How to Become a Realtor (Build Foundations of Success!)
If you’ve ever envisioned helping people find their dream homes or pondered about what it takes to become a realtor, you’re in the right place.
In this guide, we’ll explore the EXACT steps you need to take to launch your career as a realtor. We’ll discuss:
- The skills you need.
- The education and certifications required.
- How to land your first job as a realtor.
So, whether you’re new to the field or a seasoned salesperson looking to transition into real estate, stay tuned.
We’re about to unfold the roadmap to becoming a successful realtor.
Let’s get started!
Steps to Become a Realtor
Step 1: Research the Profession
Before embarking on the journey to become a realtor, it is crucial to thoroughly research the profession to gain a clear understanding of the responsibilities, daily tasks, and skills required.
This includes understanding the process of buying and selling properties, client management, market research, and negotiation techniques.
Realtors must also have a deep understanding of real estate laws and regulations, as well as the ethics of the profession.
They should be familiar with the local real estate market, including understanding property values and market trends.
You may also want to connect with professionals already in the field to gain first-hand insights.
Attend real estate seminars, workshops, or open houses to get a feel for the profession.
Reading books, articles, and online forums dedicated to real estate can also provide valuable information.
Remember, being a realtor is not just about selling properties.
It’s about helping people make one of the most significant financial decisions of their lives.
As such, having excellent customer service skills and the ability to build trust with clients is essential.
Lastly, consider the financial implications of becoming a realtor.
Most realtors work on a commission basis, so your income may be unpredictable, especially when you’re just starting out.
It’s essential to have a financial plan in place as you start your new career.
Step 2: Complete Pre-Licensing Real Estate Education
Before you can become a licensed Realtor, you are required to complete a pre-licensing course in real estate education.
The number of hours required and the course content can vary from state to state, but typically involves subjects such as property law, real estate finance, ethics, contracts, and more.
The courses are designed to give you a deep understanding of the real estate industry and ensure that you are well equipped to serve your clients.
They also prepare you for the licensing exam.
These courses can be taken in person or online, depending on your preference and availability.
Some people prefer online courses due to the flexibility and the ability to study at their own pace.
Others prefer in-person classes for the interactive learning experience and networking opportunities.
You need to ensure that the course you choose is approved by your state’s real estate commission.
Once you have completed the course, you will receive a certificate of completion, which is a requirement to sit for your state’s real estate licensing exam.
Always remember that this step is essential to becoming a Realtor, as the knowledge and skills you gain will be the foundation of your career.
Step 3: Pass the Real Estate Licensing Exam
After completing the required pre-licensing courses, the next step is to pass the real estate licensing exam.
This exam is designed to test your knowledge of real estate laws, practices, and terminologies, along with your ability to handle real estate transactions professionally.
The exam typically consists of two parts: a national portion that covers broad, general real estate principles and practices, and a state-specific section that deals with your state’s real estate laws.
Both parts of the exam will likely include a mix of multiple-choice questions and scenario-based questions.
Prepare thoroughly for the exam using study guides, practice exams, and other resources.
Many pre-licensing course providers also offer exam preparation materials.
It’s essential to understand the format of the exam and the topics it covers.
Remember, passing the exam is a crucial step in becoming a realtor.
If you don’t pass on your first attempt, don’t be discouraged.
You can usually retake the exam as many times as necessary within a certain period.
After passing the exam, you can apply for your real estate salesperson’s license through your state’s real estate commission or licensing authority.
Step 4: Choose a Real Estate Brokerage
Choosing the right real estate brokerage to work with is a crucial step in your career as a realtor.
This brokerage will be your agency affiliation, providing you with necessary support and resources to start your career.
Different brokerages offer different structures, support systems, commission splits, and training opportunities.
Some are large national or international firms, while others are small, locally owned businesses.
Larger brokerages may offer more resources and a recognized brand name, while smaller ones might offer a closer-knit work environment and potentially higher commission splits.
