Real Estate

A common and shocking statistic in the real estate industry is that about 85% to 90% of agents leave within the first five years. That means if you’re in a prelicensing class with 10 people, about nine of those people will not be working in the industry with you five years down the line. In hopes of minimizing this troubling rate, we’ve examined the top nine reasons why real estate agents fail, as well as how you can avoid these issues and remain successful in the real estate industry. 1. Failure to Account for Upfront Expenses Real estate agents are considered independent contractors, not salaried employees. This means you are the CEO of your own business, even if you work under a sponsoring brokerage. It also means that while many brokerages provide free perks for marketing or advertising, for the most part, you are expected to fund your own expenses. Typically, a real estate agent will spend an average of $11,500 on business expenses per year, and the top performers often exceed that. This covers everything from leads to health insurance, lead generation costs, internet, marketing, advertising, and travel. Real estate agents often fail when they do not account for these ongoing expenses as well as transaction fees charged by their brokerage, which are also known as fee splits. For example, an agent might see a $100,000 commission check and adjust their lifestyle accordingly, when the take home pay they should expect is closer to $34,000 (34%), and that’s before taxes. Also, taking into account that the average time to complete a deal from offer to closing (not including finding your client the home) can take between 30 and 45 days, your paychecks may be more sporadic than a typical salaried position when you are first starting in the industry. Key to Overcoming This Challenge: Have a Money Cushion & Budget Before jumping straight into real estate, it’s important to have a cushion of money saved to fall back on while you’re still getting your feet wet. That way, when you’re still learning the processes and waiting for your first paycheck to hit your bank account, you’re not struggling to pay bills. There are many online software systems you can utilize to organize your real estate accounting that will automate and track your expenses. Using a system such as to organize your finances can be extremely helpful, or rather, 100% necessary. Understanding where money is coming in and going out is essential to building your wallet and your business, but most importantly, will keep you viable in the real estate industry. 2. Lack of Training & Mentorship When starting any new position, training is paramount to being able to know how to operate within your role. The prelicensing courses will teach you a lot about the rules and regulations of real estate, but the nitty-gritty knowledge of how to actually be a real estate agent and get a deal done will be taught to you by your brokerage and the agents that work there. All brokerages will claim that they have a training program, and most will, but if their training style does not match your learning style, it won’t be a good fit. In addition to training, finding a mentor is the key to progressing in your career. Eighty percent of CEOs, Mark Zuckerberg of Facebook and Mary Barra of General Motors included, said they received some form of mentorship that propelled them to success. Having a mentor can increase your confidence, build your network, and provide you with constructive feedback. With the help of a mentor, 70% of businesses survived the first five years, which is the statistic you should be striving to break. Key to Overcoming This Challenge: Vet Your Brokerage When picking the best real estate brokerage to work for, it is important to ask your brokerage the details of their training program, such as what type of training do they offer? How long is the training program? What pedagogical methods do they use in training? What happens after training? Then ask yourself the following questions: What type of learner am I? Do I learn best in a classroom setting with visuals or do I prefer kinesthetic learning with hands-on experiences, and so on? Will this training program work to provide me with the best and most comprehensive knowledge of the industry? There are no right or wrong answers here, but you want to ensure the brokerage you choose aligns their training with your specific needs and encompasses processes that will propel you to success. Finding a mentor may be the more difficult part, but a 2018 survey by Olivet Nazarene University states that 81% of people found their mentor worked in the same industry, 61% percent said they worked in the same company, and 67% said their mentor was their manager. When you are interviewing, inquire if your brokerage provides a mentoring program or ask to speak with other agents at the firm to see what their mentor experience has been. Ordinarily, there are managers at each firm who act as mentors for the agents. If you’re looking for a mentoring program to get an outside perspective, take a look at SCORE Small Business Mentoring, a national nonprofit service organization that matches small business owners to volunteer mentors for free. 3. No Defined Strategy or Business Plan Very often, real estate agents will leap into their career and go where the clients, properties, and money blows them. While those components are exciting and help to start building your business, they will not set you up for long-term success like having a business plan will. According to the Bureau of Labor Statistics, an astounding number of real estate businesses fail within the first, fifth, and 10th year: The Journal of Small Business Management found that business planning and success go hand-in-hand. In a study, they found that companies with over 92% growth in sales from one year to the next usually have business plans. It is difficult, if not impossible, to understand how your business is progressing without solid plans of where you want it to go. Key to Overcoming This Challenge: Set & Measure Goals To combat those harrowing statistics, it’s in your best interest to create a business plan. Seventy-one percent of fast-growing companies have business plans that include budgets, marketing approaches, sales strategies, and monthly, quarterly, or yearly goals. A real estate business plan should outline not only your mission statement and strategies but also your specific, measurable goals for achieving these milestones. Remember to consistently revisit your goals to adapt and reevaluate when necessary. For more information, check out our step-by-step guide to creating a real estate business plan. 4. Treating Real Estate as a Part-time Job When I was hiring real estate agents, a question I was often asked was, “How much money will I make?” I answered, “The amount of money you make depends on the time and commitment you put in.” A part-time agent typically works , whereas full-time agents can work anywhere from 40 to over 60 hours a week. Since about 16% of individuals are starting real estate as their second career, many prefer to enter the industry part time because the thought of working solely on commission is scary at first. Unfortunately, since the amount of time commitment equates directly to money earned, part-time agents tend to bow out of the industry because they are not making the money they are hoping for. Key to Overcoming This Challenge: Determine Your Needed Salary Requirements While it is possible to be somewhat successful in a part-time capacity, there are only so many hours a day to devote to a part-time job, especially if you have another part-time or full-time job as well. It becomes a vicious cycle for agents who are not making enough money because they cannot devote more time to make more money. To jump this hurdle, you need to decide the real estate salary you are comfortable with and then determine whether a part-time or full-time real estate career is best suited for you. 5. Real Estate Lifestyle Burnout Unfortunately, burnout is a very common reason why real estate agents leave the industry. To achieve the salary most agents desire, they tend to work longer hours, many upward of 50 hours a week. In addition, the average amount of time for clients to find a suitable home is between four and 10 weeks. Getting a continuous flow of clients and money means agents are hustling