how much does it cost to get real estate license

how much does it cost to get real estate license

How much does it usually cost to get a real estate license?

Don't forget that once you get your license there are other fees to start your career like office fees, desk fees,telephone fees,copy fees, internet access fees, transaction fees (if done inhouse). marketing and advertising fees, etc.

How much does it usually cost to get a real estate license?

I live in Tampa Florida and am looking into a career change. Does anyone have an idea how much it costs to get a license to sell real estate?

How To Get a Real Estate License in Massachusetts

Everything you need to know about getting your real estate license in MA

  1. FTRS Blog
  2. How To Get a Real Estate License in Massachusetts

Freedom Trail Realty School, Inc.

Wondering how to get your real estate license in Massachusetts? Interested in starting a career in real estate, but can't figure out what the requirements are? Wonder no more! This article will go over how to become a real estate agent in Massachusetts.

What are the basic requirements to get a MA real estate license?

Good question - let's go over the requirements to get a real estate license in Massachusetts. There are only two basic MA real estate agent requirements:

Be over the age of 18. You have to be at least 18 years old to get your real estate license in Massachusetts.

Have a social security number. Massachusetts real estate license requirements mandate that candidates must have a social security number (though you don't have to be a Massachusetts, or even US, resident).

What are the steps to get my Massachusetts Real Estate License?

With the basic requirements covered, let's get to the good stuff: how to get a real estate license in MA. There are 3 steps to get your MA real estate license:

Take the 40 hour pre-licensing class at a Massachusetts real estate school (that's us!). The State of Massachusetts requires that all real estate license MA candidates take a 40 hour course before sitting for the real estate license exam.

How does the real estate class work? What's the schedule like? Well, it depends on the school. At Freedom Trail Realty School, we offer several options for becoming a realtor: flexible online classes, a four day in person crash course, an in person course spread across two weekends, or night classes. No matter what class schedule you choose we'll cover everything you need to know to pass the test and become a real estate agent.

The first couple of days of the class are focused on teaching you the material you need to pass the real estate test and start a career as a real estate agent. Between lectures you'll take loads of diagnostic quizzes to check comprehension and progress all along the way (don't get too stressed out, though - you'll answer them through a smartphone app so that you will never feel singled out or embarrassed for not understanding a concept). Classes are supplemented with group activities, guest speakers, and quiz games (with prizes!) to break up the lectures. There is plenty of time for questions and answers built into the 40 hour class, and student interaction and participation are very much encouraged!

After you make it through the material about how to become a realtor, your last day of class will be focused on practice tests and review so that you can identify and address any problem areas before you leave the class. And of course, questions are always welcome after class if you still need some help on something.

Oh, and one last thing: don't make the mistake of thinking that taking the class alone will guarantee getting a real estate license! You definitely need to take some time to study the material covered in the course to be sure that you pass the real estate test. In particular, reviewing the math covered in the course is really important for most people. The math itself is super basic, but it often requires test-takers to re-learn concepts that they haven't thought about since seventh or eighth grade.

We offer the 40 hour pre-license class regularly, and you can find a list of our upcoming in person classes here. Are online real estate classes more your speed? Learn more and sign up for them here.

Pass the Massachusetts Real Estate Exam. After you finish your real estate license classes, you'll be eligible to register for and take the Massachusetts real estate exam. The real estate exam is the most important step for becoming a real estate agent in MA.

The MA real estate exam is 120 questions broken down into two sections: general real estate knowledge, and Massachusetts real estate law. You need to score at least a 70% on each section to pass. The exam is administered by PSI, and they offer it weekly at several testing centers around Massachusetts (the Boston testing center is right in Charlestown by the Orange Line).

Wondering how test day works? Here's what to expect:

When you show up at the testing facility you'll check in at the front desk. They'll take your photo, and bring you into the testing room, and sit you down at a computer to take your test.

The real estate test is all multiple choice, and you can review your answers before finishing. You can take breaks during the test to use the restroom, but keep in mind that you have four hours to finish the test, and any breaks you take count against your time. But don't worry too much: the test probably won't take the full four hours to complete!

Oh, and yes, you'll be given scratch paper and a calculator for the math problems!

When you finish the test, you will return to the front desk, and the exam center staff will tell you if you passed or failed. If you pass you'll get your license on the spot, and have now become a realtor!

