Starting a career as a real estate agent in Southwestern Michigan can be a step towards an exciting and rewarding journey. There’s plenty of potential for growth, community involvement, and financial success when it comes to working in one of the most dynamic property markets in the nation.
From your viewpoint at the beginning, your career in Southwest Michigan real estate may look obscure and uncertain. But with the right tools, information, and the support of the right community behind you, you’ll be on your way to achieving real estate success quicker than you think. From applying for a real estate license and building your own network, to being a top producer, here’s what you need to know about becoming a successful real estate agent in Southwestern Michigan.
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Overview of Southwestern Michigan’s Real Estate Landscape
Southwestern Michigan’s real estate market remains dynamic, with opportunities for buyers, sellers, and investors alike. This corner of the state offers a diverse mix of residential real estate properties, from ranch-style houses with stunning lake views to spacious condos in active adult communities.
Southwestern Michigan experienced a housing surge during the pandemic, with inventory decreasing as many made the move to this thriving region. Even after the peak of the pandemic had passed and the number of houses sold declined, housing prices reached a record high. Now, Southwestern Michigan continues to experience high demand and limited inventory, making it a competitive market, and here is where you can work your magic and earn wind for all you clients, both sellers and buyers.
Getting started in your real estate career
Before diving headfirst into showing properties and closing deals, you first need a real estate license. A real estate license gives you legal authority to represent home buyers, sellers, and investors. It also lets you access resources like the Multiple Listing Service (MLS) and places you in a position where you can begin developing and expanding your network.
Each state has its own specific licensing requirements for real estate agents. While there may be similarities in the process, such as passing the licensing exam, the exact requirements for each state can vary significantly.
In Michigan, those applying to be a real estate agent must pass the requirements of the Michigan Department of Licensing and Regulatory Affairs (LARA). First, you must be at least 18 years old and a U.S. citizen. You also need to have a high school diploma and a valid social security number.
To confirm eligibility and ensure trustworthiness, LARA conducts background checks on all candidates. One of the requirements of obtaining a Michigan real estate license is “good moral character.” While felony convictions and certain misdemeanors can affect your eligibility, your approval is largely up to the discretion of the department. Given that there is no malicious or untrustworthy intent on your part, it’s best to be honest and transparent during the application process.
Completing the 40-hour pre-license course
Passing the 40-hour pre-licensing course is the next step to becoming a real estate agent in Michigan. Even if you already have a real estate license in another state, you are still required to take a LARA-approved pre-licensing course. This comprehensive course will teach you the basics of real estate law, ethics, and practice, as well as specific topics in relation to buying and selling Southwest Michigan real estate.
Other topics that may be discussed during the pre-license course are:
- Leasing and property management
- Property disclosures
- Contractual relationships
- Real estate calculations
- Valuation and market analysis
Before signing for the pre-license course, consider your learning style. Are you looking for flexibility to learn at your own pace? Or do you prefer a traditional classroom setting where you can interact with the teacher and fellow classmates? When you take the 40-hour pre-license course, you have the option to choose between in-person and online classes.
Choosing a sponsoring broker or brokerage
While it’s not mandatory, having an active Michigan sponsoring broker before taking the state’s real estate licensing exam can streamline the application process. A sponsoring broker is a licensed real estate broker who has at least 3 years of experience and is willing to be your guide as you start your real estate career. With a verified sponsor, you can receive your active license once you pass the test. Should you pass the test without having a sponsor, you will have a year to do so from the day you received your results. Should this time allowance lapse you may have to retake the exam. Again, this will be largely dependent on the discretion of the LARA.
Applying for a Michigan real estate license
The next part of your Southwest Michigan real estate journey is to create an account on the LARA Michigan Professional Licensing User System (MiPLUS) website. This website will serve as your portal for licensing applications, renewals, and tracking the status of your application.
Once your account is set up, you can begin filling out the online application. As you progress through the application, you’ll need to upload your pre-licensing certificate stating that you have completed the course. If you have no Social Security number, send a Social Security affidavit instead. Non-Michigan residents who are applying to be a real estate agent here must also upload a Content to Service of Process while qualified veterans must upload their DD-214 or DD-215 forms. Applicants who already have a sponsoring broker can enter their sponsor’s details, such as their name and 10-digit identification number.
Here are some things to keep in mind when applying for a Michigan real estate license:
- There is a fee that all applicants must pay, unless you are a qualifying veteran.
- After submitting your application and paying the fee, you have one full year to take the exam.
- Confirmation of application from the State of Michigan typically takes around 2 to 5 business days.
Taking the Michigan real estate licensing exam
The Michigan real estate licensing exam is administered by Psychological Services, Inc. (PSI), a company that provides testing services for various licensure programs. When your application is approved, you’ll get a confirmation email with details for registering on PSI’s website and scheduling the exam. You can take the test at any of these PSI testing centers in Michigan: Dearborn, Southfield, Gaylord, Grand Rapids, Marquette, and Holt. There is also a separate fee to be paid for the exam.
The exam, which is taken on a computer, has a total of 115 questions that cover both state and national real estate topics. Expect questions on property ownership, land use regulations, basic real estate calculations, and property conditions and disclosures, basically everything you studied during your 40 hour course. You have 3 hours to complete the exam and you can receive your score immediately. The passing score for the Michigan real estate exam is 70%.