day- and year-round. From my experience, clients were also eager and anxious during the homebuying and renting process, which could mean texts, emails, and calls past “working hours.” Key to Overcoming This Challenge: Set Boundaries There is a reason that the “typical” work week is five days on and two days off—you need the time to decompress. This is a very difficult issue to overcome as time equals money in the real estate industry, but it’s necessary for agents to create boundaries for themselves. Make sure to schedule at least one day a week to be “off.” This doesn’t mean that you can’t answer a pressing email, but be selective about the communication you make. You can also limit your screen time by enacting controls on your cell phone that do not allow access to certain applications during specific hours. Even if you set aside an hour a day to exercise, eat, meditate, and so on, these boundaries can make a huge difference in keeping your mind and body healthy so you’re able to keep on top of your real estate game. You can also take advantage of the features of your customer relationship manager (CRM) to automate communication or complete other tasks while you are taking time off. This way you can still maintain contact, but without sitting in front of your computer all day. is a great tool to automatically reply to inquiries, qualify leads, and integrate your social media. 6. Lack of Marketing & Identifiable Brand Marketing is used to showcase who you are and what your business is all about. What is the promise you are making to your clients? How are you different from every other agent? Many agents will adopt the branding of their brokerage and forget to market themselves as a separate entity, but finding a balance between the two is optimal for displaying your qualifications to the public. Most agents suggest spending about 10% of their gross commission income (GCI) on marketing; top agents spend anywhere from 15% to 20%, especially if they have heavy competition in their area. Marketing can be used online and offline to ensure people choose your services over others. Key to Overcoming This Challenge: Create a Marketing & Lead Generation Strategy Real estate leads can come from a variety of places: marketplace advertising, direct mail, pay-per-click leads, social media, organic, and referrals. Employing an effective marketing strategy is essential to jump-start your business and keep it fluid for the future. Check out our marketing ideas and strategies guide for suggestions on how to capitalize on your real estate brand. You should also consider investing in lead generation tools to ensure you will have multiple pipelines of lead generation flowing. There are many lead generation providers to choose from to align your specific needs with your marketing strategy. If you’re looking for a product that will assist with website building, ad management, auto-text responders, and third-party integrations, take a look at for your marketing needs. 7. Not Utilizing Your Personal Networking One of the hardest parts of starting your real estate business, or any business, for that matter, is building your client base. According to Placester, 60% of agents said they prospect for new clients on a daily basis and 26% devote several hours a day. Although purchasing leads is a viable option, leads can cost anywhere from $20 to $200. However, a majority of agents forget that their most trusted leads come from referrals within their own personal network. I’ve heard agents frequently say they were afraid to reach out to their own network due to rejection or embarrassment, but by not doing so, you’ll miss out on a lucrative pipeline of potential clients. Key to Overcoming This Challenge: Focus on Networking Strategies & Social Media In conjunction with lead generation tools, generating leads organically by building your personal network and leveraging your sphere of influence is a great way to build your client base for free. To build and rekindle your network, you can, for example, participate in local networking events, send handwritten notes, and support local businesses. In addition, it’s reported that in 2021, 82% of the U.S. population uses social media, so if you’re not networking using social media marketing, you’re missing out on countless opportunities. Social media tools like can help to schedule, automate, and create content to get your brand out there and the leads coming in. By integrating your brand with popular outlets like Instagram, LinkedIn, YouTube, Twitter, and Facebook, you will take advantage of your network with engaging content and maximize your lead generation. 8. Being Disorganized With Your Client Base Once the leads start flowing in, you will need to learn how to manage them in an effective and time-efficient manner. Leads will come from a variety of sources, so you want to make sure you are utilizing strategies to track and monitor them so as not to let anyone fall through the cracks. To convert leads, an industry standard is a response time of no more than five minutes; in addition, persistent follow-ups are a must. A disorganized agent will lose clients and money daily if they are not systematic with their communication. Key to Overcoming This Challenge: Invest in a CRM A client relationship manager (CRM) is the key to creating a consistent and powerful machine to maintain organization. With an array of features and functionality, CRMs can do anything from lead tracking to lead qualification, email integration and automation, reporting, and much more. Depending on your needs, you can find CRMs specifically for real estate agents, teams, and brokerages. If you’re looking for a CRM that will keep track of leads and nurture clients with automated responders and drip marketing campaigns, could be a solution for you. They also offer marketing resources at a reasonable cost to get your leads flowing in an organized manner. 9. Pursuing Every Lead If you are spending a huge amount of time and money on gathering leads, it’s natural to want to work with every single person who crosses your path. But it’s important to keep in mind that not all leads are created equal. The National Association of Realtors (NAR) found that the lead conversion rate is 0.4% to 1.2%, which means if you are getting 400 leads, you might be able to convert four people into clients. There may be a variety of reasons why the leads are not converting, but those reasons are often not because of you. Clients may not be a good fit based on a number of reasons, such as unreasonable expectations, not serious about moving forward, dishonesty, rudeness, or unethical behavior. Key to Overcoming This Challenge: Screen Your Clients & Know Your Limits Screening your clients is necessary in order to avoid working with clients who are not ready to work with you. Research your client through LinkedIn before you meet them so you are aware of their background and have common talking points. Schedule a phone call or video call with your client to talk them through the process and understand their financial situation and qualifications. This will allow you to get to know your clients and feel out their sincerity and personality. Ultimately, it is always important to meet your clients face-to-face to determine the seriousness of the transaction. Once you have your initial conversation, you’ll be able to better judge if your client is worth your time and effort. If you feel as though the client is not worth pursuing, you can always fire your client. As the owner of your own business, you can refuse your services to whomever you choose as long as it is not done in a non-discriminatory manner. Gently, while maintaining professionalism, explain why you can no longer represent them in the real estate transaction. It may feel like you’re throwing money out of the window, but sometimes it is necessary to prioritize your business. Bottom Line Like any career, real estate can have its challenges, but it is definitely a worthwhile profession. You have the joy of finding people the place that they will call home and that is truly the gold at the end of the rainbow. Ultimately, finding the balance between work and play is difficult for a real estate agent, but if you can achieve that balance using effective real estate tools and strategy, you can guarantee that your real estate career will continue for the long haul.

