Illinois real estate agents operate as licensed professionals under a managing broker. This career path requires dedication to compliance with state regulations while providing opportunities for growth and specialization.
As lawmakers return to Springfield, Illinois REALTORS(r) are taking proactive steps in response to advocacy issues affecting clients and communities. Learn about recent legislative changes pertaining to issues like radon disclosure, immigration status status changes and revised resale restrictions that affect them and more.
Education and Licensing
Beginners looking to break into real estate agent in Illinois must go through a comprehensive process which involves fulfilling educational requirements, receiving sponsorship from an approved broker and passing their state’s real estate license exam. This step is essential if they hope to embark upon a lucrative real estate career offering lucrative earnings potential and flexible work arrangements as well as career advancement opportunities.
Illinois Department of Financial and Professional Regulation requires prelicensing education courses as the initial step toward becoming licensed real estate agent in Illinois. Aspiring agents must complete a 75-hour prelicensing course; this comprises two 60-hour courses: pre-license topics course (60 hours) and an interactive pre-license applied principles course (15 hours), both available online. Students can complete these classes when best suits them – these provide foundational knowledge on real estate principles, practices, as well as laws applicable to real estate transactions in Illinois.
Once a prelicensing course has been completed, students must go through an in-person fingerprinting background check and sit the Illinois state licensing exam at one of PSI testing centers. This exam comprises 140 multiple-choice questions spanning national real estate practices and laws as well as Illinois-specific ones – making this requirement for both salespersons and brokers.
Before applying for real estate licensing, new licensees must form an affiliation with a managing broker who will mentor and oversee their business. Managing brokers hold advanced certifications that allow them to operate an independent real estate firm; in return they must sponsor and sign a sponsorship card as evidence that their contract with their new licensee candidate.
Compensation
Incomes of real estate agents in Illinois vary considerably based on market factors, property valuation and sales success. Most agents are paid commission-only rather than receiving an annual salary; as a result, top producers could generate earnings that top out at over $100,000 annually.
As with any business, real estate agents should dedicate time and energy to networking to generate leads and connect with new clients. Finding your niche or specialization will enable you to outshone competitors – residential properties, first-time homebuyers, military relocation services or luxury properties may provide a competitive edge that helps set yourself apart.
Real estate agents must not only market themselves to potential buyers, but must also pay a portion of their earned commission back to their broker firm in order to cover office expenses and licensing fees. A typical commission split is between 50/50 to 70/30 in favor of agents; newcomers should look for brokerages offering mentoring or training programs so as to ease into the industry and become established quickly.
Real estate agents should provide all relevant information regarding the sale of their property to clients promptly, in a manner which satisfies them and represents their best interests. Failing to do this may result in claims of negligence against real estate agents; common examples being not providing updates quickly enough and failing to represent clients appropriately.
Illinois laws mandate that buyer’s agents pay 2.56% of the sale price as commission fees to listing agents, which can be costly for sellers who must also cover mortgage loan origination costs and buyer’s agent commissions. To save themselves some extra expenses when selling property in Illinois, Clever provides sellers with top local agents who charge only 1.5% commission fees and can help connect them to top agents near them who charge flat realtor fee services at lower fees than these requirements.
Continuing Education
Continuing Education (CE) is often required of real estate license holders in most states and for upgrading to broker license status. CE requirements vary across states; check your state real estate commission website for specifics regarding CE requirements in your region.
CE courses provide agents with an opportunity to expand their knowledge. While CE courses often cover regulatory topics, they can also feature relevant content pertaining to today’s real estate market – for instance, how-to courses on new tools like geo-farming might not count for state CE requirements but still can help agents stay at the top of their game.
17 percent of agents who complete continuing education (CE) courses report using it to address areas in which they’re weakest; for instance, if an agent struggles with contracts or real estate law, taking an applicable CE course could help strengthen these areas and become more well-rounded agents.
Many real estate professionals turn to continuing education courses in order to increase their odds of passing the state licensing exam. A number of online real estate education providers provide pre-license education packages with exam preparation included – making passing easier and getting on with your career sooner!
Some states allow real estate licensure reciprocity, meaning if you’re licensed in one state, it will allow you to work as an agent in another without taking their licensing exam. Of course, this only works if you fulfill all the continuing education requirements and possess an active license in both states.
Legal Responsibilities
Real estate agents typically earn commissions. Their earnings depend on local market conditions, property values, and sales performance – although some companies allow agents to share some of their commission with their managing broker. Agents pursuing advanced real estate careers by earning their broker license can manage real estate offices more effectively as well as supervise other professionals as well as handle more complex transactions and operations.
Real estate professionals must comply with specific advertising regulations and the REALTOR(r) Code of Ethics in order to avoid legal complications and maintain a good reputation with clients. Failure to do so could result in legal complications as well as contribute to broader residential segregation patterns. For instance, placing “for sale or rent” signs without additional marketing efforts in an isolated location could prevent applicants from finding their new homes and contribute to patterns of residential segregation.
One of the primary grounds for negligence suits against real estate professionals is failing to disclose information relevant to a property, which may have an enormous effect on its appraised value and represents a breach of fiduciary duties.
Real estate professionals also have an important legal responsibility in protecting their principal’s lawful confidences and secrets. For instance, brokers representing sellers cannot divulge information which might weaken their bargaining position such as buyer preferences for paying more than listed price.
Real estate agents who advertise property without consent of its owner violate Illinois Consumer Fraud Act and can face disciplinary action from their license governing body. Furthermore, this act prohibits concealing, suppressing or omitting material facts with the intention that others rely upon the false, misleading or deceptive information presented.
Career Path
Becoming a real estate agent in Illinois involves an initial investment. Beyond pre-licensing course fees, new agents must cover background check and exam fees; additional courses required by their license application; license application fees; MLS access fees; realty association membership dues and personal expenses such as insurance premiums, vehicle maintenance and work supplies.
New agents typically start off under the supervision of a managing broker who mentors and oversees their professional conduct. Once established in their chosen market, real estate agents should expect to earn commission splits between themselves and their broker; depending on where you live in Chicago this could differ; Rockford or Naperville agents could earn more.
Real estate agents should remain knowledgeable of state licensing laws, which provide a basis for how they should operate and protect the integrity of the industry. Furthermore, they must understand their legal responsibilities and obligations such as compliance with fair housing laws, contractual duties and ethical practices.
Successful real estate professionals strive to continuously educate themselves and broaden their knowledge base. Attentive real estate professionals take steps to continuously enhance their sales and marketing strategies, acquire more knowledge about mortgages and appraisals, as well as earning real estate certifications and designations. Rich Port Scholarship Fund was established to recognize a longtime REALTOR(r) from Illinois who died. It enables racial minority residents of Illinois to take courses that fulfill educational requirements for Graduate REALTOR(r) Institute (GRI) designation in Illinois. Administered by REALTOR(r) Foundation of Illinois, more information on this program may be found at http://rfionline.com/resources/scholarships.php and applications for 2015-16 scholarship year are currently being accepted.