Passing the real estate exam is a milestone representing the foundational knowledge required to operate in the industry. This accomplishment is the starting point for the practical steps necessary to build a professional career. The journey ahead involves navigating administrative requirements, making business decisions, and establishing a market presence.
Complete Your License Application
With your successful exam results, the next step is to formalize your status with the state’s real estate licensing authority, often called the Real Estate Commission. This administrative process must be completed before you can legally represent clients or earn commissions. The process moves you from a candidate who has passed a test to a state-approved licensee.
The application requires the official score report from the testing service, a completed application form, and the licensing fee. You will also undergo a background check, which involves submitting fingerprints to state and federal agencies. Submit these materials promptly, as processing times can vary and any delay will postpone the issuance of your license.
Be prepared for associated costs, which can range from $150 to over $400 for the application and background check, depending on your state. Some states also require proof of Errors and Omissions (E&O) insurance before the license is activated. This insurance is a form of liability coverage that protects you against mistakes. Only after the state has processed your application, cleared your background check, and issued your license number can you begin working under a sponsoring broker.
Choose the Right Brokerage
Selecting the right brokerage is one of the most important decisions you will make as a new agent. State law requires that a new salesperson’s license be held by a supervising broker, who is legally responsible for your actions. This relationship defines your access to training, resources, and mentorship, which are important during your first years. Your choice of brokerage will directly influence your earning potential and professional development.
Brokerages operate under various models. National franchises, such as Keller Williams or RE/MAX, provide brand recognition, structured training, and extensive networks. In contrast, local boutique firms offer a more intimate setting with greater direct access to the principal broker and a focus on a specific community. A third model, the cloud-based brokerage, uses technology to reduce overhead, often providing agents with higher commission splits and greater flexibility, but may offer less in-person support.
The financial arrangement is a central component of this decision. Brokerages structure compensation through commission splits, which dictate the percentage of each earned commission that goes to the agent versus the firm. These splits can range from a traditional 50/50 to 90/10, but are often tied to other fees. Some brokerages charge monthly desk fees, franchise fees, or a combination of both, so it is important to calculate how these models would impact your net income.
Beyond finances, a brokerage’s culture and support systems are important. When interviewing with potential firms, inquire about their training for new agents, which should extend beyond exam topics to cover practical skills like contract writing and negotiation. Ask about mentorship programs that pair you with an experienced agent for guidance on your initial transactions. Evaluate the technological tools provided, such as a CRM system, transaction management software, and marketing resources.
Join Professional Associations
Once you have affiliated with a brokerage, the next step is to join the professional organizations that are foundational to the industry. This involves becoming a member of the National Association of REALTORS® (NAR), your state’s association of Realtors, and your local real estate board. Membership in these bodies confers the title of “REALTOR®,” a designation indicating you adhere to a specific Code of Ethics. Your broker will guide you on which local association to join, as it is determined by your office’s location.
The primary benefit of joining these associations is gaining access to the Multiple Listing Service (MLS). The MLS is a private database of property listings shared by agents in a given area. It is the most comprehensive source of market data and property details, making it an important tool for performing comparative market analyses (CMAs) and finding properties for buyers. Without MLS access, operating effectively as an agent is nearly impossible.
Membership also provides other resources. Professional associations offer standardized legal forms and contracts, which reduce your liability and ensure compliance with regulations. They also provide networking opportunities, continuing education courses to maintain your license, and market statistics that help you advise your clients effectively.
Establish Your Business Foundation
With your license and memberships secured, the focus shifts to establishing yourself as a business owner. Most real estate agents are classified as independent contractors, meaning you are responsible for your own expenses and business management. The initial phase requires a financial investment and a strategic plan to guide your first months.
You should anticipate a range of start-up costs. Setting up a dedicated business bank account is a good practice to keep your finances organized. These expenses include:
- One-time and recurring association dues and MLS fees, which can total over $1,000 annually
- A Supra eKEY or similar lockbox access device
- Professional business cards and for-sale signs
- A quality professional headshot
Income from commissions is not immediate—it can take three to six months to close your first transaction—so creating a detailed budget is important. Your budget should account for all business-related expenses and your personal living costs for this initial period. Alongside your budget, a simple business plan can provide direction, outlining your income goals, target market, and lead generation strategies.
Develop Your Marketing and Lead Generation Strategy
The final step is to begin marketing your new business and generating leads. While long-term strategies involve advertising, the most effective starting point for a new agent is their Sphere of Influence (SOI). Your SOI consists of everyone you know personally, including friends, family, and former colleagues. These individuals already trust you, making them more likely to become your first clients or refer you to others.
Begin by compiling a list of everyone in your SOI with their contact information, then reach out to them directly. An announcement email or social media post is a professional way to inform your network about your new career. Avoid a hard sell; instead, frame your message as a professional update and offer your services as a resource for any real estate questions.
Simultaneously, establish your professional online presence. Create dedicated business profiles on social media platforms like LinkedIn, Facebook, and Instagram that are separate from your personal accounts. Post content relevant to real estate, such as market updates, tips for homebuyers and sellers, and information about your local community. Practicing how you articulate your value proposition is also important for networking conversations.