Real estate agents have a lock on the real estate market, but have you ever wondered what it takes to become one? The answer might surprise you.
Becoming a Real Agent is Fast and Easy
You can become a real estate agent in two months. By taking a few evening classes, buying a book, and then taking a test. you can become a licensed agent. Once you pass the test you only need to spend some time with a current real estate agent. This can be completed by simply speaking with your local real estate agent, who sold you your home, who is a friend of the family, etc. Once you obtain your license, expect to save 3.5% on your future real estate transactions.
The Benefits of Obtaining a Real Estate License
You get a much better understanding of the real estate process. This is a great crash course in real estate. Most importantly, you learn a ton about how the transaction is processed and executed. This understanding can help you be a better customer when you choose to use an agent in the future. It will also speed up your real estate deals tremendously.
You also obtain the ability to command 3.5% of every real estate transaction you are involved in. Instead of for sale by owner, you can list your property on the MLS (the Holy Grail of listing services) and you can act as your own agent. Typically only licensed agents have access to the MLS database. This is very powerful. Normal for sale by owner properties are not listed on the MLS and those owners do not get a commission split. Additionally, since most do not offer any broker commissions, most brokers choose not to show these houses. These are a few reasons why for sale by owner houses typically sale for less and spend more time on the market.
Finally, the biggest benefit occurs when you buy houses. Instead of paying full price, you get a 3.5% discount because that is your broker fee. Imagine buying four to five houses in your life time and saving 3.5% on every house. This could add up to tens of thousands of dollars in savings. Additionally, if you ever want to become an investor, having a license adds profit to your bottom line. You also get much greater sourcing of properties. Besides access to the MLS, you can simply walk into most banks and ask for their foreclosure list. This saves you the time of going down to a courthouse or going through another agent, whom you have to indirectly pay 3.5%.
Becoming a real estate agent is very cost effective. In addition to the great real estate knowledge you gain by going through the process, there are significant savings to be gained by acting as your own broker. Taking two months out of your life now could save you thousands of dollars in the future.