Getting a real estate license is pretty easy compared to many other states. You must complete 90 hours of pre-licensing education approved by the Indiana Real Estate Commission, pass the licensing exam, find a sponsoring brokerage, and submit your license application. We’re here to guide you through the step-by-step process of how to become a real estate agent in Indiana…
The Indiana Real Estate Commission requires that you must be at least 18 years old, have a high school diploma or equivalent, and be lawfully present and able to work in the US in order to become a licensed real estate processional. If you meet the basic requirements, you’ll just have to complete the following steps:
The 90-hour Real Estate Pre-Licensing course in Indiana covers everything from Indiana real estate law to real estate contracts, mortgages/financing, agency, property management and more. You can take the course online, in-person or some schools also offer virtual or zoom-style classes.
Once you complete the 90 hours, you have to take an exam that’s given by your real estate school. If you pass with a minimum score of 75%, they will issue your official School Certificate of Completion, which you’ll need when it is time to apply for your Indiana real estate license.
FYI: After completing the pre-licensing course, you have one year to take and pass the state exam.
The Indiana real estate exam consists of 125 multiple-choice questions and you’ll have four (4) hours to complete the test. PSI administers the licensing examination and they now offer two ways to take your exam – either in-person or from the comfort of your home with a remote proctor. Learn more about the different options and schedule your exam.
To pass the exam, you’ll need a minimum score of 75%. The average pass rate in Indiana is not published, but several unofficial online resources state that it is between 59% and 64%. We would highly recommend signing up for an exam prep course to make sure you are fully prepared and ready to ace the exam on the first try.
For more information on scheduling your exam, testing locations, and FAQs, please download the PSI Indiana Real Estate Candidate Handbook.
In order to activate your license, you’ll need to select a real estate brokerage. This is an important decision, so please keep reading below for tips on what to look for and what questions to ask when selecting the best brokerage firm for newly licensed agents.
This final step is simple! Once you’ve passed your state exam and selected a brokerage, you just have to submit your application to the Indiana Professional Licensing Agency (IPLA) within one year of passing the state exam. You can start your online application here, but before you do, make sure you have the following documents handy to submit with your application:
FYI: It typically takes 2 to 5 business days for the IPLA to review and approve your application. Once approved, you have officially become a real estate agent in Indiana!
The time it takes to get your license will vary from person-to-person. The most time-consuming part of the process will be completing the 90 hours of pre-licensing education. Scheduling your state exam and the approval of your licensing application may take some time as well. Just to level set your expectations, the Indiana real estate licensing process averages about 3 to 4 months.
The good news is we have a few suggestions to expedite things:
If you get through your pre-licensing course in a few weeks and pass the state exam on the first try, it’s definitely possible to become a real estate agent in Indiana in less than seven (7) weeks!
There are several fees involved when working to become a real estate agent in Indiana:
There’s MORE? Sorry but yes, there are several other expenses to consider when you become a real estate agent in Indiana. Keep in mind that you are officially opening your own business, so there are always going to be licensing and other start-up costs involved.
Some of the most common costs you’ll experience as an Indiana real estate agent:
To get your real estate license, you’ll have to attend a school that’s approved by the Indiana 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 in Indiana, you’ll want to compare pricing, but there are a few other things you will need to take into consideration. If the course is 100% online, do they offer any phone support if you have questions or need help with a particular subject? Do they highlight their “pass rate” on their website so you can see how many students pass the state exam on the first try? Do they offer any guarantees, study guides, or practice tests?
In Indiana, you have to affiliate with a real estate brokerage in order to assist clients with buying and selling property. This is often referred to as the “sponsoring broker” or “managing broker.” Aligning with the right brokerage firm can be key to your success when you are a newly licensed real estate agent.
When researching and meeting with different brokers, keep in mind that many are independently-owned franchises. So one Berkshire Hathaway or Keller Williams Realty office could be completely different from another that’s just 10 minutes away. The culture, training, support team, and even the fees and commission splits can vary from franchise to franchise.
In addition to checking out local brokers, we also highly recommend looking into virtual or cloud-based brokerages. Several are perfect for new agents, especially those that are starting as part-time agents because they are typically open 12+ hours a day and offer the option to attend classes from your phone or watched recorded classes when it is convenient with your schedule.
While many freshly licensed Indiana brokers aim for the best commission splits when selecting a brokerage, we strongly advise you to put commissions as #2 or #3 on your priority list. The most crucial factor to consider when choosing a firm is how well they help newly licensed real estate agents. Is there a structured training program in place? Is it possible to reach the broker or support team outside of regular business hours? Do they have mentors, and if so, what will they do to help you get your business up and running?
If you ask a dozen real estate agents or brokers, most would describe the real estate licensing exam as “not easy.” The Indiana Broker exam consists of 125 questions — 75 national questions and 50 questions that are state-specific. All are multiple choice, and you’ll have 4 hours to complete both portions of the exam. To pass, you’ll need a score of at least 75%.
It’s not uncommon for people not to pass the exam on the first try, so don’t be too hard on yourself! There is no set limit on the number of times that you can retake the Indiana real estate exam. However, if you do not pass both parts of the exam (national + stage) within 1 year from the first attempt, you must resubmit a new license application. PSI charges $53 for each attempt to pass the real estate exam.
In most states, there are real estate agents and real estate brokers. In Indiana, all licensed real estate professionals are referred to as real estate brokers. If you would like to manage your own office or open a brokerage, you’ll need to upgrade your license to “managing broker.” To do this Indiana only requires that you have held your real estate license for at least two years and then successfully complete a 24-hour Managing Broker Course.
Considering moving to Indiana? Or want to help clients in other states? Indiana no longer has reciprocity agreements with any specific state, but you may qualify for reciprocity if your current state has licensing requirements that are very similar to those in the state of Indiana.
If the real estate commission approved you for reciprocity, you will just have to take the Indiana state law portion of the broker licensing exam. If you aren’t approved, you’ll have to go through the full 90 hour course and pass both sections of the examination.
FYI: Previously, Indiana had reciprocity agreements with Arkansas, Colorado, Connecticut, Florida, Georgia, Iowa, Illinois, Kentucky, Massachusetts, Mississippi, Missouri, Nebraska, Oklahoma, and Wisconsin. Now each agent needs to go through an approval process, based on the state and level of experience.
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 selling homes in the Hoosier State, then absolutely! For many 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 living expenses in your savings account. 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.