Getting into real estate can be a challenging, yet exciting journey. If you are satisfied with your current job but looking to increase your current income with new ventures, this may be the path for you. I want to specifically cover some of the pros and cons of getting your real estate license, what possibilities that open up when receiving a license and the general requirements that are needed to become a real estate agent.
To begin down the road of becoming a real estate agent there are basic requirements. You must be 18 yrs of age or older and it is mandated that you have a social security number, but you do not have to be a Massachusetts or United states, resident. Once you have come around to the idea of becoming a real estate agent. it’s time to sign up for classes. One of the first Pros to becoming an agent is the process is fairly simple. Mind you, I said simple, not easy. In Massachusetts you are required to complete 40 hours of pre-licensing classes and in other states such as Colorado, 160 hours are required. There are plenty of learning opportunities both online and in person, Most towns have local real estate schools willing to prepare you for the license exam, Worcester county alone has at least 8 different training facilities. If you don’t have the schedule for school there are also online courses that offer the same material with a flexible scheduling and learning structure. After you have completed your courses you are ready to take the Real estate licensing exam. The course is four (4) hours and you must get at least a 70% on each section to pass. If you fail a section you can retake the individual section instead of the entirety of the exam. When you pass the exam, Congratulations you are now a realtor! The last thing you have to do is pay your licensing fee that can range from $100 to $150 at the most.
Now that you have your license you gain access to valuable resources such as the M.L.S (Multiple listing service) which provides access to the properties across the state that are for sale or rent. There is a monthly membership fee of ($20 – $50) per month but it could increase if you are linking your website through a data exchange. Most brokers you end up working for usually want you to be a part of the local realtor membership or board, which also comes with an annual fee of about $200- $300, granting you an official title of Realtor and additional access to your chapters business partners. You may also want, Error and omissions insurance to cover any liabilities or lawsuits that come your way. The fees can be an average of about $30 per month. Being a real estate agent isn’t the only thing you can do with your license getting a license opens up a variety of opportunities. you can be a real estate managing broker, commercial real estate agent, real estate investor, residential and commercial appraiser property manager or leasing consultant. The average salary that a real estate agent makes is about $46k a year.
Pro: Set own schedule becoming a real estate agent bring a sense of independence. As an agent you can set your own schedule and work around your priorities.
Con: You can work irregular hours. With realty and this line of customer service, you can end up working extensive hours as messages as constantly coming in about fees and comparisons. with Realty being such a competitive field you really have to stand out and some can fall victim to not putting in enough hours to make their business grow.
Pro: Unlimited potential, Being a commission based business the sky is the limit on how much you can make. The harder you work on yourself and your business the greater the returns. Depending on the properties you work with income can be great and consistent.
Con: Off seasons, on the flip side of being a commission based business when business isn’t booming neither is your paycheck. So pay can be unreliable during off seasons. hopefully if this is a side gig, you have additional income to protect you from the lull.
Becoming a real estate agent and getting your license is an amazing journey especially if you heart is in it, and you love the business. You can forge a network of hungry investors and reliable partners that can propel you and your investments to the next level.