Should I Hire An Agent Or Get My Own Real Estate License?
Should I hire an agent or get my own real estate agent license?
I love real estate agents! They generally work hard and offer a wealth of knowledge. They deal with difficult people and difficult situations on a daily basis. While some people like the idea of every work day being unique and different, most agents are not getting rich quickly and easily. The average real estate agent will make just over $75,000 per year in the U.S. As a real estate investor, I hire agents regularly in my business. Lately, I have been seeing the benefits of becoming an agent myself.
Deciding to become a real esate agent is a big moment in anyone’s journey. Many people come into this career for different reasons, and from different stages in their lives. Some people have had job experiences in the past that are related to real estate, but many have no experience with real estate at all. You have to decide if real estate is right for you and if this is the time to pursue it for yourself.
If you have decided that this is the time to look into becoming an agent yourself, you might be curious about what the process is like and how long it will take. The answer is, it depends on where you want to do business. Each state has its own set of rules, processes and requirements. Your state’s real estate commision will list the pre licensing and educational requirements necessary for becoming an agent.
In California, you must be at least 18 years old and be a legal U.S. resident (California state residency is not required), you must register for and complete 135 hours of required education, you must complete the application for the salesperson license (including fingerprinting and background checks), and you must pass the written state salesperson license exam with a score of 70% or better. Conviction of a crime or failure to disclose conviction of a crime may result in the denial of a license. Because of mandatory education wait periods and background checks, the whole process can take approximately 5-6 months. Even after this is accomplished, you are not authorized to work independently as a real estate salesperson. You must work with a licensed broker to get your paperwork finalized and get your license issued, and you will be working as an agent on behalf of or under the sponsorship of that broker. If you decide not to become immediately employed by a broker, you can get your license, but you cannot perform activities that require a license. A salesperson license is provided in California for a four year period. You will be required to complete continuing education courses in order to renew your California salesperson license. In California, there is no difference between the license for selling residential and commercial properties.
There are a variety of programs available in each state to fulfill the pre licensing educational compoent of this process. There are online courses (home study) and live classroom programs can be found at many local real estate schools, realty firms, universities and technical schools. Make sure that you enroll in a program that not only fits your price and scheduling needs, but that also has a good reputation. Make sure the program curriculum is approved by the state and that the program has a good student pass rate for the state exam.
While I will likely be taking the California exam in the near future, this process has made me appreciate agents even more than I did before. Good luck to you and your future real esate career!