Do you need to attend Real Estate School? Real estate investors do not necessarily need to attend real estate school, but if you plan to make real estate investment a full-time career, or if you plan to make real estate investment a long-term career, you may want to consider spending time in real estate school.
Depending on your level of current knowledge of real estate, there are different levels of real estate classes you can take. Some companies and schools simply offer brush up courses or general courses, which will give general knowledge of real estate investments. Some real estate companies and schools will even offer free classes that just give basic information on real estate, for those interested in purchasing real estate for the first time, or possibly those interested in considering real estate investment.
If you are planning to become a real estate agent or broker, it is essential to attend real estate school. Although you may be able to complete some real estate work without attending real estate school, you cannot take the real estate exam and receive certification as a realtor without attending school. When you go into real estate school to become an agent or a broker, you will be trained in all facets of market research, buyer and seller requirements gathering, full disclosure, and administrative tasks associated to processing and closing the sale. Brokers are also trained and tested in how to start and run a real estate office. Real estate schools only lasts a few months, depending on many classes you plan to take at one time and how quickly you plan to finish the program.
The following table gives a list of topics that an agent and a broker will study at a real estate school. These topics are covered in the national and state portions of the PSI Real Estate Exam.
Topics covered in real estate school and on the PSI Real Estate Exam:
1. Types of property, owning of property, and types of ownership.
2. Types of restrictions, like deeds, that limit how property can be developed or used.
3. Methods for researching a market, determining your target market, assigning a value to a property, and comparing market analysis of different properties to each other.
4. Financial institutions available to consumers and what they offer.
5. Types of disclosures required for property transactions (e.g., disclosure, inspections, etc.)
6. The types of contracts that customers may enter into, such as leases, lease to own, and offer/purchase agreements.
7. Topics associated with transferring property from one customer to another, such as escrow, taxes, and title insurance.
8. Learning the role of a real estate agent, which includes processing property closings, advertising to potential customers, researching potential markets in which you can work, etc.
9. Reviewing the mathematical formulas associated with buying and selling property processing mortgages, and determining taxes and return on investment.
10. Reviewing aspects of property management in the commercial building sector.
When brokers take the exam, the exam will cover the same information. The difference in the exams is in the number of questions. The number of questions will vary for each section in the broker exam compared to the questions in the agent exam.
The real estate school will also cover national real estate information as well as provide classes that are specific to your state. You will take classes on licensing, mortgages, the different types of consumer loans, and deeds and titles. You will take courses in traditional sales and listing practices to give you a background in how basic sales have been conducted in the recent past. You also will receive soft skills information to help you become a more motivated and organized real estate agent.
To find a real estate school in your area, first contact a real estate agent or broker you know and see if they will recommend a school in your area. You can also contact a real estate agency directly for a recommendation; however, keep in mind that some agencies run their own schools. To receive a list of schools, contact your city’s Chamber of Commerce and/or search the Internet for real estate schools and the name of your city. These search methods should give you many choices on potential schools to attend.
