Comparing the Pros and Cons of Working Part-Time in Real Estate
If you value freedom, flexibility, and high-earning opportunities in your career, then working as a real estate professional might just be your way to achieving your goals.
Real estate has become highly sought after and many ambitious first-timers and experienced professionals are eagerly joining this industry.
A career in real estate is highly desirable for those who want to break away from the standard nine-to-five regime to set their own goals, targets, and paths for professional success.
The best part about working in real estate is the freedom to choose your working hours and style - you can either work full-time or part-time depending on your career needs and professional goals.
Working as a full-time real estate professional can give your career a sustainable growth path whereas working as a part-time professional can help you earn a handsome side income.
Working in real estate can be incredibly rewarding and challenging and there is a lot that you must learn before deciding to work as a real estate agent or broker.
Many individuals choose real estate as a financially rewarding and gratifying side hustle that you can maintain while working on your main career or profession.
From the industry rules to the state and federal regulations, you will need to equip yourself with all the knowledge and skills required to work as a successful real estate agent in your state.
To become a part-time real estate agent, you need to put in the effort to complete your education and earn your license.
Whether you want to work on your own or join a real estate brokerage, getting your real estate license is the most important step of your professional journey.
If you are on the fence about applying for a real estate agent license and want to know everything about starting a career in real estate, this article will answer your questions.
We have put together this article to help you evaluate the pros and cons of working part-time in the real estate industry and what it takes to become successful at it.
We will also give you a detailed overview of the job role and responsibilities of a real estate agent including details on the licensing requirements.
The Job Profile of a Real Estate Agent
Real estate agents are responsible for helping their clients buy, sell, or lease real estate in the country.
Any licensed professional who is allowed to take part in a real estate transaction on behalf of their clients is a real estate agent.
Agents can choose to work in residential as well as commercial real estate as per their goals and preferences.
Whether full-time or part-time, the job role of a real estate agent is to work with their clients and represent the client’s best interests in a real estate deal.
The job profile of an agent is to help their clients find the right properties or assist their clients in getting a fair market valuation for their properties.
As a part-time real estate agent, you can represent either the buyer’s or the seller’s side. Some agents can represent both buyers and sellers in a transaction.
Additionally, real estate agents are required to educate their clients about the best practices, solutions, and services to meet their needs.
Real estate agents are also skilled professionals in the matters of lawful practices, deeds, property laws, and consumer protection rights.
Both part-time and full-time agents are responsible for conducting property visits and site tours to prospective home buyers and real estate investors.
If you are an aspiring part-time agent, a career in real estate will give you the freedom to work as per your goals and the flexibility to establish your own work-life schedule.
Educational Requirements to become a Part-time Real Estate Agent
Many aspiring part-time and full-time agents choose this career path due to its low barrier to entry.
Since you do not require a bachelor's degree to join the real estate industry, you can easily start a career as a part-time agent.
However, you must complete qualifying education to become eligible for earning a real estate salesperson license in your state.
Most states have their own pre-licensing education requirements and guidelines for applicants who want to become licensed in their home state.
The exact requirements vary from state to state yet there are certain eligibility requirements and you must check with your state’s local real estate authority for accurate and up-to-date knowledge.
However, there are a few statutory requirements which are common for all states. These are:
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You must be at least 18 years or older
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You must be a legal resident of the United States or a lawfully admitted alien
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You must have a high school diploma or GED equivalent
Pre-licensing education varies from state to state and each state has a set of pre-established qualifying educational requirements for applicants.
For example - in California, applicants are required to complete 135 hours of pre-licensing education to become eligible for a real estate salesperson license in the state.
Whereas in Florida, you will be required to complete 63 hours of state-approved pre-licensing education to fulfill the state requirements.
Irrespective of which state you belong to, enrolling in a real estate course is essential to completing pre-licensing education and gaining the required knowledge to take on the next step in your licensing journey i.e. clearing the salesperson licensing exam in your state.
