Do Real Estate Agents Need a Degree?

Are you thinking about a career in real estate? It may be a good choice, especially if you’re a go-getter with a great network of people and a knack for sales. There are a number of different opportunities in the industry, but one of the most popular is, by far, the real estate agent. This is the first professional that comes to mind when people think about buying and selling their properties.

But just what does it take to become an agent? This article outlines the kind of education and training you need if you fancy a career as a real estate agent and want to work with a brokerage firm.

Key Takeaways

• Real estate agents bring buyers and sellers together for real estate transactions.
• While you don’t need a college degree to become a real estate agent, many firms appreciate individuals who have one.
• Taking real estate courses is required in order to get a real estate license.
• You may consider taking business or finance-related fields to better understand rates lending.
• You may also consider a degree in a construction or development-related field.

The Basics of a Career in Real Estate

Real estate agents are individuals who bring buyers and sellers together for real estate transactions. They handle negotiations between all parties involved. Most agents specialize in residential or commercial real estate.

Regardless of who they work for—whether that’s a buyer or a seller—real estate agents require a great deal of marketing, sales, networking, and people skills. Some of the duties of a real estate agent who works with sellers include helping clients to prepare and price properties, marketing and listing properties for sale, being available for viewings, and working with attorneys to close deals.

Some agents may also advise their clients on how to get better offers for their properties including making certain structural or cosmetic improvements, as well as how to stage a home or commercial space to appeal to a wide variety of buyers. Agents who work for buyers help them find the right property and negotiate a good price for their clients.

Some agents may choose to work independently, but others are often affiliated with a larger firm such as a real estate agency or brokerage. Agents don’t earn a salary and generally rely solely on commissions. That means they only earn money if and when they make a sale. The commission an agent earns is normally split between them and the other party’s agent, and then with the firm they represent. Let’s say two agents act in the sale of a $200,000 home and the commission is 6%. Each agent earns $6,000—half of $12,000. If the firm of one agent has a 60/40 split, then the agent earns $3,600, with the firm taking $2,400. According to payscale.com, agents earned on average $47,925 each year.

Note

The National Association of Realtors (NAR) agreed to settle a class action lawsuit in March 2024 by homeowners who said it inflated realtor commissions. As part of the $418 million settlement, the association stopped offering broker compensation on its listing platforms. The elimination of this rule should help buyers and agents negotiate fees and would help lower the fees paid by sellers. Despite agreeing to the settlement, the NAR denies any wrongdoing.

Education and Training

So how do you become an agent? In most cases, you don’t need a college degree to become a real estate agent, but it does help potential career job seekers stay competitive and relevant. An associate or bachelor’s degree is more than sufficient—perhaps in business, finance, or any other related field.

If you’re really invested in the field, you can also consider an education in real estate. Having one provides a number of benefits to understand the financial and business relevancy in this field. For instance, as you help prospective clients with their search, you may be able to give insights into financing, development, construction or renovation projects, or permitting.

Completing a degree gives agents a solid foundation in the basics of buying and selling real estate, allowing you to make more informed decisions about properties, mortgages, interest rates, and stay on top of the latest trends in the industry.

Holding a degree often makes potential agents more attractive to real estate brokerage firms. Since working with a brokerage company or licensed broker is a requirement to practice real estate, potential agents will need to fulfill the educational requirements of top brokerage firms. While some provide the necessary training, others require agents to have the knowledge and completed training before they hire any agents.

Important

You can’t sell real estate unless you’re licensed in that particular state.

Specialized Training Programs

In the realm of real estate, specialized programs and certifications offer professionals the opportunity to deepen their expertise within specific niches of the industry without a degree. For example, the Certified Commercial Investment Member (CCIM) designation provides comprehensive training in financial analysis, market research, and decision-making for commercial properties.Alternatively, the Certified Property Manager (CPM) designation focuses on property management skills.

For agents focusing on residential real estate, there’s other certifications. The Certified Residential Specialist (CRS) designation teaches advanced marketing strategies, negotiation techniques, and client representation in residential sales.

There’s always emerging, specialized certifications within the real estate industry. There’s also opportunities to learn niche practices. For instance, there are non-degree opportunities to gain expertise in sustainable properties or vacation home market trends, for example.

Licensing

If you decide to skip the academic degree, you’re not off the hook. You do need to be licensed in your state in order to become a real estate agent. Before you get your license, you will need to take some real estate courses. Since there’s no national mandate, the requirements vary by state, so it’s important to check with the real estate board in your state about what you’ll need to qualify.

Once you complete the courses, you can write your exam. When you pass, all you have to do is send your application and fees to the state board. After your application is approved, the board will send your certificate by mail. Your name will be added to a list of licensed agents, which is searchable online.

Do Real Estate Agents Need a College Degree to Practice?

No, a college degree is not typically required to become a real estate agent in most jurisdictions. However, specific educational requirements vary by state or country, and candidates must complete pre-licensing courses and pass a licensing exam.

Are There Alternative Paths to Becoming a Real Estate Agent Without a Degree?

Yes, there are alternative paths to becoming a real estate agent without a degree. Aspiring agents can fulfill educational requirements through pre-licensing courses, gain experience through internships or entry-level positions in real estate firms, and obtain mentorship from seasoned professionals in the industry. There are also numerous specialized, niche certifications one can obtain.

How Does Education Level Affect Success as a Real Estate Agent?

While education can provide a strong foundation, it is not required to become a real estate agent. However, a degree may foster soft skills or talents such as networking skills, professionalism, and dedication to client service.

The Bottom Line

In most jurisdictions, a college degree is not required to become a real estate agent. Keep in mind that educational prerequisites vary by state or country. Therefore, you may need some sort of formal education before completing certain types of licensing exams.

Read the original article on Investopedia.