Getting your Indiana real estate license requires 90 hours of prelicensing education specified by the Indiana Real Estate Commission (IREC) before you can represent buyers and sellers. It’s also worth noting that licensed professionals in the Hoosier state are known as brokers, not agents, even if they don’t manage a team. Other than that tiny distinction, the process is simpler than becoming a real estate agent in other states and includes passing the exam, choosing a brokerage to work for, and applying for your license. Learn more by following this step-by-step process: 1. Meet the Legal Requirements for Your Indiana Real Estate License The state of Indiana has very standard legal requirements to acquire your real estate license. You need to be at least 18 years old, have a high school diploma or GED, and must be a U.S. citizen or lawfully admitted alien. If you have a criminal record, you must fully disclose that information on your application. The IREC board has the discretion to either approve or deny your application, but prior to a denial, they may ask for your appearance in front of the board to further discuss your application. If you are requested to appear, you may be asked for supplemental information to explain the criminal event, which can be obtained from the court or law enforcement agency of record that processed the matter. 2. Complete Required Prelicensing Courses To get the process started, you will have to complete the 90 hours of required prelicensing education through either an accredited online real estate school in Indiana or in-person. Prices can range depending on your school, but online education is around $484 to $625 and will cover a variety of topics, including: Indiana Real Estate law Real Estate Brokerage Operation Real Estate Finance Real Estate Contracts Commission Rules Closing Real Estate Transactions Earnest Money and Trust Accounts Property Management Financing Real Estate Loan Underwriting After completing the 90 course hours, you will be required to pass a school exam administered by your education provider either in-person or proctored online. A score of at least 75% will earn you your official Certificate of Completion, which will be needed when you apply for your Indiana real estate license. Once you have fully completed these prelicensing requirements, you’re ready to continue on to the next step in the licensing process. Finding an online real estate school that best suits your needs and learning style can be difficult, but we can help with that. Take a look at our guide to the best accredited online real estate schools to get an idea of what’s available. If you’re ready to start today, can be a great option for you. That way, your 90 hours can be customized to fit your schedule. 3. Take the Indiana Real Estate Exam The Indiana real estate exam is much less difficult if you’ve studied and prepared with your prelicensing education. There is a state and a national portion of the real estate exam, and it is necessary to pass both sections. Since the test is taken on the computer, you will receive your results immediately after the exam. If you fail the exam, you can retake both sections or you can just retake the failed portion. Luckily, Indiana allows you to retake the exam as many times as necessary within one year of the required prelicensing education course completion date. Indiana Real Estate Exam Details The Indiana real estate exam is provided by PSI, which is a national provider for state licensing exams. In order to begin scheduling, you’ll be required to create an account on the PSI website, which will then allow access to the scheduling portal. You will receive a copy of the Candidate Information Bulletin for additional testing information. The fee to take the exam is $57 and can be paid directly on the website using a credit or debit card. If you’re looking for help studying for the test, we recommend for a comprehensive exam prep course. They offer top-notch exam prep for an affordable price. Even better, they also offer a money-back guarantee if you don’t pass on the first try. 4. Pick a Company to Work For To have an active real estate license in Indiana, you must find a sponsoring brokerage to work under. To make your choice a little bit easier, check out our in-depth guide on choosing the right real estate company to work for. There are many brokerages in Indiana that are outstanding, but here are the top five brokerages reported for 2021*: *Data from Real Trends 2021 Indiana Counties With Highest Median Sales Price 2021 Higher sale prices equal more money in your pocket. To get a sense of which counties offer the best opportunities for big bucks in Indiana, check out this sales data from Towncharts.com below: 5. Apply for Your Indiana Real Estate License Once you’ve passed your exam and decided on the brokerage you’d like to affiliate with, it’s time to apply for your licensure. Your application must be received within one year of passing the examination and can be completed online through Access Indiana or by mail using the paper application. Regardless of which you choose, you will be asked to provide the following paperwork with your application: $60 application fee: If applying online, it can be paid via credit or debit card; if by mail, a check or money order made payable to Indiana Professional Licensing Agency. Prelicensing course completion certificate: Document from your education provider certifying that you completed the 90-hour requirement. Licensing examination score report: Original score sheet stating you passed your licensing exam. Broker company information: Provide the name and license numbers of the brokerage you will be working under (if this section is left blank, your license will be issued in unassigned status unless you select inactive). Positive response documentation (if applicable): If you answered “yes” to a criminal history, you will be required to fully explain and include court documentation and details. It will take about two days for your application to be received and reviewed. Once your license has been approved, you will be sent an email notification and can confirm by revisiting the Access Indiana website. Your license card can either be mailed or immediately downloaded and printed. 6. Start Your Real Estate Career Now that you’ve learned how to get a real estate license in Indiana, you’re ready to start your real estate journey. For more information, here are some of our articles with content that is perfect for new real estate agents: Our article with 14 Real Estate Agent Tips covers the basics that every agent should know when they are starting out, including how to write a real estate business plan Learn how to generate real estate buyer leads  Get nine strategies to help with real estate seller lead generation  Jumpstart your career with the top 25 New Real Estate Agent Tips From the Pros Get the tools you need to build a strong real estate business out of the gate using the best real estate software and tools

Getting an Illinois real estate license is a little different from other states. For one, all agents representing buyers and sellers are known as brokers, not agents, even if they don’t manage a team. The state also requires that 15 hours of its 90 required prelicensing hours be spent in interactive and practice-related courses via live webinar or in-classroom approved by the Illinois Department of Financial & Professional Regulation (IDFPR) instead of allowing aspiring professionals complete 100% of coursework at their own pace. This guide will help you maneuver through these differences as well as the education requirements, background check, and exam needed to get your real estate license in the Lincoln State. Here we go: 1. Meet the Legal Requirements for Your Illinois Real Estate License In order to apply for an Illinois real estate license, you must be 21 years of age or older, have a high school diploma or GED, and have a Social Security number or individual taxpayer identification number. If you’d like to apply between the ages of 18 to 21, you must provide proof that you’ve attended at least four semesters of post-secondary education with an emphasis on real estate. 