How to Become a Real Estate Agent in Colorado

Ready to get your real estate license in Colorado?

Are you looking for a new career with an almost unlimited earning potential? If you have that entrepreneurial spirit and want to be your own boss, then real estate could be the perfect career path for you. We’re going to share everything you need to know to become a real estate agent in Colorado, but please note that Colorado is considered a ‘single license’ state, so there are no real estate agents, just real estate brokers or associate brokers. So once you follow the simple steps below and get licensed, you’ll be referred to as an ‘Associate Broker.’

Now let’s jump in! Today we’ll cover:


You'll be able to list unique mountain homes like this when you become a real estate agent in Colorado

Steps to Get a Real Estate License in Colorado

The Colorado Department of Regulatory Agencies (DORA) requires that in order to become a licensed real estate agent / broker in the state of Colorado, you must be at least 18 years old and have a social security number. You do not have to be a resident of Colorado to get a license but you do have to follow a few simple steps:

STEP 1 | Pre-License Real Estate Course

  • Complete 168 hours of DORA-approved college-level real estate courses and pass a course exam.

STEP 2 | Background Check

  • Submit your fingerprints to the Colorado Bureau of Investigation (CBI) for a state and national criminal history record check. You can have your fingerprints done at Colorado Fingerprinting, FBI Fingerprint Card or IndentGO. We recommend doing this as soon as you start your course, as you may not receive a clear background check report for several weeks.

STEP 3 | Register and Pass State Exam

  • Once you have successfully completed the 168 hours of coursework, you will receive a certificate from the real estate school so that you can schedule the state licensing exam with PSI. The exam fee is $90 and you’ll need a minimum score of 75% to pass.

STEP 4 | Choose a Real Estate Broker

  • In order to activate your Colorado real estate license and start selling homes, you’ll have to select a real estate brokerage to work for. Learn more about what to look for when shopping for the best real estate broker below.

STEP 5 | Apply for Your License

  • Once you’ve found your new brokerage, you can apply for your license with DORA by following the application instructions. When you submit your application, you’ll also include your Background Check report, proof of Errors and Omissions Insurance, brokerage firm signature, as well as a check for $485 to the Colorado Department of Regulatory Agencies. It typically takes about a week or two for them to review your application. Once approved, your license will be sent to your new brokerage and you can offically start selling homes!

Timing: Planning for the Time it Takes to Get a Your License

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

  • 4 to 16 weeks to complete your 168-hour pre-licensing course
  • 2 to 6 weeks to get your background check report
  • 1 to 2 weeks to get your national and state exam scheduled
  • 2 to 4 weeks to research, interview and choose a real estate brokerage
  • 1 to 3 weeks for the Colorado Department of Regulatory Agencies to process your license application

While this timeline may seem a bit daunting, there are a few ways to expedite things. First, your real estate course online is the way to go. Instead of attending scheduled in-person classes a few times each week, you can learn at your own pace online.  Requesting your fingerprint / background check early and interviewing brokers while you are finishing up your coursework, will also help move things along. If you are able to complete your 168 hours of DORA-approved college-level real estate in 4 weeks, it is definitely possible to become a real estate agent in Colorado in about eight (8) weeks.


Woman calculating cost to get a real estate license in Colorado

Cost to Get a Real Estate License in Colorado

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

  • Pre-License Real Estate Course – $375 to $1,200
  • Fingerprinting – $25 to $50
  • Background check – $39.50
  • DORA License Application Fee – $485
  • State Exam Fee – $45 (plus $42.50 if you have to retake the exam)
  • State exam prep courses or materials – $25 to $150 (optional)

** Total Cost to Get Licensed = $970 to $1,690


More Expenses to Expect as a Colorado Realtor

Getting a license is just the beginning! What many aspiring Realtors don’t realize is that there are several other costs to consider when becoming a real estate agent. 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:

  • Colorado Broker License Renewal Fee – $195 after year one, then $195 every 3 years
  • National and Local Board of Realtors – + each year
  • Multiple Listing Service (MLS) – about $150 to $175 quarterly
  • Application fees to join local board or MLS – $0 to $600
  • Sentrilock or Supra eKey to show homes – $100 to $150 annually
  • Business cards and signage – varies
  • Marketing materials and advertising – varies
  • Brokerage joining fee – $0 to $500 (average is about $250)
  • Monthly Brokerage fee – ranges from $0 to $350 monthly

If you add up the costs to get your license and the costs to officially become an agent, you will likely need to spend somewhere between $2,400 and $4,000 launch your new career.

