By: Abbey MacDonald
Money, beautiful women, gorgeous houses, and so much drama– Netflix’s reality TV hit Selling Sunset is full of them all. That would explain why in May of this year, it was the #4 most popular show in the US. Although you may not be seeing very many $100 million homes in Massachusetts, the information and experiences shown in Selling Sunset, as well as other real estate reality TV shows are fairly accurate. When getting started in real estate in Massachusetts, I saw these shows as outrageous and unlikely to be similar to the regular real estate experience, however, the more I learned, I started to see numerous similarities in both the information part of the job, as well as some of the crazy situations you find yourselves in, between working with clients and working with other agents.
The Basics: What is Real Estate?
Real estate is property, specifically referring to land and its improvements. An improvement is any permanent change to a property that will increase its value, for example, a house, or an in-ground pool if you’re feeling super fancy. Now, buying and selling real estate is no joke, as it is (for most) the most expensive purchase of your life. Therefore, you don’t want just anyone helping you buy or sell a property, you want someone who knows what they’re doing, more so than the average person. This is why most choose to hire a real estate salesperson, or REALTOR® (which, outside of common knowledge, are not interchangeable. Anyone who is licensed is a salesperson, whereas to become a REALTOR® you have to pay for a yearly subscription and take additional education). While a salesperson works directly with customers, helping with open houses, negotiations with other salespeople, paperwork, etc. they do so for their employing broker. The only difference between a broker and a salesperson is that a broker can legally handle money and has many years experience of being a salesperson, so the salesperson operates under a brokerage, who helps them and handles money in transactions.
Step 1: Make Sure You Fulfill the Requirements
These are as follows:
1. Be at least 18 years old (19 in some other states)
2. Have legal US residency
3. Complete your required pre-license education
4. Pass your state real estate license examination
So, so long as you are above 18 and have legal US residency, you are ready to begin!
Step 2: Education
First and foremost, find which online classes work best for you. I chose Freedom Trail Realty School because their pricing and class options worked best for me to fit in my spare time. For this specific website, there is a 40-hour class requirement, of which 21 hours need to be taken on live classes with a live instructor, and for the remaining 19 hours you have the option to take them through on-demand classes. You need to take all of the required classes, which took me a total of about 42 hours after all was said and done. For this, the cheapest base option was $206, and the most expensive was $449. I chose the cheapest option, as I did not feel the need to be able to access all of the extras. I had a great experience with them and also found their study materials very helpful. Speaking of...
Step 3: Study, Study, Study!
The most difficult part of the exam is simply the volume of material you need to review for the test. I’ve been told that the second you pass the exam, you can immediately forget 90% of what you studied, but that you need to study to pass. To study, I have been using the study packet provided by Freedom Trail Realty School, as well as watching YouTube videos on common Massachusetts Salesperson exam questions, and things to know to pass the exam. Additionally, I bought a $70 subscription to Night Before the Exam, which has tons of study materials, including videos, games, and more! It was highly recommended by people at my brokerage. This is the most tedious step, and the one I am currently on, but once you are feeling confident then you are ready for the next step!
Step 4: Paperwork
After completing your classes, you get a certificate that verifies that you have completed your education! Then, you need to fill out some forms that get sent over to PSI, which administers the Massachusetts exam. Of these, I had to provide some basic information about myself (name, address, social security number, etc.), my education certificate, an identity verification form signed by a notary public (I made an appointment with one at my local library), and a candidate endorsement that had to be signed by three non-familial people that knew me well. This was so they could complete a Massachusetts CORI check (Criminal Offender Record Information), and make sure that I was who I said I was and that I did not have any past crimes that would make me unsuitable to have a real estate license.
Step 5: The Test
Once you are feeling confident with your knowledge you are ready to take the salesperson exam. You have a 2-year window between finishing your classes and taking the exam, so you have lots of time to study. The exam consists of 120 questions and 2 sections, a national section with 80 multiple-choice questions and a state section with 40 multiple-choice questions. To pass, you need to get at least 70% on each section. If you pass one section and fail the other, you only need to retake the part you failed. After you pass your test, you are immediately licensed in the state of Massachusetts and receive your salesperson ID!
Step 6: Get Started!
Now it is time for you to choose and join a broker! Typically you don’t have to look very much, as brokerages are always looking to bring on more agents. In a brokerage, there are two options you can choose: You can choose to operate as a 1099 independent contractor, or as a W2 employee. A 1099 independent contractor is paid on commission and is largely in charge of their own work and schedule. Meanwhile, a W2 employee gets paid a salary and is therefore under more control from the employer. Most agents work as 1099 independent contractors, especially because they get certain tax deductions that W2 employees do not. Once you have your license, you can join a bunch of programs and resources that will help your business. You will get on MLS (the Massachusetts listings site), and can also join other listing sites for more opportunities, such as Zillow, Redfin, etc. Some of these cost money, but can be worth the investment if you exercise these opportunities to the fullest. Additionally, you may take extra classes to become licensed in other areas so you can list those on your resume. You may choose to join certain associations, such as becoming a REALTOR®. Some agents choose to get licensed in multiple states, so maybe you will choose to start your education in a neighboring state. The number one rule to success in the real estate world is effort, so the more you put in, the more you get out. Get professional headshots, get involved on social media, and start learning how to promote and market yourself.
My Favorite Takeaway... and Good Luck!
During this process, I interned with Castinetti Realty Group (https://homesbycrg.com) and had such a great experience! The agents were all so kind and supportive of everyone, myself included, and all were willing to help each other learn and grow. Working with agents, I learned many skills including how to run an open house, how to reach out to and speak with prospective buyers, as well as other agents, and the most important thing of all: The agents that work hard and try, succeed, and it really is as simple as that. When working with Andrea (the broker), this message is emphasized above all else. When she sees agents working hard, putting in the effort, and making a commitment to their work, she is much more willing to give them more help, as well as more resources to continue building on that work. That is my favorite thing about real estate because it is comforting to know that all it takes to be successful is to work hard and give it your all.