How to Become a Real Estate Agent Show Become Team Updated November 9, 2021 4 Steps to Becoming a RealtorStep 1 Understand state laws Every state has its own unique real estate laws, so it's important that people who want to pursue a real estate career familiarize themselves with the laws in their state. Laws may regulate how houses can be bought and sold, as well as landlord-tenant issues, land use, and construction. In addition, there are federal laws that govern how real estate agents can list, show, and promote properties for sale, so those who want to enter the field should be familiar. Step 2 Meet state real estate licensing requirements Just as every state has different laws about real estate transactions, each state's law addresses standards for professional licensing. One of the requirements is to complete pre-licensing courses, which may cover real estate financing, agent conduct expectations, title transfer, leases, property management, and closing a transaction. In addition, states may require that prospective real estate agents be a certain age, have a high school diploma, or have sales experience in order to get a license. Information about each state's licensing standards can be found at MortgageNewsDaily.com. Step 3 Find a real estate brokerage to work with New real estate agents are required to work with a broker for at least two years after getting a license. This company will oversee all sales to ensure they are handled within state and federal guidelines. In some cases, people must find a broker to work with before taking their licensing exam. When looking for a real estate broker consider the company's reputation, how it promotes properties, the area it serves, and how many agents work there. Also keep in mind that you will likely be paid on a commission-only basis. Step 4 Pass the licensing examinations Prospective real estate agents must pass state and federal licensing examinations, which are generally made up of 60 to 100 questions. They may also be required to pay an application fee of about $300, submit to a background check, and have their fingerprints put on file. FAQ on Earning Your Real Estate License
Real Estate Agent Salary & Job GrowthProspective real estate agents have the potential to earn healthy salaries and experience growth in their jobs. This section outlines how much these professionals can make, depending on what state they work in, and what the occupational outlook is for their industry. According to the U.S. Bureau of Labor Statistics, the annual median salary for real estate agents was $45,990 in May 2017. Similarly, PayScale reports that the base salary range for these professionals is between $22,679 and $100,777, depending on their experience level. In addition, real estate agents have the potential to make additional money through bonuses of up to $30,639, profit sharing of up to $400,000, and commissions that can be between $1,030 and $387,832 each year. Alabama Mean wage annual: $55,960 Currently Employed: 860 Change in Employment (2016-2026): 3.60% Alaska Mean wage annual: $71,030 Currently Employed: 200 Change in Employment (2016-2026): -3.00% Arizona Mean wage annual: $62,690 Currently Employed: 3,340 Change in Employment (2016-2026): 21.60% Arkansas Mean wage annual: $41,660 Currently Employed: 780 Change in Employment (2016-2026): 13.70% Currently Employed: 10,380 Change in Employment (2016-2026): 22.20% Colorado Mean wage annual: $63,320 Currently Employed: 4,050 Change in Employment (2016-2026): 24.20% Connecticut Mean wage annual: $45,230 Currently Employed: 630 Change in Employment (2016-2026): 5.20% Delaware Mean wage annual: $46,670 Currently Employed: 520 Change in Employment (2016-2026): 8.10% Florida Mean wage annual: $57,520 Currently Employed: 17,750 Change in Employment (2016-2026): 20.20% Georgia Mean wage annual: $46,220 Currently Employed: 11,170 Change in Employment (2016-2026): 4.40% Hawaii Mean wage annual: $72,470 Currently Employed: 280 Change in Employment (2016-2026): 1.90% Idaho Mean wage annual: $55,790 Currently Employed: 730 Change in Employment (2016-2026): 34.20% Illinois Mean wage annual: $59,010 Currently Employed: 3,630 Change in Employment (2016-2026): 0.40% Indiana Mean wage annual: $43,230 Currently Employed: 2,340 Change in Employment (2016-2026): 7.00% Iowa Mean wage annual: $49,900 Currently Employed: 790 Change in Employment (2016-2026): 4.40% Kansas Mean wage annual: $46,640 Currently Employed: 740 Change in Employment (2016-2026): 11.10% Kentucky Mean wage annual: $47,220 Currently Employed: 1,900 Change in Employment (2016-2026): 12.30% Louisiana Mean wage annual: $54,100 Currently Employed: 1,120 Change in Employment (2016-2026): -5.10% Maine Mean wage annual: $60,220 Currently Employed: 300 Change in Employment (2016-2026): 0.70% Maryland Mean wage annual: $57,470 