Starting a career in real estate is a big deal for many people. Because it involves enrolling in a pre-licensing course, a lot of study is required to pass the real estate exam. Therefore, the cost of getting a real estate license depends on many factors.
After completing the course work, candidates must pass the licensing exam for real estate. Overall, the process can take several months to several years to get a real estate license, and the cost varies based on the candidate’s location and circumstances.
Navigating The Financial Landscape: Costs To Consider When Starting A Real Estate Career
The most important expenses before starting a real estate licensing procedure, which should be kept in mind, are given below:
- Classes and education for pre-license real estate
- Exam and licensing fee for real estate
- Broker’s fee
Classes And Education For Pre-License Real Estate
The very first cost that is considered for pre-licensing real estate is enrolling in the course. Choosing an accredited real estate school is crucial. Moreover, the cost also depends on many factors in pre-licensing real estate, such as credit hours required by real estate commission. The cost also depends on the candidate’s choice, whether he is taking online or physical classes.
Different states require different criteria for credit hours, which are mentioned below:
- Colorado require 168 credit hours
- Georgia require 75 credit hours
- Alabama require 60 credit hours
The estimated total cost is $350+
Exam And Licensing Fee For Real Estate
After enrolling, the next costs that should be considered are the application fee, the cost of background checks, and fingerprints. The state exam fee and the cost of the license itself should also be considered. All these costs depend on the state’s requirements, the examination provider and the fingerprints taken.
The average cost of these programs is:
Application Fee: $25-$30
Fingerprints & Background Check: $100-$125
State Exam: $50
Real Estate License: $150
Estimated Total Cost: $350-$400
Broker’s Fee
A real estate broker’s fee will also be considered for a real estate license. The broker’s fee depends on the state that a candidate chooses. Additional fees for real estate licenses, such as membership fees, business expenses and marketing costs, are not mentioned in the overall analysis.
The cost of a real estate license varies from state to state. However, the initial costs that should be considered include:
- License Application Fee
- Background Check
- Examination Fee
- Pre-License Education
State-By-State Breakdown: Average Education And Licensing Fees For Starting A Real Estate Career
| State | License fee ($) | Pre-license education ($) | Total ($) |
| Alabama | 210 | 300-400 | 610 |
| Alaska | 390 | 375 | 765 |
| Arizona | 300 | 400 | 700 |
| Arkansas | 197 | 400 | 597 |
| California | 400 | 400 | 800 |
| Colarado | 615 | 500 | 1,115 |
| Connecticut | 305 | 450 | 755 |
| Delaware | 89 | 600 | 689 |
| Florida | 150 | 200 | 350 |
Note: This data is derived from the Van Education Center.
Staying Ahead: The Importance And Costs Of Continuing Education In Real Estate
The real estate agents continue their periodic education to continue their real estate license after school. Some brokers often offer continuing education courses through one time training that extends real estate education. These courses are the main reason to keep agents updated on state laws, refresh knowledge, and provide deeper knowledge and understanding of the real estate industry. Continuing education needs 15-20 hours every 2-3 years.
Understanding Marketing, Desk Fees, And Commission Splits In Real Estate
Agents often continue to incur unique costs, which include marketing fees, desk fees, commission splits, social media ads, postage, design work and headshot photography. Some of the brokers are also offering marketing services to stand out agents in the real estate industry.
Agents and brokers usually split their commissions between each other, as brokers provide guidance, clients, reputation, continuing education and market services.
Worth Of Getting A Real Estate License
Everyone who invests in the real estate industry wants to succeed. A best career in real estate provides flexibility and an opportunity to schedule their career map in the real estate industry. Working in the real estate industry does not guarantee success; however, hard work in the real estate industry is the key to success. A very few agents are earning six digit salaries in the real estate industry.
Usually, a two or four year degree is required for many careers. However, the university tuition fee is increasing day by day. To become a real estate agent, only a $700 fee is required in the real estate industry, which includes education fees, licensing fees, and background checks.
Many institutes are offering 100% online classes so that candidates can acquire their degrees at their own pace.
Final Thoughts
There is always a question that arises for every real estate agent: How much does it cost to get a real estate license? Using a few tools can give more profit to real estate agents, but the cost is not as clearly significant as one might assume. In the first year, getting a real estate license may cost thousands of dollars. There are also many hidden costs associated with keeping a real estate license active.
Investors who are willing to get a real estate license have to continue their education process, connections, opportunities and challenges that can arise. The decision to get a real estate license is not so financially sound after all. Without time and dedication, real estate investors cannot get more benefits from it.
Frequently Asked Questions (FAQ’s)
Q: How much does it cost to get your real estate license in the US?
A: A real estate license costs $500 to $1,500, depending on your state. Real estate schools cost $250 to $700. The realtor test costs $75 to $200, plus an application fee of $125 to $300. Most states, including Texas, Florida, and California, require a background check for a real estate license.
Q: How much does it cost for a real estate license in Texas?
A: The cost to get a real estate license in Texas is between $1,000 and $1,500 and takes 4-6 months on average. This means you can begin your new career and be just as, if not more, financially successful without debt and with many years to spare.
Q: How long is a real estate course in America?
A: On average, it takes at least 4-6 months to get a real estate license in a traditional classroom. If you’re taking your real estate pre-licensing course online, it can take as little as 8 weeks, depending on how fast you want to pace yourself.