Reminders for taking the licensing exam:
- Bring 2 forms of valid ID.
- A non-programmable calculator is allowed.
- You must have an application for licensure.
You can retake the exam as many times as needed. However, you must pay the examination fee for every attempt.
Getting the results
After passing the exam and having a confirmed sponsoring broker, you can receive your license immediately at the testing center. If you were not able to find a sponsor beforehand time, don’t worry; the State of Michigan will record your passing score and wait until you receive a sponsorship.
Finding the Right Brokerage
When it comes to finding a sponsoring broker, it’s important to choose one that aligns with your goals and values. Getting this part right can make a profound difference to how quickly and how well your career progresses. These are some of the factors to consider:
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Type of brokerage
The broker or brokerage that you choose to be your sponsor should specialize in the same type of real estate that you’re interested in. If you’re interested in residential properties, for example, obviously enough, you should find a sponsor broker who primarily deals with residential real estate. It’s worth being selective at this point as you have the time and it truly an important decision.
Decide also if you want to work with a national brokerage or a local one. The advantages of working with a national brokerage is the name recognition and its extensive resources. National brokerages also have bigger networking opportunities since they typically have other offices and agents across various regions in the country. Local brokerages, on the other hand, have in-depth knowledge of the local area and they offer more personalized support. Something between may be ideal, providing you with all the tools and resources you’ll need but also allow for greater levels of development and integration within a specific community.
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Support and training offered
Choosing a brokerage that invests in the development of their real estate professionals is crucial, especially for agents who are new to the field. With the right training and support, you are given the skills and guidance necessary to succeed in your real estate career. Always ask about the kind of educational and professional development opportunities that the sponsoring broker is willing and capable of providing.
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Commission and benefits
Since commission splits can be tricky, it’s important to understand the commission structure of a potential sponsoring broker before choosing them. As a real estate agent, commission splits are a significant part of your compensation. You want to make sure that the split is fair and aligns with the value you bring to the brokerage. With a potential sponsoring broker, always ask about the commission splits and if there are any hidden fees.
Networking and Building Your Clientele
As a new real estate agent, building a strong network is essential for opening doors to further opportunities. A good network can be a great source for potential leads and also give you access to exclusive information. This network should expand beyond other real estate agents to professionals in involved in the industry, such as lawyers, lenders and builders. This raises the value of what you can provide to your clients, and makes you a much more complete package.
One of the most common mistakes that new real estate agents make when networking is choosing quantity over quality. In real estate, it’s not about the number of contacts you have. It’s about developing meaningful and genuine relationships with people who could truly benefit your business. These reciprocal relationships can literally last a lifetime and can become the basis by which much of your business as a real estate agent is done.
There are several ways to start networking as a new real estate agent. One way is to attend networking events and conferences. Whether it’s a business expo or a family-friendly event, participating in these events lets you connect with like-minded professionals and even potential clients. A part of networking also includes being active with your local community. Aside from finding clients, this also gives you a deeper understanding of the local neighborhoods and its residents.
Thriving in the Southwestern Michigan real estate market
Here are a few tried-and-tested tips that can help you during your first year as a real estate agent:
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Prepare your plan
While launching your career as a real estate agent is an exciting and rewarding experience, it also requires careful planning. When you have a roadmap for your career, you are able to stay focused, motivated, and on the right path towards real estate success. Set realistic short-term and long-term goals. Short-term goals allow you to work on your foundational skills and maximize your potential, while long-term goals shape the trajectory of your career.
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Create your brand
As a new real estate agent, it’s essential to figure out who you are as a professional and how you want to present yourself to the world. It helps to narrow down the property types that you want to specialize in and the demographic that you can best connect with. When you know your brand, you are able to market yourself and set yourself apart from the competition. Then when you have one specialty down, you can think about expanding you specializations.
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Have an online presence
In today’s digital world, having an online presence is important for your real estate business. Nowadays, buyers turn to the internet to search for potential homes and sellers utilize online platforms to show their homes. As a real estate agent, an online presence allows you to reach a wider audience and lets them get in touch with you easily. Whether it’s through your own website or through social media platforms, you can show listings, share client testimonials, and provide content that establishes you as an expert in your field.
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Keep track of everything
One useful habit that should start as early as day one is tracking and measuring everything. Whether it’s taking note of your licensing fees or listing how much you’ll be spending on marketing your brand, being a real estate agent is also a business and you need to treat it as such. -
Never stop learning
The secret of almost every successful real estate agent is that they never stop learning. The real estate industry is dynamic and constantly changing. There’s always something new to learn, from the latest market trends to innovative marketing strategies. When you keep an open mind, you can expand your knowledge base and become an expert in different aspects of your industry.
Join Southwest Michigan’s Top Real Estate Team
Achieve your goal of becoming a licensed real estate professional with the help of the Michigan Top Producers. Led by industry veterans David Thompson, Brandon Hamilton, and Ryan Teunis, our team has a proven track record of success. With our agents averaging at least one home sold every 10 days, you have the opportunity to learn from the best and thrive in this competitive market.
Take a step towards a rewarding and fulfilling real estate career by being a part of Southwest Michigan’s top real estate team. Reach out to us at Michigan Top Producers by giving us a call at 269.251.8711. You can also send us a message here. Start on the right foot and let’s see how far you can go.