3 answers
Ana
Student
Madison, Wisconsin
1
Question
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How much does it cost to become a real estate agent?
I'm wondering how much I need to save before going to school and taking courses to become a real estate agent. Should I take a gap year?
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3 answers
Doc Frick
Career Coach and Mentor
1616
Answers
California, CA
Updated
Doc’s Answer
PRE-LICENCE REAL ESTATE COURSE: $800
Ana the very first step in your journey to a real estate license is to take the state-required pre-license courses. The California Department of Real Estate (DRE) requires that applicants take three college-level courses for a total of 135 hours before applying for a license. The course you will take include:
• Real Estate Principles - 45 hours
• Real Estate Practices - 45 hours
• Elective approved list of courses - 45 hours
The cost of these courses can vary significantly, depending on the provider. State universities tend to be the most expensive, while courses taken via an online education provider or a private real estate school are usually more cost-effective options.
ASSOCIATE DEGREE: $9000
The total cost of earning an associate degree is important if you are considering committing to a two-year degree program. In the U.S., the cost of an associate degree can vary significantly depending on a few factors, such as the specific college you decide to attend, the college’s location, the type of institution (traditional or online), the degree program itself, and whether it’s a public or private institution. The average cost of an associate's degree is a crucial consideration for prospective students looking to commit to a two-year degree program.
As you look at state-approved real estate schools, pay special attention to:
• Access to the course materials.
• Do you have to attend courses on campus
• Student support. Real Estate professionals
REAL ESTATE EXAM FEE: $60
Once your coursework is complete, you can apply to take your DRE real estate exam and get your real estate license. The current exam fee for the sales agent license is $60 per attempt. It’s a difficult test, and many people need two or even three attempts to pass it. You’ll want to choose an education provider who offers test prep tools in order to give yourself the best possible chance of passing on your first try. Passing on the first try will save you time and money.
REAL ESTATE APPLICATION FEE: 250
The sales agent application fee for a real estate license is currently $250. Fortunately, it’s good for four years
FINGERPRINTING FEE: $60
In addition to the application fee, you’ll need to pay a Live Scan fingerprinting fee of up to $60. Anyone applying for a real estate license must have a background check completed before a license will be granted.
ADDITIONAL REAL ESTATE REALTOR COSTS
Other Costs to Become a Real Estate Agent
Next, let’s take a look at some of the costs associated with being a new agent.
BROKER FEE: $500
Brokerage desk fees vary but can be up to $500 a month. New agents must work under a broker, and some brokerages charge monthly fees to agents in exchange for office space, mentoring programs, and training — in addition to the commission split the new agent shares with their sponsoring broker.
MEMBERSHIP DUES: $350
You’ll want to join professional associations like the National Association of REALTORS® ($150), the California Association of REALTORS® ($200), and your local real estate board membership (dues will vary). These organizations offer tools and resources that can help you succeed as an agent.
MULTIPLE LISTING SERVICE (MSL) $300
An MLS subscription is critical to your success as an agent. A subscription fee may be part of your local board of REALTORS® membership, or you may pay it separately. Prices vary, but a subscription to the local MLS could be as much as $300 to $500 per year.
MARKETING EXPERIENCES: $500-$3,000
Your marketing efforts will cost you anywhere from $500 to $3,000 per year. Of course, you can start marketing for free on social media, but you will need to budget some money for your print needs like business cards, property flyers, signs, and mailers to advertise both you and your properties. You’ll also likely need a website and may want to spring for paid advertising in local newspapers and magazines.
BUSINESS EXPERIENCES: $1,000-$2,000
These can include cell phone and internet bills, office space and supplies, computer hardware and software, client meetings and lunches, and client closing gifts. Your broker may cover some of these costs.
Ana one of the best things about real estate is the unlimited income potential! If you can hustle to land lots of clients, and provide top-quality service, you can potentially make six figures every year. A career in real estate is exciting, fulfilling, and flexible. And it’s also high-paying if you’re willing to work hard and stick with it. It all starts with getting your real estate license. The upfront cost and time spent studying require some effort and planning on your part, but the rewards will be well worth your investment.
Ana the very first step in your journey to a real estate license is to take the state-required pre-license courses. The California Department of Real Estate (DRE) requires that applicants take three college-level courses for a total of 135 hours before applying for a license. The course you will take include:
• Real Estate Principles - 45 hours
• Real Estate Practices - 45 hours
• Elective approved list of courses - 45 hours
The cost of these courses can vary significantly, depending on the provider. State universities tend to be the most expensive, while courses taken via an online education provider or a private real estate school are usually more cost-effective options.
