What Do You Need To Know Before Becoming a Real Estate Agent in New York?
If you are curious as to how to become a real estate agent in NY, you should know that a series of hurdles must be passed before your dream can become a reality. As a real estate agent you will be able to dictate how much money you earn (within reason), the hours that you work and enjoy the general benefits of autonomy.
The State of New York
This really is the perfect time to obtain a real estate license as over 1.5 million people in the state of New York are on the prowl for a new apartment rental or home purchase at any given moment. Residential Rentals are an excellent way for a new real estate agent to start out as these deals are much more simple than the comparatively complicated home sales. Residential rentals can be closed quite quickly and generate commissions in less than a month. While residential sales take more time and effort than rentals, they do provide a higher commission. Plenty of real estate agents do both rentals and sales in unison. Some even conduct commercial sales for residential properties with more than four units. Other types of work include commercial leases of retail/office space.
How Many Real Estate Agents
The state of New York is quite competitive in terms of securing and closing real estate transactions. Manhattan alone has 27,000 licensed real estate agents and brokers. Becoming a real estate agent in NY is not uber-difficult yet the real challenges lie in beating the competition and making a name for oneself within his local community.
How Many Real Estate Brokers
It is not just the real estate agents who face harsh competition. There is also a large number of brokers who are constantly on the lookout for superstar agents. The competition is especially stiff in areas surrounding New York City.
How much is the salary range for Real Estate Agent New York?
Salary.com reports that the median salary for real estate agents in the state of New York is $38,866. The general salary range falls between $37,969 and $49,437. However, there is a large discrepancy between the salaries of real estate agents near and within New York City and the rest of the state. Indeed.com reports that the average salary for real estate agents in New York City is $105,000.
Real Estate Regulatory Board for New York
The Real Estate Regulatory Board for New York consists of a total of fifteen members. The Secretary of State, the Superintendent of the Department of Financial Services and 13 other appoint member make up this board. This panel handles a wide range of real estate issues for agents, brokers, buyers and sellers. You can learn more about this group by visiting http://www.dos.ny.gov/licensing/realestate/re_bore.html. Let’s dive into how to become a real estate agent in New York.
What are the New York Real Estate License Requirements?
An individual who would like to become a real estate agent in New York must meet the following criteria in order to obtain a license: be 18 years of age at the time the application is submitted, have successfully completed the Department of State approved qualifying course, have successfully completed the New York State real estate salesperson examination and be sponsored by a New York State licensed real estate broker.
Steps on How to Get a Real Estate License in New York
Take a State approved 75-hour Pre Licensing Course
The New York State Pre Licensing Course is offered either in-person at a real estate school or online. When the course is taken in-person, it is conducted with about 20 class sessions. Each session takes between three and a half and four hours to complete. The benefit of taking the Pre Licensing Course in-person is that it affords aspiring real estate agents the opportunity to interact with teachers and students in a face-to-face manner. However, the drawback to the in-person environment is that it takes longer to finish and costs more money than the online version. The cost of the course varies from about $275 to just under $500. The state of New York also mandates that a textbook be purchased for the course, adding another $50 or so to the total cost. Be sure to take advantage of all the helpful resources available to prospective real estate agents. There are a number of educational packages that will ameliorate the completion of the pre-licensing course.
New York Prelicense Packages
Alternatively, online real estate courses NY are also available. The 75-hour online course must be approved by the state of New York as well as a third party organization called Arello. The benefit of the online course is that students can proceed at their own pace on their own schedule. It can be completed in as little as a single week and it is usually cheaper than the in-person class. Online courses typically run between $99 and $250.
The course consists of lessons and quizzes in each section. Upon completion of this material, students will be required to pass the school’s final exam in order to complete the Pre Licensing Course in totality.
Pass the School’s Final Exam
The Pre Licensing Course test is commonly called the “real estate school exam”. It is worth noting that the majority of real estate schools craft their final exam in the mold of the State’s exam (referenced below). Those who took the 75-hour course in-person at a traditional school will take the school’s final exam in the same location. Those who completed the course online will be provided with a list of exam proctoring locations. They must then call these locations to schedule an appointment for the exam.
These school exams are much more difficult to pass than the state’s exam. The difficulty is ramped up to give the students an edge when they take the state exam. It reflects poorly on the educational institution if its graduates are unable to pass the state exam on the first attempt. Once the school’s exam is passed, the student will be provided with a certificate of completion. Those who take the course in-person will have to wait a few days to receive the certificate of completion in the mail. Those who studied online will either receive the certificate online, in the mail or through both delivery methods.
Pass the State Exam
New York state mandates that all prospective real estate agents pass a proctored exam upon completion of the 75-hour course and the accompany course exam. This exam is referred to as the New York State exam. Aspiring real estate agents take this exam on the world wide web with the state’s “Occupational Licensing Management System”, commonly referred to as “eAccessNY”. This is a written exam with questions based on the material covered in the 75-hour real estate course referenced above. The state exam consists of 75 multiple choice questions. Test takers should brush up on the course glossary’s most important terms ahead of time. Each term should be understood with some level of depth. There is a time limit of 90 minutes. Students must achieve a grade of 70 percent in order to pass. To take the exam, set up a free account through eAccessNY. Then schedule a date to sit for the test. It costs $15 to take. Students can take the exam as many times as they need in order to pass.
It is prudent to schedule the state exam a minimum of two weeks out if it will be taken in New York City. Those who reside in the rest of the state of New York should schedule the test with a full buffer week in place ahead of time to ensure that the proper location and time slot can be secured. When exam day rolls around, students must bring their government issued identification, a calculator and a print out of the Summary of Submission that is provided after scheduling the exam on eAccessNY. Once the exam is complete, the results will be posted on each student’s eAccessNY account.
Find a Sponsoring Broker and Complete the New York State Real Estate License Application
Once you have passed the exams referenced above, it is time to find a licensed broker for sponsorship. It is not legal to begin selling/renting real estate in the state of New York until the agent is sponsored by a broker and has successful completed his New York State Real Estate Salesperson Application. In terms of commissions, they are split between the salesperson and the broker. In New York State, the standard sales commission is six percent. This money is split 50/50 with the brokers representing the buyer and seller. The commission that remains will be split between the real estate agent and his sponsoring broker. However, it must be noted that the percentage split with one’s broker hinges on the specifics of their unique agreement.
Some brokers begin their inexperienced real estate agents with a 40/60 split, promising that the percentage owed to the agent will increase after more and more deals close. Alternatively,other brokers provide a generous 70/30 split to convince talented real estate agents to work with them. Though it seems unbelievable, there really are brokers in New York state who offer 100 percent commissions. These brokers won’t take a cut of the agent’s commission yet they will require the agent to pay a fee each month in order to work beneath the broker’s “umbrella”. Think long and hard before committing to any sponsoring broker. Wait until you find a broker who is trustworthy and willing to provide the resources that are necessary for success in this competitive industry.
Once you have aligned with a sponsoring broker, it is time to complete the real estate salesperson application. This can be completed on the world wide web by way of your eAccessNY account. Log on, input the sponsoring broker’s license number and enter all the required personal information. There is a $50 application fee that must be paid with a credit card. Once you submit your application, your sponsoring broker will log into his eAccessNy account and provide authorization for the application. At this point, the Department of State will review the details of the application and mail the real estate license via USPS to your address.