How to Become a Real Estate Agent: Roles, License, Career Guide In 2024

Are you considering a career in real estate? Becoming a real estate agent opens the door to a dynamic and fulfilling journey that involves various roles, from advisor to negotiator. This career path offers numerous opportunities for individuals with a passion for helping others and a strong business sense.

What is a real estate agent?

As a real estate agent, you’ll act as a liaison between buyers and sellers, providing expertise, market knowledge, and negotiation skills. The role encompasses guiding clients through the intricate process of buying, selling, or renting property, assisting them in finding their dream homes, securing the best possible price for their property, and navigating the legal and financial aspects of real estate transactions.

This guide aims to walk you through all you need to know about how real estate agents work, including the day-to-day responsibilities and the process of becoming licensed. It’s essential to have a clear understanding of this dynamic field to make an informed decision about launching your real estate career.

What Does A Real Estate Agent Do For Buyers And Sellers or Dual?

Real estate agents typically specialize in either representing buyers or sellers, but many also handle both sides of the transaction.

• Buyer’s Agent: A buyer’s agent works exclusively with clients who are looking to purchase property. Their responsibilities include understanding clients’ needs and preferences, conducting property searches, scheduling viewings, negotiating offers, and providing guidance throughout the closing process.
• Seller’s Agent: A seller’s agent represents property owners who want to sell their homes. Their duties involve pricing the property competitively, marketing it effectively, managing showings, negotiating with buyers, and handling the paperwork associated with the sale.
• Dual Agent: A dual agent represents both the buyer and seller in a real estate transaction. While legal in some jurisdictions, the dual agency presents potential conflicts of interest and requires careful handling to ensure fairness to all parties involved.

Responsibilities and Duties

As a real estate agent, your primary goal is to help clients buy, sell, or rent properties. But what does that really entail?

• Client Representation: You’ll represent clients in real estate transactions, whether they’re buying their first home, selling a property, or looking for rental opportunities. Your job is to ensure that their interests are protected throughout the process.
• Showings and Open Houses: Part of your day-to-day responsibilities include organizing and conducting property showings and open houses. These events are crucial for attracting potential buyers and renters.
• Market Research: To provide the best advice to your clients, you’ll need to stay up-to-date with local market trends, pricing strategies, and available inventory. This knowledge positions you as a trusted expert in your area.
• Negotiation: One of the most critical responsibilities of a real estate agent is to negotiate the best possible deals for your clients in order to help them buy or sell a home. Whether it’s securing a lower price for a buyer or getting top dollar for a seller, your negotiation skills are key to your success.

Required Qualifications

To become a real estate agent, you need more than just a passion for property. Here’s what’s required:

• Educational Requirements: Before you can start working, you’ll need to complete a set number of pre-licensing courses. These courses cover essential topics like real estate law, property management, and ethics.
• Licensing Process: The licensing process for becoming a realtor involves meeting specific requirements set by the National Association of Realtors. Once you’ve completed your education, the next step is to pass your state’s licensing exam to become a licensed real estate salesperson. This test covers everything you’ve learned in your coursework and ensures you’re ready to start your career. Each state has its own specific requirements, so be sure to check what’s needed in your area.
• Continuing Education: Even after you’ve obtained your license, your learning journey isn’t over. Most states require real estate agents to complete continuing education courses to keep their licenses active. This ongoing training helps you stay informed about new laws, market trends, and best practices.

How Do I Become a Real Estate Agent?

Educational Pathways

To embark on your career as a real estate agent, you must first meet the educational prerequisites.

• Pre-Licensing Courses: These courses are the foundation of your real estate education. They cover everything from property law to contract writing. The number of hours required varies by state, but it’s essential to complete them all to be eligible for your licensing exam.
• Specialized Training: Some agents choose to take additional courses in specific areas like commercial real estate or property management. This specialized Real Estate Agent Training can give you an edge in a competitive market.

State Licensing Requirements

Each state has its own set of licensing requirements, so it’s crucial to understand the steps involved in your region.

