Excellent choice! Arizona has one of the strongest real estate markets in the country, thanks to the booming aerospace industry. Both local and national investors are scooping up property left and right over the last decade. As you can imagine, the hottest markets include Phoenix, Scottsdale, Flagstaff, and Tucson.
We’re going to share everything you need to know about getting your license and how to become a real estate agent in Arizona, including:
The Arizona Department of Real Estate (ADRE) has some basic requirements to get your license. You have to be at least 18 years old, have a high school diploma or GED and pass a background check. If you meet the basic requirements, there are just five steps to becoming a real estate agent in Arizona:
To become a real estate agent in Arizona, you’ll have to attend a school that’s approved by the Arizona Department of Real Estate (ADRE). This includes your 90-hour pre-licensing course as well as a 6-hour contract writing course. There are quite a few approved real estate schools throughout the state. Some are online, others in a classroom setting, and a few do a combination of the two.
Here are a few of the most popular:
When researching real estate schools in Arizona, make sure that the school shares their exam “pass rate” and see if they offer additional support for exam prep and sample exams for practice. Some offer weekend cram courses or online exam prep courses to ensure sure that you pass the state exam with flying colors!
In Arizona, you must affiliate with a real estate brokerage in order to activate your license and officially become a real estate agent. This is often referred to as the “sponsoring broker” or “designated broker.” Picking the right brokerage to work with can be critical to your success as a newly licensed agent.
If you’re eager to get started in real estate once you pass the exam, we would recommend shopping for the best broker once you’ve completed the pre-licensing course and are scheduled to take your exam.
Here are the key factors to consider before selecting a brokerage:
We recommend meeting with at least two or three brokers before making a decision. When researching, keep in mind that many brokerages are independently owned franchises. So one Berkshire Hathaway or Keller Williams office could be completely different from another that’s just 10 minutes away. The culture, training, support team, and sometimes even the fees and commission splits can vary from franchise to franchise.
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While many newly licensed agents are looking for the best commission splits when shopping for brokers, we would highly recommend that you make that #2 or #3 on your list. The most important thing you should look for in a brokerage is how they support brand new real estate agents. Do they have a formal training program? Will you have at least 3 people you can reach out to if you have questions? Are they available outside traditional business hours? Do they have mentors – and what exactly will the mentors do to assist you?
There are several fees involved when working to become a real estate agent in Arizona…
Getting licensed is just the beginning! There are several other expenses to consider when you become a real estate agent in Arizona. After all, you are building a brand new business and there are always costs associated, whether you are opening a boutique bakery or launching your real estate empire.
Here are some of the most common expenses:
If you add up the costs to get your license and the costs to officially become an agent, you will likely need to spend a total of $1,800 to $3,200 to launch your new career.
Learn more about costs to become a real estate agent in North Carolina:
Your Arizona pre-licensing course is primarily focused on learning the common laws and terminology when practicing real estate. The courses don’t usually go into much detail (if any) on preparing home valuations, hosting open houses, or promoting your new real estate business.
As a new REALTOR, you need to be highly motivated to learn everything you can about the Arizona real estate business. Don’t be afraid to ask lots of questions to your broker and/or mentor. You’ll have to get up each morning with a plan to promote and grow your new business, as you are officially an entrepreneur!
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.
If you ask around, many real estate agents will tell you that “it’s not easy”, but a large percentage do pass on their first try, especially those that took an additional exam prep course that’s offered by many online schools. To pass the final real estate licensing exam, you need a minimum score of 75%. So out of the 140 questions, you’ll need to answer 105 correctly.
You must wait 24 hours before scheduling an appointment to retake the exam. The cost to retake the exam is $75. Please note that if you fail the exam twice, Arizona offers a one-time exam review opportunity, so you will have 30 minutes to review the questions you missed.
You must travel to a testing location where you will be monitored for the duration of the exam. There are multiple locations around the state, including Phoenix, Chandler, Tempe, Flagstaff, Yuma, Tucson, and many more. Due to Covid, there may be some options for a proctored remote exam, but please contact PearsonVue to confirm.
Arizona’s Introduction to Contract Writing is exactly what it sounds like – it will prepare you to write contracts for your home buyer and seller clients. After completing the 6-hour contract writing course, you will receive your completion certificate. You will need to submit this certificate along with other documents when applying for your license.
Every Arizona salesperson’s real estate license has to be renewed in 2 years. You’ll need 24 hours of continuing education (CE) courses approved by the Arizona Department of Real Estate for each renewal period.
To get an Arizona broker’s license you must have 3 years of actual experience as a licensed real estate agent within the past 5 years. Your experience will be verified using the LI-226 form. You must also complete 90 hours of education through an approved Arizona real estate school.
Having your real estate license on inactive status is allowed indefinitely, as long as your continuing education (CE) is completed and renewal fees are paid every two years. As an inactive agent, you are not allowed to perform real estate activity in the state of Arizona.
Different organizations report a wide range of estimates on what agents earn each year. Indeed.com reports that the average Arizona agent makes $106,150. Others report about $66,000 per year. It’s difficult to truly estimate because there are a large group of agents who work part-time and only sell a handful of homes each year. As an agent in your first year, $40,000 is fairly common, but honestly, the sky is the limit in real estate! We work with many agents who do $40,000 in their first few months in the business.
I’ve helped hundreds of agents build successful businesses, generate more leads, and expand their teams into multiple states.