6 Steps To Get Your Michigan Real Estate License
Pre-Qualifications:As much as I feel your excitement and charisma, be sure you meet all the pre-qualifications before you apply for your real estate license.These are the 4 things you need to have with you before taking the first step to your license application:
- You must be at least 18 years of age
- US citizen or permanent resident alien
- Proof of high school graduation or equivalent status
- You should have good moral character
Step 1: Complete 40 hours of A Pre-licensing course/educationBefore you can take the licensing exam, you’ll need to complete 40 hours of real estate education. This is mandatory for all applicants and required by the State of Michigan Department of Licensing and Regulatory Affairs (LARA).Even with experience on your side, it shouldn’t hurt to brush up on any fundamental real estate education or knowledge you might need later on.The Michigan Department of Licensing and Regulatory Affairs offers a credible pre-license course you can access on their website.You can choose between a live classroom or online setting to take the pre-licensing education program. For a list of approved Michigan real estate pre-licensure courses, you can find them here.
Step 2: Apply For Your Real Estate LicenseOnce you’ve completed your 40 hours of the pre-licensing real estate course, the school you enrolled in will submit your application to LARA for verification.The authorization process allowing you to register for the Michigan real estate license exam can take between 2 – 5 days. The license application fee is also set at $88, so make sure you have this amount with you when you apply.In the meantime, while waiting for authentication, you can proceed to…
Step 3: Choose The Right BrokerNow might be a good time to get your hands busy on the keyboard doing research. Your employing broker is a critical part of your success. Here is an outline of steps to consider when choosing your employing broker.
- Ask about commission rates and splits – Most agents get paid through commission. Not all brokers offer the same commission rates. Some have a different structure and others have bonus compensation packages. Either way, you need to do proper research.
- Decide which firm works best for you – You can choose between a national chain like RE/MAX or Keller Williams or a small-to-medium-sized brokerage firm. Larger firms offer name recognition, a larger network, and a higher chance of bigger sales down the road. Smaller firms offer personalized mentoring and more freedom.
- Find the right culture fit – Learn more about the brokerage firms in your area along with the firm’s values, interests, goals, and market presence.
- What kind of company do I want to work for?
- Do I prefer an on-hands approach with personal coaching or am I comfortable learning on my own?
- What are the benefits?
- How are their commission rates and structure?
- What kind of real estate agents do they need?
- What is their market reputation locally and nationally?
- Is there additional support and training?
Step 4: Register For The ExamWith your licensing application approved, the State of Michigan will send you an email to notify you can take the license exam. This will come with a Candidate Michigan Real Estate Number (MIRE) and exam instructions.Use your MIRE to schedule and pay for your real estate license exam. Also, Psychological Services, Inc. (PSI) will administer the Michigan Real Estate License exam. The exam costs $79 and you can register through the PSI website.
Step 5: Pass The ExamThe Michigan Real Estate License exam is a 115 multiple choice question test with two portions, state and national requirements.You’ll have 180 minutes to complete the exam. The real estate licensing exam will test you on the following topics:
- Land use controls and regulations (5%)
- Valuation & market analysis (7%)
- Property ownership (8%)
- Financing (10%)
- Leasing & Property Management (3%)
- Property disclosures (6%)
- General principles of agency (13%)
- Transfer of Title (8%)
- Contracts (17%)
- Practice of real estate (13%)
- Real estate calculations (10%)
- Michigan State Laws and Rules (35 questions)