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How to get into the real state industry?
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Mehar’s Answer
Here's a more straightforward way to break into the real estate business:
1. Decide what part of real estate you're most interested in.
2. Get the necessary education and, in many cases, a real estate license.
3. Build your experience with internships or beginner jobs.
4. Make connections with other professionals in the industry.
5. Keep up with the latest market trends and rules.
6. Kick off your career by teaming up with a brokerage, launching your own agency, or working solo.
1. Decide what part of real estate you're most interested in.
2. Get the necessary education and, in many cases, a real estate license.
3. Build your experience with internships or beginner jobs.
4. Make connections with other professionals in the industry.
5. Keep up with the latest market trends and rules.
6. Kick off your career by teaming up with a brokerage, launching your own agency, or working solo.
Updated
Eric’s Answer
Kenneth,
While I am not a realtor or work in the realty market, I feel it is beneficial to reach out to a local real estate agency (REMAX, Keller Williams, etc,) I would see if a local realtor can sit down with you and give you guidance on the industry. Many times the large brokerages will hire you and help you get your license. But at least sitting down with someone in that industry can give you the best guidance as well as answer questions about the processes and the day to day operations.
While I am not a realtor or work in the realty market, I feel it is beneficial to reach out to a local real estate agency (REMAX, Keller Williams, etc,) I would see if a local realtor can sit down with you and give you guidance on the industry. Many times the large brokerages will hire you and help you get your license. But at least sitting down with someone in that industry can give you the best guidance as well as answer questions about the processes and the day to day operations.
Updated
Ben’s Answer
Hello Kenneth,
Entering the real estate industry is a reasonably straightforward process, and here's how you can do it:
- Enroll in a pre-licensing course. The requirements for this vary depending on your state, but all states require some form of training from a certified institution. For instance, Virginia requires 60 hours, while California requires 135 hours.
- Next, pass the licensing exam. Once you've completed your pre-licensing course, you'll need to sit for the real estate licensing exam. The cost for this exam usually ranges from $100 to $300.
- Activate your real estate license. Once you've passed the exam, you can activate your license with your state's real estate commission.
- Consider becoming a realtor. Although it's not a requirement, joining the National Association of Realtors (NAR) can offer additional benefits and networking opportunities.
- Join a brokerage. This will give you the chance to gain practical experience and learn the ins and outs of the industry. As Eric mentioned in his response, it's not difficult to enter the profession, but differentiating yourself is key. Success as a real estate agent often hinges on your knowledge of the local housing market, your attention to detail, and your ability to meet your clients' specific needs. Good reviews from buyers, sellers, and fellow real estate agents can also help you build a successful career.
However, it's important to be aware of recent developments in the industry, such as the lawsuit against the NAR. This lawsuit has significant implications for the real estate industry and agent commissions:
- Lawsuit Settlement: The NAR agreed to a settlement of over $400 million in response to antitrust lawsuits. These lawsuits were primarily focused on NAR's commission structure, which typically resulted in a 5% to 6% total commission, divided between the seller's agent and the buyer's agent.
- Changes in Commission: As part of the settlement, NAR will abolish long-standing rules on commissions. This is intended to make it easier for buyers to negotiate fees with their agents or even opt to not use agents at all. This could lead to a substantial reduction in the cost of selling homes for sellers.
- Buyer-Agent Compensation: NAR will ban offers to compensate the buyer's agent on multiple listing services (MLS). This practice, which has been criticized for reducing price competition, led to inflated commissions and home prices. Buyer's agents will now have to establish written agreements with clients, detailing fees and services upfront.
- Sweeping Change: Experts anticipate that this settlement will result in lower commissions overall and a shift in how homebuyers use and pay their agents. While the exact timing of these market changes is uncertain, it's clear that change is on the horizon.
If you're serious about becoming a real estate agent, it's crucial to stay informed about these developments.
Best wishes on your journey!
Entering the real estate industry is a reasonably straightforward process, and here's how you can do it:
- Enroll in a pre-licensing course. The requirements for this vary depending on your state, but all states require some form of training from a certified institution. For instance, Virginia requires 60 hours, while California requires 135 hours.
- Next, pass the licensing exam. Once you've completed your pre-licensing course, you'll need to sit for the real estate licensing exam. The cost for this exam usually ranges from $100 to $300.
- Activate your real estate license. Once you've passed the exam, you can activate your license with your state's real estate commission.
- Consider becoming a realtor. Although it's not a requirement, joining the National Association of Realtors (NAR) can offer additional benefits and networking opportunities.
- Join a brokerage. This will give you the chance to gain practical experience and learn the ins and outs of the industry. As Eric mentioned in his response, it's not difficult to enter the profession, but differentiating yourself is key. Success as a real estate agent often hinges on your knowledge of the local housing market, your attention to detail, and your ability to meet your clients' specific needs. Good reviews from buyers, sellers, and fellow real estate agents can also help you build a successful career.
However, it's important to be aware of recent developments in the industry, such as the lawsuit against the NAR. This lawsuit has significant implications for the real estate industry and agent commissions:
- Lawsuit Settlement: The NAR agreed to a settlement of over $400 million in response to antitrust lawsuits. These lawsuits were primarily focused on NAR's commission structure, which typically resulted in a 5% to 6% total commission, divided between the seller's agent and the buyer's agent.
- Changes in Commission: As part of the settlement, NAR will abolish long-standing rules on commissions. This is intended to make it easier for buyers to negotiate fees with their agents or even opt to not use agents at all. This could lead to a substantial reduction in the cost of selling homes for sellers.
- Buyer-Agent Compensation: NAR will ban offers to compensate the buyer's agent on multiple listing services (MLS). This practice, which has been criticized for reducing price competition, led to inflated commissions and home prices. Buyer's agents will now have to establish written agreements with clients, detailing fees and services upfront.
- Sweeping Change: Experts anticipate that this settlement will result in lower commissions overall and a shift in how homebuyers use and pay their agents. While the exact timing of these market changes is uncertain, it's clear that change is on the horizon.
If you're serious about becoming a real estate agent, it's crucial to stay informed about these developments.
Best wishes on your journey!