If you’re watching the financial or business news, you know mortgage interest rates are at 30 year high, houses are staying on the market longer than before and there could be a recession coming.
Some people look at that and think now is a terrible time to go into real estate. But here at “Thriving Forth” we know that sometimes bad times make good opportunity.
So if you want to learn how to become a real estate agent in the United States, read ahead…
What is a Real Estate Agent and What Do They Do?
Real estate agents are licensed professionals who act as an intermediary between buyers and sellers of real estate. Acting as a facilitator and negotiator on behalf of the parties involved, agents must be knowledgeable about local markets, regulations, and legal requirements for buying or selling property.
When representing a buyer, a real estate agent’s job is to help the buyer find a suitable property that meets their needs and budget. Agents typically use online databases such as MLS (Multiple Listing Service) to showcase listings in the local area, making it easier for buyers to compare properties side by side. An agent will also show properties in person and provide advice on the negotiation process.
When representing a seller, a real estate agent’s job is to help the seller maximize their profit potential by marketing the property directly to buyers. Agents will use various strategies such as open houses, staging, and advertising campaigns to attract potential buyers. They may also advise how to best present the home and navigate any legal obstacles that could arise during the sale.
Real estate agents have an important role to play in buying and selling homes and can add a lot of value for their clients. They must be knowledgeable about market trends, local regulations, and tax laws, as well as being great communicators and negotiators. Having a reliable real estate agent on your side will help you achieve your goals in no time.
Their day-to-day job can entail:
- previewing properties
- generating leads for buyers and sellers
- following-up on leads
- showing properties to potential buyers
- going on listing appointments
- taking classes to continue their education
- networking with other real estate professionals (title companies, loan officers, builders, etc.)
- managing transactions in order to get their deals to settlement
How Much Can Real Estate Agents Make?
Real estate agents typically get paid on commission. This means they get a percentage of the sale of the property. This can range from 2% to 6% or even more. Even though the seller pays the commission, each side of the deal (the buyer’s agent and the seller’s agent) get a portion of the overall commission. Officially, the commission is paid to the real estate broker that the agent works for, and the agent gets a share (or a “split”) of that commission check.
Some brokers will give a 100% split, but they might charge the agent in other ways through various fees and desk rent. Other brokers keep the out-of-pocket costs to the agent at a minimum, but they take a larger share of the commission.
Real Estate Agents made a median salary of $49,040 in 2020. That was at the height of the real estate market when interest rates were still low. And this is the median salary, which means just as many agents made under that amount as made over it.
Does this mean that real estate agents don’t earn that much? Absolutely not. There are a number of agents in each state that make $1M (or more) in income each and every year. Being a Real Estate Agent is one job where your income is only limited by the amount of effort you want to put into it.
How Do I Get a Job as a Real Estate Agent in My State?
If you’re interested in becoming a real estate agent, the first step is to determine your state’s requirements for licensing. In most states, you will need to take an approved course and/or pass an exam. You may also need to complete a background check or have certain insurance to be licensed.
Once you’ve met the qualifications, you will need to find a real estate broker that you can work with. Real estate brokers generally provide support and guidance for their agents, so finding one who is experienced and reputable is important.
Finally, you should get yourself out there in the market by networking with other agents, attending meetings and events related to real estate, and staying up to date with the latest trends in the industry. This will help you build your reputation as a reputable agent and find more success in the field.
Here is a complete list of real estate licensing requirements by state.
Where Can I Find a Good Real Estate Class in my Area?
This is where Google is your best friend. You can often find “pre-licensing” classes that are free and/or online in each state – depending on the local regulations. Each state will have its rules and requirements, so you’ll need to research online to figure out what classes would be best for you.
You should also look for real estate schools in your area that offer education and training. Many of these programs can be expensive, but they provide a comprehensive education with hands-on experience that can be invaluable when getting your license.
Finally, check with the local real estate boards or associations in your area as they often have resources and information about available classes. They may even offer their own courses or have recommendations of where you can get the training you need.