Another question about getting your realtor license....

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Another question about getting your realtor license....

Raven Parmer
Architect · Louisville, KY · Member since 2014 · 94 posts · 47 votes

As may others have, I am thinking about getting my realtor license. I know you have to find a brokerage, but I don't really plan on doing anything with my license for a couple of years. The only reason I am considering it now is that i will be off work for maternity leave in a couple of months, and that would be a good time for me to do the courses. So, what's in it for a brokerage for you to hang your license there? Do they charge a fee if you don't actually represent clients and bring them in commissions? What other expenses would be associated with having my license? Is there an annual fee to keep my license active? Is there continuing education or anything like that to maintain my license? Or, alternatively, could I go ahead and take the test, and not join a brokerage for a couple of years until I'm ready? Or is there a time limit - could the license lapse?

I'm sure someone is going to ask why I wont be using it for a couple of years, so I'll go ahead and address that as well. My husband and I bought a 117 year old duplex with a separate carriage house, and we are renovating it, mostly ourselves. And we work full time jobs, and we have 2 kids with one on the way....

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Christopher Phillips
Real Estate Agent · Garden City, NY · Member since 2016 · 3k+ posts · 1k+ votes
9y

@Raven Parmer

It's expensive to get a salesperson license and not do anything with it. If you're going to have a license, you should have a plan to minimize the expenses

There are three things to consider:

1> Passing the exam. The exam isn't easy. If you have a background in finance or banking, then it shouldn't be too difficult. But you want to make sure you pass the exam the first time. You can take prep classes online or in a classroom, depends on your learning style.

2> Once you pass the exam, you have to hang your license with a brokerage. Doing so, you'll have to pay a monthly office technology fee at a minimum to use the office services (internal network, agent websites, CRM databases, helpdesk, company online training). If you get a cubical or an office you'll have to pay a monthly fee for those as well. Once you're setup, you will have access to training, coaching, mentor programs.

Your commission split will depend on the office you go with. It comes down to a balance of commission you want to keep versus the services the office pays for. If you are with a small office and they do all the marketing, overhead, and training, you will keep very little of your commission. If you go with a 100% commission brokerage that charges a flat transaction fee, expect zero services. 100% commission brokerages are more for experienced agents due to the lack of training and support.

3> To gain access to the MLS, you have to become a member of the local board of Realtors and pay the annual dues. This will give access the MLS, their online services, and usually a lockbox electronic key. Having a license requires you to do a minimum number of continuing education courses through the board or with state/national programs. This is all separate from your office training/expenses.

PM me if you have any specifics you wish to discuss...

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  • Kevin Wang
    Real Estate Agent · Plano, TX · Member since 2013 · 106 posts · 54 votes
    9y

    Hi @Raven Parmer

    Some brokerage charge a annual desk fee and for some it's optional. There's a fee for accessing the mls and nar. They usually don't charge a fee for not bringing in customers but be sure to check with their fee structure. Lastly, there's the commission split which is 70%/30% usually but varies. Yes, there courses you need to take to renew your license. You can take the test, but you won't be fully licensed until you get sponsored by a broker. 

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  • Eric Stafford
    New to Real Estate · Dedham, MA · Member since 2017 · 85 posts · 21 votes
    9y

    @Raven Parmer I was in a similar situation. I had a child on the way and wanted to get my license before it came fearing no time if I waited. I passed the test the week before my daughter was born. Well, now there's daughter #2. I kept my license up to date with education requirements.

    I will say this though, now I am on the broker hunt.  While I wasn't with a broker over the past few years, I've missed out on over $100k in commissions for myself this past year alone that a friend wanted to throw my way. So it might be worth finding a broker that has a nominal fee in case something comes up!

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  • Raven Parmer
    OP
    Architect · Louisville, KY · Member since 2014 · 94 posts · 47 votes
    9y

    @Kevin Wang thanks for the response. It seems so complicated now but I am sure that as I start navigating it, things will fall into place. but it sounds like there are different structures and different options. 

    @Eric Stafford good to hear i'm not the only one trying to schedule around the kids. haha. so, you passed the test, and maintained your license with continuing education? but without the broker, you can't take on clients - yourself or otherwise? and can you access the mls without the broker? 

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  • Eric Stafford
    New to Real Estate · Dedham, MA · Member since 2017 · 85 posts · 21 votes
    9y

    @Raven Parmer All you need to keep your license active is keeping up with education requirements and pay the cost to keep it from expiring. You cannot access MLS without a broker. You cannot get commission from sales. You CAN get agent referrals fees.

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  • Christopher Phillips
    Real Estate Agent · Garden City, NY · Member since 2016 · 3k+ posts · 1k+ votes
    9y

    @Raven Parmer

    It's expensive to get a salesperson license and not do anything with it. If you're going to have a license, you should have a plan to minimize the expenses

    There are three things to consider:

    1> Passing the exam. The exam isn't easy. If you have a background in finance or banking, then it shouldn't be too difficult. But you want to make sure you pass the exam the first time. You can take prep classes online or in a classroom, depends on your learning style.

    2> Once you pass the exam, you have to hang your license with a brokerage. Doing so, you'll have to pay a monthly office technology fee at a minimum to use the office services (internal network, agent websites, CRM databases, helpdesk, company online training). If you get a cubical or an office you'll have to pay a monthly fee for those as well. Once you're setup, you will have access to training, coaching, mentor programs.

    Your commission split will depend on the office you go with. It comes down to a balance of commission you want to keep versus the services the office pays for. If you are with a small office and they do all the marketing, overhead, and training, you will keep very little of your commission. If you go with a 100% commission brokerage that charges a flat transaction fee, expect zero services. 100% commission brokerages are more for experienced agents due to the lack of training and support.

    3> To gain access to the MLS, you have to become a member of the local board of Realtors and pay the annual dues. This will give access the MLS, their online services, and usually a lockbox electronic key. Having a license requires you to do a minimum number of continuing education courses through the board or with state/national programs. This is all separate from your office training/expenses.

    PM me if you have any specifics you wish to discuss...

    1Reply
  • Richard S.
    Rockville, MD · Member since 2017 · 12 posts · 2 votes
    9y
    Glad to see posts about getting a license! I'm in my early forties and have been in health care field and own a business already. I signed up with an evening real estate prep class through a local community college so that I can learn the RE basics and hopefully help me find the deals for my future investments. My question: How do i approach brokers to see if I could work with them? Do I cold call the offices or attend any meetings?
    0Reply
  • Steven Greenhill
    Real Estate Agent · New York, NY · Member since 2017 · 66 posts · 26 votes
    9y

    ask them to be a referral agent... refer out your business.... you may not have any fees. also, meeting moms is a huge market... that's a great business opportunity... you can get the license but dont have to put it anywhere... tell them you will do part-time occasional business but mostly refer to people within..

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