Whether you’ve loved properties since you had your first set of building blocks, or you’re in the “how hard can it be?” category, there might be a time when you want to know how to become a real estate agent in NYC, which requires you to get your real estate license (yes, you need one). Here are things to think about before the test:
- You need to be “generally” qualified. As set forth in the licensing law (which brokers call “Article 12-A”) that means you have to be over 18, you can’t have a felony record, and you need to be current on child support. Note: You do not need to have a college degree.
- You have to take an accredited real estate course and pass an exam. The coursework is 75 hours, which you can take either online or at a real estate school, and it includes topics like real estate finance, sales contracts, property management and Fair Housing. If you take an online course, you can go at your own pace, but there’s something nice about going to a real estate school and meeting your classmates — they might be helpful connections during your first few years in the industry.
- Prepare for the exam. The test to become a real estate agent is is pretty easy, though it can be tricky in a “which of these things is not like the other” sort of way. You can search online for practice exams and sample questions. Mostly the examiners are making sure you know what’s legal and what’s not (salespeople, for example, aren’t allowed to handle money — that’s for brokers to do). You must schedule online using the eAccess system.
- Take the test. For the test itself (about 90 minutes), you’ll pay a $15 fee (in addition to the $50 it costs you to apply for your license). Additionally, you’ll need to bring photo ID, be on time and not bring food or drink. Cell phones off. Whew!
What Happens After the Real Estate Agent Test
Since you studied real property titles, learned that you as a salesperson were the agent of a principal, and knew your non-discrimination law, you aced the salesperson’s exam. Right? Right. Now you need a job as a real estate agent. If you haven’t already been talking to brokerages before the exam (which is fine to do). Here are your next steps:
- Join a firm. Do you want a big firm or a little firm? Do you want to work in one little geographic neighborhood, or cover a bigger part of the city? Do you expect to work part-time, or full-time? How important is money to you? Training? Firms that provide really good training often, but not always, don’t pay as well as firms that throw you in the water and let you sink or swim. Also, don’t forget to ask the firm about their start-up costs: Will they pay for your business cards, or do they expect you to do it? Will they charge you a monthly technology or desk fee?” Yes, some firms do this.
- Connect with a trade organization. If you’re puzzled (and who wouldn’t be?) reach out to your local trade association. Most counties have a real estate board composed of many firms that work in the area and that board can sometimes be helpful in helping you navigate the early steps of your career. In NYC, that’s REBNY (Real Estate Board of New York). There’s a real estate agent trade organization that serves Rockland and Orange Counties. Note that all agents at REBNY member firms are required to become REBNY members. For example, Corcoran is a REBNY member firm, so if you join Corcoran, you have to join REBNY. Most major and smaller firms in NYC are REBNY members. However, it is possible to work in real estate without joining. Note that as a REBNY member, you will pay dues (about a couple hundred dollars).
- Get out there! Be prepared to have a financially lean first 6-12 months, as you learn your trade. In New York City, especially, a closing can come four or so months after an accepted offer, so even if you start making deals off the bat — and you probably won’t — you’ll have to wait for your money. (Ryan Serhant, star of Bravo’s Million Dollar Listing New York, noted in an interview with Business Insider that he made no money his first year.) Sales pay more, but rentals pay faster, so when you start you might try to do a mix of both.
- Make friends. Often you can help a very established broker by “babysitting” an open house. You might get slipped a little cash for that or other favors, such as copying keys, checking in on contractors, and (gulp!) photocopying. But even if you don’t, it might make sense to volunteer for some of those tasks, in exchange for being able to ask a more senior broker questions about the sales process, how to put together a co-op package, etc. Also, be aware that every real estate agent you meet at every other firm is potentially helpful and in later years you might end up working together!
New York City might be big, but in real estate, it suddenly shrinks and you cross paths with many agents and brokers time and time again.
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