ASSOCIATE DEGREE: $9000
The total cost of earning an associate degree is important if you are considering committing to a two-year degree program. In the U.S., the cost of an associate degree can vary significantly depending on a few factors, such as the specific college you decide to attend, the college’s location, the type of institution (traditional or online), the degree program itself, and whether it’s a public or private institution. The average cost of an associate's degree is a crucial consideration for prospective students looking to commit to a two-year degree program.
As you look at state-approved real estate schools, pay special attention to:
• Access to the course materials.
• Do you have to attend courses on campus
• Student support. Real Estate professionals
REAL ESTATE EXAM FEE: $60
Once your coursework is complete, you can apply to take your DRE real estate exam and get your real estate license. The current exam fee for the sales agent license is $60 per attempt. It’s a difficult test, and many people need two or even three attempts to pass it. You’ll want to choose an education provider who offers test prep tools in order to give yourself the best possible chance of passing on your first try. Passing on the first try will save you time and money.
REAL ESTATE APPLICATION FEE: 250
The sales agent application fee for a real estate license is currently $250. Fortunately, it’s good for four years
FINGERPRINTING FEE: $60
In addition to the application fee, you’ll need to pay a Live Scan fingerprinting fee of up to $60. Anyone applying for a real estate license must have a background check completed before a license will be granted.
ADDITIONAL REAL ESTATE REALTOR COSTS
Other Costs to Become a Real Estate Agent
Next, let’s take a look at some of the costs associated with being a new agent.
BROKER FEE: $500
Brokerage desk fees vary but can be up to $500 a month. New agents must work under a broker, and some brokerages charge monthly fees to agents in exchange for office space, mentoring programs, and training — in addition to the commission split the new agent shares with their sponsoring broker.
MEMBERSHIP DUES: $350
You’ll want to join professional associations like the National Association of REALTORS® ($150), the California Association of REALTORS® ($200), and your local real estate board membership (dues will vary). These organizations offer tools and resources that can help you succeed as an agent.
MULTIPLE LISTING SERVICE (MSL) $300
An MLS subscription is critical to your success as an agent. A subscription fee may be part of your local board of REALTORS® membership, or you may pay it separately. Prices vary, but a subscription to the local MLS could be as much as $300 to $500 per year.
MARKETING EXPERIENCES: $500-$3,000
Your marketing efforts will cost you anywhere from $500 to $3,000 per year. Of course, you can start marketing for free on social media, but you will need to budget some money for your print needs like business cards, property flyers, signs, and mailers to advertise both you and your properties. You’ll also likely need a website and may want to spring for paid advertising in local newspapers and magazines.
BUSINESS EXPERIENCES: $1,000-$2,000
These can include cell phone and internet bills, office space and supplies, computer hardware and software, client meetings and lunches, and client closing gifts. Your broker may cover some of these costs.
Ana one of the best things about real estate is the unlimited income potential! If you can hustle to land lots of clients, and provide top-quality service, you can potentially make six figures every year. A career in real estate is exciting, fulfilling, and flexible. And it’s also high-paying if you’re willing to work hard and stick with it. It all starts with getting your real estate license. The upfront cost and time spent studying require some effort and planning on your part, but the rewards will be well worth your investment.
James Constantine Frangos
Consultant Dietitian & Software Developer since 1972 => Nutrition Education => Health & Longevity => Self-Actualization.
6342
Answers
Gold Coast, Queensland, Australia
Updated
James Constantine’s Answer
Hi Ana!
Here's a Detailed Cost Analysis for Becoming a Real Estate Agent
Embarking on a journey to become a real estate agent involves several stages, each accompanied by its own costs. Here's a detailed breakdown of these expenses:
1. Pre-Licensing Education Expenses
Before getting licensed, you'll need to complete a certain number of hours of pre-licensing education, which varies by state.
Tuition Fees: The cost for these courses can range from $200 to $1,000, depending on the institution and the format (online vs. in-person).
Study Materials: Plan for an extra $100 to $300 for textbooks and online resources.
2. Licensing Exam Fees
After your education, you'll need to pass a licensing exam.
Exam Fee: Expect to pay between $50 and $100 for the real estate licensing exam.
Retake Fees: If you don't pass on your first try, re-attempting the exam will incur additional fees.
3. Background Check and Application Fees
Most states require a background check as part of the licensing process.
