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Frequently Overlooked Steps to Getting Your Real Estate License

Published: 04-22-24 Category: Marketing

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Obtaining a real estate license from your state's licensing board is an exciting first step towards a rewarding, potentially lucrative career. You can join an established real estate group or strike out on your own.

However, aspiring agents should be aware of the hidden hurdles they may encounter along the way.

For example, you may not be aware of the hours you'll need to invest to earn your license or that you may be more successful within your sales area if you specialize in a certain type of client or home.

You may decide to serve first-time buyers or work primarily with buyers and sellers of older properties.

It's essential to be prepared for the challenges ahead. To make it easier for applicants to review the necessary steps to obtain a real estate license and to be successful, we'll separate the pre-licensing hurdles from those you may encounter after you begin work.

Before You Begin

Here are some topics to keep in mind before you enroll in your real estate studies, as you'll encounter all of them during your pre-licensing phase.

#1 – Background Checks

Almost all states require applicants to undergo a background check before a real estate license is granted. The depth and scope of these may differ depending on your state's regulations. Generally, these are requested as part of your state exam process.

Most states require applicants to submit fingerprints for a criminal background check, which is typically conducted through the FBI's database. This check will reveal any convictions or pending charges on a national level.

Some states may also conduct a state-level criminal background check, together with a separate credit check, to assess an applicant's financial responsibility. This may identify potential red flags, such as bankruptcies or unpaid judgments.

A certain level of education may be another requirement. For example, Idaho's Real Estate License Law requires licensing applicants to “Furnish satisfactory proof that the applicant graduated from an accredited high school or its equivalent or holds a certificate of general education.”

Before reaching this step, it's wise to be proactive in addressing any potential red flags, such as unpaid taxes or past legal issues, to avoid delays in your licensing process. You can review this step by researching your state's real estate laws beforehand.

#2 – Financial Requirements

Earning a real estate license comes with financial obligations that go beyond your initial courses.

Budget accordingly and consider setting aside a contingency fund for unexpected expenses.

Here are some estimated costs and fees you'll encounter during your studies.

Pre-Licensing Courses: $300 to $600

In addition to your state's mandatory classes, you may want to add courses that can help you build your business as a new agent.

Every state's real estate commission controls the costs of these courses.

Taking your courses online instead of attending a brick-and-mortar classroom may help you save. If you purchase all online courses from a single provider, you may be offered a discount.

Real Estate Exam Prep: $50 to $125

These courses usually come with free practice exams for both the state and national portions of your exams. You may be able to purchase both at a discounted cost.

Some online exam prep providers may offer a variety of study options at a weekly or monthly rate.

State Exam Fees: $250 to $400

Depending on your state, your final real estate exam costs may combine several costs: the exam fee itself, a separate application fee, and a fee for a background check.

Remember that you may need to set up additional resources, such as marketing materials and technology, to kickstart your career after earning your license.

Here's a different requirement that's easy to overlook - the time required for you to complete your classes and study for your exam.

Time Commitment

Becoming a licensed real estate agent requires a significant time commitment. The coursework combined with the time you spend studying for the exam may add up to more than you expected.

Be prepared to dedicate several months to the entire licensing process, plus setting up your initial business.

Now is an ideal time to consider how you will balance these commitments with your work, family, and other obligations. It's well worth sitting down with your partner, family, or parents to discuss your need for an undisturbed, quiet environment during this time.

You may also need time to learn new software programs, as technology skills are vital to any agent.

Computer and Mobile App Skills

Successful real estate agents rely on technology for everything from posting their property listings to building relationships with new prospects and established clients.

Check out relevant programs, such as customer relationship management (CRM) systems.

If you don't already have live social media accounts, you'll need to learn how to set up your Facebook, Instagram, and other accounts popular with home buyers and sellers.

After you pass your state's real estate exam, congrats! Most unseen hurdles are behind you now. However, there are still a few to prepare for, including the following three.

Get Ready to Schmooze

Strong communication and listening skills are essential for success in real estate; so is networking.

Attend local real estate events, join local business organizations, and connect with experienced agents.

Practice your conversational skills ahead of time to engage with clients and colleagues effectively.

Continuing Education Requirements

Once you've obtained your license, be prepared for continuing education requirements. Often shortened to CE, most states require agents to complete a certain number of CE hours to maintain their license.

You may also want to pursue additional specialist certifications to enhance your marketability.

Join Professional Organizations

Membership in professional organizations, such as the National Association of REALTORS® (NAR), can include access to valuable resources, networking opportunities, and professional development programs.

These organizations can help you stay informed about industry trends and best practices.

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