Real estate agents and brokers can hold licenses in different states concurrently. The procedure and requirements for getting a real estate license vary from state to state –meaning the rules and regulations are state-specific.
There are numerous reasons why real estate professionals seek licenses from multiple states. It offers the ability to conduct business in diverse markets, expand your business, and win a bigger market share. Typically, working in various states is flexible and often improves the chances of handling lucrative projects.
While cross-border real estate transactions have some challenges, the following benefits make multiple licenses ideal for growth-oriented professionals.
1. Get More Opportunities than the Average Real Estate Agent
Most states license real estate agents based on state-specific laws and regulations. However, many states support licensing reciprocity. This principle means you can apply for a license in the state without retaking the coursework.
Similarly, some states practice license portability, allowing agents to handle clients up to a certain limit in the state. This feature means you can collaborate with state-based clients or help your clients remotely from your home state.
Regardless of the work arrangement available in a specific state, having multiple states opens more opportunities for work.
2. Enjoy Full Reciprocity
States with full reciprocity allow real estate professionals to transfer their credentials from one state to another. However, you can only practice after passing the state’s exam, culminating in license issuance. This minimizes the time needed to complete the coursework since you will only concentrate on state-specific property laws.
Nevertheless, only professionals with active licenses are eligible for another license in a new state. Most importantly, ensuring your license standing isn’t compromised by previous industry malpractices is critical. This means you should be clear from any disciplinary action, suspensions, or penalties in your current state.
In addition to having a current and active real estate license, you must ensure it’s in good standing. As such, it helps if you are not under any disciplinary action in the current state where you practice.
At least five states support full reciprocity, meaning agents from any state can transfer their credentials and serve clients. Others only recognize licenses from other states with similar real estate laws. Therefore, it’s vital to understand the regulatory frameworks in the state you want to obtain a license.
3. Freedom to Move Around When Working
Holding valid real estate licenses from different states or countries offers you the freedom and unique flexibility to move around while still working. If you are planning to move to a certain state, you can complete the conventional licensing procedure and earn your license. But if you already have your first license, the process is easier.
Practicing real estate professionals living in multiple seasonal homes at specific times can benefit from multiple licensing. Being a multiple license holder means you can continue practicing your trade regardless of your location each season. Instead of taking a break from your job, you can start serving clients in the new state.
In addition, international real estate agents often travel across the world and experience cultural diversity. While travel is unavoidable in cross-border deals, it offers invaluable learning opportunities that can open lucrative deals that help build your career.
4. Career Differentiation
There are many real estate agents in the industry competing for the same opportunities. But identifying yourself as an international real estate agent sets you apart from your counterparts dealing with local property and transactions. Clients who plan to acquire real estate in another state or country with a different jurisdiction are more likely to consult and use your services.
Also, strategic differentiation helps you enjoy opportunities that may be out of reach to agents with no legal authority to offer services across borders. It enables you to cast your nets wider when looking for clients –meaning you have higher chances of dealing with clients looking to close deals quickly.
5. Higher Networking and referral Opportunities
Real estate agents and brokers with licenses in multiple states and countries can network and receive referrals from anywhere in the world. This ability widens the earning gap between local agents and international agents.
Once you build a vast network of clients and professionals in the industry, chances are there will always be someone seeking your expertise and services. And if you are not licensed to transact in that country or state, you can still reach out to your contacts in that state, refer the clients, and earn passive referral fees.
Bottom Line
Portability and reciprocity agreements between states can help real estate professionals work in different states. If you want to expand your business and improve your income, getting multiple licenses can be a good investment.
Breaking the location barriers grants you more flexibility and a wider client base. Besides, you get the chance to experience and enjoy different cultures while working.