** Total Cost to Become a Real Estate Agent in Colorado = $2,400 to $4,000


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

WHAT EXPENSES TO EXPECT


Find the Top Ranked Real Estate Schools

To get your real estate license, you’ll have to attend a school that’s approved by the Colorado 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:

  • Does the school share their state exam “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 an additional charge?
  • Do they offer a separate exam prep course or a weekend cram course?


How to Choose a Real Estate Broker

In Colorado, you must affiliate with a real estate brokerage in order to apply for your license and 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 Colorado state exam. There are a few ways to do this:

  • Ask around. Find out which brokerages your friends and family have worked with in the past and see what they liked most about them. Don’t hesitate to reach out to local agents in your area to see what they like most about their broker.
  • Research online. Once you’ve narrowed down your choices to 3 to 5 companies, do some research online. There are always dozens if not hundreds of YouTube testimonials and feedback from real estate agents.
  • Check out Facebook/Meta. There are quite a few Facebook groups for aspiring agents and you’ll get lots of (honest) feedback from agents at different brokerages.
  • Schedule interviews. We highly recommend meeting (in person, phone, or a zoom) with two or three brokerages, because the benefits and commission splits can be dramatically different from one firm to the next.
KEY QUESTIONS TO ASK WHEN INTERVIEWING BROKERS >>

When researching and meeting with different brokerages, keep in mind that many are independently owned franchises. So one Century 21 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.

Focus on What’s Most Important: SUPPORT

When shopping for the best brokerage firm, many newly licensed agents are looking for the best commission splits. We highly recommend that you commission splits #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? Don’t be afraid to ask lots of questions!



Frequently ask questions about becoming a Colorado real estate agent

Commonly Asked Questions


Colorado Real Estate Exam:  How hard is it?

Most agents will describe the Colorado real estate broker licensing exam as “not easy.”  There are 154 multiple choice questions for both the state and national portions of the exam.

  • National Section – This includes 80 multiple-choice questions. You’ll have to answer at least 60 correctly for a minimum score of 75%.
  • Colorado State Section – This includes 74 multiple choice questions and you must answer 53 correctly to get a minimum score of 71.6%.

You have to take the test in person, it is not open book, and typically you cannot bring anything with you to the PSI testing center. If you’d like more info about the exam, visit PSI Exams to download the latest Candidate Information Book as well as practice exams.


How much time will I have to complete the Colorado real estate exam?

You will have a total of just under 4 hours to complete the exam. They allow 120 minutes for the national portion and 110 minutes for the Colorado state portion of the real estate exam.


What if I fail the Colorado real estate exam?

It’s not uncommon for people not to pass the exam on the first try. They make it fairly simple for you to retake the exam, you just need to reschedule with PSI exams and pay the re-take exam fee of $42.50.

Please note that if you fail all or part of the exam, you only need to retake the failed portion of the exam. Your passing score for that section (state/national) is only valid for one (1) year for your broker license application. Those who pass one part of the exam and not the other, need only to retake the portion they failed.


How long can I keep my real estate license inactive?

After passing the Colorado state real estate exam, you’ll have one year to activate your license with a real estate brokerage.


How do I become a real estate broker in Colorado?

In most states, there are real estate sales or salespeople and they work for a broker. In Colorado, it is a single license state, so everyone is a broker. The person who runs the brokerage firm is called the Broker or Managing Broker. All of the licensed real estate professionals in the office are referred to as Associate Brokers.


I have a real estate license in another state. Does Colorado offer reciprocity?

If you are a licensed agent in Florida or California, 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 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 Colorado has reciprocal agreements with all states! You also do not have to be a resident of Colorado to get your real estate license.


What are the requirements for Continuing Education?

Colorado requires 24 hours of Continuing Education (CE) every three years. Twelve (12) hours are elective, meaning that you can select whichever CE course you’re interested in. The remaining 12 hours of coursework need to be from the list of Colorado Real Estate Commission Annual Update Courses.


Is Getting a Colorado Real Estate License Worth It?

Honestly, it depends on what your goals are.  If you just want to sell a few homes each year to friends and family, you’ll have to crunch the numbers to see if the cost of getting and maintaining your real estate license is worth it.

If you plan to jump in and make a career in real estate, then absolutely!  The real estate market is booming.  It can be a challenge moving from a salaried position to a commission-based business, so it’s important to have at least six months of savings in the bank.  If you don’t have that yet, then you may want to keep your current job for a short period of time until you lay the foundation for your new real estate business. 


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.



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