most states require somewhere between 90 and 120 total hours of completed coursework. Your learning schedule will include exams that test your knowledge after each course is completed to prepare you for the state licensing exam.
You can expect most of the classes to cover real estate fundamentals. This includes topics such as types of real property, escrow procedure, non-discrimination, and ethics. You’ll also be taught the laws and regulations that pertain to your specific state. Clients hire agents for their expertise in navigating the real estate sales process and will rely on you to know the legal aspects of the business to help them negotiate and close the sale as smoothly as possible.
Step 4: Pass the licensing exam
After completing all the necessary coursework, it’s time to take the official state licensing exam. Your school will likely send you a final confirmation that you’ve completed the program. From there, you’ll just need to register online for the exam, which will be administered by the state you live in. Pick a nearby testing center and a date that works best with your schedule. The fee for taking the test can range anywhere between $50 to $100.
Be sure to check with your state to determine what materials you’ll need to bring to the testing center. The exam can take 3 to 5 hours to complete.
Step 5: Find a broker to work under
Passed your exam? Congrats! You’ve officially earned your license. There’s only one last thing you’ll need to do before becoming a real estate agent.
The final step is to find a licensed broker or brokerage firm to sponsor you. Some states require that you pass this step before taking your licensing exam. If that’s not the case in your state, you’ll need to do this after you pass the test.
As a reminder, there’s a big difference between a real estate agent vs. broker. Agents cannot operate independently and must work under a broker who has earned their broker’s license through further education. As a new agent, you’ll want to find brokerage management software that offers mentorship and guidance. Other factors to consider are company culture, reputation in the market, and commission structure. Every firm will have its pros and cons, and while searching for the right fit may seem daunting, it will pay off once you’ve found a good match.
Skills required to become a real estate agent
To thrive in the real estate industry, you need a blend of soft skills and technical knowledge. Here are some key skills to get you started:
Soft skills:
- Good communication: Effective communication is crucial for building client relationships, negotiating deals, and addressing concerns. Understanding real estate terms can help.
- Interpersonal skills: Strong interpersonal skills help you connect with people from diverse backgrounds and build trust.
- Active listening: Paying close attention to client's needs and concerns helps you tailor your services to their specific requirements.
- Negotiation skills: The ability to negotiate favorable terms for your clients is essential in real estate.
- Problem-solving capabilities: You'll encounter various challenges in the real estate industry, so problem-solving skills are invaluable.
- Good time management: Juggling multiple clients and tasks requires excellent time management skills.
- Adaptability: The real estate market constantly changes, so adapting to new trends and technologies is crucial.
Technical skills:
- Laws and regulations: A solid understanding of real estate laws and regulations is essential to ensure compliance and protect your client's interests.
- Market knowledge: Knowledge of local market trends, property values, and economic indicators is crucial for providing accurate advice to clients.
- Financial analysis: The ability to analyze financial data, such as income statements and return on investments, is important for evaluating property values and investment opportunities.
- Marketing and sales capabilities: Effective marketing and sales techniques are essential for attracting clients and closing deals.
- Technology skills: Proficiency in using real estate software, CRM software, and other technology platforms is crucial for efficient work.
By developing these skills, you can position yourself for success in the competitive real estate industry.
FAQs: How to become a real estate agent
How long does it take to become a real estate agent?
The time varies depending on your study habits and the length of the pre-licensing course. However, many people can complete the process in a few months.
What are the ongoing costs of being a real estate agent?
Ongoing costs include fees for continuing education, membership dues for professional organizations, and potential marketing and advertising expenses.
What are the benefits of becoming a real estate agent?
- Flexibility: Enjoy a flexible schedule and the ability to work independently.
- Income Potential: Earn a competitive income based on your sales performance.
- Personal Satisfaction: Help clients find their dream homes and achieve their real estate goals.
Let’s get selling
The road to becoming a real estate agent isn’t always easy, but the end result is a career that can be both long and rewarding. If you have a genuine passion for the real estate business and think this could be a good career move, go for it! Now that you know what it takes, it’s up to you to take the plunge.
Now that you know what it takes to become a real estate agent, take a look at the best free CRM for real estate agents to know your options.
This article was originally published in 2019. It has been updated with new information.