When selecting a brokerage, consider factors like the firm’s reputation, the level of training and mentorship they provide, their commission structure, and the culture of the office.
It’s crucial to find a brokerage that fits your career goals and personal style.
Meeting with different brokers can give you a better sense of what each brokerage can offer.
Ask about their new agent training program, mentoring opportunities, marketing support, and how leads are distributed.
Remember, you’re not just joining a brokerage; you’re partnering with them to build your career.
So, it’s essential to choose a brokerage that aligns with your values and supports your professional growth.
Step 5: Obtain Your Real Estate License
Getting your real estate license is a critical step in becoming a realtor.
It’s important to note that the requirements for obtaining a real estate license vary by state, but typically involve a certain amount of educational courses and passing a licensing examination.
Firstly, you’ll need to complete your state’s required pre-license education.
This often involves courses on topics like property ownership, real estate law, and contracts.
These courses can be taken in person or online, depending on your preference and availability.
After completing your pre-license education, you will need to pass a state-administered licensing exam.
This exam will test your knowledge on real estate fundamentals and state-specific information.
The test is typically divided into two parts – a national portion and a state-specific portion.
You must pass both parts to obtain your license.
Upon passing your licensing examination, you can apply for your real estate license through your state’s real estate commission.
Once your application is approved and you have your license, you can legally work as a realtor.
It’s important to keep in mind that real estate licenses do need to be renewed periodically, which often involves continuing education requirements.
In some states, new real estate agents are required to work with a broker for a certain period of time before they can work independently.
Working with an experienced broker can provide valuable mentorship and practical experience.
This step is crucial for gaining the real-world experience needed to succeed in this competitive industry.
Step 6: Join the National Association of Realtors (NAR)
Once you’ve obtained your real estate license, consider joining the National Association of Realtors (NAR).
The NAR is a professional organization that serves the needs of its realtor members, offering a variety of benefits and resources designed to help realtors succeed in their career.
As a member, you’ll have access to the Multiple Listing Service (MLS), a tool that is essential for finding and listing properties.
You’ll also have the opportunity to network with other realtors, gain professional development through continuing education opportunities, and uphold the association’s Code of Ethics, which can increase clients’ trust in your services.
To become a member of NAR, you must first join your local real estate board or association.
Many of these local entities are affiliated with NAR and provide a direct path to national membership.
Being part of NAR isn’t required to work as a realtor, but it can provide additional credibility and resources that can significantly assist in your career.
Keep in mind that joining NAR also implies paying annual membership dues, but the potential advantages and the prestige of being a member of a recognized professional association can easily outweigh the cost.
Step 7: Gain Field Experience
One of the most crucial steps to becoming a successful realtor is gaining field experience.
This involves more than just understanding the theory behind property valuation and marketing techniques; it requires hands-on experience in dealing with buyers, sellers, and other stakeholders in the real estate market.
You can gain experience through internships or entry-level positions at real estate firms, or by working as an assistant to an experienced realtor.
This will allow you to learn the ropes of the industry, understand the processes, and develop your negotiation and communication skills.
This step is also the perfect opportunity to start building your network.
As a realtor, your network will be an invaluable resource, connecting you to potential clients and property listings.
Attend industry events, join local business groups, and make connections with other professionals in the field to start building your network.
Remember, the real estate industry is largely about relationships, and the more experience you have interacting with clients and other professionals, the more effective you will be in your career.
Step 8: Build Your Professional Network
Building a robust professional network is a crucial step in thriving as a Realtor.
This network can consist of previous clients, potential buyers and sellers, and other real estate professionals such as brokers, appraisers, home inspectors, and real estate lawyers.
Your network can also include financial advisors, home stylists, and contractors.
You can start building your network by connecting with professionals through real estate associations, community events, open houses, and social media.
Attend local seminars, workshops, and real estate conferences to meet industry experts and learn from their experiences.
Join online forums and communities to stay updated on the latest trends and market conditions.
