The real estate license benefits are undeniable. The benefits of having a real estate license outweigh the time, effort, and money it takes to earn one.
Few strategies, in fact, can provide investors with more leverage in expanding their business. However, the advantages of a real estate license are not something you can overlook; you must recognize them if you want to reach your maximum potential.
It’s not unusual for investors to wonder, “Should I get my real estate license?” now and then. While you don’t need one to succeed, every edge is beneficial.
However, getting a license may take longer than most people think. Obtaining a license involves time and money, which not every new investor has.
It is well worth the investment if you can use your real estate license to make deals, network, save, or earn more money. Of course, you can always work with licensed individuals, but having your own can save you a lot of time and effort.
This post will list the top 10 real advantages to getting your real estate license.
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What Are The Requirements For Licensing?
Each state’s real estate licensing requirements differ; nonetheless, the average real estate agent will need to complete 60-90 hours of training and become knowledgeable about local, state, and national real estate rules and regulations. The coursework can be performed online at your convenience.
The agent’s license must be renewed every one to two years, depending on the state where they live.
The cost of obtaining a real estate license can range from $600-$1,200. Exam fees, background checks, pre-licensing instructional materials, and license fees are all included. To receive the license, one must pass the exam and finish the pre-licensing training.
After receiving the license, you must purchase an MLS subscription. Depending on your state, you may be required to pay a fee to join the National Association of Realtors (NAR). Overall, the cost of licensing fees and membership in these organizations will be around $1,500 per year.
>>Read more: Real Estate License Requirements State-by-State
Is It Worth It To Earn a Real Estate License?
Given the price and time commitment, some may wonder whether it is beneficial to obtain a real estate license.
When it comes to investing in the past, obtaining a real estate license was not a significant problem, but the real estate environment has changed. The competition is fierce and unforgiving. A real estate license allows you to keep one step ahead of the competition and opens more doors and chances, which can lead to a steady income.
However, if you are well-established and have extensive connections in the real estate market, you may not require a license. In reality, licensed agents will be willing to collaborate with you and provide you with MLS access.
10 Real Estate License Benefits
If you’re having problems deciding whether or not the cost of obtaining a real estate license is worthwhile, a full study of the benefits may be beneficial. If you’re an investor with a real estate license, keep in mind that some of these real estate agent perks are improved even further.
So, what can you do with a real estate license? The answer is “a lot, even more than you could believe.” Here are some examples of what you can do with one. Let’s take a closer look at each of these to see what the real benefits of having a real estate license are.
1. You will become a real estate agent
One of the most obvious advantages of having a real estate license is the ability to work as a real estate agent. The majority of people obtain their licenses in order to assist others in purchasing and selling real estate.
Real estate agent work is unlike any other job. Real estate brokers have unlimited income potential, schedule flexibility, and the freedom to work wherever they want.
Real estate brokers have unlimited income potential, schedule flexibility, and the freedom to work wherever they want. That’s difficult to beat! The ability to work from home and have a flexible schedule is cited by many real estate agents as one of the main reasons they chose the business. Although market conditions and client needs have an impact on your day, many agents find imaginative ways to balance their work with their private lives.
At their heart, real estate brokers are business owners. They generate leads, address their clients’ problems, and profit handsomely when the deal is closed. Most people’s ticket to their dream job is a real estate license.
2. Your knowledge of the real estate market will improve
You must pass an accredited real estate school to obtain a license. That is, you enroll in college-level real estate classes to learn about the business. This means you’ll learn a lot about the real estate market and how it affects the economy.
Besides, writing contracts, negotiating skills, current trends in marketing and advertising homes, preparing for open houses, and more are all covered in the needed real estate courses. In the end, knowing all the aspects of being a real estate agent will improve your chances of real estate investment success.
Everyone is connected in the real estate sector. Everyone requires the rental or purchase of land. Everyone will need to know something about real estate at some point in their lives. You may increase your knowledge base and take it with you wherever you go in life.
Not to mention, the more you know about the company once you finish your real estate education, the more likely you are to succeed. A real estate agent will be involved in almost every investment transaction you make.
Understanding how the real estate industry operates will help you understand how to structure a contract and even what to look for in a property. You will have a better idea of what’s really required to seal your deal.
Even if you have closed a few deals, you might not fully comprehend what goes into an addendum or what makes a contract legally binding. Being a real estate agent will pay off.