Pay the licensing fee. If you pass the test you'll get your real estate license on the spot. Congratulations! All that's left to do is pay the MA real estate salesperson license fee. What is the cost of a real estate license? The fee for a new license is, at most, $150. You'll pay your fee to the registrar when you pass the test, and you'll leave the test center with your new real estate license. Congratulations on receiving your MA real estate license (and be sure to come prepared to pay your fee on the day of the test)!

What do I do after I get my MA real estate license?

Good question! After you pass the test, you'll probably want to go to work for a real estate agency, and you may be wondering how difficult it will be to find a job. Good news: it is super easy to find work as a real estate agent. Just be sure that whichever agency you end up working for offers thorough sales training so that you'll be prepared to work as soon as possible, because real estate agents are usually paid on a commission only basis.

(Wondering how much real estate agents usually make? You can read all about real estate agent salaries here.)

To maintain your real estate license and keep it from expiring, MA requires real estate salespersons to complete 12 hours of continuing education within two years of receiving his or her license. Conveniently, you can complete your continuing education requirement easily anywhere you have an internet connection. When the time comes to complete your continuing education, check out our online continuing education classes here.

The steps above are all that's required to get a real estate license, but there's a few extra things you'll want to be successful as a real estate agent:

MLS Access - You'll need to have access to Multiple Service Listing (MLS) so that you can view all of the properties across the state for rent or sale. MLS access costs around $ 20 per month, and is something every real estate agent should have.

E&O Insurance - You probably want to purchase E&O (Errors and Omissions) insurance. E&O insurance will help to protect you against lawsuits for any mistakes you might make (after all, you're only human!). The cost of this coverage can run you around $ 30 per month, depending on the policy you choose, and it's totally worth getting.

Realtor Membership - You might want to join your local chapter of the National Association of Realtors. Becoming a realtor is totally optional, but some offices will want their agents to join. Expect your Realtor membership dues to be about $500 per year if you're required (or want) to join.

Total Cost to Become a Real Estate Agent

Let's summarize all of the costs to get your real estate license in Massachusetts. If we add up all of the costs you're likely to incur in your first month as a new agent, it looks like:

  • Real Estate Classes - $ 300- $ 400
  • Test Fee - $85
  • License Fee - around $150
  • MLS Access - $20/month
  • E&O Insurance - $30/month
  • TOTAL COST: $ 500- $ 700

Not too bad when you consider that many professional licenses cost several thousand dollars (never mind something like a medical license!).

Wait, but how do I become a real estate broker?

Good question! The real estate salesperson license is not the same as the real estate broker license, and there are a few extra steps to become a broker.

(Wondering what the difference is? Basically, it's this: real estate salespeople have to work for a broker, real estate brokers can work for themselves.)

First, you have to obtain your real estate salesperson license, since it's a pre-requiste for getting a real estate broker's license. After you get your salesperson license you'll need to work for a brokerage for at least three years, complete another 40 hour course, and you pass the real estate broker's test.

So you can't open a real estate brokerage right away, but there is a silver lining: real estate salesperson work is very independent, and many brokerages let you choose how to run your real estate business for yourself.

Phew, that was a lot! If you follow the steps above, and you'll be licensed as a real estate salesperson in Massachusetts in no time! Hopefully this guide answered your questions about getting your real estate license, and we'll see you in class!

More blog posts from Freedom Trail Realty School, Inc.

How Hard is it to Become a Real Estate Agent?

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Becoming a real estate agent was one of the best decisions I ever made. Real estate has provided me with a great income, a flexible schedule, and incredible investment opportunities. There are many ways to make money as a real estate agent or a Realtor, but while it is not hard to get your license, it is difficult to become a successful agent. I have been an agent for over 15 years and specialize in listing REO (foreclosures) and HUD homes, but I also run a team with buyer and seller agents. Being a successful agent has given me the income to flip houses and buy rental properties as well.

How hard is it to get your real estate license?

If you are thinking of getting your real estate license, you need to know how hard it is to get your license. That is a difficult question to answer, because each state has different licensing laws and requirements. However, a good friend of mine just passed the real estate test in Colorado and I have some great information from him on what to expect when getting your real estate license in Colorado. This information may not be state specific for where you live, but it will give you an idea of what is involved. Some states have fewer requirements and some have more requirements to get your real estate license than Colorado. I have had my license since 2001 and it was not easy for me to get my license; things have become even more difficult over the years. Colorado is one of the most difficult states to get a real estate license in; here is a list of the requirements for all 50 states.