• Licensing Exam: After completing your education, you’ll need to pass a state exam. This test assesses your knowledge of both state and national real estate laws.
• Background Check: A thorough background check is essential for any realtor to maintain trust and credibility in the residential real estate market. Most states require a background check as part of the licensing process. This step ensures that all agents meet ethical standards.
• Application Process: Once you’ve passed your exam and cleared the background check, you can submit your application for a license. Be prepared to provide proof of your education and exam results.

Ongoing Education

To maintain your license, you must complete continuing education courses periodically.

• Renewal Requirements: Most states require agents to renew their licenses every two to four years. As part of this process, you must complete a set number of continuing education hours.
• Staying Informed: The real estate market is constantly evolving, and ongoing education helps good real estate agents stay ahead of the curve. Continuous learning is key to long-term success, whether learning about new laws, market trends, or technological advancements.

Real Estate Agent vs. FSBO (For Sale By Owner)

What is FSBO?

FSBO stands for “For Sale By Owner,” a method where homeowners sell their property without involving a real estate agent. The idea behind FSBO is to save on the commission fees typically paid to agents. However, while FSBO might seem cost-effective, it comes with its own challenges, particularly for those unfamiliar with the real estate market.

Real Estate Agent vs. FSBO Comparison

When buying or selling a property, some people consider going the For Sale By Owner (FSBO) route, but they may miss out on the expertise a listing agent provides. But how does that compare to working with a real estate agent?

Aspect	Real Estate Agent	FSBO (For Sale By Owner)
Expertise	Brings extensive market knowledge, negotiation skills, and experience to the transaction.	Often lacks professional expertise and may struggle with pricing and negotiation.
Marketing Reach	Access to Multiple Listing Services (MLS) and a wide network, enhancing property visibility.	Limited to personal listings, yard signs, or online platforms, reducing exposure.
Legal Knowledge	Handles all legal paperwork, ensuring compliance with regulations and reducing legal risks.	Responsible for managing legal documents and disclosures, often without full legal knowledge.
Time and Effort	Manages showings, open houses, and communications with potential buyers, saving the seller time and enhancing the real estate agent’s effectiveness.	Requires the seller to handle all aspects of the sale, which can be time-consuming and stressful.
Negotiation Skills	Skilled in negotiating terms to achieve the best possible deal for clients.	May lack experience in effective negotiation, potentially affecting the sale price.
Transaction Management	Coordinates all aspects of the transaction, including closing, to ensure a smooth process.	The seller manages the transaction process, which can be complex and overwhelming, especially when navigating the code of ethics that real estate agents and brokers must follow.
Market Insight	Provides valuable market data and pricing strategies based on comprehensive analysis.	May lack detailed market insights, leading to potential mispricing or missed opportunities.
Support and Guidance	Offers ongoing support and guidance throughout the buying or selling process, ensuring clients understand the agent’s commission structure.	Limited support, requiring the seller to handle issues and questions independently.

Real Estate Agent vs. Real Estate Broker

Before diving into the specifics of becoming a real estate agent, it’s important to understand the distinction between a real estate agent and a real estate broker. While both roles are integral to the real estate industry, they have different responsibilities, licensing requirements, and levels of authority. This comparison will help clarify the differences between these two key positions, allowing you to decide which career path aligns with your goals and interests in the real estate field.

Aspect	Real Estate Agent	Broker
Role	Assists clients with buying/selling/renting	Operates independently or manages a brokerage
Licensing Requirements	Basic real estate license	Advanced education, experience, and broker’s license
Responsibilities	Property showings, negotiations, client support	Oversees transactions, manages agents, handles complex deals
Supervision	Works under a broker	Can supervise agents and operate a brokerage

Popularity of Home Selling Methods

In 2023, the real estate market continued to show a strong preference for traditional methods of home sales. According to the National Association of Realtors (NAR), most home buyers and sellers rely on real estate agents and brokers to navigate their transactions. Understanding the distribution of home sales methods provides valuable insights into consumer preferences and the effectiveness of different selling strategies in today’s market.