Like qualifying education, the examination criteria also vary depending on the state you are applying for your license.
However, most states share the common examination format which includes both state-specific and national-specific portions.
To clear the exam, you must score at least 75 percent or above; however, you can retake the exam if you are unable to clear it in the first attempt.
Costs to become a part-time real estate agent
When it comes to calculating the total cost to becoming a part-time real estate agent in your state, there are multiple aspects to be considered.
Firstly, there is not an exact figure or amount to be calculated, instead, there are varying costs associated with getting a state-approved salesperson license.
The final cost comes when you add up the different expenses and cost components.
Secondly, whether you want to work part-time or full-time, the general costs involved in becoming a real estate agent remain almost the same for both career paths.
To give you an overview of the major costs and expenses involved in the licensing journey.
1. Pre-licensing education costs
Depending on your state and the education providers, completing pre-licensing qualifying education can cost anywhere between $200 to $800 or higher.
The cost depends on various factors such as the reputation of your education provider, the content delivery medium, the type of course package, and any additional features.
As a rule of thumb, enrolling in a real estate school online is relatively more affordable and cost-effective than joining a classroom-based learning environment.
2. Real Estate Licensing Exam
Without a license, you will not be legally able to assist clients in real estate transactions.
Hence, taking and passing the licensing exam is a must if you want to obtain a state-approved real estate salesperson license.
Generally, the licensing exam fee ranges between $50 to $200 per attempt, depending on the state and the type of exam you are going for.
3. Background Check and Verification
Almost every state in the country requires applicants to complete the mandatory background verification and criminal history report check.
This is to ensure that all applicants meet the state and federal standards for ethics, trustworthiness, and integrity.
As part of your background verification process, you will have to submit a copy of your credit history, electronic fingerprints, and a clearance report from the local sheriff’s office.
Generally, it costs between $50 to $150 to get these steps completed.
4. Licensing Application Fee
Once you have completed the pre-licensing education and undergone background verification checks, you can submit your real estate agent application to the state’s real estate authority.
To process your application, you will have to pay a fee of $50 to $100 depending on your state.
After you successfully clear the real estate salesperson licensing exam, you will have to pay a one-time state license fee of $100 to $300 or more.
5. Miscellaneous expenses
Simply getting your real estate license isn’t enough - in order to maintain your licensure, you must complete state-specific continuing education requirements.
In most states, active license holders are required to update their salesperson or broker’s license every one or two years from the date of issuance.
These states require all part-time and full-time agents to complete additional coursework to meet the continuing education requirements and renew their licenses periodically.
Like other real estate courses online, you can also complete CE courses online and these generally cost anywhere between $100 to $300.
Pros of working as a Part-time real estate agent
Now that we have discussed the eligibility requirements and the associated costs to get your real estate license, it’s time to understand the advantages of working as a part-time agent.
1. You can make extra income
The number one reason why individuals are lured by the idea of working part-time in real estate is the ability to earn a commission on every deal.
Working in real estate is lucrative, especially as there’s no cap on how much you can earn.
It is estimated that part-time real estate agents can easily make between $25K to $65K annually depending on their location and market trends.
This means you can put in the desired number of hours to work on your own terms and make extra income.
Many students and professionals often use their skills to work with clients and help them buy, sell, or lease real estate.
By doing so, you can make good commissions and build an additional revenue stream.
2. You can work flexibly
If you are a working professional or looking after a family, it can be difficult to manage work-life and make ends meet.
Working as a part-time sales agent in real estate can give you the opportunity to balance both ends whilst staying flexible.
Since you are paid on a commission basis, it is up to you to decide your work hours and the amount of effort you want to put in.
As long as you are closing deals and generating value for your employer, you are flexible to set your own schedule and work on your own terms.
Having control of your time means you can choose how to spend it - whether it is at work or at home.
3. Helping People
As a part-time real estate agent, you will help people achieve their home ownership dreams and goals.
This can be incredibly satisfying and fulfilling for people who wish to have meaning to their work.