Though the requirements vary from state to state, in most locations, getting your real estate license is straightforward. You’ll take a handful of real estate courses, possibly studying online, then you’ll take a formal exam that tests your knowledge on real estate laws in your area. Assuming you pass, you’ll obtain your real estate license, which will enable you to manage real estate transactions like buying and selling property.
Real estate licenses are necessary if you hope to become a real estate agent, but there are other benefits to having a real estate license as well.
The Benefits of Having a Real Estate License
These are some of the most important benefits of obtaining a real estate license:
- A career path as a real estate agent. Once you have a real estate license, you’ll be able to follow a career path as a full-time real estate agent. Depending on your goals, there are a number of ways you can develop here. For example, you can sign up to work with a major real estate brokerage company, or you can try to become a formal realtor. Alternatively, you could set up an independent business of your own, working with a partner or a handful of employees. Because people will always need to buy and sell houses, the demand for real estate agents is unlikely to waver in the coming years—and the average salary for real estate agents is higher than for careers in many other industries.
- The possibility of a side hustle. If you already have a full-time or part-time job, or if you have other responsibilities that preclude you from taking on a full-time career, you should know that your real estate license could be used as a leverage point for a side hustle. You could take on new clients only as you have time and interest, earning a commission on whatever sales you close. It’s a fairly flexible job, and one that’s entirely within your control.
- Investment advantages. If you’re interested in buying investment property for your own purposes, having a real estate license can help you find better deals. For example, let’s say you’re interested in owning and managing a series of rental properties; to be profitable, you’ll need to find inexpensive properties that offer plenty of attractive elements to tenants. With your license, you’ll have a wider range of options to choose from, and you’ll have first dibs on some of the best deals in your target neighborhood.
- Access to better deals. Even if you’re not interested in investment property, the access you have to better deals can be advantageous. For example, if you and your family are moving to a new area, or if you want to help a friend or family member find a great property, you can score better deals than you could on your own.
- More education. It’s hard to argue with the benefits of education and training. Even if you don’t become a real estate agent or manage transactions actively, you’ll have more knowledge that you can use in your personal life—and more skills you can list on a resume. Having your real estate license might make you a more attractive candidate for a variety of other positions, and you’ll have more knowledge you can use when negotiating major purchases in your personal life.
- A bigger contact network. Professional networking is an important strategy for almost any job or career path, and in the course of getting your real estate license, you’ll have the chance to meet a wide variety of people. If you help people buy and sell houses, you’ll have even more opportunities to meet people.
- Improved business knowledge. Earning your real estate license requires you to learn about a wide variety of business fundamentals, including local laws and negotiating tactics. If you commit these fundamentals to memory, you’ll have more skills you can take with you to the business world. If you’re interested in starting your own business, this can be incredibly valuable.
Is It Worth It?
Even if the process itself is straightforward, getting your real estate license still requires an investment. You’ll need to pay money for your classes, for your exam, and for your final licensing, and you’ll need to invest a few hundred hours into your classes and studying. Accordingly, it’s not the right move for everyone.
However, if you’re passionate about real estate, if you’re interested in investing in real estate, or if you’re just looking for a new career with ample growth potential, a real estate license could be the right move. Start studying today, and start building your new career path as soon as possible.