You’re fully licensed to sell real estate, so is becoming a REALTOR® that big of a deal?
You’re probably asking yourself: is it really worth it to become a REALTOR®?
To some new agents, it sounds like overkill. After all, you’ve already earned your real estate license. You’re fully licensed to sell real estate; is becoming a REALTOR® that big of a deal?
This existential question is one that every new real estate agent must ponder. It’s right up there with the meaning of life.
While can't just give you the answer (where’s the fun in that?), we can give you a list of the pros and cons of becoming a REALTOR®, and let you decide whether it’s worth it for you. First, we’ll look at the reasons why you might not want to become a REALTOR®. Then, we’ll take a look at the benefits.
But before we get started, a word of warning:
If you’re easily annoyed by the use of all caps and registered trademark symbols (®), be warned that I sprinkle both quite liberally throughout this post. I promise you that my intention is not to make you go crossed eyed. It is the preferred form of REALTOR®. If you do choose to become a REALTOR®, you’ll need to use the all caps registered trademark form, so you may as well get used to it.
Before you became a real estate professional, you probably heard the term real estate agent and REALTOR® used interchangeably. A lot of people think that they’re the same. But now that you’re working within the industry and among other real estate professionals, you may have noticed that the term REALTOR® isn’t applied to every agent, but you’re not quite sure why.
To make matters even more confusing, while every REALTOR® is a real estate agent, the reverse may not be true.
Confused? Here’s how it breaks down.
A real estate agent is a person who has passed the real estate exam and received a state issued license. Every person with a real estate license is a real estate agent, and becoming a REALTOR® is not required to get your real estate license.
A REALTOR® is a real estate agent who has joined the National Association of REALTORS® (NAR). The REALTORS® do not have anything to do with issuing real estate licenses, and the NAR is an indepedent trade organization. Since its founding in 1908, the NAR has become one of one of the largest trade associations in the US. The NAR represents all types of real estate agents, both commercial and residential. As a member, you can belong to one or several of the NAR’s local chapters.
To become a REALTOR®, you’ll need to fill out an application, get approved, and pay association dues and fees. You’ll also need to take and pass an ethics course separate from your state required licensing course.
Let’s start off with the bad news first. Why would you not want to become a REALTOR®? What would make you hesitate?
While most real estate professionals will choose to become a REALTOR®, it may not be the right path for you. Here’s why:
Becoming a REALTOR® can feel like yet another hoop that new agents have to jump through. It’s can be annoying when you’re convinced that you’ve already finished the race by getting your real estate license.
You're probably thinking, "I’m already a real estate agent, now I’ve got to become a REALTOR®, too? When will it ever end?"
If there’s no one pressuring you to become a REALTOR® (for example, your broker), it might seem like an unnecessary step and expense. Becoming a REALTOR® might seem like a future goal that you can delay until you’re ready to take your career to the next step
Money is probably the biggest con against becoming a REALTOR®. It’s going to require cold, hard cash (or at least credit) to become a REALTOR®. How much money depends on which board(s) you join and how many.
(By the way: local REALTOR® associations are known as boards.)
You’ll pay dues to both the local board and the national association. If you opt to join more than one board, you’ll pay even more.
All together, you’re likely to pay hundreds of dollars to become a REALTOR®. And it’s not a one-time deal, either. To keep current, you must pay up annually.
If cash isn’t flowing, you might not be able to justify the annual dues for this association.
Unfortunately, many newbie REALTORS® have a ton of unrealistic expectations when they sign up. They think that becoming a REALTOR® automatically adds a zero to the end of your annual earnings, but it doesn’t - at least not automatically.
Becoming a REALTOR® doesn’t mean that you’ll immediately start bringing in the big money. While you’ll may have a larger network at your disposal, you’ll still need to hustle for every penny you’ll get (and some that you don’t get, too).
Now, let’s dive into why becoming a REALTOR® is a no brainer. Sure, there are a few reasons why you may want to avoid becoming a REALTOR® right away. But you might see some benefits of becoming a REALTOR®. Here’s why:
If you become a REALTOR® you’ll have more opportunities to network. As a real estate professional, you’ll either live or die based on the strength of your network. If you’re able to forge strong and lasting relationships with other real estate agents, you can buy or sell quicker.
The name REALTOR® offers a certain amount of gravitas that you can’t get by just introducing yourself as a real estate agent. REALTORS® are held to a code of ethics and standard of conduct that is separate from ordinary license law. For some clients, the fact that you’ve taken the extra step to prove your dedication and invest in your career will be appreciated.
When you become a REALTOR® you get access to parks. Most notably, you’ll definitely get discounts on all sorts of products and services. NAR members get special consideration on auto, home, and renter’s insurance. You’ll get access to the REALTORS® federal credit union which can help you secure loans for cars and business. You’ll also be able to apply for a special REALTOR® credit card. You may also need to become a REALTOR® to get access to your local MLS, though this varies.
Additionally, FedEx, OfficeMax, and other office supply services offer considerable discounts to REALTOR® members. You may even get a free REALTOR® website.
So there you have it! You might still be mulling over whether or not to become a REALTOR®, but hopefully now you feel like you have a bit more information about the pros and cons of membership. Ultimately the decision is yours!