How Much Does It Cost To Get A Real Estate License?

Becoming a licensed real estate agent opens the door to an exciting and lucrative career. But between education, exams, fees, and onboarding, getting properly certified has real costs attached.

Many aspiring agents underestimate the full price tag. In this guide, we’ll go over typical expenses – from pre-licensing courses to state exams, background checks, brokerage fees, and more. Understanding the complete licensing investment empowers you to budget and prepare for success.

Costs vary widely by state, depending on requirements. Weighing tuition, test fees, and hidden costs against earning potential will give you the full picture. Let’s delve into the key categories that comprise your total licensing expenditure.

How Much Does It Cost To Get A Real Estate License?

The costs to get a real estate license vary widely based on your state and choices, so expect to spend anywhere from $500 on the low end up to $3,000+ on the high end to become a practicing licensed real estate salesperson.

Given all the above direct and indirect categories, what can you expect to invest in total for real estate licensing?

• Lower-End, “Bare Bones” Investment: Around $500 – $1,000
• Higher-End With Extras: Approximately $2,000 – $3,000+

Here is a detailed breakdown of typical licensing costs by category:

Cost Category	Typical Price Range	% of Total Cost
Pre-Licensing Education	$200 – $500	20-50%
State Exam & Prep	$100 – $300	10-20%
License Application & Background	$100 – $250	10-15%
Brokerage Onboarding	$50 – $500	5-25%
Post-License Education & Renewal	$50 – $150+ per year	Varies

As shown, pre-licensing tuition and test fees alone can account for 30-70% of total costs. Brokerage, application, and continuing education make up additional major portions. It’s vital to budget for all phases.

Let’s compare estimated licensing costs for three states:

State	Avg. Total Cost	Education Req.	Test Difficulty
Texas	$1,500-$2,500	180 hrs	Moderate
Florida	$700-$1,200	63 hrs	Challenging
California	$1,000-$2,000	135 hrs	Very Difficult

As you can see, required education hours and exam difficulty influence overall investment.

According to Tutors.com, the total cost typically ranges from $500 to $1,500. This includes pre-licensing education ($250 to $700), state licensing exam fees ($75 to $200 per attempt), background check fees ($50 to $100), and state application fees ($125 to $300).

Realtyna reports a similar range, stating that it can cost $500 to $1,200 to get a real estate license, including licensing fees, exam fees, background checks, and pre-licensing education. The precise amount varies largely by state, reflecting different regulatory requirements and associated costs.

Colibri Real Estate School provides a detailed breakdown of application or license fees by state. These fees range from as low as $50 in Arkansas to as high as $485 in Colorado. Some states, like Hawaii, have different fees depending on the year ($282 for even-numbered years and $382 for odd-numbered years).

Van Education Center offers a comprehensive state-by-state breakdown of both license fees and pre-licensing education costs. For example, in California, the total cost is estimated at $800, with $400 for the license fee and $400 for pre-licensing education. In contrast, Michigan has a lower total cost of $338, with $88 for the license fee and $250 for education.

Pre-Licensing Education Requirements

The first required step to becoming licensed as a real estate agent is completing state-mandated pre-licensing education through approved real estate courses. This education entails:

Real Estate Classes

• Classroom-based or online coursework
• Covers core topics like contracts, transactions, law, ethics, financing
• Typically involves 60-180+ hours depending on your state

Tuition and Material Fees

• Online courses range from $200 – $500
• Physical classroom programs run $500 – $1,000+
• Includes textbooks, study materials, practice exams

For example, California currently requires 135 hours of approved pre-licensing coursework before sitting for the state exam. Florida needs just 63 hours. Online schools like Real Estate Express or Kaplan Real Estate Education tend to be more affordable and flexible, but require greater self-discipline versus in-person classroom structure.

Either way, expect pre-licensing tuition to make up a significant portion of your overall budget. Choosing cost-effective options like bundled online providers can yield significant savings long-term through discounted continuing education as well.

Your Real Estate License Exam

Once you successfully complete required pre-licensing education hours, the next step is passing the state license exam. This process includes:

Exam Registration and Scheduling

• Registering with the exam provider (usually Pearson VUE or PSI)
• Selecting and paying for an available exam date and testing center

Exam Fees

• Typically, $50 – $150 per exam attempt
• Covers administrative and processing costs
• Paid directly to test provider

Optional Exam Prep

• Test prep programs or packages
• Range from $30 – $200+

Potential Retake Fees

• If you fail, retakes mean paying exam fees again
• So, prep properly and pass on the first try!

The stakes are high with the licensing exam – because failing and needing to retest adds to your bottom line rapidly. Adequately preparing and passing on the first attempt saves money as well as frustration.

You might also like our articles about the cost of an ASCAP license, a clown license, or an A&P license.