Currently Employed: 2,430 Change in Employment (2016-2026): 6.90% Massachusetts Mean wage annual: $61,670 Currently Employed: 2,540 Change in Employment (2016-2026): -0.20% Michigan Mean wage annual: $46,880 Currently Employed: 2,150 Change in Employment (2016-2026): 4.10% Minnesota Mean wage annual: $48,250 Currently Employed: 1,910 Change in Employment (2016-2026): 4.50% Mississippi Mean wage annual: $50,110 Currently Employed: 760 Change in Employment (2016-2026): 1.30% Missouri Mean wage annual: $50,400 Currently Employed: 2,060 Change in Employment (2016-2026): 4.80% Montana Mean wage annual: $42,010 Currently Employed: 420 Change in Employment (2016-2026): 1.10% Nebraska Mean wage annual: $46,340 Currently Employed: 660 Change in Employment (2016-2026): 7.80% Nevada Mean wage annual: $59,240 Currently Employed: 1,630 Change in Employment (2016-2026): 7.70% New Hampshire Mean wage annual: $48,530 Currently Employed: 310 Change in Employment (2016-2026): 2.70% New Jersey Mean wage annual: $58,690 Currently Employed: 2,340 Change in Employment (2016-2026): 3.00% New Mexico Mean wage annual: $53,240 Currently Employed: 1,000 Change in Employment (2016-2026): -1.60% New York Mean wage annual: $102,310 Currently Employed: 4,960 Change in Employment (2016-2026): N/A North Carolina Mean wage annual: $61,580 Currently Employed: 5,170 Change in Employment (2016-2026): 14.80% North Dakota Mean wage annual: $57,060 Currently Employed: 350 Change in Employment (2016-2026): 7.50% Ohio Mean wage annual: $41,650 Currently Employed: 5,980 Change in Employment (2016-2026): 5.20% Oklahoma Mean wage annual: $49,380 Currently Employed: 3,670 Change in Employment (2016-2026): 4.70% Oregon Mean wage annual: $55,500 Currently Employed: 640 Change in Employment (2016-2026): 17.80% Pennsylvania Mean wage annual: $66,500 Currently Employed: 5,890 Change in Employment (2016-2026): 2.00% Rhode Island Mean wage annual: $70,450 Currently Employed: 150 Change in Employment (2016-2026): -1.50% South Carolina Mean wage annual: $52,070 Currently Employed: 4,500 Change in Employment (2016-2026): 3.80% South Dakota Mean wage annual: $57,110 Currently Employed: 340 Change in Employment (2016-2026): 6.20% Tennessee Mean wage annual: $45,960 Currently Employed: 1,660 Change in Employment (2016-2026): 12.70% Texas Mean wage annual: $72,480 Currently Employed: 15,770 Change in Employment (2016-2026): 20.60% Utah Mean wage annual: $62,050 Currently Employed: 1,600 Change in Employment (2016-2026): 25.30% Vermont Mean wage annual: $47,990 Currently Employed: 80 Change in Employment (2016-2026): 4.80% Virginia Mean wage annual: $64,290 Currently Employed: 6,880 Change in Employment (2016-2026): 2.50% Washington Mean wage annual: $59,590 Currently Employed: 7,800 Change in Employment (2016-2026): 11.70% West Virginia Mean wage annual: $45,220 Currently Employed: 410 Change in Employment (2016-2026): -2.40% Wisconsin Mean wage annual: $54,820 Currently Employed: 1,580 Change in Employment (2016-2026): 13.30% Wyoming Mean wage annual: $64,500 Currently Employed: 160 Change in Employment (2016-2026): 10.70% The U.S. Bureau of Labor Statistics projects that between 2016 and 2026 employment for real estate agents will increase by six percent, which is the same as the average rate for all other careers. The amount of growth the industry will experience will generally be in step with changes in the economy. However, as members of the millennial generation become more established in their jobs and more interested in home ownership, there will be a demand for real estate agents to assist them. In addition, those who focus on the commercial, industrial, and retail markets will see growth during times of increased consumer spending. Finding a Real Estate ProgramWith so many different real estate programs available, students may have a hard time deciding which one meets their needs. This section provides information to help prospective real estate professionals find the program that's right for them. When choosing a real estate program, consider cost, which certifications are offered, and how courses are delivered. Using the following search tool can help you find a program that's right for you. Professional Real Estate Associations & GroupsMaking connections is key to being successful in the real estate industry. One way that professionals can make these vital connections is by joining associations, which can provide networking opportunities, as well as the information real estate agents need to build their business.
Resources for RealtorsPeople who want to pursue a career in real estate have a myriad of resources available to help them learn and grow in their career. The following are some examples of resources they can use to better understand the industry.
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