The Benefits of Having a Real Estate License
Having a real estate license allows you to help people buy, sell, lease, and negotiate real estate. Residential real estate agents specialize in working with homeowners. Commercial real estate agents deal with office space, leases, and buildings. Industrial real estate agents specialize in representing clients interested in industrial buildings and warehouse space.
Real estate agents provide their clients with the information they need to sell property, make offers, and negotiate deals. In return, real estate agents are paid a commission for their services, which is a percentage of the sale or lease price of each transaction, offering unlimited earning potentials.
Being a real estate agent is a satisfying and rewarding job, which many times can be frustrating and stressful as well. However, if you like working with people, socializing, and helping people, having a real estate license is a great way to make a living. People who are successful in real estate, love what they do.
There are two types of licenses that are issued to real estate agents. One is a real estate salesperson, and the other is a real estate broker license. All real estate sales persons must work for and under the supervision of a real estate broker. Each state has different rules and regulations for obtaining real estate licenses.
In order to obtain a real estate broker's license, check your local state rules. Generally, you must work as a real estate sales person first, but there can be exceptions to those rules such as whether you have a four-year college degree in real estate, or you are a licensed attorney. Some states have reciprocal license agreements that recognize licenses from other states or give you credit for past work experience, but still require that you take a state exam and comply with educational requirements.
Real Estate brokers can also do real estate appraisals as long as the appraisals are not in connection with federal loans or for federal banks. Only real estate brokers can pay real estate sales persons and other real estate brokers commissions or referral fees.
Having a real estate license also opens up doors to other professions in the real estate industry such as becoming a mortgage broker. Many states require that mortgage brokers have real estate licenses as well as mortgage broker licenses. Mortgage brokers either solicit mortgage loans on behalf of a borrower, who then accepts an application for a mortgage loan, or they negotiate the terms and conditions of a mortgage loan for lenders.
In addition, many states require that property managers have a real estate broker license, as well as other certificates and educational requirements.