How to Become a Real Estate Agent in Alabama

Ready to get your Alabama real estate license?

If you’re considering starting your real estate career in Auburn, Birmingham, Mobile, or any other city in Alabama, you’ll need to get licensed with the state. Becoming a Realtor is an incredible opportunity for entrepreneurs, offering almost unlimited growth potential. So whether you are planning to do real estate part-time or are making it your new full-time career, we are going to share everything you need to know to become a real estate agent in Alabama.

We’ll cover:

New realtor showing homes to buyers

Steps to Get a Real Estate License in Alabama

The Alabama Real Estate Commission (AREC) has a few basic requirements to get licensed. Applicants have to be at least 19 years old, have a US Social Security number, and are a US citizen, a non-citizen national, or a qualified alien under federal law. You do not have to be a resident of the state to become a real estate agent in Alabama. You’ll also need to complete the following steps:

  • STEP 1:  Successfully complete 60 hours of the real estate pre-license course approved by AREC
  • STEP 2:  Sign up and pass the Alabama state real estate exam with a score of at least 70%
  • STEP 3:  Complete a background check
  • STEP 4:  Submit an application to the Real Estate Commission
  • STEP 5:  Select a sponsoring brokerage to officially activate your license

Understand How Long it Takes to Get a Real Estate License

Once you decide to become a real estate agent in Alabama you’re probably excited and want to get started immediately.  Before you leave your current position, it’s important to understand how long the licensing process can take in Alabama.  Often it’s 3 to 6 months. Here is what an average timeline looks like:

  • 3 to 8 weeks to complete your 60 hour pre-licensing course
  • 1 to 2 weeks to get your national and state exam scheduled
  • 1 to 3 weeks for the Arizona real estate commission to process your license application
  • 1 to 4 weeks to interview and select a real estate brokerage

While this timeline may seem a little daunting, there are a few ways to expedite things. First, taking an online course is the way to go.  Instead of attending scheduled in-person classes, two to four times weekly, you can learn at your own pace online.  We would also recommend interviewing brokerages while you are waiting for AREC to process your application, so you are ready to hang your license with a broker as soon as the application is approved.  All in all, it’s definitely possible to become a real estate agent in Alabama in less than eight weeks.


Woman calculating the cost to become a real estate agent in Alabama

Cost to Get a Real Estate License in Alabama

There are several fees involved when working to become a real estate agent in Alabama…

  • Pre-License Real Estate Course – $200 to $400
  • Background check -$49
  • Application Fee – $210
  • Alabama State Exam Fee – $77
  • State exam prep courses or materials – $25 to $150 (optional)

** Total Cost to Get Licensed = $575 to $800


More Expenses to Expect as an Alabama Agent

What many aspiring Realtors don’t realize is that there are several other costs to consider when becoming a real estate agent – after you have your license. Whether you’re building a new business and opening a dance studio, coffee shop, or starting your real estate empire, keep in mind there are always start-up costs involved.

Here are some of the most common expenses:

  • Post-License Continuing Education Fee – $30 to $250
  • Annual State License Renewal Fee – $185
  • National and Local Board of Realtors – $700+ each year
  • Business cards and signage – varies
  • Sentrilock or Supra eKey to show homes – $100 to $150 annually
  • Marketing materials and advertising – varies
  • Application fees to join local Realtor board or MLS – $0 to $600
  • Multiple Listing Service (MLS) – about $150 to $175 quarterly
  • Brokerage joining fee – $0 to $500 (average is about $250)
  • Monthly Brokerage fee – ranges from $0 to $350 monthly

** Total Cost to Become a Real Estate Agent in Alabama = $1,800 to $3,000


Learn more about costs to become a real estate agent in Alabama:

What Expenses to Expect as a New Real Estate Agent >


Find the Best Alabama Real Estate Schools

To get your real estate license, you’ll have to attend a school that’s approved by the Alabama Real Estate Commission. There are at least a dozen approved real estate schools throughout the state. Some are online, others in person, and a few do a combination of the two.

Here are a few of the most popular:

When shopping for the best online real estate schools, you’ll want to compare pricing, but there are a few other things you will need to consider:

  • Do they share their “pass rate”? This will tell you what percentage of their students passed the state exam on the first try.
  • Does the school offer any guarantees if you don’t pass? For example, one school will pay the fee for you to retake the state exam.
  • Are practice tests given to the students or is there any additional charge?
  • Do they offer a separate exam prep course or a weekend cram course?


How Select a Real Estate Broker

In Alabama, you must affiliate with a real estate brokerage in order actively help home buyers and sellers. This is often referred to as the “sponsoring broker” or “managing broker.” Picking the right brokerage to work with can be key to your success as a newly licensed agent.

