{"id":138962,"date":"2021-06-16T13:58:45","date_gmt":"2021-06-16T19:58:45","guid":{"rendered":"https:\/\/biggerpstaging.wpengine.com\/?post_type=guides&p=137446"},"modified":"2023-09-25T12:41:43","modified_gmt":"2023-09-25T18:41:43","slug":"becoming-real-estate-agent","status":"publish","type":"guides","link":"https:\/\/www.biggerpockets.com\/guides\/becoming-real-estate-agent","title":{"rendered":"6-step Guide on How To Become a Real Estate Agent (for Investors)"},"content":{"rendered":"\n

Becoming a real estate agent can be a great career move, especially for those interested in real estate investing. As a real estate agent, you\u2019ll learn real estate laws and the ins and outs of how to buy and sell properties. You don\u2019t need to have a college degree to become a real estate agent, but it does take some work, and you\u2019ll need to educate yourself in order to pass the real estate license exam.<\/p>\n\n\n\n

Having a real estate license can help you as an investor in many ways. You\u2019ll have access to properties that others might not, you’ll know about areas that are hot, meaning a lot of buying and selling going on, and you can earn a pretty decent income when you have a career as a real estate agent. Check out this detailed guide about becoming a real estate agent if you think this is something you want to pursue.<\/p>\n\n\n\n

Real Estate Licensing Rules By State<\/h2>\n\n\n\n

Every state has its own agent licensing rules and requirements. They require different amounts of education, from as little as 40 hours in Indiana all the way up to 168 hours in Colorado. Because of this, it\u2019s important to study your locale to learn its specific licensing process. Here\u2019s a chart that lays it out:<\/p>\n\n\n\n

State<\/td>Minimum age<\/td>Class hours<\/td>Application fee<\/td><\/tr>
Alabama<\/a><\/td>19<\/td>60 Hours<\/td>$235<\/td><\/tr>
Alaska<\/a><\/td>19<\/td>40 Hours<\/td>$550<\/td><\/tr>
Arizona<\/a><\/td>18<\/td>90 Hours<\/td>$135<\/td><\/tr>
Arkansas<\/a><\/td>18<\/td>60 Hours<\/td>$75<\/td><\/tr>
California<\/a><\/td>18<\/td>135 Hours<\/td>$245<\/td><\/tr>
Colorado<\/a><\/td>18<\/td>168 Hours<\/td>$435<\/td><\/tr>
Connecticut<\/a><\/td>18<\/td>60 Hours<\/td>$80<\/td><\/tr>
Delaware<\/a><\/td>18<\/td>99 Hours<\/td>$114<\/td><\/tr>
District of Columbia<\/a><\/td>18<\/td>60 Hours<\/td>$240<\/td><\/tr>
Florida<\/a><\/td>18<\/td>63 Hours<\/td>$89<\/td><\/tr>
Georgia<\/a><\/td>18<\/td>75 Hours<\/td>$170<\/td><\/tr>
Hawaii<\/a><\/td>18<\/td>60 Hours<\/td>Unavailable<\/td><\/tr>
Idaho<\/a><\/td>18<\/td>90 Hours<\/td>$160<\/td><\/tr>
Illinois<\/a><\/td>21<\/td>90 Hours<\/td>Unavailable<\/td><\/tr>
Indiana<\/a><\/td>18<\/td>40 Hours<\/td>$60<\/td><\/tr>
Iowa<\/a><\/td>18<\/td>96 Hours<\/td>$125<\/td><\/tr>
Kansas<\/a><\/td>18<\/td>60 Hours<\/td>$15 (plus license fee)<\/td><\/tr>
Kentucky<\/a><\/td>18<\/td>96 Hours<\/td>$60<\/td><\/tr>
Louisiana<\/a><\/td>18<\/td>90 Hours<\/td>$90<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
State<\/td>Minimum age<\/td>Class hours<\/td>Application fee<\/td><\/tr>
Maine<\/a><\/td>18<\/td>Unavailable<\/td>$121<\/td><\/tr>
Maryland<\/a><\/td>18<\/td>60 Hours<\/td>$210<\/td><\/tr>
Massachusetts<\/a><\/td>18<\/td>40 Hours<\/td>$103<\/td><\/tr>
Michigan<\/a><\/td>18<\/td>40 Hours<\/td>$143<\/td><\/tr>
Minnesota<\/a><\/td>18<\/td>90 Hours<\/td>$135<\/td><\/tr>
Mississippi<\/a><\/td>18<\/td>60 Hours<\/td>$135<\/td><\/tr>
Missouri<\/a><\/td>18<\/td>72 Hours<\/td>$50<\/td><\/tr>
Montana<\/a><\/td>18<\/td>60 Hours<\/td>$122.50<\/td><\/tr>
Nebraska<\/a><\/td>19<\/td>60 Hours<\/td>$145<\/td><\/tr>
Nevada<\/a><\/td>18<\/td>90 Hours<\/td>$210<\/td><\/tr>
New Hampshire<\/a><\/td>18<\/td>40 Hours<\/td>Unavailable<\/td><\/tr>
New Jersey<\/a><\/td>18<\/td>75 Hours<\/td>$160<\/td><\/tr>
New Mexico<\/a><\/td>18<\/td>90 Hours<\/td>$270<\/td><\/tr>
New York<\/a><\/td>18<\/td>75 Hours<\/td>$50<\/td><\/tr>
North Carolina<\/a><\/td>18<\/td>75 Hours<\/td>$30<\/td><\/tr>
North Dakota<\/a><\/td>18<\/td>45 Hours<\/td>$100<\/td><\/tr>
Ohio<\/a><\/td>18<\/td>120 Hours<\/td>$60<\/td><\/tr>
Oklahoma<\/a><\/td>18<\/td>90 Hours<\/td>$41<\/td><\/tr>
Oregon<\/a><\/td>18<\/td>150 Hours<\/td>$230<\/td><\/tr>
Pennsylvania<\/a><\/td>18<\/td>60 Hours<\/td>$107<\/td><\/tr>
Rhode Island<\/a><\/td>18<\/td>45 Hours<\/td>$140<\/td><\/tr>
South Carolina<\/a><\/td>18<\/td>60 Prelicensing Hours,
& 30 Postlicensing Hours<\/td>		$60<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
State<\/td>Minimum age<\/td>Class hours<\/td>Application fee<\/td><\/tr>
South Dakota<\/a><\/td>18<\/td>116 Hours<\/td>$225<\/td><\/tr>
Tennessee<\/a><\/td>18<\/td>90 Hours<\/td>$260<\/td><\/tr>
Texas<\/a><\/td>18<\/td>150 Hours<\/td>$137<\/td><\/tr>
Utah<\/a><\/td>18<\/td>120 Hours<\/td>$152<\/td><\/tr>
Vermont<\/a><\/td>18<\/td>40 Hours<\/td>$50<\/td><\/tr>
Virginia<\/a><\/td>18<\/td>60 Hours<\/td>Unavailable<\/td><\/tr>
Washington<\/a><\/td>18<\/td>90 Hours<\/td>$146.25<\/td><\/tr>
West Virginia<\/a><\/td>18<\/td>90 Hours<\/td>$25<\/td><\/tr>
Wisconsin<\/a><\/td>18<\/td>72 Hours<\/td>$75<\/td><\/tr>
Wyoming<\/a><\/td>18<\/td>54 Hours<\/td>$139<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

