How Do You Get a Real Estate License in Multiple States?

For some real estate agents, getting a real estate license in multiple states makes perfect sense. For example, you may live near the state line and cross it on a daily basis. On the other hand, you may be moving out of state and wondering what it means for your real estate license. Can you transfer it to your new state? In this article, you'll find useful information on how to get your real estate license in multiple states.

Real estate license reciprocity

Real estate is a state-specific industry. That means that real estate laws vary from state to state, and each has its own licensing requirements. Before becoming involved in a transaction in another state, you should consult legal counsel. If you fail to observe the law, it may result in loss of commission or jeopardize your license. So, before you establish yourself in a new state, be sure to understand its laws.

Don't worry; in most cases, you won't have to start the education and licensing process from scratch. That's because many states offer "license reciprocity". That means that if you already have an active real estate license in one US state, you can apply for a real estate license in a new state without taking all the state-required pre-licensing real estate courses.

Usually, you have to apply for a new state license and take the state test without retaking the coursework. Whenever reciprocity applies, the requirements for licensing are reduced. For example, a customer-service-oriented real estate agent might just need to take a few hours of classes from an online school to secure a license in a new state.

Reciprocity varies from state to state

Have in mind that reciprocity varies from state to state, so there are:

  • No reciprocity states - Those states deny reciprocity to all out-of-state licenses (Arizona, California, Hawaii, Indiana, Kentucky, Michigan, Montana, New Jersey, South Dakota, Texas, Vermont, and Wyoming).
  • Full reciprocity states - Those states allow agents to transfer their license from any state (Alabama, Alaska, Colorado, Delaware, Georgia, Kansas, Kentucky, Maine, Mississippi, Missouri, Virginia, Washington).
  • Partial reciprocity states - Those states require limited education and examination for real estate agents from reciprocal states (all states that are not mentioned above).

The best advice is to check with your state’s licensing board for specific requirements.

USA map - States with their capitals.

Different real estate license reciprocity and portability laws apply in each state.

Real estate license portability

Some states have real estate license portability allowing out-of-state real estate agents to work in those states to some extent. It is different from reciprocity since it allows agents to cross the border state and conduct a real estate business. Still, it’s not a long-term solution for those relocating permanently to a new area. In general, there are three kinds of portability laws: cooperative, physical location, and turf states. Each of these classifications defines different circumstances under which an out-of-state real estate agent may work within the state.

Cooperative States

In cooperative states, you may be required to have a co-brokerage agreement with a broker licensed in that state. Then, you'll be able to conduct real estate business - property showings, closings, negotiations, and other transactions. However, be sure to familiarize yourself with local requirements before committing to a client looking for property in a cooperative state because some limitations are still possible.

Physical location states

The physical location states only allow you to help your client remotely while you're located in the state in which you're licensed. Since most aspects of the real estate job can be done remotely, that shouldn't be a problem. You may not enter the state for showings, closings, or any other real estate transaction. You can send your clients to view properties, submit offers on their behalf, and negotiate transactions as long as you remain in your state.

Turf States

There are some US states that do not allow out of state real estate agents or brokers to conduct any business in their state:

  • Kentucky
  • Missouri
  • Nebraska
  • New Jersey
  • Pennsylvania
  • Utah

Without their state's license, you can't work in person nor even remotely. If you have a client from one of those states, you can refer them to a real estate agent/broker who has a license in that state. Or, you can decide to apply for a license right there by yourself if you have the time and money.

A businessman doing research on his laptop on how to get a real estate license in multiple states.

Researching local laws is crucial if you're planning to move or expand your business.

Conducting business with real estate license in multiple states

Building your businesses in other states means more commissions. However, it also means learning about new, local laws and encountering different document formats, varying requirements, etc. Conducting business for a client who wants to buy a property in another state is tricky either way. Furthermore, local agents may try to poach their business. Also, out-of-state real estate practices are often complex. So, look into state-specific license reciprocity and portability laws thoroughly before determining whether you'll keep a client. If you find local regulations frustrating and client needs just too complicated, consider referring that client to a local agent from your real estate network.

When you have a license that allows you to practice real estate in another state, you must pay income tax in another state. Assisting clients with out-of-state properties may not be so difficult if you have solid experience, a great lawyer, and a tax assistant. You can also seek the supervision of a broker experienced in out-of-state transactions.

A real estate agent showing a property to a family.

Getting your real estate license in multiple states will help you grow your business and expand your network.

Getting a real estate license in multiple states will give you more freedom to move if you have the opportunity to do so. When planning an interstate move, you can decide to choose a state with reciprocity. Or, you can pay to go through the licensing process in the new state. However, make sure that you plan this process well and have appropriate assistance. Professional interstate movers can help you have a simple relocation across the country and avoid stress. After moving, packing, and settling in, you can continue working and making income from your real estate business.

All in all

Getting your real estate license in multiple states will allow you to create your own opportunities and set your own schedule. Also, you'll be able to enjoy the perks of living in your dream location while still having clients and closing deals.

