Hi everybody, Cheryl Knowlton coming at you with one of the most frequently asked questions that I get from people. They say to me, “well, I’ve been watching a lot of HGTV and I’ve decided that it’s time for me to get my real estate license. So, what do I need to do?”
Real estate is a sales profession
First of all, I need to let you know, full disclosure informed consent here, that the actual daily practice of real estate is nothing like you will see on any television show on HGTV. It is certainly not like Property Brothers where all problems are solved in 30 minutes after you show the buyer three homes, everything comes in under budget, and everybody is super happy at the end.
The way that I used to describe it when I worked for a different pre-licensing school. Real Estate is the hardest thing you will ever do in your life besides be in a committed relationship and parenting. It requires tremendous patience and tenacity, follow through, and ultimately, kids, it is a sales business. Real Estate is a people business, a face-to-face, belly-to-belly business. It is a sales profession.
It is a sad but true statistic that 87% of individuals who go through the pain and agony and suffering that is pre-licensing school are out of the business, in 18 months, according to Inman News. Ultimately, comes down to an expectations problem. People think their phone is just going to blow up because they get a real estate license. That is not the case.
To start off you need to attend a pre-licensing school
Here’s what we know. In your state, and if you’re in the state of Utah, I know exactly what the rules and requirements are. First of all, you need to complete pre-licensing school, which is 120 hours as of this post of a specific, licensed, pre-licensing school.
You can find those at www.realestate.utah.gov. you can find pre-licensing schools and actually, quite a bit of information and that is the Utah Division of Real Estate’s website.
So, first of all, you’re going to find an accredited school. You’re going to complete all 120 hours of pre-licensing school. You’re going to take and pass the school exam. Then you’re going to take and pass the state exam, which consists of two different portions—the State portion and the general portion. Those could be passed, hopefully your first time out. If you pass one and fail the other, or pass the general and fail the State, your passing score will hold and you can just take the other portion again. There is a fee to take the exam again, however.
When you have passed both portions you get to send in your application to the Division of Real Estate, so you can apply for you real estate license.
There are additional costs
Recognizing, here’s another big expectation problem. I’ve just talked with other colleagues about what most new licensees don’t understand. Its going to cost an arm and a leg and a potential sale of a kidney or something on E-bay in order to pay all of your dues to join the local state and national association of realtors. In addition to the local multiple listing service, this is going to set you back at least quite a bit. This is roughly $2000 above and beyond the cost of your schooling as well as the cost of applying for your real estate license.
After you’ve gotten your license the real fun begins. Then you also need business cards and signs and a website and there are many, many, fees associated with the starting of a business. You are actually starting a business. You would not expect to open a restaurant without investing significant money into it. Real Estate is just like any other business, except in certain states, the threshold for getting in is really rather low in terms of the number of hours for pre-licensing.
I can help
If you have any other questions about where to go to school, how to get to process started, I would love to help you with the process. Real Estate is an amazing career. The sky is the limit. You can make as much money as you want to. But, like I said, it is going to require tremendous, hard work, effort and systems. It is going to require tremendous skills sets, mindset, and the right environment for you to be successful. But, if you have all those things, the recipe for success is going to be beautiful for you.
I’m always here for you. Just reach out, like, comment on this video. This is so I can reach back out to you, answer any questions that you have. I hope you have an explosively fabulous career!