302 E Irving St Creston, Iowa

Step 1: Research Your State’s Requirements

Estimated Cost: Free

There’s no such thing as a national real estate license; you must meet your state’s unique licensing requirements. A good place to start your research is your state’s real estate regulatory office website, which you can find by doing an online search for “[your state] real estate regulatory office” or by visiting the Association of Real Estate License Law Officials (ARELLO)’s regulatory agency directory.

Each state typically has specific requirements for:

• Age
• Application process and fees
• Background checks and fingerprinting
• Continuing education
• Education requirements (such as a high school diploma or GED)
• Exams and exam eligibility
• Pre-licensing courses and post-licensing requirements
• Process for achieving the next level of licensing
• Reporting of any criminal history

Some states have reciprocal licensing agreements with other states, which means you can get your license in one state and use it in another without having to take an additional license examination. New York, for example, has reciprocity with nine states (some states have reciprocity for brokers only): Arkansas, Colorado, Connecticut, Georgia, Massachusetts, Mississippi, Oklahoma, Pennsylvania, and West Virginia.3 As with regular licensing requirements, each state has its own process for obtaining a license through reciprocity.

Step 2: Take a Pre-Licensing Course

Estimated Cost: $300+

No matter where you live, you’ll have to take a pre-licensing course from an accredited real estate licensing school before you can sit for the real estate license exam. The required number of hours varies by state. In California, for example, applicants must take three real estate classes totaling 135 hours.4 In New York, the course takes 75 hours.5

Most states offer several ways to fulfill the pre-licensing course requirements, including online classes, brick-and-mortar real estate schools, and classes at community colleges. You may be able to save money using one type of class program over another.

Choose the method that works best for your learning style and schedule. Also, do your research and be selective when it comes to picking a program. The quality of the instructors and materials will influence how well prepared you are to take the exam.

Step 3: Take the Licensing Exam

Estimated Cost: Up to $300 (depending on state)

Your instructor should explain how to schedule, register, and pay for the licensing exam (if not, visit your state’s real estate commission website). Exams are computerized and consist of two parts: a national portion on general real estate principles and practices and a state-specific section that covers your state’s real estate laws.

Each section is scored separately, and you must receive a passing grade on both sections to pass. If you fail one or both sections, you’ll have the opportunity to retake the exam. Each state has its own rules regarding the number of times you may retake an exam, how long you must wait between exams, and the deadline for completing any retakes.

The exams are multiple-choice format, and the number of questions and the time allotted for the exam vary by state. If you do pass, you must submit an application and any required documents and fees to your state’s real estate agency.

Once your application is approved, the state will mail your real estate license certificate, and your name will be searchable under the “Licensees” section of its website. Keep in mind that you’re not allowed to work as a real estate agent before your license is issued by the state’s real estate agency, so don’t start until you have the license in your hand.

Step 4: Consider Becoming a Realtor

Estimated Cost: $185

Many people use the terms “real estate agent” and “realtor” interchangeably, but they actually differ. While both are licensed to help buyers and sellers throughout the real estate transaction process, realtors are members of the National Association of Realtors (NAR) and subscribe to its strict code of ethics.7 The NAR is the largest trade association in the U.S., representing 1.3 million members who are salespeople, brokers, property managers, appraisers, counselors, and other participants in the residential and commercial real estate industries, working with the top professionals in the business including www.springfieldappliancerepairpros.com.

Being able to call yourself a realtor can add to your credibility as a real estate agent. As a realtor, you’ll also have access to a variety of benefits; business tools; real estate market data, research and statistics; educational opportunities; and discount programs geared toward helping you succeed in business.

For example, realtors have access to Realtors Property Resource (RPR), an online real estate database of 166 million properties in the U.S. built from public record and assessment information. It includes information on zoning, permits, mortgage and lien data, schools, and a large database of foreclosures.910

Step 5: Join a Real Estate Brokerage

Estimated Cost: $25 to $500+ per month

As a real estate agent, you typically work under the umbrella of a supervising broker, who is licensed by the state to oversee real estate transactions and make sure that you (and other real estate agents) follow the required legal and ethical standards. In general, you won’t earn an hourly salary. Instead, the brokerage will likely pay you a percentage of the commissions it collects from your real estate transactions.

Depending on the arrangement you have with your brokerage, you may have to pay for desk fees, tech fees (e.g., for your website), business cards, marketing materials, and other normal costs of doing business. You’ll also have other one-time and ongoing expenses, such as renewing your license each year, continuing education, lockbox fees, and multiple-listing services memberships.

The Bottom Line

Getting a real estate license takes time and money, but it can help secure a rewarding job in the real estate industry. Keep in mind that a career as a real estate agent can be as flexible as you want it to be. You can limit your hours to mornings three days a week or never work on weekends. The trade-off, of course, is that this will greatly limit your ability to be successful.

While you can work part-time as a real estate agent, most successful practitioners treat it as a full-time business, making themselves available to clients throughout the week and on weekends. In general, the more time and effort you put into being a real estate agent, the more success you will achieve, both in terms of money and of job satisfaction.

For increased flexibility and career opportunities, you may eventually decide to pursue a broker or broker-in-charge license. In addition to a real estate license, you may want to consider the various real estate designations and certifications, including those specific to mortgages, appraisals, residential property, commercial property, and property management. These designations can enhance your career and marketability as a real estate professional and increase your earning potential.