Remember, networking is not just about taking, but also giving.
Help others in your network when they need information or contacts.
This reciprocity can make your network more robust and beneficial.
Always maintain a professional attitude and strong communication skills, as these traits will reflect positively on your reputation within the network.
A good reputation can lead to referrals, which are an essential source of business in real estate.
Additionally, try to keep your network informed about your latest listings, successful deals, and customer testimonials.
Sharing these updates can help establish your expertise and credibility in the field.
Finally, remember that building a professional network is an ongoing process.
It requires patience, time, and consistent effort.
But the rewards — in the form of leads, partnerships, and business opportunities — can be significant.
Step 9: Create a Marketing Plan and Establish an Online Presence
In the competitive world of real estate, having a concrete marketing plan and an established online presence is essential.
Start by defining your target market – are you specializing in residential, commercial properties, or a specific geographic area?
Once you’ve identified your market, your marketing strategies should be designed to reach and engage this specific audience effectively.
As part of your marketing plan, consider strategies such as direct mail campaigns, open houses, advertising in local newspapers, or partnering with other local businesses.
It’s also important to build a strong network, so attending industry events and networking meetings can be beneficial.
In today’s digital age, an online presence is crucial.
Create a professional website that showcases your listings, qualifications, testimonials, and contact information.
It should be easy to navigate and optimized for mobile viewing.
Use search engine optimization (SEO) strategies to increase your visibility in search engine results.
Social media platforms like Facebook, Instagram, LinkedIn, and Twitter can be powerful tools for reaching potential clients.
Regularly post relevant content, such as market updates, new listings, and home buying and selling tips.
Also, consider investing in paid advertising on these platforms to reach a wider audience.
Lastly, don’t underestimate the power of online reviews.
Encourage your satisfied clients to leave reviews on platforms like Google, Yelp, and Zillow.
A strong online reputation can significantly boost your credibility and attract more clients.
Remember, your marketing plan should be flexible and evolve as you grow in your career and as market trends change.
Keep track of what strategies work and adjust your plan accordingly.
Step 10: Continue Your Real Estate Education
As a realtor, your education doesn’t stop once you get your license.
The real estate market is constantly changing, so you need to stay updated with the latest trends, laws, and strategies.
Many states require real estate agents to take continuing education courses in order to maintain their license.
These courses cover a variety of topics such as ethics, fair housing, and property management.
In addition to fulfilling state requirements, continuing your education can also help you specialize in different areas of real estate.
For instance, you may decide to focus on residential sales, commercial properties, or even become a broker.
There are many certifications and designations available in real estate, which can enhance your credibility and marketability in the industry.
Furthermore, consider joining professional real estate organizations.
These often offer training and networking opportunities, and can keep you informed about changes in the industry.
This continuous learning process will ensure you stay competitive and successful in your real estate career.
Step 11: Develop Specialty or Niche Expertise
In the real estate industry, developing a niche or specialty can give you a competitive edge.
You might specialize in residential, commercial, or luxury real estate, for instance.
Alternatively, you may choose to focus on a specific geographical area or demographic, such as first-time home buyers or retirees.
Diving deep into a specific market will allow you to become an expert in that area, making you a go-to person for clients with specific needs.
It’s important to research and evaluate the market demand before choosing your niche.
Attend seminars, workshops, and trainings related to your chosen specialty to enhance your knowledge and skills.
As you become more established and experienced, consider earning related designations or certifications to further validate your expertise in your chosen niche.
This can improve your credibility and attract more clients.
Your specialty should align with your interests and strengths, and it should have potential for growth and profitability.
Remember that developing expertise in a specific area does not mean you must exclude all other types of clients or properties.
Rather, it’s about focusing your marketing efforts and continuing education on one area to build a reputation as an expert.
This can lead to a more successful and fulfilling career as a realtor.
Step 12: Maintain Legal and Ethical Standards
As a realtor, maintaining high standards of legality and ethics is crucial in order to build trust with clients and uphold the reputation of the profession.
