Should You Pay To Become A REALTOR®?

If you're considering a career as a real estate agent, obtaining your real estate license is the first step you need to take. Each state has its own licensing requirements, but it is essential to obtain a license before starting your career as an agent. In this article, we will explore the benefits of having a real estate license and how it can enhance your professional and financial prospects in the industry.

Does Having a Real Estate License Make You a REALTOR®?

Having a real estate license does not automatically make you a REALTOR®. While obtaining a real estate license allows you to work as a real estate agent, only agents who become members of the National Association of REALTORS® (NAR) can use the title of REALTOR®. To become a REALTOR®, agents must subscribe to NAR's Code of Ethics, which ensures that they uphold industry standards and provide the best possible service to their clients.

Professional and Financial Benefits of a Real Estate License

Having a real estate license offers several tangible benefits for your professional and financial growth. Let's delve into the advantages of obtaining a real estate license.

1. It's Required by Law

First and foremost, obtaining a real estate license is a legal requirement for operating as a real estate agent or broker. By securing a license, you demonstrate to clients that you have met the education requirements mandated by the state, enabling you to serve them within the legal framework.

2. It Gives You Professional Credibility

Having a real estate license instills a sense of professional credibility. With a license in hand, you can approach clients with confidence and establish meaningful relationships. Moreover, obtaining a real estate license is a stepping stone toward becoming a REALTOR®, opening doors to new clients, skill advancement, and professional growth.

3. It Provides MLS Access

Joining a multiple listing service (MLS) grants you access to an up-to-date marketplace of property listings in your area. Through the MLS, real estate agents and brokers share information about the properties they have listed, enhancing exposure and visibility for homes for sale. This access to the MLS is invaluable when helping buyers find properties and staying ahead in a competitive market. Additionally, it allows you to focus on specific areas or neighborhoods, streamlining your search process.

4. It Enables You to Earn Commission

Operating as a licensed real estate agent gives you the opportunity to earn a commission. In most states, unlicensed individuals cannot receive commissions from real estate transactions. According to the Bureau of Labor Statistics, real estate brokers and sales agents earned a median income of $48,770 per year in 2021, with experienced agents and those working in higher-cost areas making significantly more. While closing commercial transactions often requires more time and effort, the commission checks for commercial properties tend to be larger than those for residential real estate.

5. It Helps You Save Money When Selling Property Yourself

Many real estate agents invest in real estate themselves. Having a real estate license can be advantageous if you are closing deals independently. By acting as your own real estate agent, you can save on commissions, which can add up significantly if you are involved in multiple deals per year.

Benefits of Becoming a REALTOR®

If you choose to become a REALTOR®, you gain access to extensive professional development opportunities offered by NAR. To maintain your real estate license, you may be required to complete a certain amount of education each year, depending on your state. NAR provides numerous courses that can enhance your skills and expand your knowledge as a real estate agent. Additionally, REALTORS® can participate in the Commitment to Excellence (C2EX) program, which helps elevate their skills, strengths, and standards.

1. Access to More Clients

Becoming a REALTOR® increases your visibility as you are listed in a national directory. This exposure can lead to more clients reaching out to you for their real estate needs.

2. Opportunities for Professional Networking and Mentorship

As a REALTOR®, you gain access to the largest national network of real estate professionals. Building connections with fellow agents can be invaluable, especially if you work as an independent contractor. NAR promotes mentoring among its members, providing early career professionals with mentoring opportunities. Later in your career, you may also become a mentor yourself through NAR's mentorship program.

Conclusion

In conclusion, obtaining a real estate license is the first step toward a rewarding career as a real estate agent. It provides you with the necessary certification to operate legally, enhances your professional credibility, and grants you access to MLS listings. Additionally, having a license enables you to earn commissions, save money on personal deals, and opens the door to becoming a REALTOR® with its own set of benefits, including professional development opportunities, increased client visibility, and networking prospects. So if you're considering a career in real estate, getting your real estate license is a crucial and beneficial starting point.