2. Complete Required Prelicensing Courses To complete the prelicensing hours required for your Illinois real estate license, you’ll have to take in-person classes or attend an accredited online Illinois real estate school. Prices range from $385 to $699 for the complete 90 hours of required education and will include both the 75 hours of broker courses and 15 hours of practical, interactive courses. The 75 hours of broker licensing courses include: Real property and the law Real estate agency and brokerage Interests in real estate Forms of real estate ownership Legal descriptions Real estate taxes and other liens Real estate contracts Transfer of title and recording Illinois real estate license law Real estate financing principles and practices Leases and property management Real estate appraisal Land use controls and property development Fair housing and ethical practices Environmental issues and the real estate transaction Closing the real estate transaction The 15 hours of practice-related courses include: Listing presentation Disclosure and fraud Fair housing and discrimination Personal assistant and administrative services Distressed property and working with professionals outside of the brokerage Presenting offers and counteroffers Case studies and exercises To find the right prelicensing education program for you, review our best online real estate education providers and enroll in the school that best suits your needs. is a great option to master exam material before registering for an exam date. 3. Get Fingerprints & Pass Background Check In order to take your state license exam, you must complete fingerprinting so the IDFPR can perform a background check and the testing center can confirm biometric verification of your identity. It takes about 24 to 48 hours for your fingerprints to be reported to the IDFPR, so make sure to schedule your appointment through Accurate Biometrics at one of the fingerprinting vendor locations at least two days prior to the exam. The cost of fingerprinting is typically around $15 and can be paid via credit card, money orders, cashier’s checks, company or agency checks, and pre-approved billing terms. Remember to bring two forms of paper identification with you to your fingerprinting site as well as your Fingerprint Form. For additional information, visit the Accurate Biometrics FAQs page. It is possible to obtain an Illinois real estate license if you have a criminal record depending upon the type and nature of the offense. There are no convictions that qualify for an automatic bar from licensure, but you will be required to disclose the conviction on your application. The IDFPR will consider your application through a review process, but 95% of the applicants who have accurately disclosed their crime have obtained a real estate license. For more information, visit the FAQs page on the IDFPR website. 4. Take the Illinois Real Estate Exam Once you’ve completed these requirements, it’s time to take your exam. Since the test is taken on a computer, you will receive your results immediately after completing the exam, with diagnostic scoring information and reapplication instructions. It’s worth noting that the pass rate for the Illinois exam tends to be lower than most states at 45%. If you do not pass your exam, you will have up to three chances to retake it without a penalty. Since there is a state and national portion, if you pass one and not the other, you will only be required to retake the remaining portion, which you can do within one year from the date of sitting for the passing portion. After the fourth failed attempt, you will be required to retake the 90 hours of coursework before attempting the exam again. Illinois Real Estate Exam Details Schedule Your Exam All exam scheduling is to be completed through PSI/AMP, which is a national provider for state licensing exams. Prior to scheduling your exam, you must first register as a student on the PSI/AMP website through the Student Portal in order to confirm your course completion information from the school you received your prelicensing education. After you receive your eligibility confirmation email, you can proceed to register for your exam. This process requires you to submit a registration form, fingerprint record, and exam fee of $55 by credit card or by cashier’s check or money order made payable to PSI Services. As mentioned above, fingerprints must be obtained through a state-approved vendor. After you complete your registration, you’ll be able to schedule your exam at a testing center convenient for you. Keep in mind that you can’t sign up to take the test less than two days before the exam date. Once registered, you will receive the Illinois PSI Candidate Handbook, which has a copy of the examination registration form within it. Even though the passing rate is rather low, you should be able to pass the exam if you study hard and prepare properly. If you’re looking for help studying for the test, we recommend for a comprehensive exam prep course. They offer top-notch exam prep for an affordable price. Even better, they also offer a money-back guarantee if you don’t pass on the first try. 5. Pick a Company to Work For In order to hold an active Illinois real estate license, you must find a sponsoring brokerage to affiliate your license. To make your choice a little bit easier, check out our in-depth guide on choosing the right real estate company to work for. Although there are many successful brokerages in the Prairie State, below you’ll find the top five brokerages reported for 2021*. *Data from Real Trends 2021 Illinois Cities With Highest Median Sales Price 2021 With higher home prices come higher commissions for you. To get a sense of which cities are bringing in the bucks in Illinois, check out this sales data from Towncharts.com below: 6. Apply for Your Illinois Real Estate License Once you pass the exam, you can register and complete your application on the IDFPR online portal to submit along with your managing broker sponsor card and $125. After submitting these materials, you can practice without a license under the supervision of your managing broker for 45 days while your application is processed. The state of Illinois is no longer offering paper licenses, so you will be notified via email when your license is officially approved. 7. Start Your Real Estate Career Now that you have all the steps to becoming a real estate agent in Illinois, you’re ready to start your real estate journey. For more information, here are some of our articles with content that is perfect for new real estate agents: Our article with 14 Real Estate Agent Tips covers the basics that every agent should know when they are starting out, including how to write a real estate business plan Learn how to generate real estate buyer leads  Get nine strategies to help with real estate seller lead generation  Jumpstart your career with the top 25 New Real Estate Agent Tips From the Pros Get the tools you need to build a strong real estate business out of the gate using the best real estate software and tools

Acquiring a Florida real estate license is as simple as the checkout line at your local Publix. With 63 hours of Florida Real Estate Commission (FREC)-approved prelicensing education, a background check, and a passing exam score, you can be on your way to a career in the real estate industry. For some help, follow this step-by step guide to on how to become a real estate agent in the Sunshine State. Here we go, Gators. 1. Meet the Legal Requirements for Your Florida Real Estate License In order to prequalify for a Florida real estate license, there are pretty simple guidelines. Candidates must be at least 18 years of age, have a high school diploma or GED, and be a U.S. citizen or lawfully admitted alien. Those with an existing criminal record may still apply for a real estate license in Florida, but license approval will depend on the specific crime, as well as the amount of time that has elapsed since the crime was committed. You can look at the Florida’s Chief Financial Officer website to get a better idea of the waiting periods for specific offenses and which offenses are deal-breakers with the Florida Department of Business and Professional Regulation (DBPR) and the FREC. In certain circumstances, the FREC will schedule a hearing following their background check to give you the opportunity to plead your case and evaluate if you should still be able to get your real estate license. You are entitled to have legal representation throughout this process. After the hearing, the FREC will decide if your application will move forward, but keep in mind it may take upward of 90 days to go through these proceedings. 2. Complete Required Prelicensing Courses In order to get a real estate license in Florida, you will need to complete 63 hours of real estate prelicensing courses. You can either complete these hours in-person or at an accredited online Florida real estate education school, with costs ranging from $119 to $599, depending on your provider. The courses will cover: The Real Estate Business License Law and Qualifications for Licensure License Law and Commission Rules Authorized Relationships, Duties, and Disclosure Real Estate Brokerage Activities, and Procedures Violations of License Law, Penalties, and Procedures Federal and State Laws Pertaining to Real Estate Property Rights: Estates and Tenancies, Condominiums, Cooperatives, and Time Sharing Title, Deeds, and Ownership Restrictions Legal Descriptions Real Estate Contracts Residential Mortgages Types of Mortgages and Sources of Financing Computations and Closing of Transactions The Real Estate Market and Analysis Real Estate Appraisal Real Estate Investments and Business Opportunity Brokerage Taxes Affecting Real Estate Planning, Zoning, and Environmental Hazards After you’ve completed your courses, you must pass the school exam to obtain your official Certificate of Completion. The school exam will be administered by your education provider either in-person or proctored online and requires a 70% pass rating. Once you have fully completed these prelicensing requirements, you’re ready to continue on to the next step in the licensing process. There are many options for online real estate schools, but if you’re ready to start today, can be a great option for you. That way, your 63 hours can be customized to fit your schedule. 