Congratulations on your decision to become a licensed real estate agent in Louisiana! Selling real estate can be a lucrative career that can add substantial revenue to your bottom line. You can make a great living selling homes and commercial property in your area and you can do it part time or full time. This article will explain the steps you must take to get your real estate license, as well as how much money you can expect to make in your career.
Many Louisiana real estate agents sell property while maintaining another job. One thing that makes Louisiana real estate great is it can be done in addition to your full time or part time job and is a great way to make extra income for you and your family.
You probably have questions about how to get started in the Louisiana real estate market and this article will answer your questions. We’ll take you through the steps to getting your real estate license and show you how to make money once you’ve passed your exams.
First, you will want to check out the Louisiana Real Estate Commission’s website. Anyone wanting to sell real estate in Louisiana must complete an application through the Commission to get your real estate license. You MUST have a license to make money selling real estate.
There are a few easy requirements to get your Louisiana real estate license:
- Must be 18 years old or older;
- High school diploma or GED;
- Successful completion real estate courses approved by the Louisiana Real Estate Commission;
- Complete application process by the LREC;
- Pass the real estate exam;
- Work under a Louisiana real estate broker;
- Show proof of errors and omissions insurance before you get your license.
How to Get a Louisiana Real Estate License
You’re on your way to getting your Louisiana real estate license, but you have a few steps to take first. You must follow the Louisiana Real Estate Commission rules and regulations to get your license and become a Louisiana real estate agent.
The LREC requires you to take a 90-hour Real Estate 101 course that teaches you the basics of real estate in Louisiana. It’s fairly easy and you can take it online or in person. Upon completion of the pre-license course, you must turn in your certificate of completion and the fee. LREC will begin processing your application and they will send you an email with further instructions regarding your exam.
The Louisiana real estate license exam is tough, but you can study as much as you need to pass it. Louisiana real estate school and the Real Estate 101 course will prepare you to pass the exam the first time and get your license.
How Much does It Cost to Get a Real Estate License in Louisiana?
Once you pass the Louisiana real estate exam, you must submit to get your real estate license. The salesperson license fees are $45 and the broker license is $120. You have to renew your license and the renewal fees are $35 for an active or inactive salesperson license. The fee for an active broker license is $70 and an inactive broker license is $35.
Maintaining your real estate license doesn’t cost much in Louisiana and allows you to sell property anywhere in the state.
Is the Louisiana Real Estate Exam Hard?
While not impossible, the Louisiana real estate exam is no walk in the park. It’s the type of test you will have to study for. Many people fail the exam on their first try, but don’t get discouraged, there’s plenty of things you can do to prepare yourself and pass it the first time.
Those who study and mentally prepare themselves for the exam usually pass on the first try. Here are a few tips to help you pass the Louisiana real estate exam:
- Begin Studying Early
- Get Louisiana Real Estate Prep Materials
- Study Daily and Use the Prep Materials
- Commit to Passing the Exam
While the Louisiana real estate exam can be difficult, you can maximize your chances of passing on the first try with a little hard work on the front end.
How Long is the Louisiana Real Estate Exam?
The Louisiana real estate exam is a fairly long exam. You have 105 minutes to finish the national section of the exam and 75 minutes for the state section. The test has 135 questions that cover your state’s conditions as well as the national requirements in order to obtain your license.
The Louisiana real estate exam costs $85 and the retake fee is $85 if you don’t pass the first time.
Scheduling Your Real Estate Exam
Once you receive the email from LREC regarding your processed application, you will need to schedule your real estate exam. You will have to take the exam in front of a proctor, so be sure to bring your ID and required paperwork with you. You will not be able to bring any testing materials with you into the room.
You must pass both portions of the exam or you will have to retake the part you failed. Once you pass the exam you will have to order your background check from the LREC website to ensure you comply with the Louisiana Real Estate Commision rules and regulations. Next, you will turn in Part B of your initial Real Estate License Application and proof that you purchased Errors and Omissions Insurance coverage.
Louisiana Real Estate Errors and Omissions Insurance
Errors and Omissions insurance covers mistakes that you may make while selling real estate in Louisiana. You must have insurance in order to keep your Louisiana real estate license in force. E&O insurance may be purchased from any insurance company that offers it or you can purchase your insurance through the LREc group policy to save time searching. You can simply go to the LREC website and send your payment.
You Must Work Under a Louisiana Real Estate Broker
You’re almost ready to sell real estate now that you passed your exam and paid for your E&O insurance. LREC requires you to work under a licensed real estate broker. Selling real estate isn’t like most careers where you’re required to work a certain number of hours in an office. Many real estate brokers will sponsor you and allow you to work under their license without it being a full time job.