How long does it take to get your real estate license?

In Colorado, you must take 168 hours of real estate education before you can take the Colorado real estate exam. That is over four weeks of classes if you went to school full-time for 40 hours a week. Most people do not have the time to devote 40 hours a week to real estate school. It took my friend 8 months to take the classes and pass his real estate test. He had a full-time job and I was forced to take classes after work and on the weekends. He took his real estate classes online so that he could have a flexible schedule. In Texas, you need 210 hours of education, but in California, just three courses are needed. In most states, it takes much less time to get your real estate license.

If you are interested in getting your real estate license, I suggest Real Estate Express, which offers classes in most states and has some of the lowest prices on real estate classes.

What do you have to do to become a real estate agent?

There is more to getting your real estate license than taking classes and passing a test. Real estate is a highly regulated industry and here are some of the other requirements in Colorado.

  • You must pass a background test, which involves being fingerprinted.
  • You must pass tests and quizzes to go along with the 168 hours of education you take. The education required for a Colorado real estate license is not a stroll through the park. Here is a quote from my friend, “Reading dry material at night after work and after family time. I was usually tired. The tests at the end of each section were flipping impossible. They would ask about minute details that had little to do with comprehension. My school didn’t even try to make it interesting or add commentary. They pretty much copied and pasted out of the Colorado legal documents on the topics.”
  • You must hang your license with a broker once you pass the exam and pass the background check to activate your license. Each brokerage has different costs; some take part of your commissions and some charge base fees.
  • You must buy E and O insurance and most likely will want to become a Realtor, join a local board and join local multiple listing service (MLS). It is not cheap to become an agent.
  • Once you have your license you must take 24 hours of continuing education every three years to keep your real estate license active.

If you would like more information on becoming a real estate agent, finding success as a real estate agent, and how much fun it can be being an agent. Check out my book: How to Make it Big as a Real Estate Agent: The right systems and approaches to cut years off your learning curve and become successful in real estate.. It is available as a paperback and eBook.

How hard are real estate classes?

You can take the real estate courses online or in person in a school. My friend took the classes online to work with his busy work schedule. In my experience and my friends taking real estate classes, online courses are extremely boring, and staring at a computer for 168 hours is not easy to do. Here is what my friend had to say about his experience with the real estate education.

“If I could do it over again I would take the classes in person if it fits your lifestyle. In person would have been much more engaging and exciting. Online is good for flexibility of hours, but that is about it. The material is dry, so it is exhausting reading that much on a computer screen for that long. You are probably fully familiar with this. Some online schools are starting to do video-based instruction. I personally would put this in last place. With written material, you can move at your own pace and easily copy/paste, and review sections as needed. Video would be at their pace and you would have to manually take notes. I’d avoid online video like the plague.”

I took the classes online 15 years ago and I struggled to get through the courses. I had been around real estate my whole life and I still had a hard time reading all that information online. The material that is covered in the classes is very dry. If you are hoping to learn how to invest in real estate or learn advanced techniques in selling homes, think again! The material is about technical laws, rules, settlement sheets, and case history. Very little is covered on material that will help people sell houses or help you personally invest in real estate. The material is meant to keep people from going to jail for committing fraud or misleading buyers and sellers, not to actually help you succeed. Here is a great article on some misconceptions about being an agent.

How hard is the Colorado real estate test?

The Colorado real estate test is not easy! To tell the truth, I failed it twice myself even though I thought I would breeze through it. Many of the questions on the Colorado test are very tricky with double negatives and wording meant to trick the test takers. There is also a ton of memorization needed and you need to be able to do math for the settlement sheets!

The test is about memorization and your ability to take tests. The test itself takes up to four hours, is conducted in a high security test center and you are not allowed to bring notes. My friend passed the test on his first try, but as he says, he is used to taking exams like this. He has his MBA and he has taken many similar professional exams in his previous corporate career.

How much does it cost to get your real estate license?

In Colorado, the real estate courses vary widely in cost. Some online schools cost as little as a few hundred dollars, while classroom school courses can run into the thousands. The exam itself costs $80 and you must pay an accredited company or a law enforcement office to fingerprint you. Once you get your license, you will have continued costs like board dues, MLS dues, operating expenses, and fees or commission splits to pay your broker.

