We all know that a real estate license is necessary for progress in our careers. But it is a cost-effective method to get a real estate license and requires various steps and procedures to achieve it. It usually takes about 2-5 months to get a real estate license and it depends on several factors. These factors can vary on the level of your education or the selection of your online real estate school.
Requirements for getting the real estate license
There are a few general requirements that are basic yet important to achieve the real estate license in your area swiftly. It is recommended to check your eligibility to get your real estate license. The following are some requirements for getting a real estate license:
- A person should be at least 18 years old or some states had exceptional cases and require an age factor above 21 years of age.
- A person should be a legal resident of the US.
- A person must have completed their state-required education.
- A person needs to pass the final exam for a real estate license.
How can a person get a real estate license?
There are different steps and procedures which a person has to follow to get their real estate license. These steps include:
Research about requirements
It is recommended to check the license applications, pre-license courses, and your bearings for getting a real estate license. Most of the states require:
- College-level knowledge and education regarding the basis of real estate. It includes deeds, contracts, and property ownership.
- Permanent residency of the state for which you are applying the license application
- Age older than 18 years
- Check your criminal background
It requires time, effort, and investment to become a real estate agent. It means that a person must be equipped with pre-knowledge regarding the resources. There are some pre-license schools that conduct classes on this thing. You can choose the license course which suits best to your schedule and lifestyle. The costs of pre-license courses vary for different states and categories of schools and fall between $200-$1000 per course.
Applying for the license exam
After drenching yourself in all sorts of knowledge regarding the real estate courses, you can apply for the exam. This application process requires payment for the application and registration fee for the test.
Passing the state license exam
Each state requires a specific set of educational backgrounds for passing the real estate license exam. There are chances of passing this exam if you are adequately prepared for it. There are about 100 multiple-choice questions in the test related to national and state laws and principles. The minimum score required for passing this exam is 70% which is mandatory to get the license. The maximum time period given for attempting this test is of 1.5-3.5 hours and the exam fee is between $15-$100.
Applying for the real estate license
After passing the exam, a person is asked to submit the test result, license application, and application fee. The license application fee holds a cost price between $50-$250. Sometimes, they also demand a background check which costs in between $40-$100.
They also require E&O (Errors and Omissions) insurance in some cases before applying for the real estate license. This insurance protects the agents of real estate from any sort of financial loss and lawsuits that are sometimes filed against them due to real estate work. It is mandatory for a person to be older than 18 years and to hold a high school diploma before applying for a real estate license. After submitting all the requirements and applications, it would take around one week or two months the processing the license.
Finding the real estate brokerage
After getting the license, it does not mean that now you can start selling the houses. Most states require the process that a new real estate license holder should work with a real estate broker who should sponsor you as an agent for the first two or three years of your work. A real estate brokerage is an agency where all the real estate agents work together. It is recommended to search beforehand for a real estate broker before you graduate from the training course. There are three types of brokerages:
There are national franchises including the Coldwell banker, Keller Williams Realty, and others who offer structure training. They provide instant name recognition and other resources to their new agents.
Boutique style brokerages
They are small or local brokerages that provide personalized training for the growth and advancement of new agents.
These are a software as a service (SaaS) real estate brokerage that works entirely on an online basis. They are virtual brokerages that offer the benefits of high commission splits, low desk fees, and better technology to the new agents.
Joining the (NAR) National association of realtors
After earning your license and sponsored brokerage, you might be thinking that you are now a realtor. But this is not true. Still, you need to join the NAR (National association of realtors) for calling yourself a realtor. This is a designation that allows you to see the listings of other realtors. If you are not a member of NAR, you can work legally and can claim your title of a real estate agent but you have a limited earning potential.