If you’re a Michigander who loves the idea of a flexible schedule and unlimited earning potential, then it’s time to pursue a Michigan real estate license. To be eligible for a Michigan real estate license, you must be at least 18 years old and be of good, moral character.
In this article, we’ll review the costs involved, walk you through the four easy steps you’ll need to take to launch a real estate career in Michigan, and finally, we’ll answer frequently asked questions. Let’s get started!
Step 4: Find a Broker to Hire You
How Much Does It Cost to Get a Real Estate License in Michigan?
It costs approximately $405 to get your real estate license in Michigan, including the cost of a 40-hour prelicensing course required by the state. Some of the costs are fixed, such as the state’s licensing and exam fees, while the price of prelicensing education (and optional exam prep materials) will vary depending upon the provider you choose.
Michigan Real Estate License Costs
|Prelicensing Classes (40 Hours)||$179 (through Real Estate Express)|
|Exam Prep Materials||$59 (through Mbition)|
|Michigan Real Estate License Application Fee||$88|
(Michigan Real Estate License Costs as of October 2021)
How to Get a Michigan Real Estate License in 4 Easy Steps
The process of becoming a Michigan real estate salesperson is straightforward. You must take 40 hours of coursework, apply for a license with the state, pass the exam, and then find a broker to hold your license.
1. Complete Complete a 40-Hour Prelicensing Course
Cost: As low as $179 with Real Estate Express
Time Commitment: 2-4 weeks
Helpful Resource: 6 Best Online Michigan Real Estate Schools
Begin the process of earning your Michigan real estate license by signing up for 40 hours of prelicensing classes. Your Michigan real estate course will teach the fundamentals of practicing real estate, and will prepare you for the Michigan real estate license exam.
Prelicensing courses will cover the legal and financial aspects of buying and selling property, including these topics:
- Property ownership
- Land use controls and regulations
- Valuation and market analysis
- General principles of agency
- Property disclosures
- Leasing and property management
- Transfer of title
- The practice of real estate
- Real estate calculations
- Duties and powers of the Department and the State Board of Real Estate
- Licensing requirements
- Contractual relationships
- Additional state topics
This may seem like a lot of information to cover in just 40 hours. We recommend choosing a Michigan real estate school known for breaking down complicated material as well as one that fits your schedule and learning style.
Do you learn better in a traditional classroom when interacting with a teacher and other students? Do you need a regimented schedule to force you to get through the materials in a timely manner? If so, narrow your search to in-person classes. Please keep in mind that attendance is mandatory, so choose a class time that works with your schedule.
For in-person classes, consider the Michigan Institute of Real Estate. They offer day and evening classes with a textbook. If you are a self-starter and prefer to work at your own pace, consider signing up for online classes with a provider like Real Estate Express.
Here are the pros and cons of in-person, livestream, and online classes that let you learn at your own pace.
|Types of Instruction|
Pro tip: If completing your classes online school appeals to you, we recommend Real Estate Express. Real Estate Express is a powerhouse in the online real estate education space. Their Michigan real estate classes are affordable, and the materials are presented clearly and concisely.
2. Submit an Application to the State Licensing Agency
Time Commitment: 1 hour
Helpful Resource: How to Get a Real Estate License in 5 Easy Steps
Once you’ve completed your prelicensing classes, you’re ready to fill out the online application for your Michigan real estate license. The first part of the application process requires that you create an online account with the Michigan Professional Licensing User System (MiPLUS).
The fee for the application is $88. However, the application fee to become a licensed real estate agent may be waived to benefit qualifying veterans.
The online application allows you to name the broker under which you will work. It’s unnecessary to name the broker before taking and passing the exam, but you won’t receive a photo ID and become officially licensed until this step is completed.
3. Pass the Michigan Real Estate Salesperson Exam
Time Commitment: 3 hours (arrive 30 minutes early to the testing site)
Helpful Resource: 7 Hacks for the Real Estate Practice Exam
Once you’ve completed the 40 hours of coursework and the online application, you’ll need to schedule your Michigan real estate license exam online. The exam is administered through PSI, and the fee of $79 can paid when you schedule your exam through their website.
The exam takes about three hours. PSI’s Michigan testing centers can be found in these locations:
- Grand Rapids
You’ll need to study for your Michigan salesperson exam. To improve the efficiency of your study time, we recommend exam prep material from Mbition. Their exam prep program analyzes the answers you give on its practice test to create a personalized study plan, helping you to focus on areas where you need the most work.