3. You can build strong credibility
Buyers and sellers may see investors as more credible if you are a licensed real estate agent. Being a licensed real estate agent instills trust in both sellers and buyers. After all, obtaining a license involves time, money, attention, and determination. As a result, a licensed agent is thought to be dedicated, credible, and trustworthy.
It is safe to conclude that everyone who has already obtained their license is committed to their profession. In an otherwise new context, the process of becoming licensed instills an inherent amount of trust.
4. You’ll gain access to more deals
It’s good to get a deal every few months, but it’s not the main reason to get licensed. Getting your license opens up doors you may not have explored previously.
Rather than waiting for your Realtor to alert you, you will be the first to know about any new deals. You will be notified as soon as a new listing is added to the MLS. You can discover houses in your preferred locations fast and make an offer by the end of the day. The key reason for getting your license is to have access to new deals.
5. You can enhance your income and earn commissions
If you’re just starting off, any extra income is likely to be welcomed. Even if you don’t plan to make a living as a real estate agent, it can help you supplement your income.
You won’t be able to retire anytime soon by listing one house every several months or completing one broker’s price opinion, but it will help you supplement your income.
You will be able to boost your income as a licensed agent by earning commissions. Even after paying the broker, your investment agreements will make you a large amount of money!
Furthermore, when becoming a real estate agent, you can save commissions on your own personal transactions. You can save and make over $10,000 by closing just six investment deals a year and acting as a Realtor.
Because you’d buy these properties anyway, the extra money may be reinvested in your company. There is an additional 2.5 percent on the sales side if you flip these properties and rapidly list them yourself. You are still making money that you would send out to someone else after paying your broker split and taxes.
Let’s look at an example situation. If you pay $200,000 for a home and the total commission is 6%, the selling agent’s office and your office will each earn $6,000.
In the same example, a fifty-fifty commission split with your office results in a $3,000 commission. After splitting the commission with your offices and broker, you’ll get $4,500 if you sell the house for $300,000. Another advantage of being a real estate agent is the possibility of earning up to $9,000 in commission if you can sell a home without the help of another agent.
This is also a good way to gain a new perspective on business. You can see how real estate brokers operate and what they require in order to succeed. While doing so, you can use your contacts to generate money while also learning about the investing company. It could take months before you make your first wholesale trade. A real estate license will assist you in supplementing your income during this time.
6. You can have exclusive access to the MLS
Investors who become licensed agents will have access to the multiple listing service, which is a platform that is utilized to find the bulk of the transactions on the market. More crucially, the multiple listing service is the country’s largest single source of on-market deals. The MLS is an important resource for licensed investors.
You can utilize the MLS to identify properties that match your special needs. This is a popular advantage among real estate investors. This is because it assists them in locating the best potential investment property.
7. Your contact network with real estate experts will expand
Being a real estate investor and a Realtor is a difficult balancing act. Some people are wary of engaging with an investor who also happens to be a Realtor. This figure pales in comparison to the number of new contacts you can build as a Realtor, not just in your own office but also at open houses and local networking functions.
One of the advantages of working as a real estate agent is the potential to create internal bank relationships that can lead to bank-owned properties. You’re also willing to collaborate with other brokers and agents in your firm.
You can learn from their knowledge and get advice on how to save time on specific tasks. Brokers can alert you to potential legal difficulties and provide contract education. Other agents might refer you to trustworthy real estate experts, including surveyors, appraisers, and lenders.
One of the biggest advantages of having a real estate license, no matter how you slice it, is the ability to drastically expand your network. The more individuals you meet, the more chances you have of closing additional businesses. Meeting the proper real estate agent or working in the appropriate office can make or break your real estate investment career.
8. You have first access to the top properties
The ability to find the greatest properties first is one of the advantages of having a real estate license. Only people with a real estate license have access to the MLS. That means you can outbid listing services like Redfin and Zillow to be the first to make an enticing offer on your dream home.
This will benefit real estate investors since they will have exclusive access to properties before anybody else. This will enable individuals with the proper kind of capital to get the most bang for their buck.
9. You can acquire career training in skills that you can use in any situation
The skills you will develop as an agent are one of the unspoken benefits of having a real estate license. Working in the real estate field will expose you to situations you will not find elsewhere.
