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

Are you thinking about starting a new career and getting your real estate license? Prior to enrolling in an online real estate course, you'll need to save up some money and consider some of the expenses of becoming a real estate agent.

Costs to Consider When Starting a Real Estate Career

1. Pre-License Real Estate Classes and Education

The first cost to consider when planning your new career is the cost to enroll in a pre-license course at an accredited real estate school. You'll need to complete your courses before you can take and pass the real estate exam.

The cost of your education will depend on how many credit hours are required by your states' real estate commission and whether you decide to take your education online or in a classroom. Some states like Colorado require 168 hours of pre-license education. Other states like Georgia require 75 hours of education, and states like Alabama, require only 60 hours.

Estimated Total Cost: $350+

2. 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.

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

Additional costs to consider are real estate broker fees, membership fees for REALTORS®, business expenses, and marketing costs, however, these vary are almost entirely independent of the state you wish to obtain your license in.

In this analysis, we will not be taking into consideration the additional fees associated with getting a license mentioned above. The costs outlined below are averages and are subject to change at any time. Additionally, our analysis is based on the cost to get a Salesperson license and not a broker license. A broker license usually costs more than a salesperson license 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.

Additional Costs: Continuing Education

Even after school, exam fees, licensing fees, and background checks, there are periodic courses that real estate agents must take to maintain their license. These Continuing Education (CE) courses keep real estate agents up to date on the laws of their state, serve as an information refresher, and allow real estate agents to learn more about the real estate industry.

How often agents need to take CE courses varies depending on their licensing state. Agents typically need 15-25 hours of CE every 2-3 years. CE is an excellent opportunity to gain knowledge and update your skills to advance even further in the industry

Many brokerages pay for their agents’ CE courses. Ask your sponsoring broker if CE is something they offer.

Some states require their agents to take a post-license course within a year of their licensure. This post-license training is a one-time course that serves as an extension of your real estate education. Check your state to see if you need post-licensing. After post-licensing, agents take CE courses.

Register for your Continuing Education courses

Additional Costs: Marketing, Desk Fees, Commission Splits

When you become an agent, there are costs associated with your work that are atypical in other jobs.

Many agents pay for their marketing. Marketing fees could be social media ads, print ads, postage, design work, headshot photography, or anything else you use to stand out from the crowd. Certain brokerages help with some of this marketing. Ask your brokerage what they offer to help get your name known in the industry.

Most agents split their commission with their broker. Because many brokerages offer guidance, clients, reputation, CE, and marketing, this is how an agent pays back. Many of these commissions are split 50-50. Experienced agents may opt to pay a desk fee at a brokerage instead of splitting their commission. A desk fee is a set price an agent pays every month 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?

A successful career in real estate is highly desirable. It is a profession that allows you to choose your schedule and map your career. Being a real estate agent, you take away what you put into your work. Hard work means growing income. You are not tied to an office for eight hours a day and get the opportunity to meet new people regularly.

A career in real estate never guarantees any amount of success, but those who work at it can do exceptionally well for themselves. After a few years of building a client base and getting to know the industry, agents can make over six figures.

Many careers require a two-year or four-year degree. Just one year of tuition at a university costs an average of $10,740 in tuition for in-state students and $27,560 for out-of-state students. This tuition fee does not cover textbooks, housing, or other expenses associated with university life.

However, becoming a real estate agent typically costs less than $700 for everything, including education, a background check, exam fees, and licensing fees. Many schools offer courses that are 100% online so students can access their courses from their own homes and complete coursework at any time. Real estate school is also self-paced, so you can complete it any time, averaging from three months to one year.

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!

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Written and Published by: VanEd