Here’s how to start a prosperous career in NY real estate
New York boasts one of the world’s most attractive and popular real estate markets in the world and the country.
The Empire State is home to some of the most historic landmarks, alluring skyscrapers, world-class entertainment and lifestyle options, and a diverse cultural landscape.
From the iconic Times Square to mesmerizing Manhattan, the sprawling metropolis has its own distinct charm and appeal which continues to attract buyers and real estate investors.
The City of Dreams is home to thousands of real estate agents, brokers and realtors and it continues to attract individuals who want to work in a dynamic, exciting profession.
The bustling market is renowned for its luxury real estate and high property valuations and it offers a diverse cultural landscape of clients from all walks of life.
Did you know that the top real estate professionals in NY can make as much as $200K in a year while enjoying a flexible work-life schedule and professional autonomy?
With a median selling price of $850K, there is a lot of money to be made in NY real estate, especially as the demand for luxury homes and vacation properties continues to grow.
Imagine earning a six-figure income while working with clients and helping them achieve their goals - does that sound like a dream career role for you?
With just a few years of industry experience, you too can launch a successful, thriving career and achieve your goals.
All you need to make your dreams a reality is a state approved real estate license in New York and you will be on your way to starting a rewarding and fulfilling career journey.
As per state and federal laws, having a valid license is a must to work with clients and help them in selling or properties in New York.
Only licensed professionals are allowed to participate in real estate transactions, assist clients, and earn commissions.
To help you get started, we will dive deep into every aspect of real estate licensing in this detailed guide.
From the basic prerequisites to state specific licensing requirements, we will answer all your questions on how to become a licensed real estate professional in NY.
The Role and Career Path of a Real Estate Agent
As licensed professionals, real estate agents work with buyers and sellers and represent their interests in a transaction.
Real estate agents in NY are multi-taskers who wear many professional hats as part of their job profile. Here are some of the tasks and duties you will perform in this role.
- Answer phone calls, texts, emails, to follow up with prospective clients and set up appointments to meet and discuss their needs and requirements.
- Represent the sellers and help them schedule property visits, site tours, and showings for potential buyers.
- Educate clients about property valuation, regulatory laws, market conditions, real estate transactions, and deals.
- Work with industry peers and collaborate with underwriters, mortgage loan officers, and property appraisers to expedite a transaction.
- Represent buyers and assist them in exploring properties and real estate opportunities in a particular region or locality.
- Negotiate on behalf of clients and help them get the best value for their money/assets.
- Assist clients at every stage of the buying and selling journey while educating them about property laws, market conditions, transactions, and so forth.
- Maintain regulatory compliance with various state and federal laws and professional guidelines for real estate transactions.
- Build and nurture relationships with existing and prospective clients and provide them with exemplary customer service and post-sales experiences.
- Attend community meetups, industry seminars, and networking get-togethers to promote your brokerage or agency.
- Gather information related to properties, market trends, and competition and stay updated with emerging opportunities and industry developments.
Note that the above list is not exhaustive but is only indicative of what a day in the life of a real estate agent looks like.
Since you will be performing multiple tasks and responsibilities, it is important to prepare yourself for the role - getting a license is a good way to do that.
Since real estate is a regulated industry that is governed by a set of state and federal laws and standards for professionals, it is important to obtain your license.
When it comes to licensing, you can start your career with a salesperson license which will allow you to find employment with a brokerage and represent the interests of your clients.
As you progress in your career and gain industry experience, you can apply for a NY broker’s license after completing additional education and training.
Now that you have learned about the job role and the common tasks and duties, the next step is to understand the New York real estate license requirements in detail.
However, before we discuss the licensing requirements, let us walk you through the advantages of working as a real estate agent and the benefits of choosing this career.
Benefits of working as a real estate agent in NY
Before embarking on a career path, it is important to understand what you are getting into and align your expectations accordingly.
NY is home to thousands of skilled and experienced real estate agents, brokers and realtors who are enjoying a fulfilling and rewarding career in the industry.
If you are on the fence of deciding whether or not working in NY real estate is for you, here are some pros of choosing this career path.
