Things You Should Know Before Becoming A Real Estate Agent

If you're looking for a lucrative career, real estate can be a good option. However, many people go into the real estate industry, assuming that that job isn't overly difficult. After all, because your commission is based on a percentage of the sale, you make a good amount of money every time you sell a house. However, there's more to being a real estate agent than selling a house and getting money. So, before you decide that you want to build a career in real estate, you need to learn more about becoming and being a real estate agent.

Why Do You Need to Take Classes?

You have to obtain a real estate license before you can get paid for helping others buy or sell a house. To get your real estate license, you're required to get to an exam, and real estate classes are designed to teach you what you need to know before you attempt to pass your state exam. There are several things that real estate classes teach you, including:

  • Understanding zoning laws and regulations.
  • How to correctly sell a property.
  • Your rights and responsibilities as a real estate agent.
  • Consumer advocacy.
  • Importance of continuing your education.

Keep in mind, real estate laws vary from state to state. So, if you plan to move out of state or you want to be licensed in multiple states, you may need to take real estate classes in each state.

Do You Need to Work with a Brokerage?

In order to practice as a real estate agent, you have to work with a broker. While you might think that working with a brokerage is annoying, because you have to split commission, it's actually really beneficial -- especially when you're first starting out. Brokerages often provide agents with leads and do things, such as display your information on their website, that can help you generate business. In the long run, this could lead to more money in your pocket, not less. When looking for a brokerage that's a good fit for you, there are several things you should consider, including:

  • How long it will take for you to start earning commission?
  • Does the brokerage provide a brokerage-assigned mentor while you're still learning?
  • What kind of reputation does the brokerage firm have?
  • What type of experience have previous buyers and sellers had when working with the firm?

Being Self Employed

As a real estate agent, you're technically self employed. This means, you aren't an employee of the real estate agency that you represent. Because you're considered self employed, you can set your own work hours -- as long as the hours you choose meet your brokerage's requirements. However, it also means that you are financially responsible for things, such as advertising expenses, health insurance, and business supplies. Setting a budget is extremely important, so you should talk to your brokerage to determine what -- if any -- expenses they cover and then create a budget to work with.

If you're looking for a good career, becoming a real estate agent is a good option. Just take the time to talk to a local real estate school, like On Going Education, and a few other agents to make sure it's the career you want before investing time and money into it.