How to Become a Real Estate Agent in Alabama
To become a real estate agent in Alabama, you'll need to be licensed by the Alabama Real Estate Commission.
Here's what you need to know to become a real estate agent in Alabama:
1) Licensing Requirements
2) Duties of a Real Estate Agent
3) What is a REALTOR®?
4) Income Potential
5) Real Estate Schools
How to Become a Real Estate Agent in Alabama
1) Real Estate Agent Licensing Requirements
In Alabama, real estate agents MUST be licensed by the Alabama Real Estate Commission. To obtain your real estate license, you must:
- Satisfy the minimum requirements to apply for the real estate exam:
- Age: You must be 19 years of age or older to be licensed.
- Residence: Must be a citizen of the United States or permanent
resident. - Character: Must be trustworthy and competent to transact the business of a broker or
salesperson in a manner that safeguards the interest of the public. - Experience : None.
- Education : 60 hr pre-license course.
- Apply to take the State exam.
- Pass the exam.
- Pay the appropriate fees.
- Obtain employing broker signature. Within 3 months of passing the exam.
- Apply for the temporary Real Estate License.
- Complete 30 hours of approved post-license courses. Within 6 months of issuance of temporary license.
- Apply for original license. Within 1 yr of issuance of temporary license.
Newly licensed agents must work under the supervision of an employing real estate broker.
Most new agents start out by working for one of the large brokerages like Coldwell-Banker, Century-21, Remax, etc.
If you would like to have your own business and work for yourself, you must upgrade to a broker's license.
2) Duties of Real Estate Agents
A real estate agent's main job is to assist their clients in the process of buying and selling real estate.
Their list of duties include:
- Submit buyers' offer to purchase to seller for consideration
- Work with escrow officers, lenders, home inspectors, and pest control operators to ensure that terms and conditions of purchase agreements are met before closing dates.
- Interview potential buyers to determine what kinds of properties they are seeking.
- Prepare documents such as listing agreements, purchase agreements, etc.
- Coordinate property closings, overseeing signing of documents and disbursement of funds.
- Act as an intermediary in negotiations between buyers and sellers, generally representing one or the other.
- Determine a property's competitive market price by comparing the property with similar properties that have recently sold.
- Schedule appointments to show homes to potential buyers.
- Generate lists of properties that are compatible with buyers' needs and financial resources.
3) What is a REALTOR®?
A real estate agent becomes a REALTOR® when he or she pays an annual fee to be a member of the National Association of REALTORS® and subscribes to its Code of Ethics.
The agent generally joins through the local board or association.
For example, in Birmingham, once you have obtained your real estate license, you may pay a fee to join the Birmingham Association Of REALTORS®. This also makes you a member of the Alabama Association of REALTORS® and the National Association of REALTORS®.
All REALTORS® are real estate agents but not all real estate agents are REALTORS®.
4) Income Potential
Real estate agents are generally paid based on a percentage of the sales price. The seller will generally pay 4-6% of the sales price as the fee and that will be split 50/50 between the seller and buyer's broker.
For example, if the fee for a $100,000 house is 6%, the buyer's broker will be paid 3% or $3000 and the seller's broker will be paid 3% or $3000 as well.
The agent is paid by his or her broker, according to their previously agreed-upon commission split.
This is often 50/50 for beginning agents, so in that case the agent in our example would receive $1500.
According to the National Association of REALTORS®, the Median Sales price for an existing single-family home in the Birmingham area was $146,600 for the fourth quarter of 2004.
5) Real Estate Schools
Here are some approved real estate schools offering the pre-licensing courses for the state of Alabama:
ATHENS BOARD OF REALTORS
PO BOX 405
ATHENS AL 35612-0405
Phone 256.233.7722
AUBURN UNIVERSITY-OPO
OUTREACH PROGRAM OFFICE
301 O.D. SMITH HALL
AUBURN UNIVERSITY AL 36849-5608
Phone 334.844.5100
CALHOUN COUNTY AREA BOARD OF REALTORS
1512 LEIGHTON AVENUE
ANNISTON AL 36207
Phone 256.236.5588
BIRMINGHAM ASSOCIATION OF REALTORS
PO BOX 59609
BIRMINGHAM AL 35259-9609
Phone 205.871.1911
BIRMINGHAM GUARANTY REALTY SCHOOL
9441 PARKWAY E
BIRMINGHAM AL 35215-8307
Phone 205.833.6200
GREYSTONE SCHOOL OF REAL ESTATE
5510 HWY 280 STE 124
BIRMINGHAM AL 35242
Phone 205.408.1306
MILES COLLEGE
PO BOX 3800
BIRMINGHAM AL 3520835064
Phone 205.929.1535
Also check out information on how to become a real estate appraiser in Alabama