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Becoming a real estate agent takes a lot of work and dedication – but it can also be very rewarding at the same time. This post is designed to be a one stop guide for everything you need to know about becoming a real estate agent.
Before you jump into the real estate field, there’s some questions you’ll need to ask yourself to make sure you really have what it takes to succeed at real estate:
What are the licensing requirements in my state for becoming a real estate agent?
Each state has different requirements and regulations regarding obtaining a real estate license. Some states are relatively easy to get licensed in, others require criminal background checks, licensing classes, testing, and more before you can become a licensed real estate agent. this site has information on who to contact in US and Canada.
How Much Will It Cost to Become a Real Estate Agent?
Depending on your state’s requirements, it can cost anywhere from $300-$700 to take the necessary classes and pay for processing fees just to become licensed. Once you are licensed, there are other annual fees to consider: MLS dues, MLS keypad, National Association of Realtor dues, Errors and Omissions Insurance, and others depending on your location.
Then there are costs many don’t consider: professional attire, marketing materials, gas and car payments as well as insurance, and basic costs you will need to cover such as your mortgage payment, food, and other living expenses.
All said and done, it can cost anywhere between $800-$2000 just to get started in real estate, and you will also want to make sure you have at least 6 months of “fall back” income saved up to cover your basic living expenses, since you do not know when your first paycheck will be! The good news is much of this is deductible from your taxes.
Do You Have The Right Personality?
Real estate agents need to be able to handle stress well and have natural problem solving skills. You’ll also need to be assertive and a “people person”, since most of your business will come from networking with others and making new contact. If you’re shy or don’t like calling complete strangers on the phone or knocking on their doors, it may be difficult for you to get the needed clients in order to make a living in real estate.
What Broker Will You Choose?
Not all brokers are created equal, and it can be difficult to decide which one is the best for you. Make sure you interview several brokers in your area and compare the benefits and the disadvantages of working with each. Our list of 10 Things Your Broker Won’t Tell You can help you prepare for what questions to ask your prospective office managers.
Do You Have a Business Plan?
Getting started in real estate and being successful require a business plan. You’ll want to set realistic goals for your first year, as well as outline exactly how you can achieve those goals. Having a basic knowledge of marketing and finding prospects before you start can help you hit the ground running once you become licensed.
If you’ve answered the questions above and determined you are ready to become a real estate agent, you may be interested in the ebook Becoming a Real Estate Agent and may also want to check your local library for the books they have available on becoming a real estate agent. Reading about becoming a real estate agent will help you know what to expect and prepare for.
Another thing you’ll want to do is make sure you read all of the articles here available on Upstart Agent and of course subscribe by email to receive ongoing tips and tricks for a successful real estate career.
Do you have any tips for someone thinking about becoming a real estate agent? Share your advice in the comments below.
7 Comments
I think the biggest issue you raise that most people under value is having a plan. I once spend many many hours working on a business plan only to come to the conclusion it probably would not have worked had I tried it. What a let down. But at least I saved a lot of money and probably a lot more time. Go into any new project with a plan and with a purpose (other than chasing $) and you will probably end up ok.
The scary thing to me is that it takes more hours of training and education to be a cosmotologist than a real estate agent.
Yeah! I totally agree with you Sam. My brother told me that it really takes a lot of hours.
Thank you so much for the nice advice. Glad that I found your site. This is what I have been looking for.
These are times of opportunity for some and suffering for others. The current rock bottom interest rates are great for those with big mortgages but of course they are nonsense for savers. One aspect of the real estate market that is booming in my area is auction sales. Many properties are going to auction rather than being handled by a realtor.
Number one tip is that people must be dedicated. If you lose faith and slack, you will fall behind for sure.
The decision to become a Real estate agent is often taken lightly without much thought of the time and the work that is involve to be successful.