However, most states do offer reciprocity. That means once you hold a license in one state for a certain amount of time (typically two years), you can obtain your license in another jurisdiction by taking only the state-specific portion of the classes and passing the state test.<\/p>\n\n\n\n

(<\/em>Agents<\/em><\/strong>: Want an easier way to find clients? Try<\/em> BiggerPockets Premium<\/em><\/a>!)<\/em><\/p>\n\n\n\n

Some require high school graduation. Others allow you to become licensed after 10th grade. All states have a minimum age of 18.<\/p>\n\n\n\n

Clearly, requirements vary pretty dramatically across the United States. But hopefully this guide helps you understand the basics because there are a few things every potential real estate agent needs to do and know.<\/p>\n\n\n\n

How Much Do Real Estate Agents Make?<\/h2>\n\n\n\n

This is probably the part you are most interested in because who wants to spend hours and hours driving clients around to see houses for free? You are thinking of becoming a real estate agent because you want to make money, right?<\/p>\n\n\n\n

Unfortunately, there\u2019s no typical real estate agent salary. Real estate is local. Your market and your competition will help determine your clients and your results.<\/p>\n\n\n\n

Essentially, you own your own business. The amount of marketing<\/a> you do is a huge factor in your success and your salary. If you choose to sell only one house a year, you\u2019re not going to be bringing in a ton of cash unless you sell to the rich and famous.<\/p>\n\n\n\n

But you can estimate your commissions, right? Not really. It\u2019s a violation of the Sherman Antitrust Act<\/a> to state a going rate for real estate agent commissions \u2014 it\u2019s called price fixing. Real estate agent commissions are negotiable as far as the agent wishes to negotiate. But a good estimate is 2.5% to 3% for both the buyer\u2019s and seller\u2019s agent.<\/p>\n\n\n\n

But wait, there\u2019s more! When becoming a real estate agent, you have a couple of different ways to work under an employing broker.<\/p>\n\n\n\n

First, there are the commission-split brokers with whom you share your commission. I\u2019ve seen splits as high as 60% to the employing broker \u2014 meaning that $10,000 commission is now $4,000 to you, before your costs. I\u2019ve also seen splits as low as 10%, meaning that the same commission puts $9,000 in your pocket. Typically, those lower splits are going to agents who are producing more volume.<\/p>\n\n\n\n

With a flat-fee brokerage, you pay a set dollar amount no matter the commission. I work for a brokerage like this. I pay $499 per transaction for any home where the list price is less than $3 million.<\/p>\n\n\n\n

There are advantages and disadvantages to working for both types of agencies, so you\u2019ll have to decide which one is right for you.<\/p>\n\n\n\n

Do you want the numbers? Unfortunately, salaries vary so dramatically that they\u2019re not really helpful. The average real estate agent salary is $39,800. Or $43,860. Or $76,000. But it might also be $33,000. These are the results I got back when I Googled \u201cWhat is the average real estate agent salary?\u201d<\/p>\n\n\n\n

But the thing is, you get out of real estate what you put into it. Are you willing to be on-call round the clock? You\u2019re probably not going to be getting phone calls at 2 a.m., but you might get one at 5:30 or 6 a.m. from a client who is dying to see a house that just popped up on the market. You might also get one at 10 p.m. for the same reason.<\/p>\n\n\n\n

Remember this when considering becoming a real estate agent. The agents making top dollar are the agents answering their phones all the time.<\/p>\n\n\n\n

Related: <\/strong>What Do Real Estate Agents Do?<\/a><\/em><\/p>\n\n\n\n

Why Become a Real Estate Agent? <\/h2>\n\n\n\n

Whether you want to become a real estate investor or you want to start your career in real estate by getting your license, there are many benefits to choosing a career as a real estate agent, including:<\/p>\n\n\n\n