Real estate is an exciting career that is marked by many variables. No two days will be the same. You will be your own boss and enjoy the satisfaction of helping buyers and sellers navigate through one of life’s major milestones. You can become a trusted guide and, sometimes, even a friend to homebuyers. The day I arrived at my first real estate class, I was excited. I’d long been a house enthusiast with the purchase and sale of two houses under my belt. I’d met some great real estate agents through the years and looked forward to joining their ranks. Here are the basic prerequisites to becoming a Realtor mixed with some wisdom I’ve learned along the way. 

How to Become a Real Estate Agent After 50

Licensure Requirements

A national real estate license doesn’t exist. Each state has its own requirements. In order to find your state’s licensure requirements, visit the Association of Real Estate License Law Officials’ regulatory agency directory.

Age Requirement

If you are daunted by becoming a realtor after 50, don’t be. The median age of real estate agents in the United States is 60 years young! And much like attorneys, realtors can practice their profession long into their golden years. The minimum age requirement to pursue licensure is 18. Some colleges and universities offer a real estate major as a focus in their finance or business programs. 

Educational Requirement

As you might have guessed, states vary when it comes to educational requirements. Most states require you to have a high school diploma or GED. Other states require an applicant to have at least two years of high school completed coursework. States like Texas have no educational requirement for licensure. 

Prelicensing Coursework Requirements

Going to real estate school was something I looked forward to each weekend. I took an eight-week expedited course. Our local community college offered a six-month program. You might be wondering about the difference between the two. When learning how to get your real estate license, choosing the right prelicensing classes can be the difference between success and failure. It’s important to choose courses based on your time availability and learning needs. The learning format that helps you understand and maintain knowledge is critically important. Because I chose a shorter program, I bought every bonus tutorial that my professor offered. I purchased a set of hundreds of flashcards filled with terminology. I also walked the mall and listened to learning tutorials as I exercised. I studied my textbook along with the tutorials. Each state varies in its prelicensing coursework requirements. In Michigan, only 40 hours of prelicensing coursework are required while, in Texas, 180 hours are required. That is a lot of knowledge!

FBI Background Check Requirement

For me, one of the most intimidating steps I took in becoming a real estate agent was to walk into our local state police barracks and ask for an FBI background check. I hadn’t had so much as a traffic ticket. Being fingerprinted felt a bit like overkill. But when I thought about the responsibility of being inside client’s homes during their absence, I concluded that being cleared by the Federal Bureau of Investigation was a good idea. Surprisingly, according to the Association of Real Estate License Law Officials, only half of the states require background checks as part of the licensing process. Each state has a different process for vetting their real estate agents. Some states just require the agent to fill out a background questionnaire. The trend is that many states are starting to insist their agents have a background check before receiving their license. Obtaining a real estate license is still possible if you have a criminal history, although it is decided on a case-by-case basis. Each state’s Real Estate Commission will review the documentation to determine if the applicant is eligible for licensure.

However, candidates with a felony conviction, especially one that relates directly to the functions of a real estate agent, like fraud or embezzlement, will have more challenges getting approval. It’s best to reach out directly to your state’s Real Estate Commission to review your application before moving forward with the process.

The following is a list of where to obtain and if your state requires fingerprinting: Real estate license fingerprinting. This same website will let you know how long your fingerprinting takes to process and how long you will be able to use your results until you have to be fingerprinted again. Both are valuable pieces of knowledge to have when pursuing licensure. 

Real Estate Examination Requirements

Each state requires that you complete a state-administered real estate licensing examination prior to getting your real estate license. Each state has varying score requirements. This exam often includes a national portion and a state-specific portion. Both portions of the examination are designed to test your knowledge of real estate practices, policies, and terminology to ensure all licensed professionals enter the business on an equal platform of basic industry knowledge.

Some of the topics that will be covered are:

• Property ownership and land use controls and regulations
• Laws of agency and fiduciary duties
• Property valuation and financial analysis
• Financing
• Transfer of property
• Practice of real estate and disclosures
• Contracts
• Real estate calculations

The day I took my exam, I knew it had a four-hour time limit. I also remember being the last person to finish. I needed an overall score of seventy-five percent to pass and I’d be told the moment I left the testing room whether I had or not. I could also pay twenty extra dollars for my actual grade to see how well I did in each area. When I was told I passed, I didn’t pause for the specifics. My months of hard work had paid off, and that was enough for me.  

After You Pass the Exam:

Choose a Real Estate Broker

After passing the exam, the first step you’ll need to take is to choose a real estate broker. The process of picking a broker can start early, as some states require that you be sponsored by a broker when you take your real estate exam. This was the case for me. Luckily, my father was friends with a broker who had grown his company through integrity. I also had a dear friend in the same company who served as my real estate mentor. I was a small fish in a big pond and the other fish were friendly and helpful. 

Acquire Errors and Omissions Insurance

Almost 30 out of 50 states require new real estate agents to acquire errors and omissions insurance (E&O) to be considered active. E&O insurance protects real estate agents from mistakes made during professional service. Some brokerages may provide their brokers with E&O. Otherwise, you’ll have to purchase it yourself. So, if a client sues you for a mistake in the services given, errors and omissions insurance for real estate can help cover your legal costs. There is a lot to know about real estate. So much so, that you need to make sure you are protected from the unforeseen. Errors and omissions insurance is worth its weight in gold. 

Apply for Your Real Estate License

The last step in getting a real estate license is submitting an application to your state’s Real Estate Commission. The application form consists of basic information like your name, address, date of birth, and background history, as well as information regarding your real estate education and sponsoring brokerage. Most states give applicants the ability to apply online; if not, you’ll need to submit a paper application. Check with your state’s real estate commission.

Cost of a Real Estate License

The cost of a real estate license in the U.S. ranges from $400-$1000+ depending on your state. It is a common misunderstanding to assume the only costs are for the certification process, but in reality, the process is more layered than that. Be aware of hidden expenses before attempting to get a real estate license. Know that there will be fees after obtaining your license as well. When I was in my early teen years, my mother decided to pursue a passion. She was fortunate enough to have a friend pay for her real estate coursework and most of her fees. She passed the real estate exam with flying colors and had a brokerage with which to work. But when it came time to market her new business, pay for her National Association of Realtors Membership, and await her first sale, she didn’t have the funds to fulfill the dream she had pursued. She took the first job that paid her a steady salary and watched her training and dream disappear in the rearview mirror of life. Be aware of real estate start-up costs. Here is a list. 

• Education
• State Licensing Exam
• Background Check
• Hanging Your License With A Broker
• Errors & Omissions Insurance
• National Association of Realtors Membership*
• Business Expenses*
• Marketing Costs*
• Continuing Education*

*Costs incurred after you become a real estate agent and often not listed with start-up costs.