Earning a Real Estate License

1) What Is a Real Estate License?

Real Estate is the legal term for land and the permanent fixtures on that land, such as a home or a business. In order to be an individual who facilitate transactions involving real estate, a real estate license is required. The sale and purchase of property is governed by property law, and those with a real estate license are expected to understand how those laws apply to their clients.

2) Programs in Real Estate

Obtaining your real estate license requires a certain amount of education, qualifying exams, and other requirements that are dependent upon the career path you choose. Whether you enroll in a traditional college setting or online real estate courses through an accredited real estate school, there are many careers in real estate from which you will be able to choose once you have a real estate license.

Real Estate Agent: Real estate agents are licensed by the state in which they reside. Between 30 and 90 hours of education is required for licensure, followed by a comprehensive written exam. Though there is no formal education requirement beyond the requisite hours for licensing, more and more real estate brokerage firms are turning to agents who have college degrees.

Real Estate Broker: Becoming a real estate broker requires more experience than is required to become an agent. Brokers must obtain between 60 and 90 hours of formal training and pass a rigorous exam. But it isn't enough to simply earn your online broker license; you must also have between 1 and 3 years experience in the real estate field. For those who have a bachelor's degree, sometimes the experience requirements can be waived.

Mortgage Broker: Also known as loan officers, mortgage brokers often hold bachelor's degrees in economics, finance, or a related field, such as real estate. These professionals guide potential homeowners through the loan process, and some mortgage brokers work with specific real estate firms. The licensing, if required, will be determined by the state in which the mortgage broker works.

Real Estate Appraiser: Real estate appraisers decide how much a home is worth, and explain their assessment in a report to homeowners and agents. If a real estate appraiser lives in a state where a license is needed, a bachelor's degree is required. Real Estate appraiser licensing also requires a rigorous written exam and continuing education, most of which can be done through online real estate courses.

Property Manager: Property managers are responsible for the financial performance of commercial or residential investment properties. They handle finances, negotiate contracts, and deal with tenants on a one-on-one basis. Those with a bachelor's degree in real estate, business administration, accounting, or related fields are highly desired by potential employers.

3) What You Can Do With Your Real Estate License

The career opportunities for those with a real estate license are wide and varied. You can choose to work directly in the business as an agent, broker, appraiser, and the like. Or you can choose a different path and put your real estate license and training to use in other areas. Consider these career options:

Real Estate Scout: Large development companies need individuals who know the area to help scout out new locations for both commercial and residential interests. Your background knowledge of real estate can help you pinpoint areas that are ripe for growth, and your contract savvy might help your employer save money, too.

Home Stager: When someone is ready to sell their home, they need to make sure it looks its best. The home stager comes in to help them prep the home for sale by pointing out places that need work and the best ways to showcase the more unique aspects of the building and architecture.

Apartment Leasing Agent: Landlords with a great deal of rental property can't be everywhere at once. To bridge the gap, leasing agents are often hired who can meet with potential tenants, handle rental contracts, schedule maintenance, and take care of any odds and ends that are required.

Webmaster for Real Estate Firms: More and more potential homebuyers are turning to the Internet to research the area and the homes available before they approach a real estate agent. By running the website for a real estate firm, you are showcasing as many homes as possible and serving as the electronic "middleman" between the client and the company.

Title and Closing Firms: The closing process of a real estate transaction takes a great deal of time and effort, not to mention a mountain of paperwork. The process can seem daunting for clients, but your expertise can help them through the maze of documents.

Real Estate Research Specialist: If you have a knack for research and an eye for detail, why not make it a full-time job? Working as a real estate research specialist can ease the burden on your fellow agents while giving you a unique and interesting position in the brokerage firm.

4) Career Trends for Licensed Real Estate Professionals

Though real estate professions are vulnerable to the swings of the economy, those with a real estate license may find that their wide range of talents will hold them in good stead. Some real estate professions, such as that of appraiser, hold up well even during an economic downturn.

According to the Bureau of Labor Statistics, employment for real estate brokers, real estate agents, and mortgage brokers is expected to grow by 11 percent by 2016. For appraisers and property managers the outlook is even better, with expected growth of 17 and 15 percent, respectively.

5) Salary Information for Licensed Real Estate Professionals

The salaries for indiviudals with real estate licenses varies by career. The Bureau of Labor Statistics reports the following median incomes for specific real estate careers, based on 2008 numbers:

• Real Estate Agents: $40,150
• Real Estate Brokers: $57,500
• Mortgage Brokers: $54,700
• Real Estate Appraisers: $47,370
• Property Managers: $46,130

6) Career Skills of Successful Real Estate Professionals

Those who have a license in real estate have been educated on a wide range of subjects, and that expertise can easily translate into marketable skills.

• Contract negotiation
• Knowledge of tax laws
• Property assessment
• Research skills
• Financing and loans
• Technology tools
• Home inspections
• Marketing and promotion
• Business and management

7) Real Estate Licensure

The requirements for earning a real estate license can vary from one state to another. Depending upon your career path, you might be required to complete more education or obtain more experience before a license is awarded. Most licensing agencies require a certain amount of continuing education and periodic exams to keep your license active.