How Much Does It Cost to Get a Real Estate License in Each State?

Starting a new career in real estate is no small feat. It involves enrolling in a pre-licensing course, lots of studying, and passing your real estate exam. However, the cost of getting your license can vary depending on many different factors. In this blog, we'll discuss the necessary costs for jumpstarting your real estate career.

Costs to Consider When Starting a Real Estate Career

Below are the most important expenses to keep in mind before starting your new real estate career:

Pre-License Real Estate Classes and Education

The first cost to consider is the cost of enrolling in a pre-license course at an accredited real estate school is crucial. The cost depends on the number of credit hours required by your state's real estate commission and whether you choose online or classroom learning. Some states, like Colorado, require 168 hours, while others, like Georgia, require 75 hours, and Alabama requires only 60 hours.

Estimated Total Cost: $350+

Real Estate Exam Fee and Licensing Fee

The next cost to consider is the license application fee, the cost of a background check and fingerprints, the state exam fee, and the cost of the license itself. Each of these varies depending on your state's requirements, the examination provider, and where you get your fingerprints taken, but the average cost is:  

Application Fee: $25-$30
Fingerprints & Background Check: $100-$125
State Exam: $50
Real Estate License: $150
Estimated Total Cost: $350-$400

Brokers’ Fees

You will also have real estate brokers’ fees to consider. The cost of getting a real estate broker license varies depending on the state you choose. Additional fees like membership fees for REALTORS®, business expenses, and marketing costs are not considered in this analysis.

The average costs listed above are subject to change. The analysis is based on the cost of a salesperson license, not a broker license, which typically costs more due to additional education requirements and state licensing fees.

Learn more about the steps to get licensed.

Education & Licensing Fees for Each State

The cost to get licensed varies from state to state. However, you should always consider the initial costs, which include:

• License Application Fee
• Background Check
• Examination Fee
• Pre-License Education

While some states like Florida and New York are relatively inexpensive, other states like Ohio and Wyoming can cost you over $1,000 due to the cost of pre-license education and licensing fees.

OLD POST BELOW:

Here are the average education and licensing fees for each state:

Continuing Education

Even after school, exam fees, licensing fees, and background checks, real estate agents must take periodic Continuing Education (CE) courses to maintain their license. Brokerages often offer agents' CE courses, which are one-time trainings that extend real estate education. These courses keep agents updated on state laws, refresh their knowledge, and provide a deeper understanding of the real estate industry.

Agents typically need 15-25 hours of CE every 2-3 years. Some states require agents to take a post-license course within a year of licensure, which is a one-time requirement. It's essential to check your state's requirements for post-licensing.

Marketing, Desk Fees, Commission Splits

Agents often run up some unique costs, such as marketing fees, which may include social media ads, print ads, postage, design work, and even headshot photography. Some brokerages offer marketing services to help agents stand out in the industry.

Agents typically split their commission with their broker, as brokerages provide guidance, clients, reputation, CE, and marketing services. Many commissions are split 50-50, but experienced agents may opt for a desk fee, a monthly set price they pay to remain at a brokerage.

To read more about commission splits, desk fees, and how agents get paid, read How Do Real Estate Agents and Brokers Get Paid?

Is it Worth the Cost to Get Your Real Estate License?

Everyone who starts out in real estate wants to be a success. A career in real estate offers flexibility, allowing agents to choose their schedule and map their career. Although a career in real estate doesn't guarantee success, those who work hard can achieve success, with agents earning over six figures after building a client base and understanding the industry.

A two-year or four-year degree is often required for many careers, with university tuition costs rising every year. However, becoming a real estate agent typically costs less than $700 for everything, including education, background checks, exam fees, and licensing fees. Many schools offer 100% online courses, allowing students to complete coursework at their own pace.

If you want to advance your career by gaining certifications or becoming a broker or appraiser, you can take more online courses and become certified. Your career is entirely under your control.

Interested in Starting a Career in Real Estate?

Getting your real estate license is an investment in your future. At VanEd, we offer all the pre-license education you need to meet your state's requirements. Get started and enroll in an online real estate pre-license course today!

Written and Published by: VanEd