Your guide: How Much to Get Your Real Estate License?
Are you thinking about becoming a real estate agent? “How much does it cost to get your real estate license?” will be one of the first things people will ask you. There are a lot of steps and prices that go into becoming a real estate agent.
Getting a real estate license costs money at every step, from taking lessons to passing the test. Knowing these costs ahead of time will help you make a budget and get ready for your new job. We’ll talk about how much it costs to get your real estate license and what to expect along the way in this guide.
Keep reading to learn more.
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Costs of Initial Education: Courses Before Licensing
Taking pre-licensing classes is the first thing you need to do to get your real estate license. These classes teach you the important things you need to know to pass the real estate licensing test and do well in the field.
The price of real estate classes can vary a lot based on where you live and which school you pick. Expect to pay around $200 to $1,000 for a real estate school before you get your license.
Education that never ends
Once you have your license, you will need to keep it up to date by taking continuing education classes. These classes keep you up to date on changes in real estate law and how the business is run. Going to school for more knowledge can range in price from $50 to $300 per course.
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Fees for tests and licenses: Exam for a state license
You will need to pass the state licensing test after you finish your pre-licensing courses. Most of the time, the test fee is between $50 and $100. You pay this fee straight to the state license board.
Fee for a license
Following your successful test, you will need to pay a fee to obtain your real estate license. Different states have different fees to get a real estate license, but most of the time it costs between $150 and $300. In some places, you may also have to pay extra for a background check.
Costs of Membership and Subscription: Real Estate Brokers of America
There are a lot of real estate agents who join the National Association of Realtors (NAR). Membership gives you access to useful tools, chances to meet other people in the field, and the right to use the term “Realtor.” The annual fee to join NAR is about $150, but this can change from association to association.
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MLS stands for Multiple Listing Service.
Real estate brokers need to be able to access the Multiple Listing Service (MLS). The MLS is a list of homes for sale that real estate agents use to find and sell homes. Most of the time, MLS membership costs between $20 and $50 per month.
Extra costs for marketing and office space
Some costs come with starting a real estate job, like renting an office space and buying business cards and marketing materials. Costs of marketing can include making a website, advertising online, and printing things. You can expect to spend between $500 and $2,000 on marketing at first.
Splitting up commissions
You may agree to split your commissions when you join a real estate brokerage. This means that a part of the fee you earn goes to the brokerage in exchange for help and resources. It varies, but most commission splits are between 50/50 and 70/30.
Conclusion
There are a few costs that come with getting your real estate license. Knowing these costs ahead of time can help you plan and budget well. It can get expensive, but the courses you take before you get your license, as well as the exam and license fees, are all money that you will use in your work.
A ticket to the Multiple Listing Service and membership in a professional group like the National Association of Realtors are also very important things to think about. You should also think about the costs of promotion and possible commission splits with your brokerage.
The total cost of getting your real estate license can change a lot depending on where you live and what you choose. However, if you are ready, the process will go more smoothly. You can be successful in the real estate business if you plan and know how much money you will need to spend. If you’re ready to make the jump, start making a budget right now and get ready for a great new job as a real estate agent.
Happy job hunting!