Introduction
Becoming a realtor is an exciting and rewarding career path, offering flexibility, income potential, and the opportunity to help people make one of the most important financial decisions of their lives. If you’ve ever thought about entering the world of real estate, you’re not alone. In fact, many people are drawn to real estate because of the combination of financial rewards, personal independence, and the chance to work with clients from all walks of life.
This blog post will walk you through the process of becoming a realtor, step by step. From obtaining the necessary qualifications to choosing the right brokerage, we’ll cover everything you need to know to get started in real estate.
What Is a Realtor?
Before diving into the steps to becoming a realtor, let’s clarify what a realtor actually is. A realtor is a licensed professional who helps clients buy, sell, or rent real estate properties. However, not every real estate agent is a realtor. To be a realtor, an agent must be a member of the National Association of Realtors (NAR), which is the largest trade organization for real estate professionals in the United States.
While the term “real estate agent” can be used to describe anyone licensed to practice real estate, a realtor is held to a higher standard of ethics and is required to abide by the NAR’s Code of Ethics. This means realtors are committed to serving their clients’ best interests and promoting transparency, fairness, and professionalism in their transactions.
Step 1: Research Your State’s Requirements
Every state has its own set of requirements for becoming a realtor. It’s essential to familiarize yourself with your state’s real estate laws and licensing requirements before you begin the process.
The basic requirements typically include the following:
- Age: Most states require you to be at least 18 years old.
- Education: You’ll need a high school diploma or equivalent (GED).
- Pre-Licensing Education: Before taking the licensing exam, you must complete a certain number of hours of pre-licensing education. These hours vary by state but generally range from 60 to 180 hours of classroom or online instruction.
- Background Check: Many states require you to undergo a criminal background check before you can obtain your real estate license.
- Real Estate Exam: After completing the pre-licensing education, you’ll need to pass a state-administered exam that tests your knowledge of real estate law, practices, and ethics.
You can find specific details on your state’s real estate licensing requirements by visiting your state’s real estate commission website or contacting a local real estate school.
Step 2: Complete Pre-Licensing Education
The next step is to complete the required pre-licensing education. These courses typically cover topics such as:
- Real estate principles
- Property law
- Contracts and agreements
- Finance and mortgages
- Ethics and professional standards
- Fair housing regulations
You can take pre-licensing courses in-person at a real estate school or online through a licensed provider. Online courses are often more flexible, allowing you to study at your own pace. Be sure to choose a reputable real estate school that’s approved by your state’s real estate commission.
Step 3: Pass the Real Estate Licensing Exam
Once you’ve completed your pre-licensing courses, the next step is to take the real estate licensing exam. The exam typically consists of two parts:
- National Portion: This part tests your knowledge of real estate principles, laws, and practices that apply across the entire country.
- State Portion: This part covers state-specific laws and regulations.
The exam is usually multiple-choice, and you’ll need to score a certain percentage (usually around 70%) to pass. If you don’t pass the exam on your first attempt, you’ll typically be allowed to retake it after a waiting period.
To prepare for the exam, it’s a good idea to review your study materials and take practice tests. Some real estate schools also offer exam prep courses that provide focused review and practice questions.
Step 4: Apply for Your Real Estate License
After passing the licensing exam, you’ll need to submit an application to your state’s real estate commission to receive your license. The application will require:
- Proof of completing the required pre-licensing education
- Proof of passing the real estate exam
- A completed background check
- Payment of licensing fees
Once your application is approved, you’ll receive your real estate license and be officially eligible to work as a realtor.
Step 5: Choose a Brokerage
As a new realtor, you’ll need to work under the supervision of a licensed real estate broker. A broker is a real estate professional who has advanced training and has passed a higher-level exam. Brokers are responsible for overseeing the activities of real estate agents and ensuring compliance with laws and regulations.
Choosing the right brokerage is an important decision. Consider the following factors when evaluating potential brokerages:
- Reputation: Look for a brokerage with a strong reputation in the industry and a history of success.
- Training and Support: Many brokerages offer mentorship programs, training, and ongoing support for new agents. This can be invaluable as you get started in the industry.
- Commission Structure: Brokerages operate under different commission structures, so it’s important to understand how you’ll be compensated for your sales.
- Technology and Tools: Many brokerages offer access to CRM systems, marketing tools, and other resources that can help you succeed as a realtor.
It’s a good idea to meet with several brokers and ask questions about their offerings before making your decision.
Step 6: Get Your Realtor Membership
To officially become a realtor, you need to join the National Association of Realtors (NAR), the largest trade organization for real estate professionals. Membership in NAR grants you access to valuable resources, including:
- The Code of Ethics, which provides guidelines for ethical behavior in the real estate industry
- Access to the Multiple Listing Service (MLS), which allows you to list and view properties for sale
- Networking opportunities and professional development events
- Discounts on real estate-related products and services
In addition to the NAR, you may also need to join your local and state real estate associations, which provide additional resources and networking opportunities.
Step 7: Start Building Your Real Estate Business
Once you’ve obtained your license and become a realtor, it’s time to start building your business. Here are a few tips to help you succeed:
1. Develop a Marketing Plan
Effective marketing is essential for attracting clients and building your real estate business. Your marketing plan should include strategies for:
- Building a strong online presence through a professional website and social media
- Networking with potential clients and industry professionals
- Hosting open houses and events to showcase properties
- Using traditional marketing methods, such as flyers and postcards
2. Build Your Network
Networking is key in real estate. Attend industry events, join local business organizations, and build relationships with mortgage brokers, home inspectors, and other professionals who can help your clients.
3. Continue Your Education
Real estate laws and market conditions are constantly changing, so it’s essential to continue learning throughout your career. Consider taking continuing education courses, attending seminars, and staying updated on industry news to stay ahead of the curve.
Conclusion
Becoming a realtor is a rewarding career path that allows you to help people achieve their real estate goals while building a profitable business. By following the steps outlined in this guide, you’ll be well on your way to launching a successful real estate career.
Remember, success in real estate requires hard work, dedication, and a commitment to lifelong learning. By continuing to grow and improve your skills, you can establish yourself as a trusted and knowledgeable realtor, helping clients navigate the ever-evolving world of real estate.
