“Should I get my real estate license?” It is a question that many in the real estate industry contemplate as they consider what tools and resources they need to build a successful career. The answer? Ultimately, it depends on the goals you hope to achieve in real estate, and how you want to get involved.
For example, if you want to get into real estate as an investor or join the wholesale real estate trend, you may not need one. However, if your goal is to work as a real estate agent facilitating the buying and selling of other people’s properties, a license is most likely required. According to the National Association of Realtors, approximately 68% of its members have a real estate license.
So, back to that cardinal question: “Should I get my real estate license?” To help you decide, let’s examine what a real estate license is, how to obtain one, and how it can benefit your career.
What Is a Real Estate License?
Also known as a real estate agent license, a real estate license is a state-issued license that allows the holder to buy, sell, and lease real estate. In the eyes of many, it solidifies you as a trustworthy real estate agent. It also qualifies you to work with a real estate brokerage firm or try your luck as an independent contractor.
A common misconception is that you can operate in any state nationwide once you obtain your real estate license. Unfortunately, this is untrue, as they only allow you to serve the public in the state they are acquired. And most often, they are not transferable if you move, since every state has its own requirements for qualifying for the license — including factors such as age, education, and pre-licensing courses.
Before you start the process, make sure you check your state’s real estate regulatory office website or the Association of Real Estate License Law Officials (ARELLO) directory. And, of course, if you plan to sell in multiple states, be sure to gain individual licenses for them all.
Bear in mind, obtaining your license is an investment. It can cost upward of $1,000 to earn your license and approximately 75 hours to complete. This includes your required coursework and taking the exam. For some agents, it can take two months or more to finish.
Sound daunting? It certainly can be. But before you get cold feet about your real estate license, consider these benefits.
4 Benefits of Getting Your Real Estate License
1. Opens a New Income Stream
If you are just starting out in the real estate industry, it can take time to garner a steady stream of deals to serve as your primary source of income. Considering this, you might welcome additional sources of revenue. Obtaining your license is an excellent way to drive income on the side, even if you don’t plan on making a career out of being a real estate agent.
With it, you have the luxury of selling a house or two every few months to supplement income while focusing on other passions. Additionally, it gives you a behind-the-scenes look at how agents operate. You will learn what skills and tools they often need to be successful in their niche market, giving you a leg up should you decide to become a consultant.
2. Provides Access to Valuable Tools and Resources
In the real estate industry, agents are always searching for ways to stand out from others in their market. An excellent way to accomplish this is to earn your real estate license. As a licensed agent, you gain access to invaluable tools and resources that unlicensed real estate agents simply do not.
As they say, knowledge is power. Every shred of data you gain access to informs your business and serves as an excellent resource for on-market deals throughout the country. Perhaps the best tool you gain access to as a licensed agent is the Multiple Listing Service (MLS). Many agents use it to find deals like expired listings, motivated sellers, and absentee owners.
3. Adds Credibility
Still asking yourself, “Should I get my real estate license?” Another invaluable reason you should invest in licensing is that it adds credibility. An agent’s reputation is crucial to success, perhaps even more than the average business owner, as an agent’s good name is their brand. Having a license can help you stand out.
As previously mentioned, obtaining your license requires a significant time and money investment. Because of this, when people see that you have one, it instantly lends a trustworthy air to your name and agency. A real estate license shows buyers and investors alike that you are dedicated to the craft and in it for the long haul. Furthermore, home buyers or sellers may choose to work with you versus the competition, bringing you more deals than before.
4. Fosters New Contacts
Having access to contacts is instrumental for a career in real estate, and having a license can help you network and grow your resources. Sure, hosting open houses and putting up billboards can introduce you to some new faces, but when you’re licensed, you can expand that network exponentially. In particular, professionals from adjacent industries such as bankers and contractors will be more ready to connect with you, opening new doors and opportunities along the way.
Call Motivated Sellers
“Should I get my real estate license?” is just one of many questions that you might have as you start to cut your teeth in real estate. However, the real trick to having a successful real estate agency is the knowledge you accrue and the resources you use. Whether you’re licensed or not, one great resource to capitalize on is the expertise and lead generation from a team of experienced cold-calling professionals.
Call Motivated Sellers is an American-based cold calling service. Our team of experts helps streamline your process by vetting your leads so you can focus on closing deals and increasing profits. We also serve as an industry resource for real estate agents, homeowners, and homebuyers.
Ready to uncover new leads for your real estate business? Contact our team today!
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