The 4 Steps towards getting your Real Estate License
Step 1: Take a pre-licensing course
Cost: $200 to $300
States require people to take pre-licensing training from a certified institution before they can sit for the real estate licensing exam. The required number of training hours can vary significantly by location. In Massachusetts, for example, real estate agents must take 40 hours of pre-licensing training, but in other states classroom time can vary.
The course will teach you real estate principles, real estate practices, and the legal aspects of the business. Go to https://www.mass.gov/service-details/authorized-real-estate-schools-in-massachusetts for information on authorized schools in Massachusetts.
Pre-licensing courses can be taken in person or online.
Step 2: Take the licensing exam
Cost: $100 to $300
Your real estate school will provide information on how to sign up to take the licensing exam. You will have up to two years from the completion of the course to take the exam. Exams are typically divided into two portions: one on federal real estate laws and general real estate principles, the second on state-specific laws. Both typically consist of 60 to 100 multiple-choice questions, including math questions that require you to use a calculator. Most pre-licensing courses provide students with sample tests, and there are many sample tests available online.
Step 3: Passed your test? What’s next?
Activate your license through your state real estate commission's website. Activation fees vary but typically cost around $200 to $400.
Pay for membership to the local multiple listing service. Membership in your local MLS is essential, since you must use the system to list properties, the service also enables you to easily pull a property's tax information, analyze market trends, and see listings before they go on the market.
Step 4: Join a brokerage
In order to become a real estate agent and legally practice real estate, you must work under a supervising broker. Brokers are licensed by the state to oversee real estate transactions and ensure that real estate salespeople are adhering to the required legal and ethical standards.
Most brokerages pay their agents only by commission and you will be considered an independent contractor. For newer agents, brokerages that provide training can be extremely helpful in launching a successful career.