This is a people-oriented profession. That is to say, the skills you gain in this profession can be used for any aspect of your life. You may use the abilities you learn in this career anywhere in life, whether it’s talking to people, negotiating, or learning how to sell.
10. With a real estate license, you can be eligible for more jobs
Another advantage of having a real estate license is the possibility to change careers if you don’t want to work as a real estate agent. With a real estate license, you can apply for three different jobs. Commercial agents, leasing agents, property managers, and real estate brokers are the types of jobs in question.
Commercial agent: Working in the commercial sector differs from working in the residential sector. You earn bigger checks, new clients, and more real estate. For agents who desire a competitive market with high incentives, it’s a good change of pace.
Leasing agent: Having a real estate license also allows you to work as a leasing agent. Finding renters for residential or commercial property is the responsibility of leasing agents. They’re in charge of identifying listings to generate leads, as well as marketing and advertising the property to reduce vacancies.
Real estate property manager: If you have a real estate license, you can also work as a property manager. Property managers are in charge of keeping the building and ensuring that the tenants’ needs and wishes are addressed. They collaborate closely with the property owners to maintain the property’s financial and physical qualities.
Real estate brokers: This is the most popular career for those with a real estate license. To work as an agent, you must join a brokerage and report to the managing broker. If agents are really motivated, they can open their own brokerage and work for themselves.
What Are The Drawbacks To Getting a Real Estate License?
There are numerous advantages to acquiring a real estate license, but there are also some drawbacks to consider before considering whether or not it is good for you.
Having a real estate license gives you access to the Multiple Listing Service (MLS). There is no need to get your own if you already have great ties with other real estate agents in your network who can give you access.
Additionally, you must be willing to invest time and money in a real estate course in order to be eligible to take the real estate license exam and even more, money will be required to keep your license current each year.
If you have a real estate license, you will also be bound by a code of moral obligations, so be prepared to shoulder these responsibilities.
Real estate agents are self-employed and have the freedom to set their own hours, though this may not always be advantageous. Because your compensation will not be fixed and will instead be based on commissions, you may find yourself earning less during slow months or working on weekends and outside of the usual 9 to 5 workweek.
Because buying a home is often a major financial decision for most people, you may encounter hard and stressful scenarios with your clients.
Top Considerations Before Earning Your Real Estate License
The process of obtaining a real estate license will allow you to continue your real estate education and perhaps discover new deals. However, prospective real estate agents should think about a few things first. Here are some things to think about if you want to earn your real estate license:
The course load. Although investors may be familiar with the industry, do not underestimate the amount of study time required during the process.
Your timetable. Ascertain that you have enough time to finish the steps required to become a real estate agent. Keep track of your classes, exams, and application process.
Business goals. Assess your investing business and consider how becoming a real estate agent can help you advance in your career.
Potential profits. Consider your reasons for obtaining a real estate license and how the possible profits could benefit your firm.
Education type. Examine the required courses in your state and decide whether online or in-person learning will be more beneficial to you.
How To Earn Your Real Estate License In 4 Steps
Earning a real estate license will require hard work, diligence, and a small amount of money. If you are serious about becoming a licensed real estate agent, though, the extra effort and money are a minor price to pay for the advantages you will receive. The following are the four steps to obtaining a real estate license:
Step 1: Comply with educational requirements
Step 2: Study hard
Step 3: Pass the state exam
Increase your chance of passing the exam with our tips on How to Study for Real Estate Exam
Step 4: Submit your real estate license application
It takes more than just wanting to earn a real estate license to get the benefits. Earning a real estate license is not an easy task.
You must first complete a real estate course. You can only take the test after that. Even experienced investors can struggle with these tests if they do not devote sufficient study time.
The next step is to select a broker that will hold your license for you. On top of that, there are application costs, charges, and annual renewals to consider.
Getting a license is not simple, but it is typically beneficial. A real estate license is not required for all investors, but it might transform your business into the right one.
Have you ever evaluated the real estate license benefits against the time and effort required to obtain one?
For those who know how to use their real estate license, the benefits keep on coming. That is why a license should be viewed as a tool. It’s something you can use to make extra money in your daily life.
With a real estate license, the opportunities are endless. You can explore unlimited options with an entrepreneurial mindset and a real estate license in hand, allowing you to create the life you’ve always desired.