Why do real estate agents have to be licensed?
Shady real estate is also why you see a legal necessity to publish a physical address of the company (nowhere to hide), as well as the major reason you see so many confident faces and photographs from the 1980s on real estate business cards and marketing. We’re not self-absorbed… at least not for this reason. It’s a development of the concept that when you employ your face, it instills trust that you’re not a film planter that’s going to vanish on customers.
When a real estate agent license is required
You require a real estate agent license to sell, lease and manage real estate on behalf of customers. This includes:
- serving as an agent for a potential purchaser, seller, landlord, or renter
- negotiating transactions (such as purchasing, selling, swapping, or leasing property) (like buying, selling, exchanging, or leasing property)
- collecting rent for a lease and offering property management services
- serving as an auctioneer (assuming you also possess auctioneer certification) (provided you also hold auctioneer accreditation).
There are two grades of real estate agent license – class 1 and class 2.
Before you may earn a class 2 real estate agent license, you must first possess a certificate of registration as an assistant agent. You need to hold a certificate of registration for at least 12 months and obtain experience under the supervision of a licensee.
Does a real estate agent license give you access to MLS?
No. MLS access is distinct from being a registered salesperson in your state, and it involves payment of yearly dues/fees as well as association with a broker member of the MLS.
Obtaining a salesperson license from your state is useless unless you are affiliated with a broker. All of your authorizations, access, agency, and commissions are routed via your broker and to you. You cannot work in real estate unless you are employed by a broker (or are one yourself). The state is independent of the MLS, as well as local and national REALTOR groups.
The same is true with MLS access. Your broker will offer you membership, and after you’ve paid your fees, you’ll be able to access the local database of listings and transactions. There are nearly 900 MLSs in the United States, and they all serve various areas and brokers.
Why should I get a real estate license?
Other responses were given at face value. The expense of obtaining a license.
While prices may vary by state, I would not argue the $500-$1000 range.
But what happens after you have it?
You are aware that you cannot practice real estate unless you are supervised by the main broker. In other words, you must join a real estate firm.
That’s when the games begin. You must first join the National Association of Realtors (NAR), then your local board of Realtors, and finally the local Multiple Listing Service (MLS). Not to mention your E & O insurance.
What happens now that you’ve all joined up and spent another $1500-$2000 on the above?
What about a professional photograph that you may use to adorn pricey business cards and open house signs? Do you already have a beautiful car? People like to work with winners, so I hope so. Then there are the clothing, the website, and the very difficult and time-consuming effort of knowing the industry, and your market, and reaching out to your circle of influence.
You’ve lost more money, in fact, you’re bleeding it.
If you make a sale within the first six months, you are among the fortunate, and it was undoubtedly low-hanging fruit. A family member or another close connection, for example.
Once you’re really on your own and understand what goes on in a real estate transaction, as well as the challenge of finding new customers, it’ll be time to renew all those yearly memberships, complete your CE (continuing education) obligations, and fork up another thousand or more.
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Do you get the picture?
It’s a tough industry, with 70% of new agents quitting within the first 18 months. Given up or just run out of money
If you are genuinely committed to studying, assisting, and putting in the hours, you may be one of the 30% who transforms that $1000 into a meaningful profession.
Is there a real estate agent license and a real estate investor license?
Real estate agents in the United States must be licensed. Individual states grant licenses, and each state has its own licensing and education procedure. In most cases, an individual begins as a real estate salesman and works under the supervision of a real estate broker. After gaining some experience, individuals may pursue extra schooling and become real estate brokers. Currently, no real estate license is required to invest in real estate, however, many investors do possess a salesperson or broker license. Depending on the nature of their investment company, an investor may need a business license from the city or county where they operate.