Next video:
Loading the player...

Becoming a real estate agent involves a combination of education, researching a broker who can help you get started, and passing your state exam to receive a license.  Here, we’ll show you the main steps to get going.

Step 1: Get Educated - No matter what state you live in, you must take real estate courses before your license exam.  However, state requirements differ greatly, so you need to contact your state’s real estate commission to find out what specific courses you need. These classes won’t just help you on the exam, they’ll also expand your knowledge of the industry in general.

Step 2: Exam Time -  You must apply to take a real estate license exam, so once again, check with your state’s real estate commission for information on submitting an application. Once your courses are completed and your application has been accepted, you’re ready to take your exam.

Step 3: Choose a Brokerage.  A real estate brokerage is an agency or office from which real estate agents and brokers work, and choosing the right one is crucial to your success.  Working with a brokerage is a requirement for agents, so you will need to select a broker to "hang your license with". When looking at a brokerage, think about its size, reputation and commission split. You might also try crafting interview questions.  Some questions you might want to ask: How many years of industry experience do you have?  Is there someone within the brokerage I can work with for further training?  What is your client contact style for developing leads?  How long does it take on average to earn commission checks?

Step 4: Make the Realtor/Real Estate Agent Decision.  In order to use the title “Realtor,” you must join the National Association of Realtors (NAR).  Do this by choosing an affiliated brokerage, then contacting your local NAR branch for membership details. Membership includes access to data, tools and further training you might not otherwise receive.

Step 5: Develop a Budget.  Becoming a real estate agent isn’t cheap, with startup fees estimated between $1,500 to $2,000. You’ll also need to set aside enough money to get by for at least a few months before you make your first sale. Remember, most agents work on commission, so if you're not selling homes, you're not making money.

Step 6: Build Your Client & Referral Portfolio.  First, get a mentor. This way you’ll be able to learn the profession from your mentor while gaining your first commission check.  Second, use your personal network.  You’re surrounded by people who know and trust you, most of whom will be looking to buy or sell their home at some point, and who can recommend you to others. Remember, one successful sale can lead to many more.

Becoming a real estate agent is similar to starting a small business.  But follow these main steps, and you should have your first “Sold” sign up with your savings still intact.

  1. No results found.
Related Articles
  1. Investing

    6 Steps to Becoming a Real Estate Agent

    Get a head start in the real estate business by following these six steps.
  2. Investing

    Would You Make A Good Real Estate Broker?

    How to tell if you'd be good in this field. It is a common second career for many people, but isn't a good match for everyone.
  3. Investing

    The Lowdown On Low-Fee Real Estate Agents

    Find out how the services of low-commission real estate agents comapare to full-service realtors.
  4. Investing

    6 Questions For Your Realtor

    A good real estate agent can guide you through every step of buying or selling a home. These questions can help you find the right one.
  5. Investing

    Do You Need A Real Estate Agent?

    There's no guarantee that realtors will act in your best interest, but it may be worth hiring one anyway.
  6. Investing

    How To Find The Best Real Estate Agent

    Most people don't have the time, expertise or motivation to go it alone and finding a good real estate agent becomes essential to enjoying a smooth real estate transaction.
  7. Investing

    Understanding Real Estate Commissions: Who Pays?

    When you set out to buy or sell a house, one factor worth considering is the real estate agent's fees.
  8. Investing

    What Are The Differences Among A Real Estate Agent, A Broker And A Realtor?

    All three work in the real estate field, but there are differences between the job descriptions.
  9. Investing

    5 Ways To Save On Real Estate Fees

    Even a 1% reduction in real estate commissions can save you thousands of dollars.
  10. Investing

    Commercial Real Estate Agent: Career Path & Qualifications

    Learn about the qualifications, skills and licensing requirements to be a commercial real estate agent and how to get started in this career path.
Hot Definitions
  1. Majority Shareholder

    A person or entity that owns more than 50% of a company's outstanding shares. The majority shareholder is often the founder ...
  2. Competitive Advantage

    An advantage that a firm has over its competitors, allowing it to generate greater sales or margins and/or retain more customers ...
  3. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities ...
  4. Wash-Sale Rule

    An Internal Revenue Service (IRS) rule that prohibits a taxpayer from claiming a loss on the sale or trade of a security ...
  5. Porter Diamond

    A model that attempts to explain the competitive advantage some nations or groups have due to certain factors available to ...
  6. Oligopoly

    A market structure in which a small number of firms has the large majority of market share. An oligopoly is similar to a ...
Trading Center