Getting your license is the first step of becoming a real estate agent

Once you have your license you will not magically start selling houses without a plan or hard work. Here are a few articles to help you understand what it takes to be successful.

How I save money by being a real estate agent?

One of the biggest advantages to being a real estate agent is the money I save on my investment properties. I have saved at least $70,000 in the last year on properties I have personally bought or sold. The savings on commissions on my investment property is why I think it is vital that real estate investors should become real estate agents. I save money on fix and flips when I buy the flip and when I sell it. I save money on my rental properties when I buy them and I get more deals because I am an agent.

If you want to become a real estate agent, make sure you research what is involved in your state. Some states have easier requirements than others do, but it is not difficult to get your license in most places. It costs a lot of money to become a real estate agent, but it is well worth it in my opinion. Becoming a real estate agent saves me a ton of money and allows me a better opportunity to buy properties below market value. I consider those bonuses on top of the incredible income you can earn from real estate.

How Much Does It Cost To Become A Real Estate Agent?

This is a question I hear every now and then from people who have been downsized, laid off or had their hours cut. What does it take to get into real estate? How much does it cost? How much does it pay? To make it easy for people who are wondering about a career in real estate, this article will break it down so each individual can calculate the expenses to get started.

The initial real estate classes needed can be taken online or in a classroom setting. Most states will require 30 hours. If you opt for the classroom, you may find 2 hour classes twice a week for 8 weeks, an intense 3 or 4 day session, or online at your own pace. The classes may cost around $135 - 600.A real estate calculator will run you around $90 - 240.

Once you pass the final test for the classes, you will apply to take the State Licensing Exam. If you will be working in more than one state, take the exam in the state in which you reside first and then apply for the other states. Cost of the exam may be around $75 - 115. There may also be other fees associated with the license exam. An FBI background check: $64 - 95. License Application: $15 - 30. License Fee: $45 - 100. Fingerprinting: $30 - 65.

Do you notice that there are many little fees and charges? This is indicative of your future budget. Many little charges and fees which accumulate monthly, quarterly and annually. Get in the habit of keeping good records for taxes.

Annual Fees for renewing license(s), membership in MLS, national and state association dues, and use of Centralized Showing Services come to around $900/year.

Advanced Designations such as SRES, ABR, GRI, CRS, etc will be an additional $100/designation (or so) + continuing education expenses for those particular designations.

Errors and Ommissions Insurance: will cost another few hundred per year. Your broker may include this in your office fee.

iBox leases and eKey access adds $25/year per iBox + $80/quarter for the eKey. These charges will vary according to how those services are set up in your area.

Yard Signs cost about $50 - 85/sign. Sign Riders run about $7 - 30/rider. Open House Signs run around $25 - 50. Pointers will cost about $7 - 35 each. Flyer Boxes will run from $24 - 50. Sign costs vary according to size and material. Stakes also vary in cost. Your broker will have an agreement with a company to give you the best price they can negotiate and you will be alerted to sales 3 or 4 times per year. You will need at least 2 Yard signs, 2 riders, 2 Open House signs and 5 Pointers to get started. Add to your supply as you go along.

Business Cards can be bought for $40 - 80 / 1,000 cards.

Professional Business Photograph: $150 - 240. You'll get this on a disk or flash drive so that you can upload as needed to all the sites and flyers you will be using.

Literature Display Holders for inside the home: $10 - 50.

Business Card Holder for desk or table: $10 -30.

Business Card Carrying Case: $10- 100.

Day Planner/ Scheduler/ Calendar: Free - $99. Get one and use it as a back up in case of technology failure.

$300 and up. Your broker will probably have one of these in the office.

Flyers: Print your self for

$35/100 including paper and ink or professionaly printed @ .50 - 1./each.

Website: Most brokers will give you a website. You may also wish to have another website not affiliated with anyone else. Plan on $25 - 99/month for this. Or, find a service to host it for you, buy your URL, and hire someone to build a custom website for you. This can be done for under $1,000 if you make a deal with a college student or several thousand dollars to have a professional company do a totally custom designed site.

Blog: Free to several hundred per month, depending on what add-ons they sell you.

Leads: the classes you take once you find a broker will teach you how to get leads and what to do with them once you get them. Everyone and their brother will try to sell you leads. Most of these 'lead generators' are just going to cost you money and give you nothing in return but a big waste of your time. Learn how to say "Hmm, that sounds interesting. Let me check with my accountant and get back with you." OR "I'm sorry, I can't handle any more leads right now. I have all the business I can handle from my referrals."