3. Get Fingerprints & Background Check The FREC requires that all applicants submit fingerprints to complete a background check in conjunction with your Florida real estate license. You can use any Live Scan service provider to get your fingerprints taken as long as it’s approved by the Florida Department of Law Enforcement (FDLE); take a look at this list of approved service providers to find a convenient spot for you. Keep in mind that you’ll need to have your fingerprints taken at least five days before you send your license application since the results need to be received by the Department prior to reviewing your application. The fee for fingerprinting depends on the provider you choose, but can range from $50 to $80. You will also have to supply the following information when you get your fingerprints: Two forms of identification: Must bear your picture and signature, such as a driver’s license, state identification card, or passport Clearly identify the profession for which you are seeking licensure: You can choose either Real Estate Sales or a Broker's license Your Social Security number Originating Agency Identification (ORI) number: Aspiring Real Estate Sales and Brokers should use FL920010Z If you have additional questions about the fingerprint process, check out the FAQs page from the Florida Department of Business & Professional Regulation (DBPR). 4. Apply for Your Florida Real Estate License Before taking your Florida real estate license exam, submit your application via the DBPR online portal or by mail using the printable Florida license application. Both will require a fee of $83.75 paid online or by a personal check or money order. The DBPR will review all applications, but you will receive application approval via email from a company called Pearson VUE within 10 to 30 days. Pearson VUE, a global testing company, will be the company administering your Florida license exam. The email will give notification that you have received “Authorization to Test” along with your nine-digit candidate ID number to signify you’re ready to schedule your real estate exam. 5. Take the Florida Real Estate Exam Once you’ve swatted all of the paperwork out of the way like a swarm of no-see'ums, it’s time to schedule and pass your exam. The pass rate for the Florida real estate license exam tends to be a bit lower than most states at 50% to 55%. You will receive your results immediately after the examination so if you do not pass, you can reschedule within 24 hours. The good news is you can take the exam as many times as you’d like until you pass as long as it’s within the two years after your prelicensing education. Florida Real Estate Exam Details Schedule Your Exam The global testing company, Pearson VUE, is the official administrator of the Florida real estate exam. You can schedule directly on the Pearson VUE website and will receive a copy of the Candidate Fact Sheet for additional information. You can pay the $36.75 exam fee directly through the Pearson website using a credit card, debit card, or voucher. Even though the passing rate is rather low, if you work hard and take the courses seriously, you should have no problem passing the exam. If you’re looking for help studying for the test, we recommend prep course. They offer top-notch exam prep for an affordable price. Even better, they also offer a money-back guarantee if you don’t pass on the first try. 6. Pick a Company to Work For In order to hold an active Florida real estate license, you must find a sponsoring brokerage to affiliate your license. To make your choice a little bit easier, check out our in-depth guide on choosing the right real estate company to work for. Although there are many successful brokerages in the Sunshine State, below you’ll find the top five brokerages reported for 2021. *Data from Real Trends 2021 Florida Cities With Highest Median Sales Price 2021 The higher that homes are selling for means the higher commission you have the opportunity to get. To get a sense of which cities are bringing in the bucks in Florida, check out this sales data from Towncharts.com below: 7. Start Your Real Estate Career Now that you’ve learned how to become a real estate agent in Florida, you’re ready to start your real estate journey. For more information, here are some of our articles with content that is perfect for new real estate agents:  Our article with 14 Real Estate Agent Tips covers the basics that every agent should know when they are starting out, including how to write a real estate business plan Learn how to generate real estate buyer leads Get nine strategies to help with real estate seller lead generation Jumpstart your career with the top 25 New Real Estate Agent Tips From the Pros Get the tools you need to build a strong real estate business out of the gate using the best real estate software and tools

Getting your real estate license in New York is pretty easy compared to most states. You need a total of 75 prelicensing education hours, a passing score on your school and state exam, and a sponsoring brokerage to start your real estate career in New York. This step-by-step guide will help you navigate your way through the Knickerbocker State’s prelicensing requirements to help you get your New York real estate license and start your career. Here we go, New Yorkers. 1. Meet the Legal Requirements for Your New York Real Estate License In order to become a real estate agent, you must first qualify for a license in the Empire State. To do this, you must be at least 18 years old and possess a high school diploma or GED. It is worth noting that you do not have to live in the state of New York, but you must be a U.S. citizen or lawfully admitted alien and have an approved form of identification. Native New Yorkers who possess a valid driver’s license within the state are all set, but those who don’t drive, or are commuting from another state, have the option of getting a non-driver’s identification card to meet this requirement. Getting your non-driver’s identification card requires the same process as getting your driver’s license in any state—minus the driver’s test. You can make an appointment at the Department of Motor Vehicles (DMV) and bring proper identification to obtain it. Note: If you’ve been found guilty of a felony or sex offense, it will be difficult to get your New York real estate license. However, if you have only one felony on your record, you can apply for a Certificate of Relief from Disabilities through the court to remove certain collateral consequences from your record. If you’ve had more than one felony, you can apply for the Certificate of Good Conduct to see if you can move forward with real estate licensing. Once these documents have been submitted, the New York Department of State (NYDOS) will determine if you are eligible for licensure. 2. Complete Required Prelicensing Courses & School Exam Once you’ve met the state’s legal requirements, you will have to begin your accredited prelicensing courses either in-person or at an online real estate school in New York, a cost that ranges from $149 to $495. The 75-hour NYDOS approved real estate salesperson qualifying courses include: Basic Principles of Real Estate Commercial and Investment Properties Human Rights and Fair Housing Law of Agency Real Estate Finance, Construction Environmental Issues Condominiums and Cooperatives Prelicensing courses aren’t considered complete until you pass a school exam. This is separate from the New York real estate license exam, but you will be required to take and pass it in order to continue on to the next step in the licensing process. The school exam will be administered by your education provider either in-person or proctored online and requires a 70% pass rating. Once you’ve passed your school exam, you will receive a Certificate of Completion to signify your completed 75 hours of education. There are many options for online real estate schools, but if you’re ready to get started in a New York minute, can be a great option for you. That way, your 75 hours can be customized to fit your schedule. 