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Flexible Schedule and Potential for High Earnings
The number one reason why people choose a career in real estate is due to the high earning potential and the opportunity to be your own boss.
If you crave financial independence and professional autonomy, a career in NY real estate can pave the way to help you achieve your goals.
Not only can you find your own clients and define your working hours, you will not be constrained by the monotony of a nine-to-five job.
On top of it, you can easily make a six-figure annual income within a few years of starting out as a new agent.
You decide how much effort you put in and how many hours you invest in growing your career and improving your earnings.
Data from employment sites and industry research has shown the average annual income for a NY agent is between $90K to $120K.
As you gain experience and build a clientele, you can easily reach a whopping $200K in yearly earnings while working on your own terms.
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Numerous opportunities for career growth
Unlike many professions where individuals have to limit their success due to limited opportunities for career advancement, real estate offers a clear growth path.
As a dynamic industry that is constantly growing and evolving, working in NY real estate can help you unlock numerous opportunities for career advancement.
After starting a career as a salesperson, you can choose to complete additional education and apply for a broker’s license.
Once you have gained substantial experience as a licensed broker, you can take your career to the next level by becoming a NY realtor.
As your clientele and professional network grows with time, you can choose to venture into niche markets such as luxury real estate or even start your own agency.
If you are seeking a flourishing, high-growth career path, then working in the NY real estate industry is a good move.
To summarize, a career in real estate can be a financially rewarding and emotionally fulfilling experience if you are determined to make a mark and put in the required efforts.
Let us now take a deep dive into the step-by-step process of getting your NY salesperson license and starting a career from scratch.
Steps to become a licensed real estate agent in NY
The New York State Department of State (NYSDOS) is the state authority responsible for issuing and renewing licenses to professionals in the real estate industry.
As per the NYSDOS licensing guidelines, every individual must fulfill a set of state and federal licensing requirements to obtain a salesperson or broker’s license.
Step 1: Meet the minimum eligibility requirements
Here are the basic statutory licensing requirements established by the NYSDOS:
- Be at least 18 years of age or older
- Be a legally residing citizen of the United States or a lawfully permitted alien
- Have a valid NYC driver’s license or any other non-driver ID proof
- Have a high school diploma or GED equivalent in education
If you fulfill the eligibility requirements, the next step is to complete NY pre-licensing educational requirements.
Step 2: Completing a Real Estate Salesperson Course
As per state and federal law, you must complete mandatory education and training to obtain a New York real estate license.
The NYSDOS requires every individual to complete 77 hours of qualifying education from a state-approved education provider.
You have the flexibility to choose to complete the coursework by joining a physical, in-person real estate school or college or enrolling in an online pre-license course.
You can visit the NYSDOS website for a list of state approved and accredited education providers and choose the one which suits your budget and learning needs the best.
Completing pre-license education will help you qualify for a salesperson license and meet the education requirements.
It will also teach you the fundamentals of real estate and its underlying laws, regulations, and principles among other foundational topics.
Step 3: Passing the NY Licensing Exam
After completing 77 hours of pre license coursework, the next step in your licensing journey is taking the New York real estate licensing exam.
The NY salesperson licensing exam consists of 75 questions in total, and it covers both national and state portions. To pass the test, you must score at least 75 percent or above.
Here are some of the topics and questions you can expect to face in the licensing test:
If you are not familiar with the sections and modules covered in the New York State real estate exam, here’s a quick checklist of the key topics to keep handy:
- State and Federal laws and regulations
- Real estate practices
- Real estate practices
- Types of property
- Real estate contracts
- Consumer rights and fraud protection
- Real estate finance
- Property valuation
If you successfully pass the licensing exam, you can submit your NY salesperson license application along with an electronic scan of your fingerprint for background verification.
Once all the documents have been verified and approved, it will take a few weeks to receive your license.
Step 4: Find employer sponsorship
To activate your salesperson license, you must find a sponsoring broker who will be willing to train and work with you.
The NYSDOS has made it mandatory for newly licensed real estate agents to work and practice under the supervision of experienced, senior brokers.
Since there are thousands of licensed brokers in NY, finding one should not be a challenge.