Starting a career in real estate can be an exciting and rewarding choice. However, many people wonder how to become a realtor and what distinguishes a realtor from a regular real estate agent. Understanding these differences is crucial as they impact how you operate in the real estate industry. In this article, we’ll walk you through the process of becoming a realtor, key differences between a realtor and agent, and tips to succeed in this career.
What is a Real Estate Agent?
A real estate agent is a licensed professional who helps people buy, sell, or rent properties. They are licensed by the state in which they work, and their primary duties include helping clients with property transactions. They may represent buyers or sellers, depending on the specific deal. To become a real estate agent, you must complete pre-licensing education, pass an exam, and meet state-specific requirements.
What is a Realtor?
A realtor is a type of real estate agent who is a member of the National Association of Realtors (NAR). The key difference here is the association. Realtors adhere to a strict code of ethics set by the NAR, which sets them apart from non-member agents. Being part of this association provides an added level of professionalism, credibility, and trustworthiness in the eyes of clients.
Steps to Becoming a Realtor
1. Complete Pre-Licensing Education
To start, you need to complete a pre-licensing course. The course varies by state but usually covers topics like real estate law, ethics, finance, and contracts. These courses are available through real estate schools and online platforms.
2. Pass the Real Estate Exam
Once you’ve completed the education, you must pass a licensing exam. This exam tests your knowledge of the material from your pre-licensing courses, including state-specific laws. You’ll need to score well to qualify for your license.
3. Apply for a License
After passing the exam, you can apply for your real estate license. This process involves submitting proof of completion of the required courses and exams to the appropriate state regulatory authority.
4. Join the National Association of Realtors (NAR)
Becoming a real estate professional means joining the National Association of Realtors (NAR). As a member of this prestigious organization, you agree to uphold and adhere to their strict code of ethics. This code promotes fairness, transparency, and professionalism within the real estate industry. By following these ethical standards, you demonstrate your commitment to providing clients with trustworthy services, ensuring a positive reputation and fostering strong relationships in the competitive real estate market.
5. Complete Continuing Education
Most states require real estate agents and realtors to complete continuing education courses regularly. This helps ensure you stay updated with the latest changes in real estate laws and best practices.
Key Differences
Membership in NAR
The most significant difference between a real estate agent and a professional in the field is that a realtor is a member of the National Association of Realtors (NAR). Agents, on the other hand, are not obligated to join this association. Realtors enjoy added benefits and credibility through their NAR membership.
Code of Ethics
Realtors are held to a higher standard due to their adherence to the NAR’s Code of Ethics. This code ensures that they act in the best interest of their clients, provide honest services, and follow all legal requirements. While agents must still comply with laws, they do not have the same formal ethical framework as realtors.
Professional Recognition
Realtors often have more recognition and trust from clients because of their membership in NAR. Being part of a national association shows clients that they are working with professionals who are dedicated to upholding high standards.
Benefits of Being a Realtor
1. Increased Credibility
Being a real estate professional provides an immediate sense of trust with clients. As a member of NAR, professionals have access to tools and resources that elevate their reputation and visibility in the real estate market.
2. Access to a Wide Network
Real estate professionals can connect with other individuals within the NAR network, which can lead to potential business opportunities, partnerships, and referrals. This expansive network can be a key to long-term success in the real estate industry.
3. Education and Resources
As a member of NAR, realtors gain access to ongoing education, industry reports, marketing resources, and training materials. This helps them stay at the top of their game.
How Much Does It Cost to Become a Realtor?
The cost to enter the real estate profession includes expenses for pre-licensing courses, licensing exam fees, application fees, and membership dues for the NAR. These costs vary by state but typically range from $500 to $1,500. Additionally, there may be other ongoing costs for continuing education and professional development.
How Long Does It Take to Become a Realtor?
The time it takes to enter the real estate profession varies depending on your state’s requirements and your ability to complete the necessary education and exams. On average, it takes anywhere from 4 to 6 months to complete the pre-licensing courses and pass the exam.
Is It Worth It to Become a Realtor?
Becoming a real estate professional can be highly rewarding. The industry offers a lucrative income potential, job flexibility, and the ability to help people make significant life decisions. If you are passionate about real estate and helping clients achieve their goals, pursuing a career in this field is definitely worth considering.
Conclusion
Becoming a real estate professional offers a rewarding career with flexibility, high earning potential, and the ability to help others. While the path to entering the industry involves meeting state requirements and joining the National Association of Realtors, the benefits of being a member, including increased credibility and access to industry resources, can greatly enhance your success. By understanding the differences between an agent and a professional in the field, you can make an informed decision and embark on your real estate journey with confidence.
FAQs
Do You Have to Be a Realtor to Be a Real Estate Agent?
No, not all real estate agents are required to be realtors. However, becoming a realtor offers additional benefits, including access to the NAR’s code of ethics and professional recognition.
Can a Realtor Work in Any State?
A realtor can work in any state as long as they have the necessary state-specific real estate license. Each state has its own licensing requirements, so be sure to check local laws.
What is the difference between a real estate agent and a licensed professional?
A real estate agent is a licensed individual who helps clients buy, sell, or rent properties. A licensed professional, on the other hand, may belong to a specific association like NAR and follow a strict code of ethics. This membership provides access to more resources and professional recognition.
Can I work in real estate without joining a professional association?
Yes, you can work as a real estate agent without joining a professional association. However, joining a reputable association like NAR can provide you with more opportunities, resources, and a higher level of professional credibility.
How can I build a successful career in the real estate industry?
To succeed in real estate, focus on building strong client relationships, continuing your education, and staying updated with market trends. Networking with other professionals and providing exceptional service will also help you build a lasting career.