Breaking into Real Estate: A Comprehensive Guide to Becoming an Agent and how much do real estate agents make

As of October 2021, there were more than 1.5 million members of the National Association of Realtors. Many people who are interested in pursuing a career in real estate wonder, how much real estate agents make and how to become a licensed real estate agent.

What is real estate agent?

A real estate agent is a licensed professional who represents buyers and sellers of real estate in transactions such as buying, selling, leasing, or renting residential or commercial properties. Real estate agents work with clients to understand their needs and preferences, identify properties that meet those criteria, and negotiate on their behalf to help them achieve their goals.

They are also responsible for marketing properties for sale or lease, arranging showings, and guiding clients through the legal and financial aspects of the transaction. San Diego real estate agents must be licensed by the state in which they practice and must adhere to state and federal laws and regulations.

How to become a real estate agent?

Real estate involves many technical terms and concepts that may be unfamiliar to the average person. That’s why it is important to understand real estate definitions for anyone who is involved in any aspect of the real estate industry, whether as a buyer, seller, investor, or real estate professional.

Here are the steps to become a real estate agent:

Meet the eligibility requirements

To become a real estate agent in most US states, you must be at least 18 years old, have a high school diploma or equivalent, complete specific hours of real estate courses, pass a licensing exam, and be a legal resident of the United States.

Complete pre-licensing education

Most states require that you complete a certain number of hours of real estate education before you can take the licensing exam. You can find approved schools and courses through your state’s real estate commission or department.

Pass the licensing exam

To become a real estate agent, you will have to obtain a license. The licensing exam covers both state and federal real estate law and regulation. Once you’ve completed your education, you can schedule your exam through your state’s real estate commission or department.

Find a broker to work with

Real estate agents typically work under a broker, who is responsible for overseeing their work and providing support. Research brokers in your area and reach out to them to see if they’re hiring.

Apply for your license

After passing the exam, apply for the license through the real estate commission or department of your state. You will need to provide proof of your education and pass a background check. A real estate license gives brokers and agents the ability to represent clients in selling or buying properties. Each U.S. state has its real estate commission for licensing and has its own specific requirements.

Complete additional training or continuing education

Some states require completing additional training or continuing education to maintain your license. Check with your state’s real estate commission or department to see what the requirements are.

Build your business

After obtaining the license and finding a broker to work with, you will need to start building your business. This may involve marketing, networking with potential clients, and learning the ins and outs of the local real estate market.

How long does it take to get real estate license?

It typically takes about 4-6 months to get a real estate license, depending on the individual's pace and the processing time for various steps in the licensing process. The time it takes to become a real estate agent can vary based on a few factors, including the delivery method of the required real estate courses, the state where you are obtaining your real estate license, and your ability to pass the licensing exam on the first try.

How much do real estate agents make?

The average annual real estate agent salary in the US is $94,031. On average, they can earn $6,658 per month. However, the income varies widely based on how much time you give to the job and where you are located.

Real estate agents earn their income through commissions paid by sellers upon the successful sale of a property. The commission rate is typically a percentage of the home's listing price and can range from 1% to 10% depending on the specific agreement between the agent and the seller.

However, the most common commission rate is between 5% to 6% of the home's listing price, with the commission being split between the seller's agent and the buyer's agent. It's not uncommon for successful agents to earn six-figure incomes, while those who are just starting may earn significantly less.

To become a real estate agent, one typically needs to meet eligibility requirements, complete pre-licensing education, pass a licensing exam, find a broker to work with and fulfill any additional state-specific requirements. It can be an appealing career option for those interested in real estate and willing to put in the time and effort required to build a successful business.