This involves working in accordance with local, state and national laws, as well as adhering to the National Association of Realtors’ (NAR) Code of Ethics.
Continuous learning is essential, as laws and regulations related to real estate can change frequently.
Stay updated through courses, seminars, or workshops that keep you informed about changes in zoning laws, fair housing practices, environmental regulations, and real estate legislation.
As part of your commitment to ethical standards, you will need to adhere to the NAR’s Code of Ethics, a comprehensive document that outlines a realtor’s responsibilities to clients, the public, and other realtors.
This includes everything from respecting clients’ confidential information to avoiding exaggeration, misrepresentation, or concealment of pertinent facts related to property or transactions.
Finally, it’s also important to ensure you’re transparent with clients about your commission, any conflicts of interest, and any other pertinent information that could impact the buying or selling process.
Remember, your reputation as a realtor hinges on the trust and respect you earn from your clients and peers.
Realtor Roles and Responsibilities
Realtors assist individuals in buying, selling, and renting properties.
They provide guidance and assistance to clients, making the process of real estate transactions smooth and efficient.
They have the following roles and responsibilities:
Property Listings
- Source and list properties for sale or rent.
- Conduct market research to determine competitive market prices.
- Prepare and present detailed property reports.
Client Services
- Assist clients in buying, selling, and renting properties.
- Provide clients with information about market conditions, prices, and legal requirements.
- Coordinate appointments to show homes to prospective buyers.
Negotiations
- Negotiate contracts and handle paperwork (deeds, leases, etc).
- Coordinate property closings, overseeing the signing of documents and disbursement of funds.
Marketing and Advertising
- Develop and implement marketing strategies for property sales and rentals.
- Advertise and promote properties through various platforms.
Professional Networking
- Establish and maintain relationships with clients, colleagues, and other stakeholders in the real estate industry.
- Attend real estate events to build network and learn about the latest industry trends.
Legal Compliance
- Ensure all real estate transactions are legal and in line with regulatory requirements.
- Keep up-to-date with local, state, and national real estate laws and standards.
Market Analysis
- Conduct comparative market analysis to estimate property value.
- Stay informed about real estate market trends and best practices.
Property Inspections
- Arrange and attend property inspections with clients.
- Identify and communicate potential issues with properties to clients.
Professional Development
- Attend educational programs and seminars to improve knowledge and performance.
- Maintain professional affiliations and participate in professional organizations.
Communication
- Communicate effectively with clients, colleagues, and other stakeholders in the real estate process.
- Provide regular updates and feedback to clients regarding their real estate transactions.
What Does a Realtor Do?
Realtors are licensed professionals who assist individuals in buying, selling, or renting real estate properties.
They work for both residential and commercial clients.
Realtors guide clients through the process of property transactions.
They provide advice on pricing, market conditions, mortgages, and related matters.
They are responsible for marketing listings and showing properties to prospective buyers or tenants.
Realtors negotiate contracts on behalf of their clients, and they ensure that all terms of purchase agreements are met, including conducting or arranging for inspections and handling financial transactions.
They also prepare necessary paperwork, such as real estate contracts, deeds, and leases.
A significant part of a Realtor’s job involves networking and fostering relationships with clients to build a client base and obtain referrals.
Realtors must stay updated on local and national real estate laws and market trends.
They often work irregular hours, including evenings and weekends, to accommodate their clients’ schedules.
Essential Realtor Skills
- Communication: Realtors must be able to effectively communicate with clients, other real estate agents, and various professionals involved in the buying or selling process. This includes being able to listen to clients’ needs and clearly convey information.
- Negotiation: Realtors often serve as the middlemen between buyers and sellers, so negotiation skills are essential. They must be able to secure the best deal for their clients while keeping transactions fair and ethical.
- Local Market Knowledge: Realtors should have a solid understanding of their local real estate market, including knowledge of neighborhoods, schools, market trends, and property values.