Application & Background Check

Once you successfully pass the license exam, your journey is not complete just yet – you still need to formally apply for your license and undergo background screening:

State License Application

• Application fee typically $50 – $200
• Submitted to state real estate commission/licensing board

Fingerprinting and Background Check

• $25 – $100 through approved channel
• Checks criminal history, credit standing

Only once approved can you move forward with affiliating with a brokerage to activate your license.

Brokerage Onboarding Costs

Prior to transacting real estate, you must affiliate with or join a licensed real estate brokerage. Some charge agents fees including:

Desk or Monthly Brokerage Fees

• Cover desk space and office amenities
• Typically, $50 – $500 per month

Onboarding and Orientation Fees

• One-time new agent fee around $300 – $500
• Covers training, licensing, and onboarding

Initial Technology Setup Fees

• For MLS database, CRM system access
• Can range from $300 – $1,000

Selecting a brokerage with a cost-effective payment structure from the start helps manage expenses.

Continuing Education Fees

Once your license is active, you’ll need to fulfill ongoing post-licensing education and pay recurring licensing fees:

License Renewal

• Renewal required every 2-4 years
• Fees range $100 – $500

Continuing Education

• Mandatory CE courses each year
• $50 – $150 per course

These recurring fees ensure you stay current and licensed over the long run. Renewal and CE costs add up!

Factors Influencing Licensing Costs

Several variables largely out of your control affect investing in your real estate license:

State Education Requirements

• Minimum pre-licensing hours
• Continuing education needs

State Exam Difficulty

• Pass rates impact likelihood of retakes

Learning Format

• Online courses tend to be cheaper
• But require more self-discipline than classroom

Failed Exam Attempts

• Retake fees add up quickly

Specialty Certifications

• Additional designations like GRI or ABR require extra courses

Steps you take also sway your overall licensing spend:

Choosing Value Providers

• Research bundling discounts for greater savings

Going Above Minimums

• Extra education can improve career prospects

Securing your license demands understanding all state-specific expenses involved.

Saving Money During Licensing

Here are some tips for keeping real estate licensing costs in check:

Compare Bundled Education Packages – All-in-one providers offer discounts on prep, pre-licensing, and CE

Use Provider Promotions and Discounts – Kaplan, Champions School of Real Estate, Real Estate Express regularly offer 20-40% off

Inquire About Brokerage Reimbursement – Some cover all or partial education costs after signing

Deduct Licensing Education – If used for starting your real estate business, may be tax deductible

Buy Used Textbooks and Study Guides – If allowed by your program, used books save over new

Form Study Groups – Split costs of extra test prep materials and services

Shopping around, negotiating costs where possible, and deductions provide big savings.

Investment vs Earning Potential

Is getting licensed worth the monetary investment and time commitment?

The income upside for successful agents makes licensing costs payoff:

• Median agent salary is $50,000 first year
• Top producers can earn $100,000-$500,000+

But achieving ROI takes work:

• Full-time agents break even in ~1-2 years
• Part-time agents may take 3-5 years

Beyond money, the career offers flexibility, freedom, and upside worth considering.

Expert Opinions

“Don’t just look at licensing as an expense. View it as an investment in your professional future that unlocks major upside. The more education and expertise you gain upfront, the better positioned you’ll be for success and returns long-term.”

• Darlene McNeese, Associate Broker at Coldwell Banker Realty

“Understanding all the component costs of getting licensed is very important – from education to brokerage associations, exam fees, and renewals. Creating a licensing budget gives new agents important insight into the business investment needed to thrive. It sets realistic expectations on recouping those costs through future commissions.”

• Darnell Clarke, Real Estate Educator at Champions School of Real Estate

“While pre-licensing and exam fees may seem high at first, they are quite minor compared to your long-term income potential as a skilled, knowledgeable real estate consultant. Going above state minimum requirements is wise to stand out in a competitive market. View it as an investment in your future more than a current expense.”

• Phoebe Sanders, Real Estate Broker/Owner at Sander Realty Group

Final Words

Becoming a licensed real estate practitioner requires significant upfront investment in education, exams, applications, onboarding, and materials. Costs vary widely by state but expect to spend between $500 – $3,000+.

Compare anticipated licensing costs to income realities in your target market. Take advantage of cost savings like bundled education, discounts, and tax deductions. With diligence, the long-term value of a real estate license far outweighs the temporary expense. Take the first steps today.

Answers to Common Questions

What is the most asked question to a real estate agent?

The most common question asked of real estate agents is “How much is this home worth?” Understanding competitive market value is what most clients want to know upfront.

What is the most difficult state to get a real estate license?

California and Florida are consistently ranked as more difficult states to get licensed in due to more extensive education requirements, challenging state exams, and ongoing CE needs.

What is the hardest part of the real estate exam?

The general consensus is that the math portion involving calculations like prorations, interest rates, taxes, and commissions tends to be the most difficult for test takers.