How to Become a Real Estate Agent: Real Estate Career Guide

A real estate agent (also called a real estate salesperson) is a licensed person who helps buyers, sellers, and renters of property enter into and complete transactions. Basic real estate agents must work underneath a real estate broker (either an individual or a firm) and are paid by commission, earning a small percentage from each real estate transaction they complete. They can work either part-time or full-time and may typically work weekends when sellers or buyers are more readily available.

“Real estate agent” is a general term that refers to an array of real estate professionals, including brokers, buyer’s agents, dual agents, realtors, and seller’s agents, each with their own specific expertise. To enter this profession, prospective agents must meet specific age and educational requirements, take pre-licensing courses, and pass the state licensing exam.

Here are the different types of real estate professionals:

1. 1. Broker: A real estate broker is an agent who is licensed to run their own firm. They can either work independently (as opposed to under a brokerage) or serve as a brokerage for other agents.
2. 2. Buyer’s agent: A buyer’s agent represents the interests of potential homebuyers in a sale, trying to locate the right house and get the best price for their clients.
3. 3. Dual agent: A dual agent represents both the buyer and the seller in the same transaction, balancing the desires of both and ensuring each client receives fair and equal treatment. Dual agency is prohibited in a handful of states, while many states where the practice is legal have laws to protect clients from potentially predatory situations.
4. 4. Realtor: Realtor is a special designation for real estate agents that are active members of the National Association of Realtors (NAR) and adhere to its code of ethics. Some real estate agents become realtors for extra credibility and to take advantage of NAR’s additional tools and courses.
5. 5. Seller’s agent: A seller’s agent represents the interests of potential home sellers, trying to sell the property quickly, efficiently, and for the best price.

To become a real estate agent, you need to:

• Be at least 18 years of age and a US resident. In the US, the most basic requirements before you can take the licensing courses and exam are that you are at least 18 years old (or 19, depending on the state) and have legal resident status. States may also require prospective agents to have a high school diploma (or GED) and submit to a fingerprint or background check.
  
• Take your state’s pre-licensing coursework. Once you meet the basic requirements, you must take your state’s pre-licensing courses, which will teach you everything you need to know about real estate sales and purchases. These courses vary widely by state—for instance, in Florida, it takes around 60 hours of work, while in California, it’s about 135.
• Pass your state’s licensing exam. After completing your pre-licensing courses, you’ll be eligible to take the real estate licensing exam. This multiple-choice exam tests your knowledge of national and state-specific real estate laws. The exams vary by state, but all are multiple-choice and take between 90 minutes and three hours to complete.

Becoming a real estate agent usually takes between four and six months, depending on your state’s requirements. Here’s a step-by-step guide to starting your real estate career and becoming a new agent:

1. 1. Determine the requirements in your state. Every US state has slightly different requirements and expectations of a real estate agent, so the first step in becoming a real estate agent is to research your state’s particular requirements. Is there a certain age, education level, or background check requirement? How expensive are your state’s pre-licensing courses, exam, and activation fees? Collect all of this information to avoid any unwelcome surprises in the licensing process.
2. 2. Take pre-licensing courses. Once you’ve confirmed that you’re eligible to become a licensed agent in your state, you can sign up for the pre-licensing course. A pre-licensing course will teach you everything you need to know about real estate principles—from new homes to escrow—and should adequately prepare you for the exam and a successful real estate agent career. Real estate courses vary widely by state, ranging from around 60 hours of work (in Florida) to around 180 (in Texas). Most states offer many different options for courses—for instance, online courses, coursework at a real estate school, or classes at a local community college—so choose the option that works best for your learning style and schedule.
3. 3. Take the licensing exam. After passing your pre-licensing course, you must take the official real estate license exam offered by your state’s real estate commission. Your pre-licensing class should cover the information on the exam, but you can also complete special exam prep for additional preparation. The exams vary by state, but all are multiple-choice and take between 90 minutes and three hours to complete. If you don’t pass the first time, check with your state rules to see how long you have to wait before retaking it and how many times you’re allowed to retake it.
4. 4. Activate your license. Once you pass the licensing exam, you can submit your license and application (along with state fees) to your state’s real estate agency. Most states should get back to you in about a week, approve your application, and send you an official real estate certification.
   
5. 5. Join a real estate broker. Licensed real estate agents aren’t allowed to work in the real estate market on their own—they must work under the umbrella of a licensed real estate brokerage. Once you have a license, research brokers in your area and identify one with a good reputation in your area of interest.
6. 6. Increase your credentials (optional). After becoming a licensed real estate agent, you may want to increase your certifications for credibility purposes, freedom to practice in your own firm, or increased earning potential. Continuing education options include becoming a realtor—a member of the National Association of Realtors (NAR) with access to additional tools, market research, and real estate education courses—or getting a broker license—a license to run your own firm.

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