3. Take the New York Real Estate Exam Once you’ve completed your prelicensing education and school exam, it’s time to pass your state exam. The pass rate for the New York real estate license exam is about 60% on the first attempt and 80% on the second attempt. You can take the state exam as many times as you’d like until you pass by rescheduling within 24 hours after your failed attempt. New York Real Estate Exam Details Schedule Your Exam In order to schedule your exam, you must first create an account using your personal email address through eAccessNY, which is a website run through the NYDOS that contains all of your real estate licensing information, including your exam scheduling, exam results, sponsoring brokerage, continuing education hours, and so on. You will continue to use this account throughout your time as a real estate agent in New York. After you’ve created your account, you will be able to apply to take the exam in the location most convenient for you. The exam costs $15 and can be paid directly on the eAccessNY website. To view the results of your exam, log into your eAccessNY account and click on “View Exam Results,” where you will receive either a pass or fail notification typically within two to four weeks after taking the exam. You must apply for your license within two years of passing for your application to remain valid. To strengthen your skills before exam day, we recommend prep course. They offer top-notch exam prep for an affordable price. Even better, they also offer a money-back guarantee if you don’t pass on the first try. 4. Pick a Company to Work For To have an active New York real estate license, you must find a sponsoring brokerage to work under. To make your choice a little bit easier, check out our in-depth guide on choosing the right real estate company to work for. There are many brokerages in New York that are outstanding, but here are the top five brokerages reported for 2021. *Data from Real Trends 2021 New York Cities With Highest Median Sales Price 2021 The market trends, in terms of pricing, determine the amount of commission you’ll be able to put in your pocket. To get a sense of which cities offer the best opportunities for big bucks in New York, check out this sales data from Towncharts.com below: 5. Apply for Your New York License After you’ve passed your exams and chosen a brokerage to work with, it will be time to apply for your initial real estate salesperson license. Similar to registering for your exam, the application process will go through eAccessNY or you can mail in the NY real estate salesperson application if you prefer. If you are completing your application online, there is no need to mail anything into the NYDOS. Once you’ve entered your own details, you need to enter your sponsoring brokerage license number, known as the Unique Identification Number (UID#), which you can get directly from the brokerage you are planning to join. Complete the additional questions and submit your payment of $55 directly on the website. Your sponsoring brokerage will be responsible for going onto eAccessNY and accepting your license. This process is immediate, but your paper license and real estate salesperson identification card will be mailed to your brokerage in about two to three weeks. 6. Start Your Real Estate Career Now that you’ve learned how to get a real estate license in New York, you’re ready to start your real estate journey. For more information, here are some of our articles with content that is perfect for new real estate agents:  Our article with 14 Real Estate Agent Tips covers the basics that every agent should know when they are starting out, including how to write a real estate business plan Learn how to generate real estate buyer leads  Get nine strategies to help with real estate seller lead generation  Jumpstart your career with the top 25 New Real Estate Agent Tips From the Pros Get the tools you need to build a strong real estate business out of the gate using the best real estate software and tools

Getting a Texas real estate license is tough compared to other states. You need a total of 180 prelicensing hours approved by the Texas Real Estate Commission (TREC) along with fingerprints, a background check, and a passing exam, but you don’t have to do it solo. This article will provide step-by-step instructions on how to get your real estate license in the Lone Star State. Here we go, ya’ll. 1. Meet the Legal Requirements for Your Texas Real Estate License The state requirements of Texas are pretty simple: You have to be at least 18 years of age and you either have to be a U.S. citizen or a lawfully admitted alien. Unlike other states that require a high school diploma or GED, Texas does not have any education background requirements. However, if you have any criminal offenses, unpaid judgments, performed unlicensed activity, or discipline taken against a professional or occupational license, you will need to disclose this information using a form called the Fitness Determination (FD). You’ll also need to submit a Background History Form. These forms are used by the TREC to determine if you meet their qualifications for honesty, trustworthiness, and integrity and are cleared to get your real estate license. They cost $50 and can be mailed to the TREC offices. 2. Complete Required Prelicensing Courses If you’ve met the state’s legal requirements, then it’s time to embark on completing the prelicensing education requirement. Accredited online real estate education in Texas for prelicensing can range from $415 to $980 for a full package of online courses. The courses will cover such topics as: Principles of Real Estate (60 hours) Law of Agency (30 hours) Law of Contracts (30 hours) Promulgated Contracts Forms (30 hours) Real Estate Finance (30 hours) There are many options for online real estate schools, but if you’re fixin’ to take your prelicensing courses sooner rather than later, can be a great option for you. That way, your 180 hours can be customized to fit your schedule. 3. Apply for Your Texas Real Estate License Once you’ve completed your prelicensing hours, you can visit the TREC website to apply for your license or submit via mail. You will have one year from the date of your application to complete the remaining steps required to become an agent in Texas, or the application will be terminated. It's also worth noting that the state will require payment and time to process your application as well: Processing time: On average, it can take up to four weeks for your application to be processed and approved. Texas real estate application fee: $185 (online, checks, money orders). Once your application has been processed, the state will consider your Texas real estate license inactive until you pass the real estate exam and find a sponsoring brokerage. Only then will the state designate an applicant’s license as active. To apply for your initial license, you’ll need the following: Application for Inactive Sales License Copy of all course completion certificates College transcripts (if applicable) Receipt of application That said, if you have already found a brokerage to sponsor you prior to passing your exam and being approved by TREC, you may use the Sales Agent Sponsorship Form instead of the Application for Inactive Sales License. 4. Get Your Fingerprint & Background Check TREC requires that all applicants receive a background check and have fingerprint history on file. Fingerprinting is completed by a third-party company called MorphoTrust. If you’ve already submitted fingerprints, they should be on file and therefore not needed again. If you do not have fingerprints, you can make an appointment online with MorphoTrust at a location convenient for you. The cost for fingerprinting is $38.25 if you have not been previously fingerprinted for TREC, and an additional $10 for initial license applicants. 5. Take the Texas Real Estate Exam Now that you’ve completed all the paperwork and your courses, you should be ready and rarin’ to schedule and pass your real estate exam. The passing rate for the Texas real estate license exam is about 60%, and you will have three attempts to pass the national and state portions. After each attempt, you will receive a scorecard that will inform you of the sections you excelled at and those you failed so you can determine where to focus on your studies. You can reschedule your exam 24 hours after your failed attempt. If you fail one portion of the exam three times, you must take an additional 30 hours of education. However, if you fail both portions, you must take an additional 60 hours of education. Texas Real Estate Exam Details Schedule Your Exam Exams are scheduled directly through PearsonVUE, which a global testing company, but it handles real estate testing for Texas. Upon registration, you will be provided a copy of the Candidate Handbook to help you prepare for the exam day. You can pay the $54 exam fee directly through the Pearson website via credit card, debit card, or voucher. To strengthen your skills before exam day, we recommend prep course. They offer top-notch exam prep for an affordable price. Even better, they also offer a money-back guarantee if you don’t pass on the first try. 6. Pick a Company to Work For In order to hold an active Texas real estate license, you must find a sponsoring brokerage and complete your Sales Agent Sponsorship Form. To make your choice a little bit easier, check out our in-depth guide on choosing the right real estate company to work for. There are many successful brokerages in Texas, but here are the top five brokerages reported for 2021*: *Data from Real Trends 2021 Texas Cities With Highest Median Sales Price 2021 Let’s face it, higher listing prices mean higher commission checks. To get a sense of which cities offer the best opportunities for big bucks in Texas, check out this sales data from Towncharts.com below: 7. Start Your Real Estate Career Now that you’ve learned how to become a real estate agent in Texas, you’re ready to start your real estate journey. For more information, here are some of our articles with content that is perfect for new real estate agents:  Our article with 14 Real Estate Agent Tips covers the basics that every agent should know when they are starting out, including how to write a real estate business plan Learn how to generate real estate buyer leads  Get nine strategies to help with real estate seller lead generation  Jumpstart your career with the top 25 New Real Estate Agent Tips From the Pros Get the tools you need to build a strong real estate business out of the gate using the best real estate software and tools

