You Can Become a Real Estate Agent Too!

Here I would like to provide the exact steps I would tell my past self to guide him on how to "become" a Texas real estate agent. Passing the Texas Real Estate Exam declares on paper that you're an agent, but in no way does it guarantee you that you're ready for your first transaction. It was honestly very nerve wracking for me to figure out where to go. I'll explain how I cut some corners to speed up process. Alright, here we go!

1. Be a US citizen and 18+ years

2. Purchase an online course ($150-$400) that is TREC-Approved (I did AYPOREALESTATE). Within the course, there are 6 sections, each 30 hours long. After each section, there is a proctored test. The best way to study for those 6 tests are through Quizlets (many repeated questions are on there). Upon passing the 6 sections, AYPO made me do 3 practice exams where you must pass in order to get your certificates. This is open-book so you can use your notes (buy the $15 pdf for quick searching). These practice tests were difficult so don't worry if it takes you multiple attempts to pass. Just get through them so that you can receive all of your certificates!

3. Apply for your license and upload certificates on TREC ($150)

4. Get Fingerprinted (IdentoGo) ($40)

5. Sign up 2-4 weeks in advance to take the Texas Real Estate Exam (Pearson) ($54)

6. There are 2 portions of the exam: National & State. National tests your general knowledge while state is a bit more specific. For national, just constantly listen or watch these YouTube channels: Prep Agent and Real Estate Advantage. I listened to the videos while driving, exercising, walking, eating breakfast, and even playing video games. For state, I found that reading through all the possible Quizlets that had the word "state" in the label were the best. If you're worried about the math, don't be. There were very few math questions (max 5) in the national portion and none in state. Also, if you pass the national portion but fail state, you only have to take the state portion when retaking and same for if you pass state but fail national.

7. Upon passing, choose the realty you want to join. Do your own due diligence to see what broker provide the best amenities for you. Do keep in mind that the top brokers can take up to 30% of your commission on every transaction. There are several brokers that charge a lower percentage or be like me and join a smaller broker that charges a low flat fee per transaction. This all depends on your needs and what you want to get. Certain brokers may consistently provide leads to you, some will let them utilize their resources (showings, reports, marketing, & more) for free, or nothing at all!

8. After joining a broker, you have to join a local association of realtors (I live in Collin County so mine was CCAR). This gives you access to the MLS (multiple-listing-service), which is the MAIN tool you need to get access to everything. This includes the ability to search for properties, list properties, create CMA (comparative market analysis) reports, access ZipForm to draft transaction documents and have clients sign via Authentisign/DocuSign, and lastly ShowingTime to setup showings. (There is a lot more, but this is everything that I use). The fees are roughly $115 per quarter and $500 annual.

9. And you are set! You have access to all of the tools and can legally participate in a real estate transaction! The last step here to seek guidance on your first transaction with your broker. Ask every question that comes into mind no matter how simple it is. Use youtube for additional guidance on filling out documents like the TREC 1-4 family residential contract and Third-Party Financing Addendum (Those two documents are your bread and butter for conventional loan buyers). There's several more documents to learn and know about and you'll learn them through time! For your first few transactions, go over every detail with your supervisor/broker before sending to the other party.

So there you have it! The total investment to become a Texas real estate agent and join a broker can be done for under $700. Then another $900 a year for your association dues. Now don't shy away from these numbers! Think about it like this: you'll cover up the losses within your first transaction! If you help a client buy a property for $100,000 and the BAC is 3%, you're going to get at least $3000 in your hand before broker commission cuts. A better cost saving tip is to delay your sign-up for the association until you know that you're about to represent a client. This can be a little risky because then you won't have any personal time to play around with the tools, but it is an option.