Zillow and Trulia are now selling Zip Codes. They will send you leads through your email when someone makes a request for more information. These leads run a range from $30 - several hundred dollars per month. You can buy all or part of a Zip Code. They offer other paid services as well. There are agents who pay THOUSANDS of DOLLARS every month for leads. Be careful out there.

800 numbers will cost around $25 - 50 / month, depending on which company and what they do for you.

Recorded message phone numbers will cost $25 -75 / month. Your broker may offer this as part of their package to you.

Postcards: Cost from .40 - 2.00 / each. This depends on the size and thickness of the card. Some companies will mail for you; some you will order and mail yourself.

CELL PHONE with DATA: plan on spending about $100 - 150 per month. Talk to the other agents in your office to see who they are using. You may wish to add the laptop connect anywhere with your phone. Or you may want to see about family plans available.

Other costs of doing business: Pens, Paper, Paper Clips, Stapler, Staple remover, Calendars, Football Schedules, Event Schedules, Christmas Cards, Thank You Cards, Newsletters, etc.

You will also find yourself involved in Community Groups, BNI Groups, Networking Groups, and other activities to build your community contacts who may refer business to you. This will require your time and sometimes monetary dues.

Agent Tours: You will be marketing your listings to other agents working in your area who may have buyers for your properties. If you have an Agent Tour Day in your area, you will need to plan for the cost of food and drinks on tour days. Also plan to spend time and money notifying and inviting all the agents. Do this by email, in person, by phone and by flyer. If a person hears the same message 3 times in one week from 3 different mediums, they are more likely to show up.

Gas, car maintenance, and good auto insurance to cover transporting buyers around: Variable.

That's about it for expenses. How much can you make as a real estate agent?

Income depends on sales and broker charges. Most people starting out go with a big name brokerage in their area for the exposure and training. Those brokers tend to keep a larger percentage of the commission on each sale than the smaller brokerages. The bigger brokers also offer more training than the smaller ones. Some of the training you get in the beginning is not really what you want or need. But I digress.

Keeping in mind that there is no usual commission because we don't want to violate the federal antitrust laws: here are some examples of possible income for a real estate agent.

A. If an agent sold $1,000,000 worth of real estate over the course of a year and the commission was 6% on each transaction and the agent represented only one side (buyer or seller) on each transaction, the amount of commission would be $60,000 total. The commission goes to the Broker. The Broker would then pay the agent according to their agreement. Suppose their agreement was 75% for the agent; that would mean the agent would get $45,000. Don't forget that real estate agents are Independent Contractors so are responsible for paying their own INCOME TAXES. Real estate agents are not employees so you will need to plan on paying for your own HEALTH INSURANCE.

$45,000 - 28% for Income Taxes (12,600) = . Minus $6,000 for Health Insurance = 32,400 left for living, retirement, marketing and advertising expenses.

B. If an agent sold $600,000 worth of real estate (4 houses at $150,000/house), that would be an annual income of $13,500 before taxes, insurance and expenses.

C. Suppose an agent sold $5,000,000 of real estate at a commission rate of 5%. Suppose that agent did not split the commission with another agent representing the buyer. That would be $250,000. Suppose the agent and their broker have an agreement which says the agent gets 95% of the commission. That agent would claim $237,500 of Income that year.

Income Potential is tremendous for a real estate agent; in reality, many agents cannot survive on the income they produce from their real estate business. This is why you see so many people get their real estate license and then leave the business within 5 years. It's also the reason you see real estate agents take jobs outside of their real estate business.

Maria Morton, Realtor . Leading Edge Society 2010

By Maria Morton Real Estate Agent with Chartwell Kansas City Realty SP00229578 2007027091

Not as much as you think!

To get licensed and pay your RMLS fees and become a Realtor (requited), a little less than $2,000.* If you consider that you can make as much as some lawyers, doctors and CPAs, and they spend tens of thousands of dollars to enter their fields, it is very reasonable. In fact, it is a down right bargain.

Here is the breakdown:*

Fingerprinting $57.75 (includes background check)

PMAR $600 (pro-rated monthly)

RMLS Startup $128

RMLS Quarterly $168

So what’s stopping you?

All costs as of June 2015. Subject to change at any time.

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