Selling real estate for a living can be a fun and profitable experience. Many people become real estate’s agents as a way to fulfill a dream of earning extra money, or beginning their own brokerage firm. There is always significant room for ongoing advancement when involved in the real estate industry. However, in all 50 states, a person is first required to obtain a real estate license.
Generally speaking, the regulations concerning selling real estate vary between states. However there are specific guidelines that are pertinent to every state. By reading below, you can learn exactly how to become highly successful in selling real estate by obtaining a license.
State Regulations
All of the regulations involving selling real estate in the state are handled through the state Realty regulation board. It is a good idea to visit the Arizona Department of Real Estate website to see what needs to be fulfilled. Some states require a broker’s license for all REALTORS to sell real estate. In Arizona, this is not the case although many agents have their broker’s license and are typically known as “Associate Brokers”. For Arizona, the requirements are:
- Pre-licensing
- 90 hours of seat time
- Passing both the state and national exams. There are also several classes you are required to take after being accepted.
- Real Estate Ethics
- Contract Law
Going to School
Search for a local school in your area that is offering classes on how to obtain your real estate license. More than likely the Realty Board will offer a huge list of approved schools throughout the state. There are 2 types of schools in Arizona: Active participation in real time, and online classes. The active participation classes are broken up into three versions: college courses, approved ADRE instructor courses, and crash courses. Many colleges offer a pre-licensing class, but the most popular are “schools of real estate” or online.
Online classes still require a proctor while attending. This means a real estate Broker must sign off on each session. Usually students will attend class at an existing Real Estate office. This method is a good way for potential students to see how a real estate office functions. However, be aware that office Brokers host schools for reasons of recruiting. There is little to no financial benefit from hosting online classes for the office. Once your classes are completed, they will likely be hitting you up about joining their brokerage.
In Arizona, studying for the real estate finals are prepped by taking mini-tests along the way. In a live class situation, the instructor may break people up into groups and role-play scenarios. These active classes are a good way to learn through situational experience. However, be aware that conversations are often dominated by individuals who may be giving wrong or bad advice. This may play into your thinking when taking a test, or worse; in a real-life situation where you now find yourself in a lawsuit. Be sure to always have one focus in mind…the Law! Always clarify your answers or decisions with the instructors or brokers. Arizona instructors love to give ambiguous scenarios to gauge how studious the students are. This is another reason why sometimes online courses are the best choice for individuals who learn best from direct instruction without any outside opinions.
Taking the Test
Once you receive your certificate of the school, or feel confident that you can pass the test, you need to set up an appointment. Usually, the state’s realtor exams are handled once or twice each month in large metropolitan cities. Recognize that these tests are usually very difficult, where less than 25% of the entire class will pass it on their first try. To be successful, you will need to make sure that you study very hard, apply yourself, and keep retaking the test until you pass it. Another wise option is to pay for “prep tests” on websites offering the product. Through personal experience, Night Before The Exam.com was a great choice for me. This is not a shameless plug. I used this site to keep myself brushed up on state issues. The great thing about this particular site is their ability to gauge you areas of weakness. For instance, if you’re great in Title topics but lousy in finance and appraisal, the site will show your weakness by graphs shown as red-to-green bars. If you’re taking classes with a friend, you may want to split the cost of using the site and share your password. Of course, the graphs won’t be accurate if more than one person is using the login.
Paying for the License
Once you pass both the state and national tests you’ll need to pick a brokerage to join. You’ll be required in AZ to send in a fingerprint background search form which will give you an I.D. card when passed. This card is good for 6 years. The National Association of Realtors (NAR) will also send you your license number along with instructions of how to join the association. Understand that just because you passed the test doesn’t mean you are a REALTOR. You’re only a REALTOR when you join NAR. It is NAR that will require your ethics class. Along with this your state broker will require your contract law class. Most of the time, it’s good to have an idea which brokerage you want to join. This way you will have the help and advice of a broker when you pass the state and national tests. This is the most confusing time for a new agent-to-be because there are still a few hoops left to jump through, and the best practice is to have the advice of a broker or friend who is an active REALTOR.
Locate a Brokerage
The last step in having the ability to sell real estate is to find a broker. Real estate agents are not allowed to work on their own, but are required to work under a brokerage. Only after you have been able to sell real estate successfully for 3 to 5 years, you can get your brokerage license, and start your own business to sell real estate. Understand, brokers are held to a higher standard than are agents. Many agents quit their own practice and rejoin an existing brokerage once they understand how much liability there is. The broker is responsible for all his/her agents at the office. When an agent gets into legal trouble, most of the time it’s the broker who answers for the mistake. This is why when you have questions, make sure you discuss with your broker before putting something in writing. If you make one too many mistakes, the broker may see you as a liability and dismiss you. This will go on your permanent record.
Joining an MLS
The Multiple Listing Service is a product offered in most associations in connection with a technology company to offer the “product” to the public. In real estate, the product is obviously houses and land; or commercial property if that is the field you decide to go in to. In Arizona, you are not required to join the MLS to sell real estate. The MLS is an extra fee per year, however it provides the agent some tools to work with when researching property data.
Success as an agent
Realtors don’t succeed just because they have a license. Many new agents need to understand technology, marketing, and most importantly negotiation skills. Contract writing can only happen if an agent can procure a deal. Procuring transactions requires marketing and developing what many call a “pipeline” of business. There are numerous ways to gain knowledge in the real estate business. Title companies in AZ offer free classes many times as does the Association itself. If you find yourself struggling, you may want to consider befriending some title marketing folk. They often have good advice or insight on training and marketing.
Create your own luck. Each day decide to get up and do something that will potentially produce business for you tomorrow. Most Realtors who fail do so because they believe that people “want” to give them business. This is not the case. Most people avoid Realtors like the plague. This is because many Realtors only see deals as paychecks, instead of seeing the person or people involved. A professional knows how to talk about the benefits of using an agent (which are numerous) while not glossing over financial responsibility. At the end of each deal, the client should see first hand why they made the best choice. Be involved with your clients and communicate effectively. Just remember that the reward for doing a good job will be more business in the future.
© Matt White - REALTOR® |