How To Become A Real Estate Agent in Louisiana
Real estate agents are professionals who must be deeply involved in a community besides just knowing local property values. Countless families rely on the real estate industry to decide upon the perfect neighborhood to raise children and lead well-rounded lives.
Real estate agent employment opportunities are projected to grow by 6.9% between 2018 and 2028, an addition of around 25,600 jobs. The median annual salary is $48,690, with earners in the top 10% garnering above $178,000 in 2019.
Getting your Louisiana Real Estate License is anything but impossible. This article will explain the specific steps that must be taken to achieve this career goal.
Prerequisites for the Louisiana Real Estate Exam
Besides having to be at least 18 years old, you need a high school diploma or GED to take the exam. A 90-hour Real Estate 101 course from a Louisiana Real Estate Commission (LREC) state-certified real estate school is also a requirement. You can choose to take this course either in a classroom setting or online.
You will have to register for an account ID with the LREC’s online license management system provider. This ID will keep track of your progress in obtaining your license number to statereporting.com.
An Initial Real Estate Salesperson License Application is required for you to submit. A total sum of $90 will have to be paid when applying. Click here to download the application in its PDF version.
A second application, the Sponsorship Affidavit, must be submitted to provide sponsorship of a broker. Click here to download the application in its PDF version.
This second application is critical since your sponsoring broker is responsible for mentoring you as you start your real estate career. The right questions to ask yourself are, “Will I receive sufficient training?” and “Is this broker known for quality real estate services?” Working with a particular broker is the first step to ensuring your own success in the industry.
A third application is only needed if you are not planning to use your license right away and thus need to have it issued in the Inactive status. Click here to download the application in its PDF version.
There is a final exam for the Real Estate 101 class. The minimum passing score is 75%. A practice exam must be passed before moving onto this final exam.
The Exam Itself
After LREC has processed your application, PSI will send an email instructing you on how to schedule your exam at a designated test center. Two sets of non-expired government-issued identification with matching names and a valid signature are required when you go in to take the test, along with a basic (non-scientific) calculator.
The exam for the Louisiana Real Estate License has two portions: state and national. The state portion covers the following areas of study:
- Duties and powers of the LREC
- Licensing requirements
- Statutory requirements governing the activities of licensees
- Louisiana civil law system
- Louisiana law of agency
The national portion pertains to the following areas of study:
- Property ownership
- Land use controls and regulations
- Valuation and market analysis
- General principles of agency
- Property condition and disclosures
- Transfer of title
- Practice of real estate
- Real estate calculations
- Commercial, industrial, and income properties
The exam contains 135 questions in total. The state portion takes 75 minutes, and the national portion takes 105 minutes.
Studying for the Exam
In relation to studying for the Louisiana Real Estate Exam, you can use this free real estate practice exam as a helpful resource for test preparation and study methods. .
After the License Exam
A criminal background check is also mandatory. The LREC has commissioned Clearbox to conduct this step of the process. You will have to make an account and use a debit or credit card to pay the $75 fee. As the background check results expire 120 days after being issued, doing this after passing the license exam is recommended.
An Errors and Omissions insurance policy is additionally required. For a full explanation of insurance terms and premiums, click this link.
Other Helpful Tips
The Louisiana Real Estate Commission does a great job of providing step-by-step instructions and support for potential real estate agents.
Working as a real estate agent is a smart career move since the industry experiences a low 1.4% unemployment rate and a ranking of #4 in U.S. News’s Best Sales and Marketing Jobs.
Passing the exam requires money, but this process is extremely affordable compared to traditional educational routes. Even studying for the exam to obtain a real estate agent license is not difficult, but still calls for focus and dedicated studying.
The affordability in acquiring the Louisiana Real Estate License also makes up for the industry’s vulnerability to fluctuations in the economy, but an increasing number of employers are preferring to hire real estate agents with some college education. The good news is that some colleges are offering real estate courses and degree programs.
Besides passing the Louisiana Real Estate Exam, another good way to test your suitability for the industry is to see if you have business, interpersonal, organizational, and problem-solving skills. Even so, networking with other real estate agents in a similar position to yours is highly beneficial.
The National Association of Realtors (NAR) assists both agents and brokers, who must pay the association a total of $150 in membership dues as of 2020, in accessing business tools that utilize current technology, networking events, legal assistance, discounts on work-related expenditures, and more.
Considering the fact that Louisiana is a state with prices much lower than those of other states such as New York or California, more customers would be willing to buy property within Louisiana.
There are countless resources that can facilitate your journey to attaining a Louisiana Real Estate License. As long as you display consistent effort and commitment, you will enjoy a successful career.