Post-Licensing and Activating Your Real Estate Career

Passing the real estate licensing exam is an exciting milestone, but it’s just the beginning of your journey as a real estate agent. After passing the exam, there are a few crucial steps to take before you can officially start practicing. This article answers common questions about activating your license, joining a brokerage, and the costs involved in maintaining your credentials.

1. What Happens After I Pass the Licensing Exam?

Once you pass the licensing exam, you’ll need to complete a few final steps to become a practicing real estate agent:

• Submit Your Application: Most states require you to apply for your real estate license within a certain timeframe after passing the exam. You may need to provide proof of your exam results, pre-licensing education, and background check.
• Pay Licensing Fees: These fees vary by state but typically range from $50 to $250.
• Complete Post-Licensing Education (if required): Some states mandate additional education within your first year as a licensed agent. These courses are designed to provide more in-depth knowledge about real estate practices and laws.

Once your application is processed and approved, you’ll officially be licensed!

2. How Do I Activate My Real Estate License?

Activating your real estate license involves registering it with a brokerage or the state’s real estate commission. The exact steps depend on your state, but generally include:

• Choosing a Brokerage: You must select a licensed brokerage to sponsor you.
• Submitting Broker Sponsorship Forms: This paperwork, often signed by your broker, confirms your affiliation with their brokerage.
• Paying Activation Fees: There may be a fee for activating your license, which varies by state.
• Registering with Local Boards: In some areas, you may need to join your local real estate board to gain access to resources like the Multiple Listing Service (MLS).

Once activated, you can legally represent clients in real estate transactions.

3. Do I Need to Work Under a Brokerage to Practice Real Estate?

Yes, in most states, new real estate agents are required to work under a licensed brokerage. This is because brokers are legally responsible for overseeing their agents’ activities and ensuring compliance with state laws.

Working under a brokerage provides:

• Guidance and Support: Many brokerages offer training programs, mentorship, and administrative support to help new agents succeed.
• Access to Resources: Brokerages typically provide access to tools like the MLS, marketing platforms, and office space.
• Credibility: Being affiliated with an established brokerage helps build trust with clients.

Once you gain experience and meet state requirements, you may have the option to become a broker yourself and work independently.

4. What Is the Process for Joining a Brokerage?

Joining a brokerage is a key step in launching your real estate career. Here’s how the process typically works:

1. Research Brokerages: Look for brokerages that align with your goals and values. Consider factors like commission splits, training programs, and office culture.
2. Schedule Interviews: Meet with brokers to discuss what they offer and how they can support your growth.
3. Review the Contract: Carefully read the independent contractor agreement, which outlines commission structures, fees, and expectations.
4. Sign the Agreement: Once you find the right fit, sign the contract to officially join the brokerage.
5. Complete Onboarding: Your brokerage will guide you through the onboarding process, which may include orientation, training sessions, and setting up your online profiles.

5. How Much Does It Cost to Maintain My Real Estate License?

Maintaining your real estate license involves ongoing costs, which can vary based on your state and brokerage. Common expenses include:

• Renewal Fees: Most states require license renewal every 2–4 years, with fees ranging from $50 to $200.
• Continuing Education (CE): You’ll need to complete CE courses as part of the renewal process. Costs range from $50 to $300 per cycle.
• Board Membership Dues: Joining local, state, and national real estate boards (e.g., the National Association of Realtors) can cost $200 to $600 annually.
• MLS Fees: Access to the MLS typically costs $20 to $50 per month.
• E&O Insurance: Errors and omissions insurance protects you from legal claims and costs around $500 to $1,000 annually.
• Marketing and Business Expenses: These include business cards, website hosting, advertising, and client gifts.

Final Thoughts

Activating your real estate license and starting your career requires dedication, planning, and a financial investment. By choosing the right brokerage, completing post-licensing education, and staying on top of license maintenance, you’ll be well-prepared to thrive in the real estate industry.

Remember, every step you take after passing the exam brings you closer to achieving your goals as a successful real estate agent. Take the time to research, plan, and build a strong foundation for your career.