Background Check Fee: This typically costs between $30 and $100.
Application Fee: After passing the exam, you'll need to apply for your license, which usually costs between $25 and $200.
4. Membership Dues
Once you have your license, many agents opt to join local or national real estate associations.
Association Fees: Membership in organizations like the National Association of Realtors (NAR) can cost anywhere from $150 to $500 per year.
5. Continuing Education Expenses
To keep your license, most states require continuing education every few years.
Continuing Education Courses: These courses can cost between $50 and $300, depending on the number of hours required and the provider.
6. Marketing and Business Expenses
As a new real estate agent, you'll need to invest in marketing yourself and managing your business.
Business Cards & Marketing Materials: Plan to spend around $100 to $500 initially.
Website Development: If you decide to create a personal website, this could range from $200 for basic setups to over $1,000 for more complex sites.
7. Miscellaneous Expenses
There are other potential costs that might come up during your journey:
Errors & Omissions Insurance: This insurance protects you against claims made by clients; it typically costs between $300 and $600 per year.
Office Supplies & Technology: Budget around $200-$500 for supplies like computers or software.
Total Estimated Cost
Taking all these factors into account, becoming a real estate agent can cost anywhere from roughly $1,000 on the low end (if you opt for inexpensive courses and limit other expenses) to about $5,000 or more when considering higher-end options and additional marketing efforts.
Should You Take a Gap Year?
The decision to take a gap year depends on your unique situation:
If you're financially ready and eager to dive into studying and networking in real estate immediately, starting sooner could be advantageous.
However, if you believe that taking some time off could help you save money or gain experience in related fields (like sales or customer service), then it might be worth considering.
In the end, balance both options based on your financial status and career goals before making a decision.
Top 3 Reliable Sources Used:
National Association of Realtors - A premier organization offering resources about becoming a realtor, including educational requirements and membership benefits.
Real Estate Express - A virtual real estate school providing detailed information about pre-license education costs across various states.
Investopedia - A credible financial resource that outlines various aspects of starting a career in real estate, including associated costs.
God Bless You!
JC.
Here's a Detailed Cost Analysis for Becoming a Real Estate Agent
Embarking on a journey to become a real estate agent involves several stages, each accompanied by its own costs. Here's a detailed breakdown of these expenses:
1. Pre-Licensing Education Expenses
Before getting licensed, you'll need to complete a certain number of hours of pre-licensing education, which varies by state.
Tuition Fees: The cost for these courses can range from $200 to $1,000, depending on the institution and the format (online vs. in-person).
Study Materials: Plan for an extra $100 to $300 for textbooks and online resources.
2. Licensing Exam Fees
After your education, you'll need to pass a licensing exam.
Exam Fee: Expect to pay between $50 and $100 for the real estate licensing exam.
Retake Fees: If you don't pass on your first try, re-attempting the exam will incur additional fees.
3. Background Check and Application Fees
Most states require a background check as part of the licensing process.
Background Check Fee: This typically costs between $30 and $100.
Application Fee: After passing the exam, you'll need to apply for your license, which usually costs between $25 and $200.
4. Membership Dues
Once you have your license, many agents opt to join local or national real estate associations.
Association Fees: Membership in organizations like the National Association of Realtors (NAR) can cost anywhere from $150 to $500 per year.
5. Continuing Education Expenses
To keep your license, most states require continuing education every few years.
Continuing Education Courses: These courses can cost between $50 and $300, depending on the number of hours required and the provider.
6. Marketing and Business Expenses
As a new real estate agent, you'll need to invest in marketing yourself and managing your business.
Business Cards & Marketing Materials: Plan to spend around $100 to $500 initially.
Website Development: If you decide to create a personal website, this could range from $200 for basic setups to over $1,000 for more complex sites.
7. Miscellaneous Expenses
There are other potential costs that might come up during your journey:
Errors & Omissions Insurance: This insurance protects you against claims made by clients; it typically costs between $300 and $600 per year.
Office Supplies & Technology: Budget around $200-$500 for supplies like computers or software.
Total Estimated Cost
Taking all these factors into account, becoming a real estate agent can cost anywhere from roughly $1,000 on the low end (if you opt for inexpensive courses and limit other expenses) to about $5,000 or more when considering higher-end options and additional marketing efforts.
Should You Take a Gap Year?
The decision to take a gap year depends on your unique situation:
If you're financially ready and eager to dive into studying and networking in real estate immediately, starting sooner could be advantageous.
