Just Passed Your Real Estate License Exam Now What?

Top 15 Very Important things to know after getting your real estate license & before you choose a brokerage to work for:

1) It may take much longer than you think to make your first real estate sale commission. Even when working as a full-time Realtor, be prepared for it to take 6 to even 12 months for you to make your first sale. This is why it is important to activate or “hang” your license with a brokerage as soon as or shortly after you get your real estate license. This also starts the clock for the state required active license “experience” necessary to get you broker’s license. (RealtyPRO Network is perfect for this.)

2) Realtors don’t make as much as most people think. The commission split % (based on a properties contract price) you agree to with your Realtor brokerage is usually reduced for each property closing. See parts 7-9 below.

3) A Realtor is a licensed agent, but not all licensed agents are Realtors. Passing your real estate licensing exam, getting your real estate license with the state, and activating it with a broker are unrelated to becoming a “Realtor”. Most brokerages (except RealtyPRO Network – we are not Realtors) require that when joining their firm, you become a “Realtor” because they are members. A Realtor is a service/trademark and a member of the National Association of Realtors, a paid membership real estate industry trade organization.

4) Realtors are typically independent contractors working for a brokerage. This means you will not get paid a salary or regular income, and any money you make is from your own efforts from closed sale transactions. You will sign an Independent Contractor Agreement with that brokerage specifying your exact commission split, additional fees, and responsibilities.

5) Most brokerages require Realtors to have minimum production quotas, especially for new agent licensees. Generally there are guidelines in your Independent Contractor Agreement on how much (total gross transactions) or how many properties you are required to sell and in what time frame (i.e. 6 months, yearly, etc.). Your typical Realtor brokerage can basically fire you if you don’t meet those production quotas. RealtyPRO Network does not have any minimum sales requirements for referral agents.

6) Referral agents are not Realtors, and get paid commissions just for referring (no actual hands-on work) because they hold a valid and active real estate license. RealtyPRO Network does not require you to become a Realtor or pay those associated expensive dues in order to become a referral agent.

7) Regardless of whether you choose to work full time or part time as a Realtor, you will still be required to pay all Realtor Dues and MLS (Multiple Listing Service – the database of homes for sale) fees to your local Realtor Board or Association. Many Boards require you pay for the entire yearly Realtor fee up front, plus or minus $1000 depending on location. MLS fees are additional and stacked on top of the Realtor fee/dues.

8) Office and Franchise Fees. Many brokerages require that you pay them a monthly “office” and/or “franchise” fee, regardless of any sales you complete.

9) Errors & Omissions Insurance. Many brokerage offices require that you to pay your own E&O insurance out of each commissioned sale you bring in. E&O covers you in case you made any errors on your contract or with mishandled a client’s transaction. RealtyPRO Network covers this for you.

10) Transaction coordinators. Some Realtor brokerages now employ full-time Transaction Coordinators. This role has varying responsibilities, but generally they keep everyone involved with the transaction informed and schedule the closing process after you supply them an executed sales contract with addenda.

11) Many brokerages require their Realtors to work in teams. That means that if the team can actually get the property to close, the total commission will be split with the team after all other fees and expenses have first been paid (see the previous 3 parts above).

12) RealtyPRO Network is a great way to get started after you get your real estate license. ZERO Realtor fees, ZERO office, franchise, E&O, or Transaction Coordinator fees/commission reductions. Many agents who have worked at other firms have said that after all the fee reductions after all their hard work (if they could even get the transaction to close), they would have been better off not spending any time at all and just getting paid for referring the buyer or seller to a Realtor to take care of everything. That’s where RealtyPRO Network comes in.

13) Time is of the essence! In order to get selling and making commissions, you MUST activate/hang your real estate license with a brokerage ASAP to start building trust to get clients which takes time. Hand out business cards and start marketing to all your friends, family, acquaintances, etc. through all mediums available including social media. It can take 6-12 months to make your first sale, so it’s very importance to let everyone know you are licensed agent immediately.

14) Most people (even licensees) don’t know any difference between a licensed referral agent or a Realtor. See part 3) above.

15) Becoming a RealtyPRO Associate referral agent is the most cost-effective way to immediately start getting involved with the real estate industry, and advertising your real estate career to build that essential trust in order to get a consistent flow of clients. It’s easier because you’re basically partnering with a local experienced Realtor sending them the referral clients to properly take care of, and you get paid a referral commission when the transaction closes (for basically doing nothing). This option also lets you take time (while working your current job) to find a full-time Realtor based brokerage later when you start getting more consistent buyer and seller clients. Hint: you don’t want to quit your existing job and become a full time Realtor if you aren’t properly prepared with savings to last you 6-12 months.

What is the next step after just passing my real estate license exam?

How to be a Referral Agent after passing your state real estate license test.

What to do after passing your real estate license exam.

How to become a real estate agent?

What do I do after getting my real estate license?