As with any career, to succeed you need to be willing to go after what you want. With real estate, this includes going after the full license so that you can actually work from behind the front desk or even owning your own property.
In fact, according to the National Association of Realtors, more than one third of all home sellers are self-employed. This means they do not have an agent representing them, but instead they handle their own sale themselves!
While it may seem like a daunting task at first, there are ways to make it easier for yourself by acting as your own representative. By educating yourself about the market for homes and being aware of the laws, you will know how to effectively manage the process on your own.
What is a broker?
A broker is someone who acts as a middleman between two other parties. In the case of buying or selling a house, the broker is usually paid by both buyers and sellers. Brokers are mostly drawn into the profession because they enjoy helping people and creating relationships.
Brokers are also professionals who study the law very closely, which helps when negotiating contracts and ensuring everything goes smoothly during the transaction.
Most states only require you to be licensed if you are making a profit, either through receiving a commission or paying one to agents. However, most brokers pay several hundred dollars to obtain their license, so it is important to budget properly before training.
Resident agent or non-resident agent?
As mentioned earlier, to become an agent you need either a resident agent license or a non-resident agent license. What is as diverse as being an agent is what type of agency you want to run!
If you would like to start out as a beginner real estate investor then running a non-resident agent franchise is the best route for you.
A non-resident agent does not require any special licenses or permits to operate their business, they are simply able to represent only other agents that are also licensed as a non-resident agent.
This can be very helpful if you are looking to break into the real estate investing field but do not feel ready to represent sellers yet so you instead want to focus more on buying properties.
By having your own professional seller representation team you will have access to all of the resources and knowledge that they may have so that you can succeed along side them.
What is the process for opening a real estate company?
To be able to work as an agent, you must first earn your real estate license. There are two ways to do this in Nevada. You can either take the test from the National Association of Realtors (NAR) or go through one of the state’s licensed broker programs.
The NAR offers both a written exam and a practical examination at their headquarters. The national office doesn’t offer anyone with a limited business license the opportunity to practice on the market before taking the certification test, so there’s no way to know how well you would perform if allowed to sell properties.
There are many different states’ brokers licenses that are not affiliated with NAR, however. Some may even require people without a license to get training first! It will depend on what area of the country the person wants to represent and whether they have permission to act as a broker.
How much does a real estate license cost?
Licensing to be a professional real estate agent is not cheap, nor are there many professionals that can say they did not pay for their licensing through education or through hard work. However, it’s important to note that most agents pay quite heavily into their own personal licensing fees well before they even enter the door of an office.
The initial costs to become licensed as an agent usually include tuition at either a broker’s college or school district where no bachelor’s degree is offered, a field exams (which can add up quickly) and the state exam which varies from department to department but averages around $150-300 per test depending on how many people take it.
On top of all this, agents have to purchase some sort of business writing equipment and software such as spreadsheets, you-tube videos and more. All of these things must be paid for separately so it really adds up.
Is there a limit to the number of licenses?
Technically, you can only be licensed as a real estate agent in one area or another for your lifetime! This is called a “one-area license” (or sometimes referred to as an “open license”). After serving this license, you must go through additional training and testing before being able to work under your professional name in another area.
However, what most people don’t know is that you are allowed to keep working while waiting for your second license! Most agents take several years after receiving their first license to feel like they have enough knowledge to represent buyers and sellers effectively, so many agents will continue to work while they wait for their second license.
This is totally okay, but you MUST tell your employer you are no longer being paid during this time.
Are there any exams that I have to take?
There is one very important exam that every real estate agent must pass – but it’s not an official license! It’s known as the “Unlicensed Agent Exam.” This is because this test isn’t administered by the Department of Business Regulation (DBR), nor are there any formal rules about what you need to know from it.
The Unlicensed Agent Test was created back in 1991 when lawmakers decided that enough people were buying or selling property without being licensed, that they needed to do something about it. Since then, only 10% of agents have passed this easy challenge!
Most people fail this test because they don’t understand how much money an insured broker makes, or why their insurance carrier pays more for coverage than anyone else.
However, beyond those reasons, most people also run into trouble over the Limit of Liability clause which varies slightly between states. Some say the word ‘insured’ while others use the term ‘represented party.’ Many can’t tell the difference so they get tripped up here too.
Who can I talk to about getting a real estate license?
Being licensed as a real estate agent or broker is not only for people who want to be professional sellers’ agents or professional buyers’ agents, but also for those who just love helping others with their career!
Most states require you to have a real estate sales person’s license before you can even apply for your own. This means that before you can work under someone else, you must first prove that you are capable of doing it yourself (which most people are!).
However, some states don’t require this at all.
Can I work as a real estate agent without a license?
As mentioned earlier, to be able to represent a seller or buyer as a professional broker or sales associate you must have a licensing exam and certification. However, unlike some states that require only a bachelor’s degree (or higher) before granting licensure, in Nevada anyone over 18 years of age can take the test.
The most common way to earn your real estate license is by attending one of our nationally-accredited educational programs at an institute approved by the NAR. These programs usually take around two years to complete and are often very expensive, but they are worth it!
Some people choose to become self-taught instead and learn through resources and classes available online and via other education providers.
What are the requirements for a real estate agent license?
The requirement to be licensed as an agent is determined at the state level, not by your county or even city. Each state has its own process that requires you to prove yourself before being granted professional licensure. Some states require only a bachelor’s degree while others ask for a master’s degree or beyond.
Some states require only 100 hours of coursework while other states ask for 1,000-1,500+. There is no standard national licensing system like there is with lawyers or doctors.
Most states will evaluate your talent, professionalism, and experience when deciding if you should be awarded a license. Make sure to check out each individual state’s regulations to see what makes the cut!
Many states have a board made up of individuals with different levels of expertise within the industry who work together to ensure agents are represented fairly. These boards oversee agents through written tests, interviews, and observation of their performance in the field.