Benefits & Challenges of Acquiring a Real Estate License

A real estate license is used for certain purposes by different types of real estate professionals. In order to be distinguished from the crowd, some real estate professionals—especially real estate agents—add certifications and titles after their names; no matter who they are or in what capacity they work—whether as real estate associates, brokers, salespersons, or consultants—they can be able to acquire a license to buy and sell real estate.

There is a subtle difference though: real estate agents cannot function in the capacity of real estate brokers, except they have a real estate broker’s license; on the other hand, real estate brokers can function in the capacity of real estate agents.

Although there are benefits gained from acquiring a real estate license, if a licensed real estate professional is not geared up for the duties associated with having a license, they might not appreciate the luxury or benefits of acquiring a license. It’s possible for a real estate professional to succeed with a license, and also possible to succeed without acquiring a license.

But why is it common for most real estate professionals to go the extra mile and fulfill all necessary requirements to acquire a license? Actually, there are benefits, but there are also challenges associated with acquiring a license. This article provides insight into the benefits and challenges—pros and cons—associated with having a real estate license.


1. Earning unlimited commissions by buying or selling properties for one’s self

Usually, when an unlicensed real estate professional—say, a real estate agent—buys a house that has been placed on the MLS (Multiple Listing Service), the commission is split equally (50%/50%) between the buyer’s agent and the agent who placed the house or deal on the MLS.

But each time a licensed real estate professional buys or sells any property by themself, they can earn up to 50% of the commission for themself and may decide to use the money for closing costs, to make down payment, or channel it to other avenues that can grow their real estate business.

2. Earning unlimited commissions by buying or selling properties for others

A licensed real estate professional can earn unlimited commissions each time they help other individuals buy or sell properties; the commissions, which could amount to a lot of cash, can be used to achieve success in real estate investing when applying a particular scheme or strategy.

3. Establishing connections or create strong relationships

Within a body of licensed real estate professionals—locally or internationally—each licensed real estate professional has the potential to establish connections or create relationships with other professionals (attorneys, appraisers, contractors, lenders, appraisers, title companies, etc.), expand their business or reach, and enhance their potential to multiply their income.

4. Managing any deal directly

A licensed real estate professional doesn’t need the service(s) of a third party to manage any deal; they can do it directly—by themself—regardless of whether they are buying or selling any property. Generally, they can be able to influence any decisions and control the outcome of any choices they make.

5. Having direct and limitless access to the MLS

One major benefit real estate professionals stand to get is direct and limitless access to the MLS; such level of access doesn’t require the connection of an agent to access listings on the MLS. Having direct and limitless access to the MLS helps to get and close deals faster.

6. Having direct access to view properties

A licensed real estate professional doesn’t need to pass through an agent before checking or assessing any house or opening its door for inspection: the possession of a license makes it easier for properties to be searched for and accessed without waiting for the presence of another professional—especially an agent.


1. Getting education—and likely more education

It’s not quite easy to acquire a license; it’s even less easy to acquire more education when a license had to be renewed or maintained. Generally, a significant level of education has to be acquired regardless of the stage a real estate professional has reached during their professional practice.

2. Paying certain costs

It’s not free to acquire and maintain or renew a license. Generally, a few thousands of dollars have to be spent upfront before anyone can get a  license, and several thousands of dollars have to be spent each year to renew, maintain, or hold on to a license; however, this won’t be much of an issue if a real estate professional is making money from their practice.

3. Doing paperwork

A licensed real estate professional usually has a lot of paperwork to do and manage; this can be challenging if one is not consistently organized, especially to an appreciably high degree. Even if a professional has a secretary or typist, from time to time they may need to dive into paperwork to get to the root of some things or issues.

4. Maintaining focus

As it is with any endeavor in life, maintaining focus can be difficult if an individual isn’t self-motivated or lacks interest in performing professional duties because of their inability to make considerable or high gains from the effort and time used in an endeavor.

It takes a significant amount of time for a typical licensed real estate professional to successfully supply what would be required to tackle the demands placed on their license; the stress involved could make any licensed real estate professional incapable of maintaining a minimum amount of focus needed to carry out their real estate duties.

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