Licensing is a great way to begin your real estate career. There are many types of licenses, but all require you to have adequate training first! The cost for most states’ real estate license exams varies depending on whether you take the test in person or online, how much preparation material you have, and if you study using a course curriculum or not.
However, one thing that stays the same across every type of licensing exam is that you must pay an initial testing fee as well as a re-testing fee several months later. These costs can add up quickly, so it is important to be aware of what each state requires before you start investing in materials and tests.
In this article, we will discuss some common types of real estate licensings and their fees. We will also talk about how expensive buying pre-made preparatory courses can be, so instead we will focus on studying via course curriculums only. Luckily, there are plenty of free resources available to aid in your education! If you would like more information about any topic mentioned here, feel free to check out our other health care related articles at CareersBoost.com.
Licenses That Are Necessary For Realty Agents
Most states require people working in the realty industry to be licensed. These agents may work from property they own themselves or represent another agent or company as a sales associate, broker, or principal.
Real estate license fees
The price of a real estate agent’s license varies from state to state, and even within states there are different levels you can earn depending on your experience. Some require that you be licensed in your area while others don’t!
Most agents pay an initial licensing fee for their brokering certificate as well as a recurring membership dues for being a part of the Realtor Association. This association covers things like keeping up-to-date with current laws, establishing business relationships with other members, and offering various educational opportunities.
The exact costs will vary by state, but both sets of fees add up very quickly. It is important to know what cost structures are similar to those of the industry so that you aren’t spending more than needed perpaying extra for unnecessary licenses and memberships.
Organization certification fees
For many individuals, becoming licensed in real estate is a great way to make money. However, before you can become licensed, you must first be certified as being competent by an organization that regulates such licenses. These organizations have rigorous standards that are very specific and difficult to match!
The average cost of certification from most groups ranges around $1,000-2,500 per person. This includes both the initial costs as well as recurring monthly membership dues. There are also usually additional one time setup or examination fees that go along with obtaining your license.
These extra licensing fees vary depending upon which group you choose to join and what level of license you desire. But overall, it’s quite expensive! If you want to be able to call yourself an “expert” at selling houses, this price is definitely worth it.
However, there are ways to get some of these expenses refunded or even paid back. And while some things may seem pricey, they are totally reasonable and necessary to ensure that people who work in the field are trained in certain fundamentals and technology.
Insurance requirements
Being licensed to sell real estate in your state requires you to have adequate liability insurance. This coverage is typically referred to as professional negligence coverage or more commonly known as “licensing”.
Most states require at least $100,000 of professional negligence coverage for each license. Some even require twice that amount!
This policy covers any claims against you or your business related to negligent actions you take while acting as an agent. For example, if someone sues you because they claim you misrepresented the home value, this policy would pay for their legal fees to file the lawsuit as well as paying them what it costs to buy or rent another house.
It also helps protect the seller from lawsuits by giving them some protection if the buyer files a complaint. Most policies give the seller limited immunity from civil suits if the buyer files one within two years after moving into the property. Only time can tell how much this will help prevent lawsuits so this is something to consider when buying a home.
Location requirements
The next set of regulations require that you are legally permitted to sell real estate in your state or province. This is typically done through either being licensed as an agent, broker, or salesperson.
Most states have both agents and brokers who represent sellers and buyers, respectively. Some only offer one or the other. But not all states allow both!
In states where it’s allowed to be both, they may vary in what level each individual can purchase at. There may be no special licensing beyond being able to prove you know the laws related to selling property, but some may limit how many people you can help “represent” per day or per week.
Some countries don’t even require you to be licensed as a seller if you want to buy a house directly from the owner. However, this isn’t always the case in other parts of the world.
Commercial license
For those who want to be real estate agents but do not plan to work in residential, there is a more professional way to go about it. These individuals are called commercial brokers or salespeople.
Commercial brokers must take both an written exam as well as a practical test before being granted their license. The written test covers basic real estate concepts such as how much house you should have, what areas of the market your business targets, and income potentials.
The practical portion of the test requires candidates to showcase their knowledge by presenting cases on various topics. These include questions like “What is the difference between offer and sale,” or “Why is staging important?”
Staging refers to changing the appearance of a property so that it appeals more to buyers, and why it is important to do this has to do with perception. If a property does not appeal to others, then people will not consider buying it, even if it seems reasonable.
Residential license
The residential real estate license is also known as the broker’s license or agent’s licence depending on what state you are in. This allows you to act as an agent representing sellers and buying agents representing buyers of property, things that have to be done when selling or buying a house.
The cost of the residential license varies from place to place but it is always at least $25,000. There may be some additional costs involved like examination fees and study materials, etc. So make sure you do your research before starting!
Many people believe that being able to sell a home is a way to make money quickly, but taking up this career path isn’t necessarily the best move. Being a real estate agent doesn’t pay very well unless you’re working in a super expensive area or with high demand properties. And even then it can take months of hard work without much reward.
Study to be a real estate agent
As of February 2020, there is now no cost to become an apprentice real estate agent in most states! That means you can start your career as a professional real estate agent without having to spend any money or time seeking training.
Most states still require you to take a certification exam before granting you full license, but this test is only given once every two years at the very earliest. This leaves plenty of time to find appropriate lessons and classes that can help you prepare.
There are many ways to learn how to be a successful real estate agent. Some schools offer courses online, some have in-person teaching, and others allow you to earn certifications by passing exams.
Whatever route you choose, make sure to look into each school’s accreditation and certification status. Many times, they will let you pay per course instead of a set price, which can save you big money down the line.
Obtain your real estate license
After you earn your bachelor’s degree, you must be pre-qualified to work as an agent before being able to take the exam that will grant you your real estate license. This means taking the state board examination or passing their certification exams such as The Accrediting Council of Examiners (ACFE) and National Association of REALTORS® (NAR).
There are two main reasons agents need to be certified. One is to show people they know how to sell a home and the other is to prove they have access to the resources needed to do so. Both of these things come with large fees!
The average cost of taking the national exam is around $200-$250 while the state level test can set you back anywhere from $150-$300. There are some states like California where it is free!
So why should you care?
Well, most professionals in this field already have at least one license. If you want to become a professional real estate agent, then you should definitely look into getting yours! It is totally worth the investment if you really wanted to make a career out of it.
