Are you interested in being self employed as a real estate broker? Do you want to learn how to become a real estate agent or broker? Do you want to know the requirements needed to become a commercial real estate agent or broker? Then read on as I share with you how to become a successful real estate agent or broker.
Since most Americans dream of owning their own home, and 82% of all properties are sold through real estate agents and brokers, there are lots of opportunities waiting for you to cash into. This makes the real estate industry one of the most lucrative to get into. In 1986, the National Association of Realtors’ census revealed that there were 1.2 million real estate agents in the united states alone.
Now fast forward to today, I bet the number must have doubled; yet, the opportunities still remains abundant. Now with respect to the ongoing tax reforms and the current state of the economy, you would expect the number of homes being bought and sold hands to decrease but the reverse is the case.
With the falling interest rates, the residential and commercial real estate market is still going strong. No matter what is happening nationwide, households will keep being bought and sold because everyone needs a place to live. After all, shelter is one of the basic needs of man.
5 Things to Know about Becoming a Real Estate Agent
Before I go into the intricacies of becoming a real estate agent, I want to first make some points clear. The first point I want to make clear is that becoming a real estate agent or broker does not necessarily mean that you must be employed in an estate firm.
Though you can seek employment in an estate company to hone your skills and gain experience. Then you can proceed to become a self employed estate broker or start your own real estate business. I will share with you details on how to start a start a real estate business in subsequent articles.
Secondly, the principle of becoming an estate agent is the same all over the world. What will be different are the regulations and requirements of each state, country or region and the economy of the said region. So whether you want to learn how to become a real estate agent in California, Texas, Illinois, NY, Nigeria, Canada, India, etc; you will find this information useful. Here is a sample real estate agency business plan template you can use for FREE to get started.
How to Become a Successful Real Estate Agent or Broker
Make up your mind to become a real estate agent
First, you would have to decide if this career is right for you. Secondly, you have to do it for the right reason. Your aim should be to end up as a real estate entrepreneur; running your own real estate agency or brokerage company.
Most people have the assumption that to be a successful real estate agent, you just need to be good in convincing people to buy properties and houses. Good communication and persuasion skills are necessary to succeed as an estate agent but that is not all. You also need to be familiar with the intricacies of the real estate industry.
Go for the good real estate course or training
One of the duties of a real estate agent is to make certain that your buying clients find their dream homes, while the sellers get their property’s worth. Just like in any kind of occupation, carrying out this duty certainly requires skill and mastery; that’s why you need adequate training and education before you get started.
There are different institutions that provide trainings and courses for those who want to venture into the real estate industry. Usually, some states demand that an aspiring real estate agent, broker or salesperson should spend at least 30 to 90 hours classroom acquiring the necessary education.
Obtain a license as a real estate agent
Before becoming a recognized real estate agent, you would require a license to operate. To obtain a real estate license, you will need to take your state’s real estate exam. Many colleges and universities offer night or evening courses that will help you prepare for this exam. Also, it’s important you know that the Professional Licensing Commission in your state provides a list of reputable educational institutions where you can take your courses.
You can also ask the Real Estate Association within your neighborhood for recommended institutions. A high school diploma is a requirement and at least, you must be 18 years or older. After writing and passing the licensure examination, you will be issued a license. But bear in mind that agents are mandated to renew their license every two years; depending on the state where you are operating.
Another vital point to note is that operating in the real estate industry requires continuous learning; so you would also need to attend seminars even if you are already licensed. The real estate industry is continually evolving or changing and as a real estate agent, you need to be of changes in laws and regulations in the various states you operate; so as to keep your clients informed.
Hone your skills and gain experience under an established real estate firm
After you have taken your real estate courses and gotten educated, you are now good to go but you will still lack experience. So it’s advisable that you work for a real estate firm or a mentor for about 2 to 5 years to gain experience. It is more like apprenticeship.
Now most states demand a set apprenticeship period (2 years or so) with an established broker. Your apprenticeship will teach you the intricate aspects of real estate brokering; these are real-life skills and knowledge that you can’t pick up in school.
So I will recommend that you choose an established real estate brokerage firm with abundant listings so that you can earn an income while learning the business. After going through all these process, you can now start thinking about setting up an individual practice. At this stage, you are now a fully fledged real estate agent or broker.
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