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.
Your passing grade on your state real estate licensing exam doesn’t quite mean you have a license yet. A real estate salesperson (agent) is licensed to act on behalf of a broker and may not act as a real estate agent independently. Consider finding a real estate broker early in your licensing process. Once you have completed your prelicensing education requirements and passed your exam, you and your broker will both need to complete final paperwork with the state. Once the form is accepted, your license will be issued, and you may practice real estate under the sponsorship of the broker. Keep in mind that there are a number of items to consider when finding the right real estate brokerage.
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.
It’s important for consumers to understand whether a real estate agent represents the buyer, the seller, or both parties; obviously, the agent’s loyalty can greatly affect several details of the transaction, including the final price. State laws regulate whether an agent can represent both parties in a real estate transaction, technically known as “dual agency.” Agents must disclose their representation, so that buyers and sellers are aware of any conflicts of interest.
Each state’s real estate licensing requirements are different. Your state’s real estate commission website will list the official prelicensing requirements. Kaplan Real Estate Education offers a couple pages that narrow this knowledge gap down. The Steps to Licensing page is designed to show, in simple steps, what it takes to become licensed in each state. In addition, Kaplan offers a page dedicated to each state’s real estate licensing and continuing education requirements. See the link below for your state’s pages.
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.
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!