How to Become a Real Estate Agent in Iowa in 8 Easy Steps

From its rolling fields of corn to the bustling farmer’s markets, the Hawkeye State offers a warm welcome for those wanting to start their real estate career. If you’re wondering how to become a real estate agent in Iowa, we’re here to guide you. With just a few straightforward steps, you could be helping buyers and sellers in Des Moines, Cedar Rapids, Davenport, or Iowa City before you know it!

Quick Facts & Costs for Iowa Licensees

Types of Licensees in Iowa & How Much They Earn

• Agent (salary range: $70,000 to $100,000): A real estate salesperson works under the supervision of a licensed real estate broker and helps clients buy, sell, or rent property.
• Broker (salary range: $90,000 to $120,000): Licensed real estate brokers operate independently through a brokerage. Brokers can also start their firms.

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Step-by-Step Breakdown: How to Get a Real Estate License in Iowa

Ready to learn more about how to become a real estate agent in Iowa? Here are the steps you’ll need to follow:

Step 1: Meet Iowa Eligibility Requirements

To be eligible for an Iowa real estate license, you must:

• Be at least 18 years old
• Satisfy the commission that you possess good character

Step 2: Choose an Iowa Real Estate School

• Cost: Starting at $377
• Time commitment: 2-5 weeks
• Helpful resource: 5 Best Iowa Online Real Estate Schools

In Iowa, you must complete 96 hours of prelicensing education. The coursework is split into a 60-hour Principles of Real Estate course and three 12-hour additional mandatory courses. The mandatory courses cover buying, listing, and ethical practices. To get started, choose a real estate school and course format depending on your learning style and what suits your schedule best.

Colibri Real Estate offers state-approved courses for aspiring Iowa real estate agents. With several course packages to choose from and comprehensive exam prep materials, Colibri will help you meet Iowa’s 96-hour prelicensing education requirements in no time.

Enroll in Colibri Real Estate

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Step 3: Pass the Iowa Real Estate License Exam

• Cost: $95
• Time commitment: 3 hours
• Helpful resource: 7 Hacks to Help You Ace Your Real Estate Exam and Iowa Candidate Information Bulletin

Your score will be displayed as soon as you finish the exam, and a score report will be sent to you and the Commission. If you fail, the results will include a diagnostics report to help you prepare for the retake. You may retake the exam as many times as you need to pass, but you’ll have to pay the fee each time. You will receive a license application form and score report if you pass.

Step 4: Get Fingerprints & Background Check

• Cost: $51
• Time commitment: At least 4 weeks processing time
• Helpful resource: Iowa Dept. of Inspections, Appeals, & Licensing website

In Iowa, you’ll need to complete a background check that you will submit with your license application. I recommend immediately starting the background check process since processing can take four or more weeks. To get started, visit the Iowa Professional Licensing Bureau’s website to create an account (called “My Iowa PBL”). You can request a fingerprinting packet and pay the $51 fee online.

Step 5: Join a Real Estate Brokerage

• Cost: Free
• Time commitment: 2-4 weeks
• Helpful resource: How to Choose a Real Estate Broker as a New Agent

Before applying for your license, you must be associated with an active sponsoring broker in Iowa. Your sponsor broker will oversee you as a new agent and provide guidance and support as you navigate your new career. Once you’ve landed some broker interviews, you’ll want to ask each broker about the split (or how you and the brokerage will divide sales commissions), tools and resources, goals, and culture. This will help you decide on the brokerage where you’ll “hang” your license. 

Step 6: Obtain Errors and Omissions (E&O) Insurance

• Cost: Starts at $144
• Time commitment: 1 hour
• Helpful resource: Iowa Department of Inspections, Appeals, & Licensing website

All active licensees in Iowa must carry E&O insurance. This insurance protects brokerages and individual agents from being sued by clients if they make a mistake related to real estate transactions. It covers a claim’s legal, defense, and court costs.

While the Commission has selected Rice Insurance Services Center (RISC) for a group insurance policy, you can use any insurance agency to find the E&O policy that works for you.

Step 7: Apply for an Iowa Real Estate License

• Cost: $125
• Time commitment: 1 hour
• Helpful resource: Iowa real estate licensing guidelines

All applications must be submitted through an applicant’s My Iowa PLB account. This is the same account you created to complete your background check. To complete the application, follow the prompts in your Iowa PBL account and submit the following:

• $125 license application fee
• The application form with your and your sponsoring broker’s signature
• Proof of completion of your prelicensing courses
• Proof of passing the Iowa license exam
• Proof of E&O insurance coverage

Once you have submitted your license application, you’ll be notified by email of your active Iowa real estate license. You may also check your My Iowa PBL account anytime to see your license application status.

Step 8: Start a Successful Career in Iowa

Now that you’re licensed, it’s time to dive into the dynamic world of Iowa real estate. Here are some tips to get your career off to a flying start:

• Networking is key: Building a solid network is vital. Attend real estate conferences and local community events to forge lasting relationships with clients and fellow professionals.
• Stay up-to-date on market trends: Study real estate trends to make you a go-to resource in your community.
• Get a mentor: Find a great real estate mentor or a more experienced agent to show you the ropes.

Frequently Asked Questions (FAQs)

Back to You

Now that you know how to become a real estate agent in Iowa, it’s time to start hustling! At The Close, we’re committed to helping you through every step of your real estate journey. Have other questions about getting licensed in Iowa? Let us know in the comments!