Getting a Georgia real estate license is rather easy compared to other states. However, you still need a total of 75 classroom hours of commission-approved prelicensing courses and meet several other requirements, including passing an exam, before you can apply for your license. This guide will walk you through the steps you need to complete before you can become a real estate agent in The Peach State. Here we go, dawgs. 1. Meet the Legal Requirements for Your Georgia Real Estate License The Georgia Real Estate Commission (GREC) requires applicants to be at least 18 of age or older. You do not have to be a U.S. citizen, but if you aren’t a citizen, you must be a lawfully admitted resident. You also need to have at least a high school diploma or GED in order to apply for a Georgia real estate license. All applicants are expected to provide fingerprints, which will be forwarded to the Division of Criminal Justice Information Systems and to the Federal Bureau of Investigation. That said, applicants who have an existing criminal record are still able to apply for a real estate license, provided they include their criminal history along with the necessary documents related to the conviction, if any, on their application. 2. Complete Required Prelicensing Courses In order to become a real estate agent in Georgia, you will need to take a number of classes, known as prelicensing courses, which can range in price from $275 to $538 from accredited providers. The courses will cover such topics as: The Real Estate Business License Law and Qualifications for Licensure License Law and Commission Rules Authorized Relationships, Duties, and Disclosure Real Estate Brokerage Activities and Procedures Violations of License Law, Penalties, and Procedures Federal and State Laws Pertaining to Real Estate Property Rights: Estates and Tenancies, Condominiums, Cooperatives, and Time Sharing Title, Deeds, and Ownership Restrictions Legal Descriptions Real Estate Contracts Residential Mortgages Types of Mortgages and Sources of Financing Computations and Closing of Transactions The Real Estate Market and Analysis Real Estate Appraisal Real Estate Investments and Business Opportunity Brokerage Taxes Affecting Real Estate Planning, Zoning, and Environmental Hazard Luckily, the state of Georgia does not require you to attend these classes in person. There are also a number of schools offering the courses you need to fulfill these licensing requirements, so you have plenty of selection. However, we have found to be one of the best online schools in Georgia in terms of overall value for new agents. 3. Take the Georgia Real Estate Exam Once you have completed your coursework, it’s time to schedule and take your exam. While the Georgia real estate license exam has a higher average passing rate (about 60%) compared to the averages in other states, you should still take studying for the test seriously. In the event you do not pass your exam, you can reschedule your exam 24 hours after your attempt. You can only take the Georgia exam three times in one year, and if you do not pass by your third attempt, the state requires additional education. Georgia Real Estate Exam Details The exam is administered by a company called PSI. You can schedule your licensing exam with them on their website, by calling 1-800-345-6559, or by mailing in your application. Upon registration, you must include a copy of the Certificate of Completion you receive from whichever prelicensing school you attend. The exam fee of $121 can be paid directly on the PSI website via credit card or by sending a certified check or money order. Enrolling in a prep course can help reduce the risk of having to pay the exam fee more than once. If you're looking for help in studying for the test, we recommend the prep course. They offer top-notch exam prep for an affordable price. Even better, they also offer a money-back guarantee if you don’t pass on the first try. 4. Pick a Company to Work For In order to represent buyers or sellers, you must find a sponsoring brokerage to work under. This is because only brokers are legally responsible for real estate transactions. There are small, mid-, and big-box firms to choose from, and each has their own benefits. Check out our guide on how to choose a real estate company to work for to get you thinking about what option is best for you. While you do not have to have a sponsoring brokerage lined up before you apply for a license, interviewing brokerages is a good way to spend your time while you wait to receive your exam results. This is because you will need to provide a completed Sponsoring Broker Statement Form when you apply for your license in order for your license to be marked as "Active." Examples of Best Real Estate Companies to Work for in Georgia *Data from Real Trends Market Leaders 2021 Georgia Counties With Highest Median Sales Price 2021 When considering who you want to work for, you also want to consider where you want to work. Let’s face it: higher listing prices mean higher commission checks. To get a sense of which counties offer the best opportunities for big bucks when you become a real estate agent in Georgia, check out this sales data from Towncharts.com below: 5. Apply for Your Georgia Real Estate License After you take the exam and receive a passing grade, you can complete and submit your license application at the PSI testing center within 12 months of your exam date. To do this, you will need to complete a Lawful Presence Notarized Affidavit and bring it with you to the testing center along with a completed Sponsoring Broker Statement form, if you have one. You also need to be prepared to pay the licensing fee. Georgia Real Estate License fee: $170 (paid online, certified check, or money order) Processing time: On average, it will take three to nine weeks for your application to be processed and approved If you do not yet have a completed Sponsoring Broker form, and have not yet selected the brokerage you intend to work with, you can still apply for a license, but it will be designated as inactive. While you cannot provide real estate services with an inactive license, your license will, at least, be in the system ready to be activated with a broker as soon as you find a team. It’s worth pointing out, however, that licensing and renewal fees still apply even if your license is marked as inactive. 6. Start Your Real Estate Career After you’ve completed these steps, you’re ready to start your real estate journey. For more information, here are some of our articles with content that is perfect for new real estate agents:  Our article with 14 Real Estate Agent Tips covers the basics that every agent should know when they are starting out, including how to write a real estate business plan Learn how to generate real estate buyer leads Get nine strategies to help with real estate seller lead generation Jumpstart your career with the top 25 New Real Estate Agent Tips From the Pros Get the tools you need to build a strong real estate business out of the gate using the best real estate software and tools