We would recommend shopping for the best broker once you’ve completed the pre-licensing course and are waiting to take your state exam or while Alabama is processing your application. There are a few ways to do this:

  • Get recommendations. Discover which brokerages your friends and family have previously worked with and what they liked best about them. Don’t be afraid to ask local agents in your area what they like best about their broker.
  • Start googling! Do some web research after you’ve reduced your options down to 3 to 5 companies. There are always dozens, if not hundreds, of real estate agent testimonials and comments on YouTube and on real estate related social media groups.
  • Interview brokers. We strongly advise visiting with two or three brokerages (in person, over the phone, or via Zoom), as the perks and commission splits can vary significantly from one business to the next.
KEY QUESTIONS TO ASK WHEN INTERVIEWING BROKERS >>

Focus on What’s Most Important: Support

While many aspiring Realtors aim for the best commission splits when looking for a broker, we strongly advise you to put #2 or #3 on your list. The most crucial factor to consider when choosing a firm is how well they help novice real estate agents. Is there a structured training program in place? Will you be able to contact at least three people if you have questions? Is it possible to reach them outside of regular business hours? Do they have mentors, and if so, what will they do to help you?



How Difficult is it to Become a Real Estate Agent in Alabama… and Succeed in the 1st Year?

You made it through hours and hours of coursework, passed the Alabama state exam, and selected a great broker — congrats! The next step is getting you mentally prepared to build a successful, thriving new business!

Your pre-licensing course focuses on studying the most commonly used phrases, ethics, and laws in the state of Alabama when practicing real estate. Preparing house valuation reports (CMAs), creating contracts, and all the methods available to sell and promote your new business are usually not covered in great detail (if at all).

As a new real estate agent, you need to have a fire in your belly! Your motivation and desire to learn everything you can be critical to your success – especially in your first year in real estate. Many of you may be used to working for someone and being told what to do at work each day, but that isn’t the case in real estate. See what you should focus on in your first few months in the real estate business….

Download the 90 Day Checklist for New Agents

Kerry Lucasse and the Building Better Agents team talk with hundreds of newly licensed real estate agents each year. Most have no idea how challenging the first year or two can be and how much you need to learn to be successful. This business is not as easy as it looks on TV! Real estate can be a rewarding and profitable business if you are a self-starter who is 110% committed to being successful and you have the support of a great mentor and brokerage.


Aspiring real estate agent asking questions about getting licensed in Alabama

Commonly Asked Questions


Alabama Real Estate Exam:  How hard is it?

Most agents will describe the real estate licensing exam as “not easy.”  We highly recommend taking lots of practice tests to prepare. Your school should give you some practice tests, but you can purchase more online. If you still aren’t feeling confident, you can also sign up for an online exam prep course.


How many questions are on the Alabama real estate exam?

The state exam has 40 questions, and the national exam has 100 questions. All exams require a “scaled” score of 70% to pass.


What if I fail the Alabama real estate exam?

There is no set limit on the number of times that you can take the exam. However, if you do not pass
both parts of the exam within 1 year from the first attempt, you must resubmit a new license application
and fee.


How do I become a real estate broker in Alabama?

In order to become a real estate broker in Alabama, you need to be a least 19 years old and have an active real estate license in any state for at least 24 months of the 36-month period immediately before the date of the broker application. Also, you won’t be able to get your broker license if you had a real estate application or license rejected or revoked in any state within the past 2 years.


I have a real estate license in another state. Does STATE offer reciprosity?

If you are a licensed agent in Georgia or Texas, for example, and would like to get your license in another state, many US states have a “reciprocity agreement” with one another. This means that you don’t have to attend any additional classes, you may just have to pass the state portion of the exam to hold an active real estate license in that state.

The good news is that Alabama has reciprocal agreements with ALL states! If you meet the criteria above, you can submit the application.


What are the requirements for Continuing Education?

Alabama Real Estate Commission requires that licensed agents take 15 hours of Continuing Education (CE) classes every two years.


Is Getting a Real Estate License Worth It?

Honestly, it depends on what you’d like to accomplish with your license. If you only plan to sell a few homes to friends and family each year, you’ll need to do some math to see if the cost of obtaining and keeping a real estate license is worthwhile.

If you want to get into real estate and make a profession out of it, then yes! The housing market is exploding. It’s crucial to have at least 4 to 6 months of funds in the bank when transitioning from a salaried career to a commission-based business. If you don’t have that yet, you might want to stick with your current employment for a while until you’ve established a solid basis for your real estate business.



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