Your grade on the exam will be available immediately upon completion. A passing grade is 70%. If you don’t pass, you’ll receive an individual score for each of the exam’s major sections. You can retake the test, but you’ll need to pay the $79 exam fee each time.
4. Find a Broker to Hire You
Time Commitment: 2 weeks
Helpful Resource: What’s the Best Real Estate Company to Work for in 2021?
Real estate agents in Michigan must work under a licensed broker. To find a broker, start by researching the brokerages in your area. You don’t have to wait until you pass the real estate license exam to start having discussions with area brokers. In fact, if you know which brokerage you’ll be working with when you become a fully licensed agent, you can submit that information on the application form.
You may feel drawn to work with big-name real estate agencies. They often have programs to assist a beginning salesperson in navigating the new profession. Don’t ignore smaller brokerages, though. The brokers working in these agencies may also offer valuable insights and can help you make meaningful connections.
Real Estate Compensation
Whether you reach out to a big-name agency or a smaller company, you need to understand how you’ll be compensated. Here are some things you’ll want to ask about when searching for the right brokerage for you.
Split: Typically, real estate agents earn a 3% commission when assisting people with buying or selling real estate. Your broker will get a portion of the commission, and you get the rest. You’ll find that some brokerages will ask for a 50/50 split on commissions. Ask each potential broker what your split will be.
Desk Fees: Usually, brokerages that offer an even split will not charge monthly desk fees. Desk fees are due whether you make a sale that month or not. Ask if a brokerage charges desk fees, and how much your monthly costs will be.
Cap: You may also want to discuss your cap, or the highest amount that the agency will take from your commissions within a given year. Once your brokerage has earned a set amount of money based on your sales, you’ll keep 100% of your commissions for the remainder of the year.
Make sure to check out The Close’s deep-dive into the best real estate brands in the country here: What’s the Best Real Estate Company to Work for in 2021?
How to Get a Michigan Real Estate License: FAQs
We know you’re excited to get started on your new real estate career, but first, take a moment to review some of the frequently asked questions beginning real estate agents often have about the profession.
What are the legal requirements to become a real estate agent in Michigan?
You must also be 18 years old, have a high school diploma or equivalent, and “have a good, moral character” to become a real estate salesperson in Michigan. You must have a valid Social Security number as well.
How hard is the real estate exam in Michigan?
You need to answer 70% of the questions right to pass the Michigan real estate exam. Unfortunately, the pass rates aren’t published by the licensing department.
To better prepare yourself to pass the Michigan real estate license exam, we recommend using an exam prep package from Mbition. You can save 15% on your Mbition exam prep materials by clicking this link.
Can I get my Michigan real estate license online?
Yes, you can take all of your Michigan real estate classes online without leaving your home. However, you’ll need to visit one of the PSI exam testing sites to complete your salesperson exam.
If you’re looking for an online real estate school in Michigan, we recommend Real Estate Express. Hundreds of thousands of real estate agents across the country got their start with convenient, online classes from Real Estate Express. You can too!
How much money does a realtor in Michigan make?
According to Indeed, real estate salespeople in Michigan make an average of $70,258 per year. This salary is based entirely on commissions, as real estate agents do not receive a salary or steady paycheck. Beginning real estate agents sometimes choose to keep their “day jobs” as they increase their client base.
[Related article: How to Become a Successful Part-time Real Estate Agent]
How long does it take to become a real estate agent in Michigan?
You can earn your Michigan real estate license in less than three months. Since Michigan requires real estate salespeople to take 40 hours of prelicensing courses, you could feasibly complete your prelicensing course of study within one week.
How much does it cost to get a Michigan real estate license?
You can get a Michigan real estate license for less than $500. This amount is based on the application fee, exam fee, and the variable cost of your prelicensing coursework and exam prep materials.
You can save 25% on your Michigan real estate prelicensing courses with Real Estate Express when you use the promo code “TheClose25” at checkout.
What if I have a real estate license from another state?
Michigan does not have reciprocity with any other state, which means you have to complete all the steps we listed to become a real estate agent in Michigan (even if you are licensed in another state).
On the other hand, if you have your real estate license in Michigan, you can work as an agent in one of these states without going through the entire licensing process:
- North Carolina
[Related article: Real Estate License Reciprocity & Portability: A State-by-State Guide]
More Career Resources From The Close
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