A real estate agent is anyone who has earned a real estate license, but this license must be linked to a sponsoring brokerage. A broker holds an additional license, which allows them to work independently or hire agents to work for them if they so desire. There are some additional differences between being a real estate vs broker, so read more to learn what could be the best choice for you. Real Estate Agent vs Broker at a Glance (Source: National Association of Realtors 2020 Member Profile) Types of Real Estate Agents There are several types of real estate agents—each with unique responsibilities and specializations. Although you can specialize as a listing agent or buyer’s agent, it’s not necessary. In most cases, a real estate agent can work with buyers and sellers, so they will have opportunities to be a buyer’s agent, listing agent, dual agent, or transaction agent multiple times throughout their career. The four major types of real estate agents are: Listing agent: A listing agent represents a homeowner during the sale of their home and negotiates to get the maximum value. Buyer’s agent: Buyer’s agents represent homebuyers in their search for a new home, guiding them through to get the best home at the most ideal price. Dual agent: A dual agent represents both the buyer and seller in a single real estate transaction. Transaction agent: When a buyer does not work with a real estate agent, the listing agent can act as a transaction agent to write the offer for them. Types of Real Estate Brokers Real estate brokers have varying responsibilities and titles depending on the career path they decide to take. Regardless, going from real estate agent to broker opens up a number of possibilities. Depending on your needs and ambitions, consider becoming a designated, managing, or associate broker. The three major types of real estate brokers are: Designated real estate brokers: This is the person who bears all legal responsibility for the transactions conducted by the agents working under them. They can also be called broker-owners. Managing real estate brokers: This is the person who takes care of the day-to-day operations at a brokerage firm. Associate real estate brokers: These are individuals who have upgraded their real estate license, but have not taken on additional managerial or operational responsibilities. Responsibilities of Real Estate Agents vs Brokers The main difference between real estate agents and brokers is that only a broker can own real estate firms or manage agents. If you’re an agent, you’ll work under a sponsoring broker and focus on your work with buyers and sellers. Brokers can do the same tasks, but also handle contracts, marketing, property management, and training. Benefits of Being a Real Estate Broker vs an Agent Being a real estate broker—instead of an agent—has significant benefits. Though there is a lot of hard work involved and more education requirements, being a broker allows you to scale your career in ways that remaining a real estate agent cannot. The five primary benefits of being a real estate broker are: 1. Real Estate Brokers Can Run Their Own Brokerage Unlike real estate agents, licensed brokers can open their own real estate brokerage to represent buyers and sellers of real estate. Brokers can work alone (and keep 100% of their commissions) or hire other real estate agents or associate brokers to work under their license (and split their commissions). Alternatively, you can start a firm where agents earn a 100% commission but pay desk fees and other fees you designate. If you prefer not to open your own brokerage but are interested in mentoring and managing agents, you may be interested in a managing broker position. A managing broker oversees other agents and brokers within an existing brokerage, so it’s a great position for those with many years of experience to offer. 2. Real Estate Brokers Earn a Higher Income While having additional career options and responsibilities is great, most agents choose to become real estate brokers because they can make more money. According to the NAR 2020 Member Profile, Realtors make $49,700 per year on average, while broker-owners make between $93,800 and $121,400 annually, depending on whether or not they are actively selling property. Here’s a quick summary of the differences in income for real estate agents and brokers: Median Annual Income of Real Estate Agents vs Brokers (Source: National Association of Realtors 2020 Member Profile) 3. Real Estate Brokers Have Better Commission Splits If you don’t have an entrepreneurial streak or prefer the safety of working under another broker, you can always work as an associate broker. While you probably won’t have additional responsibilities at the brokerage beyond those of an agent, your licensure and expertise may enable you to command a higher commission split. Knowing where you stand, what your options are, and what salary and commission you can command will give you an advantage in any career path. For that reason, being well-versed on commission splits as you enter the market and pursue your goals is important. If you need a refresher, read the in-depth guide on how real estate commission splits work. 4. Real Estate Brokers Can Run Property Management Companies The ability to run a property management company is another reason to get your broker’s license. Property management companies act as a middleman between the owner of a rental property and the tenants who occupy it. Activities like leasing and collecting rent are considered to be real estate activities and must be conducted under a broker’s license. Therefore, every property management firm is required by law to have a licensed real estate broker on staff. If investment properties are currently hot in your market, property management can be a great additional revenue stream or a new career option. 5. Real Estate Brokers Can Leverage Their Experience in Marketing In general, real estate brokers are more experienced in the real estate industry than many agents. What’s more, real estate brokers typically have completed more training and earned more specializations and real estate designations than many agents in their market. For that reason, clients looking for future representation to buy or sell a home are more likely to trust experienced local brokers than newer, less experienced agents. Benefits of Being a Real Estate Agent vs a Broker Real estate agents cannot engage in as many real estate-related activities as brokers. However, this means that agents do not have as many prelicensing requirements as brokers. What’s more, agents have fewer administrative responsibilities than brokers and are not financially responsible for other agents like managing brokers. The three main benefits of being a real estate agent instead of a broker are: 1. Agents Have Fewer Licensing Requirements To earn a real estate agent license, aspiring real estate agents must meet administrative requirements, take state-specific prelicensing courses, and pass a licensing exam. At that point, they can start representing clients. Brokers, on the other hand, are required to complete many more hours of coursework and complete an even more difficult exam. For this reason, many real estate professionals prefer to remain an agent rather than take the additional steps required to become a broker. 2. Agents Have Limited Financial Liability Unlike managing brokers, real estate agents cannot open their own real estate brokerage or manage other real estate agents. For that reason, real estate agents cannot be financially or legally responsible for the actions of other agents. The reduced duties and responsibilities of real estate agents mean that they have fewer liabilities than real estate brokers. 3. Agents Have Fewer Management Responsibilities Agents are responsible for representing homebuyers and sellers in the transfer of real estate. In contrast, real estate brokers are generally responsible for a range of management activities related to the operation of a brokerage. These tasks typically include writing contracts, managing administrative duties, and recruiting and onboarding agents. Many agents prefer to keep their focus on clients instead of on administration and management. How to Become a Real Estate Agent or Broker In order to become a real estate agent, you must meet licensing requirements by taking the required number of prelicensing courses. Then, you need to pass your state’s real estate exam and choose a brokerage. Be sure to check with your real estate commission for the most up-to-date requirements in your state. The process for becoming a broker is tougher and takes longer. In addition, in most states you’ll also need to gain some experience as an agent and then attend more classes before you can apply for your broker’s license. For more details about this process, read how to become a real estate broker. Here are some examples of how real estate agent versus broker licensing requirements vary by state: Bottom Line Real estate brokers have more experience, undergo more training, and make more money than real estate agents. They are also the only real estate professionals who can open their own brokerage or property management firm. However, agents have fewer licensing requirements and don’t have financial responsibility for other agents. Consider upgrading to a broker’s license if you want to start your own brokerage, make more money, or manage properties. Whether you’re just starting your real estate career or are ready to advance to a broker’s license, an online real estate school like  makes getting and upgrading your real estate agent license simple. It offers directly relevant and easy-to-understand licensing courses for both real estate agents and real estate brokers that are designed to help you generate better income and work more efficiently. Click below to get started.