Timing is important at this step. Make sure you are following the application process with your state so you can sit for your real estate agent exam soon after you finish your real estate licensing classes. This process will be state-specific and include a fee. Check with your state’s real estate regulatory authority for complete details. Some states require you submit fingerprints and pass a background check. This can take weeks to process. In many states, the application process must be complete before you can register or schedule your exam date. Don’t let the paperwork become a roadblock to getting started in your new real estate career.
Pay for membership to the local multiple listing service. Membership in your local MLS is essential, since you must use the system to list properties, which are then dispersed to websites like realtor.com®. The service also enables you to easily pull a property's tax information, analyze market trends, and see listings before they go on the market. Costs vary greatly: Membership for Maryland, Virginia, and Washington, DC, agents to the Metropolitan Regional Information Systems, for example, costs $1,136 per year; while on the low end are areas like California's Southwest Riverside County, which charges MLS dues of $220 per year.
Do you know how to calculate the fair market value of a house? What about the capitalization rate or real estate conversion? Do you know what is the right type of appraisal for the house? The situs definition, as well as the replacement cost or income approach, may seem foreign to you. Moreover, as a real estate investor, do you know how to convert a warehouse into a loft? Or what novation in real estate means? Real estate agents are like copilots - they help home buyers, sellers and renters navigate through all the real estate documents they need to sign explaining all the unfamiliar real estate terms. And business gets a lot more complex as we dive into commercial real estate.
The first step in this process is making sure that real estate is right for you. As a real estate salesperson, each day is spent working for you. This means handling your own office management, paperwork, prospecting leads, developing relationships, managing contacts, and dealing with buyers and sellers. Reach out to local real estate agents and brokers and ask them questions about what the day-to-day work is like. Ask questions about real estate as a long-term career. Starting a full-time career as a real estate agent can’t be treated like a hobby. It requires a full commitment. Make sure real estate is the right path for you.
Passing the real estate exam takes more than finishing the educational requirements—it takes preparation. Not everyone passes the exam the first time. Preparing yourself to pass the state exam takes additional study time. Kaplan highly recommends enrolling in an exam prep class. Because the ultimate goal is to help you pass the exam, most of Kaplan’s prelicensing packages include the comprehensive Exam Prep Course. Taking practice exams, measuring your strengths and weaknesses, and working through comprehensive topical review will sharpen your knowledge and prepare you for exam day.
A realtor is a member of the National Association of Realtors (NAR), a trade association. Both agents and brokers can be realtors, along with property managers, appraisers, and other real estate industry professionals. Realtors are expected to be experts in their field and must follow the NAR’s code of ethics, which requires agents to uphold specific duties to clients and customers, the public, and other realtors. In addition to NAR, realtors must belong to a state or local real estate association or board.
The course will teach you real estate principles (terms like "lien," "escrow," and "encumbrance"), real estate practices (like how to determine a property's value), and the legal aspects of the business. Go to your state real estate commission's website to find information on licensing requirements and a list of accredited pre-licensing institutions.
There are variety of ways you can choose to complete your real estate prelicensing education requirements, from live classroom locations at local real estate schools, some realty firms, universities and technical schools offer real estate licensing programs, home-study, and online real estate education. This is an important decision in your journey. Make sure you enroll with a school that has a good reputation, offers quality content and instructors, and is focused on positive student outcomes. Your real estate licensing education will be difficult and comprehensive, but it will also be the springboard to a successful career as a real estate professional.
States require people to take pre-licensing training from a certified institution before they can sit for the real estate licensing exam. The required number of training hours can vary significantly by jurisdiction: In Virginia, for example, real estate agents must take 60 hours of pre-licensing training, but in California they need to take 135 hours.
Revisit your state real estate commission's website for instructions on how to sign up to take the licensing exam. (Most states outsource administration of the exams to third-party testing centers.) Exams are typically divided into two portions: one on federal real estate laws and general real estate principles, the second on state-specific laws. Both typically consist of 60 to 100 multiple-choice questions, including math questions that require you to use a calculator (e.g., prorating taxes for a specific property). Most pre-licensing courses provide students with sample tests, and many real estate commissions publish sample questions online.
The process of buying a home or selling a home is very complex and the help of a real estate agent will prove invaluable in the end. Real estate transactions are far more complicated than an online purchase. A lot of paperwork is involved, so when property changes hands, you must have a real estate agent by your side. And the best place to find one is by using our agent directory!