Are you thinking about getting your real estate broker license? It’s a great time to do it! The US real restate market is up and home buying is on the rise again. Whether you are looking at selling real estate full time, part time, investing, or earning referral commissions, having your real estate license has it benefits. I’ve outlined below several reasons to consider getting your real estate license. It’s a great business and career for some but it’s definitely not for everyone.
FULL TIME REAL ESTATE AGENT:
It’s your business. This is a good and bad thing. Good, in that you are your own boss and you get out what you put in to it. Your income potential is really limited by on your skill sets and work ethic. It can be bad for the same reasons – it’s your business and no one will care for it as much as you so you are on and connected ALL THE TIME. So it can and will interfere family time. There is so much more to say about this part alone that I’ll likely write a post on it alone (stay tuned!).
Your Own Schedule – You get to dictate when and where you work. If you don’t like a client then you can refuse to work with them. There is a catch. While it’s great that you get to work when you want to, you will also be showing homes and visiting clients after they are off work and on the weekends.
IMPORTANT NOTE!!!! Real Estate ranked No. 2 as happiest industry (TINYpulse’s “2016 Best Industry Rankings” survey, source Feb 2016, Realtor Magazine).
Referral Income – There are a lot of teachers and medical professionals that get their real estate license just so that can earn referral income from real estate transactions. If you currently have a job that allows you contact with the public and you often hear of people moving or needing to move then you may want to consider getting a license so that you can earn additional income just for connecting two parties together.
Why do you need a license to do that? Certain states require that only licensed real estate agents can earn a referral fee in a real estate transaction.
Referral fees can have a wide range but I’d guess the average is around 25% of one side of the transaction. So if you are earning a referral fee for referring a buyer on a $100,000 house and the buyer’s agent gets 3% then of the $3,000 commission, you would get $750 (25% of $3,000). Not bad for hooking two people up, huh?
Quicker Access to Listings – if you are wanting to be a real estate investor then having your real estate license can help you get real time access to your local MLS and allow you to find the deals quicker.
Changes in State Real Estate Laws – As an agent you have to stay up to date on changes in law and required to take CE annually. In my CE courses I always hear changes that impact investors and the agents that may work with them. So as an agent you should be in the know about changes that may impact your investment business and opportunities. Plus you get to know some really neat people.
Extra income potential – If you are thinking about earning a little extra cash then this could help as well. I have known agents that have helped pay for their children’s college tuition or helped put an addition on to a home all due to the extra income provided by selling real estate on the side. It’s a great side job and did I mention you get to know some neat people?
If you’re ready to get started and want to know about getting your real estate license in your state then please check out my How to Get Your Real Estate License page and click on your state to get started.
In closing, there’s more to a real estate license than the money. One of my favorite things to do is to work with first time home buyers and helping people start new and exciting chapters in their lives. So don’t think of it as trying to make a sale and earn some cash. No matter if your full or part time, an investor or just connecting two parties together. Never forget that you are helping people. Isn’t that what we should all do?