Do you want to know what it takes to become a successful realtor? If yes, here is a comprehensive guide by SANYA RAMBALLY CONKLIN to becoming a real estate agent in the US, UK, Australia, and Canada.
Real estate agency is a line of business that many top-down, mobile, and focused people are venturing into these days, as an alternative source of income, or in some cases their primary source of income. Investing in real estate has a high return on investment and investors can rest assured that their investments will not be lost, all other things being equal.
Over the years, in countries like the United States, Canada, and even Australia, the real estate sector of the economy has grown and newcomers to the business can testify how lucrative you are investing in real estate, whether as a major player or even as agents. A very good example is Donald Trump, considered one of the richest men in America and, indeed, the world.
Before discussing what a real estate agency is and what it takes to become an agent, it is pertinent that we establish here that there is a difference between being a real estate investor and an agent. A real estate investor is someone or organization that invests money in the provision of real estate facilities in the economy, while the real estate agent is the individual Like Sanya rambally or organization that acts as an intermediary for both the investor and the end user of real estate facilities.
Having established this difference, let’s now look at some definitive real estate agent descriptions and the requirements to become one.
What is a real estate agent?
We all hear about real estate agents, but do you really know who and what is expected of a real estate agent? This is a person or organization that is authorized to act as an agent for the sale of land or other real estate facilities.
The term originally referred to a person responsible for managing a property of the land, while those engaged in the purchase and sale of houses were “house agents” , and those who sold land were “agents of the land” . however, in the 20th century, “real estate agent” began to be used as a generic term. Realtor is roughly synonymous with the United States Term Realtor .
In a broader sense, a real estate agent (or broker) is a person or company (as the case may be) who acts as an intermediary between sellers and buyers of real estate and tries to find sellers who want to sell and buyers who I want to buy
But according to Sanya Conklin, “Real estate agents are the people you deal with face-to-face when you buy or sell properties. These are the people who are on the front lines of the real estate market and perform tasks (among others) such as showing houses to potential buyers and negotiating transactions on behalf of their clients. Real estate agents often work on a 100% commission and their income depends on their ability to find suitable properties for their clients and to close transactions. ”
Become a Realtor – A Complete Guide
The labor market situation in the real estate industry
In the U.S
There is a general understanding that the demand for housing is on the rise in the United States, but this demand is not being offset by rising prices. Industry watchers say this may be due in part to the many new buildings that are emerging and entering the housing supply market and this helps meet demand pressure, which in turn helps prices stabilize and, in some cases, fall.
For example, the annual increase of 4.26% year-on-year in the first quarter of 2015 in the national index of seasonally adjusted house prices of s & p / case-shiller (4.34% in real terms) was the most Low since the third quarter of 2012. There was a 4.39% price increase during the year until May 2015 (4.43% in real terms).
The prediction is that home prices will rise between 5 and 5.2 percent in 2015 and another 2 percent in 2016, even though the economy is weakening. The drop in oil prices is said to be responsible for Canada’s declining economy, but house prices have defied the odds, leaving realtors with a good chance of continuing to make good profits from their businesses. .
Mark Hopkins, chief economist at Moody’s Analytics who called the Canadian real estate market “bulletproof,” said, “It seems to be not only defying the odds in terms of surviving the great recession in the global economy, but even now with the Gross domestic product contraction, it seems that existing home prices have accelerated, which is a bit strange and contradictory. ”
What this suggests is that the future looks really bright for those in real estate and agency businesses.
In the United Kingdom
It seems that the situation is no different as the housing sector is also improving despite challenges in several other sectors of the economy (but this does not include London, because prices are gradually falling there. As they say, “London is falling, the rest of the UK is rising ” ).
Jim Mello, an entrepreneur and investor, said: “London is definitely on the way.” He continues, “They are making the Russians stand down, they are getting a huge metal building, and I have read that 41,000 new units are being built in London. All priced at £ 1 million, but last year only 3,000 properties were sold for more than a million pounds in London. so I would say it is very over built, very over leveraged and very expensive. ”
This picture does not reflect the situation in the rest of the UK, as observers have given an approval rating to the performance of the property sector in the rest of the UK. and that should be a confidence booster for agents or potential agents.