There are multiple real estate companies in Louisiana that are always looking for new salespeople and it’s relatively easy to find employment.
You’re ready to sell real estate in the Louisiana market once you’ve completed the process.
How Much Does a Real Estate Agent Make in Louisiana?
This is the million dollar question you’ve been wondering about. Here’s the thing; some real estate agents work part-time, others full time, so it’s hard to estimate the average amount of money an agent makes per year.
You may be wondering if Louisiana real estate agents make a lot of money before you get started on switching careers. In short, newer real estate agents will have to build their clientele before building a large book of business. There is a huge range in income because real estate agents who have been selling for years or decades will have a much higher income than a brand new real estate agent.
One look on Indeed.com will show you that real estate agents make substantially more after being in the business for more than 10 years. It’s also important to keep in mind that you can sell real estate on the side and keep your primary job.
Many part-time real estate agents make enough income to quit their full time jobs within the first year if they hustle, network and build a strong client base. The main takeaway is to build your network and continually maintain those connections. People will begin to send you referrals and your income will grow substantially.
However, many real estate agents keep their full time jobs and sell property on the side. They have no intentions of quitting their main gig and there’s nothing wrong with that. Real estate is the type of business that you can easily scale up and make a great living if you do it right.
You can eventually hire your own staff and get your own office space if you build your real estate business. The sky’s the limit and the tools are out there to accomplish anything you want with your real estate license.
You Can Sell Everywhere in Louisiana
Your Louisiana real estate license allows you to list and sell property in every parish in Louisiana. All you have to do is find clients to let you list their property for sale or find buyers who are ready to purchase and you can sell them real estate anywhere. There’s a difference between listing and selling real estate, but you can do both.
Difference Between Listing Agents and Selling Agents
Louisiana real estate agents will usually represent different parties to the sale. One agent will represent the seller, while the other the buyer. The roles have differences, but an agent can choose to do both for their clients.
A real estate listing agent is responsible for marketing a property for their seller. They may do open houses,flyers, websites and other types of marketing.
A real estate selling agent helps buyers find new properties that meet their specifications. You may show them numerous properties before they find the perfect home, but this can lead to repeat business when they decide to sell.
How Listing Agents are Paid
Listing agents normally have an exclusive representation listing agreement with their seller. This means they are the only real estate agent that can list the property. This is also known as an exclusive right-to-sell listing. The listing agent is responsible for getting news out that the home is for sale. Other agents may bring buyers to purchase the home, but it’s the listing agent’s job to market.
There are numerous ways you can market your real estate business. A Google search for “Real Estate YouTube” will give you some starting ideas to help you sell more real estate.
How Selling Agents are Paid
The listing agent usually works with multiple buyer’s agents until the property is sold. Buyer’s agents or selling agents will bring potential buyers to look at the property and submit offers. If an offer is accepted, the clients will enter a Louisiana Real Estate Purchase Agreement to purchase the home.
The commission is usually split between the listing agent and the selling agent so the buyer of the property does not have to pay for the agent’s representation. Basically, the seller of the home will pay a commission to have their home sold and the two real estate agents will “share” or split the commission between themselves.
Buyer’s normally do not have to pay to have a real estate agent show them properties and help them purchase a home or rental property.
Louisiana Real Estate Purchase Agreement
The Louisiana Residential Agreement to Buy or Sell is the document you will use once all parties have come to an agreement on price and other terms. It lists the legal property description, the included rights to the property, mineral rights, price, date of agreement and other items. All parties will sign the document at the bottom and initial to every page to execute the document.
You can find a copy of the Louisiana Real Estate Purchase Agreement right HERE.
Louisiana Real Estate Agent Vs. Realtor
All Realtors are real estate agents, but not all real estate agents are Realtors. A real estate agent is basically anyone who has obtained their real estate license in Louisiana. They’ve completed the 90 hours of training and have passed their exam to receive their license to sell real estate.
A Realtor is a real estate agent or real estate broker who has joined the National Association of Realtors. Realtors have a few added benefits and still maintain their continuing educations, but are held to a higher standard and Code of Ethics. They take additional education that goes further than the basic license requirements. They can also earn special designations and certifications in areas they are interested in. Not only do Realtors complete the regular continuing education that all real estate agents must do, they also complete an extra Code of Ethics training every 2 years.
Selling real estate in Louisiana can be a lucrative career choice. You can do it part-time while maintaining your regular job or you can go full time. The choice is yours and the strength of the Louisiana real estate market gives you plenty of career options.
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