- Salesmanship: Selling properties requires a certain level of charisma and salesmanship. Realtors must be able to highlight the best features of a property and persuade potential buyers that it’s the right choice for them.
- Organization: Realtors juggle multiple tasks and clients simultaneously. This requires exceptional organizational skills, including the ability to schedule showings, meetings, and open houses efficiently.
- Understanding of Real Estate Law: Realtors must be familiar with state and federal real estate laws, including fair housing laws and disclosures. This knowledge is crucial to avoid legal issues and provide clients with accurate information.
- Networking: Building and maintaining relationships with clients, other real estate agents, and industry professionals is a crucial part of a realtor’s job. Networking can lead to referrals and increased business opportunities.
- Technology Proficiency: From using property listing databases to utilizing social media for marketing, realtors need to be comfortable with a variety of technology platforms.
- Problem-solving: Realtors often face unexpected issues, such as financing problems, contract disputes, or inspection issues. They need to be able to think on their feet and come up with effective solutions.
- Integrity: Realtors must adhere to a strict code of ethics and conduct business with honesty and integrity. This builds trust with clients and other real estate professionals.
- Patience: The real estate process can be long and challenging. Realtors must have the patience to deal with slow transactions, difficult negotiations, and demanding clients.
- Marketing: Realtors need to be able to effectively market properties and themselves. This includes creating compelling property listings, utilizing digital marketing strategies, and personal branding.
- Customer Service: Realtors work directly with clients and must provide excellent customer service. This includes being responsive, professional, and always putting the client’s needs first.
Realtor Career Path Progression
The Foundation: Trainee Realtor
The first step towards becoming a Realtor typically begins as a Trainee Realtor.
During this stage, you focus on learning the real estate industry’s ins and outs, studying the market, understanding different types of properties, and learning about real estate laws.
Here are some tips for success in this role:
- Education: Pursue a real estate course or degree to understand the sector better.
- Networking: Establish relationships with experienced realtors, clients, and professionals in the real estate industry.
- Dedication: Commit to learning everything you can about real estate, including market trends and property laws.
The Ascent: Licensed Realtor
Once you have gained enough knowledge and passed the necessary state exams, you’ll become a Licensed Realtor.
Your responsibilities will primarily include helping clients buy, sell, or rent properties.
Here’s how to thrive in this stage:
- Client Service: Prioritize your clients’ needs and ensure they are satisfied with your service.
- Marketing: Develop effective marketing strategies to attract potential clients and sell properties quickly.
- Negotiation: Enhance your negotiation skills to secure the best deals for your clients.
Reaching New Heights: Senior Realtor
With several years of experience and a proven track record, you may move up to the Senior Realtor position.
At this stage, you’re recognized for your expertise and negotiation skills.
You may also start training junior realtors.
To excel as a Senior Realtor:
- Mentorship: Share your knowledge and help trainee realtors grow.
- Expertise: Specialize in a particular type of property or a specific area to differentiate yourself in the market.
- Leadership: Demonstrate leadership by managing transactions effectively and resolving conflicts efficiently.
Beyond the Horizon: Broker or Owner
As your career advances, you may decide to become a Broker or even own your real estate agency.
Both of these roles involve more responsibilities, such as managing other realtors, increasing business, and making strategic decisions.
Here’s what to focus on:
- Business Skills: Develop business strategies to attract more clients and increase revenue.
- Management Skills: Learn to manage a team of realtors effectively and motivate them to achieve their best.
- Market Trends: Always stay updated with the latest real estate trends and changes in laws or regulations.
Pinnacle of Success: Real Estate Executive or Developer
At the top of the real estate career ladder, you may reach roles like Real Estate Executive or Developer.
In these positions, you’ll be responsible for shaping the business strategy, leading large teams, and possibly even developing properties or real estate projects.
Realtor Salary
Entry-Level Realtor
- Median Salary: $40,000 – $60,000 per year
- Entry-level realtors typically have 0-2 years of experience and hold a valid real estate license. They are often in the process of building their client base.
