#1 Learn the Real Estate Licensing Requirements for Your State
Similar to other professional licenses, such as legal and medical, there’s no such thing as a national real estate license. Real estate licensing is done at the state level, so the first step is to research the licensing requirements for the state in which you plan on working. This can easily be done by accessing your state’s department of real estate website.
#2 Interview with Real Estate Brokerage Firms
Unless your state recognizes prior real estate experience from another state, as a new real estate agent licensee you’ll need to “hang your license” with an experienced real estate broker for a couple of years. At CommercialCafe we suggest interviewing with real estate brokerages as one of your first steps. Here’s why:
- Some commercial real estate brokerages will offer you in-house training, mentoring, or reimbursement for your real estate licensing classes – especially if they’re impressed with your credentials.
- You’ll have the opportunity to speak with newly licensed agents and the firm’s managing broker and learn what to really expect when you go to real estate school and get your license.
- Best of all, you may have a job lined up so you can go to work right away after getting your real estate license, motivating you to learn fast and pass the real estate licensing final exam the first time around so you can start making money in commercial real estate.
#3 Attend a Real Estate Pre-Licensing School
States require people getting their real estate license for the first time to have a certain amount of class time. It’s usually around 120 hours, although the requirements vary from state to state.
By the way, there’s only one type of real estate agent license. States don’t issue different licenses for commercial agents, residential agents, property managers, etc. Some of the general topics taught in a real estate pre-licensing school include: contract law, fair housing laws, agency and representation, real estate math, and mortgage and financing options.
Online and Offline Real Estate Schools
Most states allow you to take your real estate licensing classes online with an educator certified by the state, or offline in a classroom environment. There are pros and cons to each:
- Online real estate licensing schools let you take classes at your convenience 24/7 and cut down on travel time. Course costs are also usually cheaper, but you won’t be able to gain valuable insights by interacting with your instructors or peers.
- Traditional classroom real estate schools offer flexible set course schedules and provide plenty of opportunities to ask questions and learn from instructors and other students attending real estate school.
#4 Study for The Real Estate Final Exam
First, the good news: real estate schools want to make it easy for you to pass the state real estate licensing exam. That’s because they want to be able to promote a high pass rate to attract students. So, real estate licensing schools include open-book quizzes and tests at the end of each class and course, refresher classes and exams, study groups, and a mock state real estate licensing exam before you take the real one. Usually, the mock exam from the real estate school is much tougher than the one you’ll take from the state.
Now, the not so good news: math is involved in the real estate licensing exam. However, it’s simple math – such as addition and subtraction, multiplication and division – you can do this with the calculator that you brought with you to the state exam. You may be asked to answer basic real estate math questions like cost per square foot, number of square feet in a quarter of an acre, and figuring out the number of square feet in a space when you know the dimensions of the room.
#5 Take the Real Estate Licensing Exam
After you’ve taken advantage of all the extra exam-prep opportunities your real estate school offers, try to take the state exam right away, while everything is still fresh in your mind. That’s because the state real estate licensing exam isn’t open book, so you won’t be able to refer to any notes.
State real estate exams usually run about three hours in length, are taken on a computer and consist of about 100 multiple choice questions. Once you answer all of the questions, you’re free to leave. Some of the best tips for taking a real estate licensing exam are:
- Answer the easy questions first, then go back for the more difficult ones
- Do the math questions all at the same time to let your mind ‘change gears’
- If you’re stumped by a multiple choice question it’s OK to guess – that’s because usually one of the three questions will be glaringly wrong, giving you 50-50 odds of choosing the correct answer
If for some reason you don’t pass your state real estate licensing exam the first time around, that’s OK too. Most schools and states offer free or inexpensive retakes of classes and the state licensing exam.
Three Key Takeaways for Getting A Real Estate License
- The steps to getting a real estate license are: learn your state requirements, interview with different brokers, attend a real estate pre-licensing school, study for the real estate exam, and take and pass your state real estate licensing exam.
- There’s a difference between a real estate agent license and a real estate broker license. When you’re just starting out – unless you have experience from another state that your state recognizes – you will be licensed as an agent and be required to hang your license with a broker.
- After a couple of years – depending on your state – you’ll be able to study and take the state exam to become a real estate broker, open your own firm if you choose to do so, and start building a commercial real estate business of your own!