 


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The Impact of Remote Working on the Housing Market

Some people still remember the old dial-up internet connection. Sometimes, it would take as long as a minute to load a particular page. And imagining doing any kind of serious work was a completely absurd thought. Fortunately, things are entirely different now. Today, almost everyone has access to high-speed internet connections. And the majority of businesses use it, one way or another. It is one of the backbones of whole industries, and functioning without it now seems impossible. As a result, working from home and even attending professional development courses from home have also become an ordinary thing, especially lately. However, that brings specific changes in how businesses operate and from where. Meanwhile, employees, employers, and real estate agents are starting to wonder about the impact of remote working on the housing market.

How significant is the impact of remote working on the housing market?

Given the recent changes forced upon the business world by inconvenient medical events, everyone is trying to adapt. And chances are, after all the adaption is complete, the remote working trend will remain for a while. Maybe even for good. If the researches are true, remote working is reducing business costs. In addition, it increases productivity by a significant measure. With such unexpected results, the housing market will have to adjust accordingly.

So let's take a look at current and possible changes we might expect:

Some people will leave expensive cities.

Besides those who really enjoy the city crowd, most of the workforce will probably leave large cities. Places like New York and San Francisco are costly, and most people who live there do so only because of their jobs. But, if you give them the opportunity to keep the job and live in a more affordable location, you can guess the outcome. Having a well-paid job without worrying about monthly bills is definitely a just goal. With this in mind, some of the residents are already calculating their moving budgets. As a real estate agent, you'll have to adapt and offer some tips to your clients. Looking in the long run, this will probably lower the demand in those expensive places. With lower demand, prices will undoubtedly go down. Eventually, it will balance the discrepancies that have lasted for quite some time now.

A pass between two buildings in one of the business centers.

There is no need to stay in large business centers with remote working.

Remote working will affect the demand for specific housing options.

With more people shifting toward remote working, a large percentage of those will work from home. With this in mind, many are already implementing a home office. Those who haven't, but plan to relocate, are now looking for different housing options. Because now they can afford a more spacious home, the home office has become one of the requirements. And not only that. Once you have the opportunity to customize your working space, the appetite rises. As they need to spend more time at home, they will need larger outdoors and even indoor gyms. People will ask for modern, tech-oriented features, like hi-tech appliances and energy-efficient solutions. Most older homes will have to go through the renovation stage to stay competitive on the market.

The contractor installing solar panels on the roof.

A lot of older houses will require contractors to implement energy-efficient solutions.

Even real estate is going remote.

Brokers will face difficult decisions if the remote work trend continues. There might be less and less demand for traditional apartments and similar housing options. They will eventually have to invest a lot to adapt all the property in their area. But, there is another option. They can change the way they work by following these remote trends. And this is precisely what some of them are already doing.

With a full embrace of technology, most aspects of the real estate job can be done remotely:

  • There are already virtual tours instead of open houses.
  • Modern communication apps allow easy interviews with tenants.
  • All security checks are accomplished online.
  • Digital certificates enable dealing with all the documentation.
  • You can even schedule maintenance and renovation tasks with contractors over the internet.

And these are just some of the benefits the entire remote philosophy is bringing to the table.

Making a business agreement with another person online.

Brokers can manage all their business tasks online.

Real estate agencies can expand to more distant locations.

All the potential shifting happening in the housing market is fundamentally reshaping real estate. But not necessarily for worse. Fortunately, brokers will have the opportunity to benefit by expanding the business to more distant locations. With all the remote options we previously discussed, great possibilities are emerging. These newfound potentialities will make it viable to control and handle far markets. Basically, you won't have to focus on one area, you can expand to both suburbs and the more distant regions, and more far-away cities as well. With online payments being one of the primary ways of transferring money, it is only a matter of time when all the payment procedures will be completely automated.

Remote investments

This remote control and automation could lead to an increase in remote investment. Since real estate agencies will be expanding their influence to other areas, people will have an easier time investing in distant property. They will also help people manage their property online as well. With all the advancement in technology, and all the remote working trends going on, living near your investment will no longer be necessary. This principle pretty much already works fine in several other business areas.

Will the remote working trends and changes stay?

In all honesty, people are aware that investing in a constantly changing housing market can be tricky. Especially now when changes are still without firm foundations. Also, the percentage of remote workers themselves believe that these trends are only temporary. Many expect to be back in their offices once the crisis is over. On the other side, some claim that this was inevitable, a sort of long-expected business evolution. Also, some people just can't decide if they like offices or remote working more. And this can reflect on the housing markets in unpredictable ways.

But the key is to find a middle ground between all the sides. In general, some larger companies are already seriously considering solutions. Opening remote offices all around the globe could be the right move. It will allow companies to get cheaper offices and almost eliminate commuting for employees. Everyone could be working everywhere if the nature of the business allows.

A young man browsing the internet on his laptop in a café.

The old stereotype of a remote worker is far from the truth.

Today, we realize that a remote worker is not a typical stereotype packed into a young freelancer working from the internet café.  It's an average businessman earning his salary by dealing with all the business demands online. And those average businessmen have different concerns when it comes to their housing options. The impact of remote working on the housing market is significant and will probably have an even more considerable influence in the future. Maybe some of them will not permanently leave their offices for the sake of working from home. But, all signs are pointing at the fact that it's something inevitable we might expect in years to come.

 


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