So you want to dip your toes into the real estate industry? The business is lucrative and the trade isn’t complicated if you do your research and play your cards right. In the current market, people aren’t looking to rent as much as they are looking to invest in a permanent residence. This is great news for anyone who is looking to start selling property! So here’s how you can do it.
Step 1: Thoroughly Research State Law and Policy
The first thing you need to do is pick your state and then set about finding old and new property laws. Different states have different steps for someone to acquire their real estate license. The best place to check is your local regulatory office. If there’s a website, that’s even better! This way, you’ll find out what your state’s particular licensing requirements are according to the laws made by the Association of Real Estate License Law Officials (ARELLO).
Typically, there are a number of requirements you will need to meet to get your license. These include age, education level, criminal history, bio-data, application fees, prerequisite courses and more. Make sure your requirements for each section are complete.
Step 2: Invest in a Pre-License Course
Speaking of requirements, this is a big one. Find an accredited licensing school and take the number of hours required in the pre-licensing course. This also varies from state to state. In New York, for example, 75 hours is enough for you to sit for the license exam later on.
These courses are normally flexible and you have the choice to study in a proper learning environment or even over the Internet. This depends on your personal preference. If you reside in a larger state, you will find several real estate schools and various classes around you. Therefore, feel free to choose whichever study method helps you most. Make sure to pick a good instructor so your efforts don’t go wasted.
Step 3: Exam Time!
Once you’ve completed the hours required for the pre-licensing course, you will have to sit for the licensing exam. Again, depending on where you live, the exam will set you back by $300 plus. If you have a good instructor, they will tell you how to approach the test and how to get a great score.
The actual exam has two sections. There’s one overall real estate rules, practices and guidelines, and another one that is specific to your state. This one tests your knowledge of all the state laws you must abide by to do business in that market. Oh, and you are not required to bring a number 2 pencil since the exam is digital.
Step 4: Agent VS. Realtor
If you’ve come this far, you can consider getting one step ahead and becoming a realtor instead of just a real estate agent. Realtors are automatic members of the National Association of Realtors (NAR), which means they get additional credibility in the market. As a realtor, you also have access to more business opportunities and learning tools than if you stay an agent.
Step 5: Go For Broke(rage)
As a new agent, you will be required to work under a licensed expert in a real estate brokerage. While you might not bank an hourly wage, you will get a percentage of the sales that you close i.e. essentially, commissions. All you’ll have to do is pay an annual licensing fee and you’re all set to make your mark on the real estate market!