• Traditional Agents (89%): The overwhelming majority of home sales—89%—were facilitated by real estate agents or brokers. This method remains the most trusted and popular among buyers and sellers, offering professional guidance, negotiation expertise, and access to a broad network of potential buyers.
• For Sale By Owner (FSBO) (7%): FSBO accounted for 7% of home sales. While this method allows sellers to avoid paying commissions, it often requires significant effort and expertise in pricing, marketing, and handling legal paperwork. Consequently, FSBO tends to be less popular among sellers who prefer the convenience and support offered by professional agents.
• Other Methods (4%): The remaining 4% of home sales were conducted through other methods, including direct sales from sellers to buyers, online platforms, yard signs, and open houses. These methods are less common and are often chosen by sellers looking for more direct or alternative approaches to selling their homes.

This breakdown demonstrates the continued dominance of traditional agents in the real estate market, highlighting their crucial role in ensuring successful and smooth transactions for most homebuyers and sellers.

How Real Estate Professionals Earn: Commissions and Fees

Understanding Real Estate Commissions

Real estate agents typically earn a commission, a percentage of the property’s sale price.

• Standard Commission Structure: The standard commission rate is usually 5-6% of the sale price, split between the buyer’s and seller’s agents, both National Association of Realtors members.
• Splitting Commissions: A real estate agent may face challenges when splitting commissions with a brokerage. If you’re part of a brokerage, the commission is typically split between you and the broker. The exact split can vary depending on your agreement with the brokerage.

Factors Influencing Fees

Several factors can affect how much you earn as an agent:

• Location: As a member of the National Association of Realtors, understanding the location is crucial for effective residential real estate transactions. As a National Association of Realtors member, understanding the location is crucial for effective residential real estate transactions. Commissions can vary based on geographic location. In high-cost areas, the dollar amount of commissions is typically higher, even if the percentage is the same.
• Property Type: The type of property also influences your commission. For example, luxury properties often have higher commission rates due to higher sale prices.
• Transaction Complexity: More complex transactions, such as those involving multiple properties or legal issues, may command higher fees.

Transparency in Fees

To build trust, it’s important to be transparent with clients about how your agent’s commission is structured.

• Fee Disclosure: Always disclose your commission rate upfront so clients know what to expect. This transparency builds trust and ensures there are no surprises at closing.
• Negotiating Fees: Sometimes, clients may try to negotiate your commission rate. Be prepared to explain the value you bring to the transaction and why your fees are justified, especially as a National Association of Realtors member who adheres to a strict code of ethics.

Specializations in Real Estate

Types of Real Estate Agents

The real estate industry offers various specializations, allowing you to focus on a niche that aligns with your interests.

• Residential Agents: These residential real estate agents specialize in helping clients buy and sell homes with expertise and dedication. They work with various properties, from starter homes to luxury estates, showcasing their expertise as real estate agents and brokers.
• Commercial Agents: Commercial real estate agents focus on properties used for business purposes, such as office buildings, retail spaces, and industrial properties.
• Luxury Property Agents: These agents specialize in high-end properties, often working with affluent clients and exclusive listings.

Geographic Focus

Where you work can significantly impact your career as a real estate agent.

• Local Market Knowledge: Understanding the nuances of your local market is crucial. Clients rely on you to provide accurate pricing information and identify up-and-coming neighborhoods.
• Networking: Building a network in your geographic area can help you secure more clients and gain access to off-market listings.

Client Types

Different clients have different needs, and specializing in a particular type of client can set you apart from other agents.

• First-Time Homebuyers: These clients often need extra guidance and education, making your role as an advisor even more important.
• Investors: Real estate investors are looking for properties that generate income or appreciate value. You’ll need to understand the financial aspects of real estate and how to identify profitable opportunities.
• Luxury Buyers: These clients typically have specific requirements, such as privacy, high-end amenities, and prime locations. Working with luxury buyers requires a deep understanding of the high-end market and an ability to meet their unique needs as a buyer’s agent.