Mid-Level Realtor
- Median Salary: $60,000 – $85,000 per year
- Mid-level realtors have 2-5 years of experience and usually have an established client base. They may also have additional certifications or specializations in the real estate field.
Senior Realtor
- Median Salary: $85,000 – $120,000 per year
- Senior realtors possess 5+ years of experience and often have a large, loyal client base. They may supervise or mentor less experienced realtors and often handle high-value property transactions.
Broker / Real Estate Office Manager
- Median Salary: $100,000 – $150,000+ per year
- These roles require significant real estate experience and often involve managing a team of realtors, overseeing office administration, and ensuring compliance with real estate laws and regulations.
Real Estate Developer / Investor
- Median Salary: $120,000 – $200,000+ per year
- These high-level positions require extensive real estate experience and often involve purchasing properties to renovate or develop, then selling them for a profit. They may own multiple properties and have significant influence in local real estate markets.
Realtor Work Environment
Realtors primarily work in offices, but they spend a significant portion of their time off-site visiting properties, meeting with clients and prospective buyers, and showing properties for sale or lease.
Realtors may work alone, but many are part of a larger real estate team.
They often work irregular and extended hours to accommodate the schedules of their clients, which may include evenings and weekends.
Much of a Realtor’s time is spent networking and attending community events to meet potential clients.
After gaining a considerable amount of experience and a strong client base, a Realtor may choose to start their own real estate brokerage.
FAQs About Becoming a Realtor
What is needed to become a realtor?
To become a realtor, you must be at least 18 years old (or 19 in some states), be a legal U.S. resident, complete your state’s required pre-license education, and pass your state’s real estate license examination.
Furthermore, to use the title Realtor, you must join the National Association of Realtors (NAR) and uphold their code of ethics.
Key skills include strong communication abilities, negotiation skills, knowledge of local real estate markets, and a customer-focused mindset.
How long does it take to become a realtor?
The time it takes to become a realtor can vary depending on state licensing requirements and your own pace of study.
Generally, it may take between 4-6 months to complete the pre-license education, pass the exam, and receive your license.
However, building a client base and gaining substantial experience in the field can take additional time.
Can I be a realtor without a degree?
Yes, you can become a realtor without a four-year degree.
While a degree in business or real estate can be beneficial, most states require only a high school diploma or equivalent, along with completion of a specified number of hours of real estate education.
However, possessing a college degree may provide a competitive edge in the real estate market, especially for higher-end properties.
Is being a realtor a stressful job?
Being a realtor can be stressful at times due to the fluctuating real estate market, unpredictability of income, and the challenge of meeting clients’ needs.
However, it can also be very rewarding, particularly when you successfully help clients find their dream homes or make profitable sales.
Maintaining a good work-life balance and developing strong stress management skills can help you cope with the challenges.
What are the prospects for realtors in the next decade?
The prospects for realtors in the next decade are generally positive, but can depend on several factors including the state of the housing market, economic conditions, and population growth or decline in certain regions.
Realtors who adapt to technology trends, focus on continuous learning, and provide exceptional service to clients are likely to have an edge in the field.
Conclusion
And there you have it.
Venturing into the world to become a realtor is no small task, but it’s undeniably rewarding.
Equipped with the right expertise, education, and perseverance, you’re well on your path to making a substantial impact in the real estate industry.
Remember, the journey may be challenging, but the possibilities are endless. Your efforts could lead to the next groundbreaking deal that changes how we live, invest, and interact.
So, take that initial leap. Immerse yourself in knowledge. Connect with industry experts. And most importantly, never stop selling.
Because the world is waiting for the properties you can showcase.
And if you’re searching for personalized guidance on starting or advancing your career in real estate, take a look at our AI Career Path Advisor.
This complimentary tool is designed to provide tailored advice and resources to help you effectively navigate your career path.
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