How To Get Into Real Estate? – A Few Steps To Becoming An Agent
How to get into real estate? – All you need is a little work and a time frame of four to six months, depending on the place where you stay. The career of a real estate agent is very lucrative, and you will get the opportunity to do a variety of jobs and meet new people. However, you need to be a member of the NAR. As per the data of the end of August 2023, the total number of members in the National Association of Realtors is 1,573,994.
In this article, you will learn some of the essential details about becoming a real estate agent. We will give you details about how to get into real estate by becoming an agent. Here, we will give you steps that you will be able to follow if you want to join as an agent. However, before that, we will discuss a few things to consider before you become a real estate agent. Hence, to learn more, read on through to the end of the article.
Becoming A Real Estate Agent – Is It The Right Option For You?
According to Investopedia, “A real estate agent is a licensed professional who arranges real estate transactions, putting buyers and sellers together and acting as their representative in negotiations. Real estate agents usually are compensated completely by a commission—a percentage of the property’s purchase price—so their income depends on their ability to close a deal.”
However, to become a real estate agent, you will need to be affiliated with a licensed broker or must work for a broker. To become an agent, you will have to get a license, as you will have to represent buyers and sellers (based on the deal) in various real estate transactions.
Like most agents, a real estate agent’s earning is also through commission. You will get the percentage of the property price that you are making the buyer and the seller deal with. The specialty of the real estate agent lies in either commercial or residential real estate. Whether the real estate agent works for a buyer or a seller, their duties are many depending on the deal.
Is This The Right Time To Get Into Real Estate?
In the past few years, the growth of the housing market has slowed down in the United States. This is due to a rise in the rates of interest. This further led to a huge increase in the prices of houses. However, as the economy turned a bit around, the buyers’ demand started increasing.
According to USNews.com, “Housing market predictions for 2023 are trending towards a more favorable market for buyers as home prices and interest rates adjust. Prices are predicted to fall about 5% across the country in 2023, with price corrections up to 10% or more in areas where home prices jumped the most. A housing market crash is not expected in the immediate future, barring unforeseen circumstances.”
As per data trends, the current worth of the real estate market is $2.58 billion and is expected to reach 2.80 billion by 2028. Hence, the CAGR growth rate of the market will be 2.04%. The slow growth is due to the reason that the effect of COVID-19 two years ago still impacts the market.
However, since the market is turning around, there are big opportunities for real estate agents to make a big career in the next few years.
How To Get Into Real Estate In 2023? – Becoming An Agent
According to the data produced by Investopedia, “The median pay for a real estate agent is about $48,340 per year, according to 2021 data from the U.S. Bureau of Labor Statistics. Real estate brokers with additional education, testing, and experience average $62,010. The highest 10% of agents earned more than $102,170.”
However, one thing is sure: you will get a variety of options to work on. Furthermore, you will also get a lot of independence in working with different clients.
The following are the steps you will need to follow if you want to get into real estate by becoming a real estate agent:
1. Meeting The Eligibility Criteria
Here are the criteria you need to match:
- At least passed a high school diploma or GED.
- Must be at least 18/19 years old (depending on the state).
2. Taking Real Estate Courses
To do better as a real estate agent, you will need to pursue pre-licensing courses. You must have at least 40 -300 hours of classroom time, depending upon the state.
3. Passing The Real Estate Licensing Exam
Once you have taken the pre-licensing course, you will be able to take the real estate licensing exam of the state. Make sure that you score enough to get a passing mark.
4. Paying The Licensing Costs
To obtain and keep the real estate license, you will need to pay your dues. This cost is different from the fees that you pay for the pre-licensing courses and the licensing exams.
5. Working For A Licensed Broker
In many states, once you get your license, you are eligible to set up your own real estate firm. However, in some states, you will need to work with an experienced real estate broker for a few years before you start your firm.
6. Understanding The Local Market
This goes without saying – if you do not have a good idea of your local real estate market (or the area of your operation), you will not succeed. Hence, you must consider networking more and study the market fully.
Final Thoughts
How to get into real estate? – If you follow the aforementioned steps, you will be able to become a real estate agent in 2023. However, make sure you are really passionate about your job. This is because, at high times, you will need to have an attitude of outperforming yourself every day. This is what the market demands.
To become a real estate agent, make sure you have the licenses of your state, and you work for a licensed broker. Do you have any more recommendations on how to become a real estate agent? Share your information with us in the comments section below.
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