The Day-to-Day Work of a Real Estate Agent

Client Interactions

Much of your time as a real estate agent will be spent interacting with clients.

• Initial Consultations: The first meeting with a client is crucial. As a buyer’s agent, you’ll discuss their needs, preferences, and budget, and start building a relationship.
• Regular Updates: Keep clients informed throughout the process, whether you’re searching for a property or negotiating a sale. Regular communication builds trust and ensures everyone is on the same page.

Marketing and Listings

Marketing is a big part of your job as a real estate agent.

• Creating Listings: Writing compelling property descriptions, taking high-quality photos, and creating virtual tours are all part of the listing process that a good real estate agent should master.
• Social Media: Many agents use social media to market their listings and build their brands. Platforms like Instagram and Facebook allow you to reach a broader audience and showcase your expertise. For more insights, check out the Top 10 Real Estate Social Network Platforms to Boost Your Business in 2024.
• Networking Events: Attend local real estate events and open houses to meet potential clients and other industry professionals.

Managing Transactions

Managing a real estate transaction requires attention to detail and strong organizational skills from offer to closing.

• Offer Negotiation: Once a client makes an offer, you’ll negotiate with the other party to reach an agreement. This process can involve multiple rounds of counteroffers and discussions.
• Paperwork: Real estate transactions involve a lot of paperwork. Contracts, disclosures, and other legal documents must be completed accurately and submitted on time.
• Closing the Deal: The closing process involves finalizing the sale, ensuring all documents are signed, and the necessary funds are transferred. As an agent, you’ll coordinate with the title company, lender, and other parties to ensure a smooth closing.

Challenges and Rewards of Being a Real Estate Agent

Why Pursue a Career in Real Estate Despite the Challenges?

Becoming a real estate agent can be incredibly rewarding for those passionate about helping others achieve their dreams of homeownership. The career offers flexibility, the potential for high earnings, and the satisfaction of guiding clients through one of their life’s most significant financial decisions. However, it’s essential to be aware of the challenges to navigate the profession successfully.

Challenges

While being a real estate agent can be rewarding, it also comes with challenges.

• Unpredictable Income: Real estate agents and brokers often face unpredictable income, which can be challenging in the residential real estate market. Unlike salaried jobs, real estate agents earn commissions, meaning income can fluctuate based on market conditions and individual performance.
• High Competition: The real estate industry is highly competitive, especially in densely populated areas where many residential real estate agents vie for the same clients.
• Emotional Stress: Real estate transactions can be emotionally charged, with clients experiencing stress, anxiety, or disappointment. Agents must often manage these emotions while maintaining professionalism, as outlined in the code of ethics that all real estate agents and brokers must adhere to.
• Time Commitment: Being a good real estate agent requires a significant time commitment to serve clients effectively. The job often requires working evenings, weekends, and holidays to accommodate clients’ schedules. This can lead to a poor work-life balance if not managed carefully.

Rewards

Despite the challenges, a career in real estate offers many rewards.

• High Earning Potential: The financial rewards can be substantial for those who succeed. Top agents in competitive markets can earn six-figure incomes.
• Flexible Schedule: While the job requires long hours, it also offers flexibility. Agents can often set their schedules, allowing for a better work-life balance when managed effectively.
• Personal Fulfillment: Helping clients find their dream homes or sell their properties can be incredibly fulfilling. Agents often build long-term client relationships, leading to repeat business and referrals.
• Continuous Learning: The real estate market always evolves, offering agents opportunities to continuously learn and grow professionally.

FAQ

Conclusion

Starting a real estate agent career can be exciting and challenging. With the right training, qualifications, and understanding of the market, you can thrive in a role that offers flexibility, financial potential, and the satisfaction of helping clients achieve their property goals. While navigating the complexities of the licensing process and day-to-day responsibilities may seem daunting, the rewards of a successful real estate career—such as professional growth and the ability to make a significant impact—make it a worthwhile endeavor. Whether you’re drawn to the dynamic nature of the job or the opportunity to specialize in various real estate niches, becoming a real estate agent opens the door to a career full of possibilities.