What about Australia?
Is the situation good or bad? In 2014, house prices increased by 6.8% in Australia’s eight main cities (3.34% adjusted for inflation), after a 9.48% increase during 2013 (6.47% adjusted for inflation ) (based on Australian Bureau of Statistics figures). Sydney, which is arguably Australia’s most popular city, saw the largest house price increase of 12.2% in 2014, followed by:
- Brisbane – 5.3%
- Melbourne – 4.5%
- Adelaide – 2.5%
- Hobart – 2.2%
- Canberra – 1.7%
- Perth – 1.2%.
Some industry critics believe that Australian homes are overvalued, especially in Sydney, where the median home price stands at around 760,000 aus ($ 591,962), roughly 33% above the median home price for Australia. 571,500 ($ 448,313).
The information above has shown that there is still room for more real estate agents to enter the sector. The need for them still exists and they can find their foundations and practice profitably. But this is not without going through the necessary processes that are involved in creating such a business.
Effects of Internet Technology on Real Estate Business
- Technology gives rise to new approaches that produce new and fast results.
- Enables smooth business operations
- Makes it easier to get more done in a short amount of time
- The use of technology leads to multitasking. one person can be trained to handle the work of several people simply by knowing how to use relevant applications.
- The internet / information technology in general, especially now with the advent of social media platforms like Facebook, Twitter, LinkedIn, etc., has made it easier to reach more potential customers with minimal spending on ads.
And there are many other advantages of adopting technology in the real estate business at whatever level one chooses to play.
Professional / regulatory bodies for real estate agents
In the U.S
For example, in the US, to be qualified to practice as a real estate agent, you must be a member of the national association of real estate agents ( NAR founded in 1908 as the national association of real estate exchanges and in 1916 it was named the national association of boards real estate, before adopting its current name in 1974 ).
There is also the National Association of Real Estate Brokers (Nareb). It is pertinent to note that all states in the United States also have various laws and regulatory requirements to practice as a real estate agent.
At US you can choose to pursue college degrees related to real estate and finance, but the Bureau of Labor Statistics (BLS) says the minimum requirement was a high school diploma. However, there are other professional institutes and bodies that offer courses and certificate programs in real estate.
It is the Canadian real estate association (crea) that is the national body, although different provinces have their own educational and licensing requirements for obtaining a license as a real estate agent. For example, to obtain a license in Canada, you must complete the minimum educational level. take supervised training, sometimes called “articulation.” and you must pass a written exam to be licensed to practice.
In the United Kingdom
The national association of estate agents (naea) is the uk’s leading professional body for estate agents. Requires a 3-level technical award in the real estate agency, administered by the awarding body of the national federation of property professionals (nfopp). but there are other bodies that are involved with regulatory responsibilities such as the national federation of property professionals.
There is an independent network of real estate agents ( inea ). There is also the Royal Institution of Chartered Surveyors (rics), the UK’s leading body for property professionals and dealing with residential, commercial and agricultural property.
It seems that the rules are stricter for anyone who wants to become a real estate agent. A new agent is expected to complete a short course and other requirements set by the victoria real estate institute ( the reiv ) that qualifies them to become an agent representative and then learn the ropes under said fully licensed agent.
And then the criteria for becoming a fully licensed agent are broader, as outlined by the state government. Covers courses such as fiduciary accounting, business finance, leasing, auctions, and marketing practices. An internal agent must have been in that position for at least one year before moving on to take the required exams to obtain the full license. There are other associations as well.
Benefits of becoming a real estate agent
- Gives you multiple options to earn money
- Helps you save money on your investments
- Gives you the opportunity to meet a wide range of people, helping to build your network
- You can act as an agent for yourself, thus saving money
- You can become the agent of reference with / among other agents if you apply integrity with your work
Factors or challenges that discourage people from becoming real estate agents
- Government policies
- On concentration of other practitioners in an area
- Problematic clients
- In some places lack of funds to negotiate
- Peer pressure to do certain things that are illegal
- Too many policy-making bodies
How long does it take to become a real estate agent?
