Become a Real Estate Agent: Essential Steps for Licensing
Discover the key requirements to become a licensed real estate agent, including education, exams, and affiliating with a brokerage. Learn about the necessary pre-licensing education, exam details, and what to consider after passing your tests. Get insights into finding a brokerage, understanding fees, commission splits, and training programs for new agents.
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Presentation Transcript
How to Become A Real Estate Agent Tony Giglio
About me Licensed Real Estate Broker in: Ohio Kentucky Indiana Florida Georgia Virginia Wisconsin Illinois North Carolina Tennessee
Terms You Need to Know Real Estate Agent Authorized to sell real estate Real Estate Broker Some states call Real Estate Agents Real Estate Brokers Principal Broker/Broker in Charge/Managing Broker Achieved a higher level Able to manage other licensees Every state requires a real estate brokerage to have a PB or BIC
What is Needed to Become Licensed? The path to becoming a real estate agent is a combination of getting the right education, passing the National and State licensing exams and finding an established brokerage to affiliate with. Most states require you to be at least 18 years old with a minimum of a high school education.
What is Needed to Become Licensed? All States Require pre-licensing education Education requirements vary from state to state. Some states require as few as 54 hours of education Some states require as much as 970 hours of education Education Topics Include: Real Estate Principles & Practices Real Estate Law Real Estate Appraisal Real Estate Finance
What is Needed to Become Licensed? You must take and pass 2 tests 1. National Portion of the Real Estate Exam which is the same for every state 2. State specific portion Exam which covers state specific real estate laws and regulations Both tests are designed to test your knowledge on what you learned in your classes
You Passed Your Tests Now What? Find a Brokerage to join What are the monthly fees? What are the commission splits? What is in the independent contractor agreement? Is there a training program for new agents? Will I be assigned a coach or mentor?
You Passed Your Tests Now What? Join Local Multiple Listing Service (MLS) Need access to all those great listings you are going to sell
You Passed Your Tests Now What? Start letting people in your Sphere of Influence know about your new profession Decide if you want to be a Buyer s Agent or a Seller s Agent or Both
Buyers Agent Buyer s Agents work only with home buyers Find the right property Drive around showing your buyer homes listed for sale by other agents Negotiate the offer Advise buyer on appropriate offer Write Purchase Contract Negotiate the contract Work with other industry professionals Mortgage Lenders Home Inspectors Appraisers
Sellers Agent Meet with Home Sellers Perform Comparable Market Analysis Determine listing price Recommend improvement/repairs Formulate marketing plan Photograph house Enter property in MLS Present offers received from other agents Negotiate price Attend closing with your clients
How Does A Real Estate Agent Get Paid? Agents earn commission only when the deal closes Payment is made to the Brokerage, not the agent Brokerage/Principal Broker pays agent their percentage
How Much Money Can An Agent Make? Typically the commission for listing a house is between 5% and 7% of the selling price Commission earned is split with the agent on the other side of the transaction if there is one
Example of Commission Selling price of house is $500,000 Listing commission is 6% Total earned commission is $30,000 Co-op agreement is 3% to Buyer s Agent & 3% to Seller s Agent Each agent in this transaction earns $15,000 Commission
Example of Commission But Wait! Commission is paid to your Brokerage not you Your Broker/Brokerage is going to want something $$$$$$$$ Commission splits with the brokerage vary
Example of Commission $15,000 Commission 50% = $7500 60% = $9000 70% = $10,500 80% = $12,000 90% = $13,500 100% = $15,000 Don t forget about taxes 30% 35% in taxes
Example of Commission $15,000 Commission After Taxes 50% = $7500 60% = $9000 70% = $10,500 80% = $12,000 90% = $13,500 100% = $15,000 $5250 $6300 $7350 $8400 $9450 $10,500
Costs Of Being A Real Estate Agent Education to get license Exam Fees State Application/Licensing Fees Local Real Estate Board Dues National Association of Realtors Dues MLS Fees Continuing Education Fees License Renewal Fees Marketing Fees
Questions ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? What are the day-to-day operations of a real estate agent? What do you spend most of your time doing everyday? What are related occupations in this field? Investing/House Flipping?