However, if you believe that taking some time off could help you save money or gain experience in related fields (like sales or customer service), then it might be worth considering.
In the end, balance both options based on your financial status and career goals before making a decision.
Top 3 Reliable Sources Used:
National Association of Realtors - A premier organization offering resources about becoming a realtor, including educational requirements and membership benefits.
Real Estate Express - A virtual real estate school providing detailed information about pre-license education costs across various states.
Investopedia - A credible financial resource that outlines various aspects of starting a career in real estate, including associated costs.
God Bless You!
JC.
Chinyere Okafor
Educationist and Counseling Psychologist
616
Answers
Port Harcourt, Rivers, Nigeria
Updated
Chinyere’s Answer
Hello Ana,
Great question! Becoming a real estate agent typically involves several costs that you might want to plan for before starting your journey. Here's a breakdown of the usual expenses:
1. Pre-licensing Education:
- Cost: $200 - $1,000 (varies by state)
- You are required to complete a pre-licensing course, and the cost depends on your location and the course provider. Some states require around 60–150 hours of education.
2. Licensing Exam Fee:
- Cost: $100 - $300
- After completing your education, you’ll need to take the licensing exam, which has a fee attached.
3. License Application Fee:
- Cost: $50 - $250
- Once you pass the exam, you’ll apply for your license, and this comes with a processing fee.
4. Fingerprinting and Background Check:
- Cost: $50 - $150
- Many states require this as part of the licensing process.
5. Post-licensing Education (some states):
- Cost: $100 - $500
- In some states, you’ll need to complete additional education within the first year or two after getting licensed.
6. Real Estate Brokerage Fees:
- Cost: $200 - $2,000/year
- You’ll need to work under a licensed broker, and many brokerages charge annual desk fees or take a percentage of your commissions.
7. Continuing Education:
- Cost: $50 - $300 per course (ongoing)
- To maintain your license, you’ll need to complete continuing education periodically.
8. Marketing and Business Expenses:
- Initial Cost: $1,000 - $2,000+
- You may need to invest in business cards, advertising, a professional website, and MLS (Multiple Listing Service) membership.
Total Estimated Initial Cost: $2,000 - $5,000+ (depending on your state and chosen services).
A gap year could be beneficial if you plan to save up for the necessary expenses and get a clear understanding of whether real estate is the career you want to pursue. It can also give you time to explore the market or work in related fields (e.g., property management or real estate support roles) to gain insight.
If you're concerned about the cost, a gap year could also allow you to work part-time and save for your courses, while also potentially attending free workshops or getting your finances in order.
Best wishes!
Great question! Becoming a real estate agent typically involves several costs that you might want to plan for before starting your journey. Here's a breakdown of the usual expenses:
1. Pre-licensing Education:
- Cost: $200 - $1,000 (varies by state)
- You are required to complete a pre-licensing course, and the cost depends on your location and the course provider. Some states require around 60–150 hours of education.
2. Licensing Exam Fee:
- Cost: $100 - $300
- After completing your education, you’ll need to take the licensing exam, which has a fee attached.
3. License Application Fee:
- Cost: $50 - $250
- Once you pass the exam, you’ll apply for your license, and this comes with a processing fee.
4. Fingerprinting and Background Check:
- Cost: $50 - $150
- Many states require this as part of the licensing process.
5. Post-licensing Education (some states):
- Cost: $100 - $500
- In some states, you’ll need to complete additional education within the first year or two after getting licensed.
6. Real Estate Brokerage Fees:
- Cost: $200 - $2,000/year
- You’ll need to work under a licensed broker, and many brokerages charge annual desk fees or take a percentage of your commissions.
7. Continuing Education:
- Cost: $50 - $300 per course (ongoing)
- To maintain your license, you’ll need to complete continuing education periodically.
8. Marketing and Business Expenses:
- Initial Cost: $1,000 - $2,000+
- You may need to invest in business cards, advertising, a professional website, and MLS (Multiple Listing Service) membership.
Total Estimated Initial Cost: $2,000 - $5,000+ (depending on your state and chosen services).
A gap year could be beneficial if you plan to save up for the necessary expenses and get a clear understanding of whether real estate is the career you want to pursue. It can also give you time to explore the market or work in related fields (e.g., property management or real estate support roles) to gain insight.
If you're concerned about the cost, a gap year could also allow you to work part-time and save for your courses, while also potentially attending free workshops or getting your finances in order.
Best wishes!