In the U.S
Different states also have their own laws and requirements that must be met to become an agent. Florida requires 63-hour approved classes before you can take exams, while New York requires 75 hours of classes. California requires three 45-hour courses before you can take the exams, and Colorado requires 300 hours of classes.
In addition to the exams you must write and other related qualifications, you are also expected to complete at least one year of internship with an already licensed real estate agent.
Different requirements that guide different parts of the country, Sydney, Melbourne, South Australia, etc. They have exams and certifications that you must take and earn to qualify to practice. So within a year to a year and a half (apart from taking degree courses), you may be ready to get a full license.
In the United Kingdom
The National Federation of Property Professionals is the awarding body and has a Level 3 Basic Technical Award in Residential Property Sales, which is set as a minimum requirement to join NAEA as a full member and Level 4 certificate qualifies you to join mate. Level 3 exams must be completed within one year, while Level 4 exam has a stipulated time of 18 months for completion.
How much does it cost to get a real estate certification or degree or equivalent training?
In the US there are different requirements depending on the state in which you reside or want to practice. however, an agent only becomes a real estate agent when he or she becomes a member of the national association of real estate agents and subscribes to its code of ethics.
Different universities and other educational institutes offer courses in real estate and their prices range from $ 100 to $ 5,000, depending on what course you are taking and what school. For example, Los Angeles City University offers California Department of Real Estate-approved real estate education for agents and brokers for approximately $ 600 for state residents.
You can also take advantage of online correspondence or real estate licensing courses that cost between $ 100 and $ 1,200 or more, depending on the state and depth of study.
How much does it cost to take courses in real estate?
In the United Kingdom
Birmingham city university offers a bsc course in real estate for a period of 3 years for full-time students, 4 years for sandwich and 5 years for part-time students. the course could cost you up to £ 4,000 or more. In addition to obtaining a degree, you are also expected to take professional courses and exams.
The national association of real estate agents offers different trainings for beginners and for those who want to update their knowledge base. Some of the courses include:
Effective sales skills
- Effective real estate agency part 1 and 2
- Essential law for residential real estate agents
- Consumer protection regulations
- Transport practice and procedure and many more
- Most of these courses and trainings are hourly and the fees can range from £ 50, up to £ 500.
Ontario to be precise; Aside from degree courses, there are other necessary courses that you must take to become licensed to practice as a real estate agent. They include:
- Course 1 ($500)
- Course 2 ($520)
- Course 3
- Course 3 is divided into Course 3 General ($ 330) and Course 3 Advanced. course 3 is further divided into 2 therefore; Advanced Residential Course 3 ($ 400) or you can take Advanced Business Course 3. pre-registration courses cost $ 1,820 while articulation courses cost $ 1,360. These courses are also available to correspondent students.
The real estate institute of south australia, which is an approved delegate of the australia skills quality authority, is the industry leader in real estate courses in australia. the institute has a course in real estate sales agent ($ 4,000), property management ($ 990), owns its own real estate agency ($ 5,800), home sustainability advisor ($ 295) and so on … These courses could be taken on a part-time or full-time basis. Online options are also available to students abroad.
Most schools have options available to correspondence students. This is a good idea for busy people who want to continue their education and improve their knowledge base in real estate. however, it gives them the opportunity to work and study at their own pace (there is still a time limit required to complete any course program one is undertaking).
Can You Become A Real Estate Agent By Taking Online Courses?
Taking online courses can help you avoid all the hassles that come with traveling abroad or leaving your usual place of residence and work. Anyone who wants to, but doesn’t have time to attend classes as a full-time or part-time student, can take the online option. The good news is that your certificate will not read “online certificate” when completing such and such a course.
One may be concerned about not having physical interaction with teachers and peers, but many schools now instill forums on their sites so that online students can also interact and share ideas. Platforms also allow for interactions between students and teachers, so there is no fear with the interaction, just not physical.
Those who have made billions of dollars would say that all it takes to be a real estate agent is the ability to be hard-working and the zeal to take initiative at all times. Thus; You can go beyond just being a real estate agent for someone else’s company by starting your own real estate agency business and being successful. To do this, you need a business plan from a real estate agency. If you can do this, there are no limits to how far you can go. the only limits are the ones you set yourself.