Engle Realty's Newbie Guide to Real Estate For Those Considering A New Career As A Real Estate Agent
Question: How long does it take for you go to real estate school to become an agent?
Answer: Real Estate Schools offer you a variety of time frames from as little as 2 weeks for classes to 9 weeks. After classes there is an "exit exam" to "exit the school" that needs to happen... Then you can go to a testing company to take the real test. It isn't as hard as others may say it is. The test is easier than college exams, so if you have any college degree it will be a piece of cake if you study.
Question: What course time should I consider? The two-weeker or the 9-weeker?
Answer: It depends on your situation. It is better to go to the two week courses if you're going full time into real estate and can make the time. That way you'll be up and working quicker. But if you are in school or have a part-time job may need to take the longer courses where the time periods are broken up into smaller parts. For those who are already employed full-time, there is hope. Schools offers online classes too. The downside of online classes is that face-to-face classes can be more effective for retaining the information.
Question: How long do you have in order to choose a broker? When do you have to choose the broker? Is there a deadline to decide?
Answer: After you pass test you need to find a broker before working. Until you find a broker, you aren't allowed to practice real estate. There may be an expiration deadline if you don't choose, say 6 months after the test, that will require you have to retake the exam.
Question: What happens after you pass the test?
Answer: When you pass the test you should go to the LREC (Louisiana real estate commission) or whichever commission handles your area and then they will give you an "Authorization to work" form saying that you can practice real estate even though your actual license will be arriving in the mail. You should have your broker picked out as soon as possible. Remember not to practice real estate until you have a sponsoring broker.
Question: What should I look for in a broker?
Answer: You negotiate with your broker on what the split is. How much you expect from your broker and your experience can determine the split. Do you want a lot of education? Do you want your broker to walk you through your first transactions?
Question: What is the typical agent-broker commission split?
Answer: Most new agents have 50/50 splits, but some start off higher. It depends on the agents experience and on the broker. Other splits go up as experience of the agent grows and services of the brokerage are less. Franchises charge franchise fees. Related article: Commission Splits.
Question: An agent and a realtor are different...so what does it take to become a realtor? Is it worth it...etc?
Answer: A realtor is different in that it is a "club". This club sets standards for your real estate practice. This club allows you to use the MLS. They also have classes that are very useful when starting real estate. Becoming a REALTOR(R) is well worth it.
Question: So how much is that going to cost to join and become a realtor...etc?
Answer: Real Estate school can be about $500. $500 a year to become a REALTOR(R) . You also need Errors and Omissions insurance. It is necessary. About $300 a year.
Question: How much money does it generally take to start off in real estate?
Answer: $1500-$2000 can get you started. You have a whole lot of expenses to start up, but after the 2 year your expenses start to level out. It is a good idea to have about 3 months of living expenses saved up so that you have a safety net. Even if on day one you get a listing and an offer, it may take 1 month before you ever get a pay check.
Question: How long does it take to become a REALTOR(R) rather than agent?
Answer: You sign up... There are classes to take, but you really need those classes to orientate you into real estate. They have classes for measuring properties, prospecting, agency relationships, how to fill out the purchase agreement and other forms. The classes can be taken care of the first year, and then you have about three classes a year to take as requirements for continuing education. But you get the MLS and become a realtor instantly after paying dues.
Question: Do I have to renew my license once I have it?
Answer: That license is renewed annually. So, every December you need to renew it. This is extremely important to do so.
Question: When do I get paid in real estate?
Answer: In real estate, you may get a contract today, but it will likely take 30 days before you ever see a pay check. If the deal falls through and you have to secure another property/buyer it may be two months minimum on such transactions. If the property never sells or your buyer never buys then you're out the expenses incurred with no pay day.
Question: What skills do I need for being an agent?
Answer: Once you get rolling, you need to multi-task, handling several deals in different phases of the deal simultaneously. Also see What It Takes To Be A Real Estate Agent.
Question: Where can I get more information? Who should I meet in real estate?
Answer: You will want to acquaint yourself with the Louisiana Real Estate Commission. Try and befriend a person there, because they will be the authority for what you can and can't do. Whenever you have questions you'll be going to them. (Legal questions that is.) Your broker should be the person to field your real estate questions.
