What Does It Really Cost To Be a Real Estate Agent in 2022?
The real estate market is highly attractive. As with other fields, you must carefully weigh what it will cost you to become a real estate agent. You must also navigate pre-license education to state licensing exams and beyond.
In this article, we've put together an estimate of the real estate license's worth.
Pre-License Education ($100+)
The first step to getting your license is taking pre-licensing courses. You can take real estate courses online or in person. You can't become a real estate agent without completing them.
The cost of real estate education will vary from one real estate school to the other. Nonetheless, you can expect online real estate schools to be cheaper.
Background Check Fees ($100)
Workers in this sector have access to people's homes. They also have access to some private information about the general public. Therefore, all states subject potential real estate agents to background checks and fingerprinting.
In some states, you can pay for background checks on completing your real estate license exam. In others, you can pay for the background check before starting the program.
Sales Agent License Exam ($75-$250)
Upon completion of the course, you must apply to take the state and federal licensing exams.
The application fee costs $25-$50, while the exam fee costs $50-150. You will only get your license if you take and pass this exam.
If you don't pass the real estate license exams, you can repeat them. However, you'll need to pay the fees again. Passing the exams is the only way to get an active real estate license.
License Application Fee ($150)
Once you pass your exam, you can apply for your real estate agent license. Some states include the cost of the real estate license application in the exam fee. Thus, you'll get the license once you pass the exam.
Otherwise, you will fill out the license application form and prove that you passed the exam.
Broker Fee ($300-$6000+ per year)
After becoming a licensed real estate agent, you need to hitch your wagon to a local broker. The brokers will take on some of the expenses critical to running a real estate business.
These costs include office space, enrollment in the multiple listing service, paying for office supplies, and errors and omissions insurance. The fees are a percentage of your commission, but some brokers also charge monthly desk fees.
If you want to become a broker, you'll need a broker license down the line.
Real Estate Membership Fees ($200+ per year)
Getting your real estate license is not enough to make you a member of relevant bodies in the industry. You'll also need to be a member of your state and local real estate board, which will require paying a monthly fee. Membership dues are tax-deductible.
Marketing Costs and Businesses Expenses ($2,000+ per year)
Beyond your pre-license education and real estate licensing fees, you'll spend money on miscellaneous expenses. Real estate professionals incur a lot of unplanned expenses when selling a property.
You'll also need to spend money on marketing yourself and your products. Every real estate agent spends a significant sum on marketing per year. So, it's hard to determine the estimated cost.
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Interested in getting your real estate license? Connect with a local real estate brokerage to begin your journey to becoming a realtor today!
