Become a Real Estate Agent in Kentucky

Ready to get your Kentucky real estate license?

Becoming an agent is an incredible opportunity for self-starters and entrepreneurs, as it offers nearly limitless growth possibilities. While the thought of going through the licensing process may feel a little daunting at first, we’re going to take you, step by step, through the entire process and help you become a real estate agent in Kentucky.


Sell sprawling house farms when you become a real estate agent in Kentucky

Process to Get a Real Estate License in Kentucky

The Kentucky Real Estate Commission (KREC) requires that you be In order to become a licensed real estate agent 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 and have a valid social security number. If you meet the basic requirements, you’ll just have to complete a few more steps:

01 | Complete the 96-Hour Real Estate Pre-License Course

  • You can take an in-person or online real estate course through a KREC-approved school. We’ve included links to the most popular schools below. Once you complete the 96-hour course, you’ll also have to pass the school exam with a minimum score of 75%.
  • Course Topics Include:
    • Real Property Rights
    • Interests and Estates
    • Real Estate Math / Common Calculations
    • Agency
    • Liens and Encumbrances
    • Contract Basics
    • Title and Title Transfer
    • Real Property Taxation
    • Kentucky State Laws

02 | Complete a Criminal Background Check

  • In order to schedule your state exam, your background check must be completed. We recommend submitting your fingerprints to the FBI or the Kentucky State Police as soon as you start your real estate course, as it often takes a few weeks to get your fingerprinting appointment and then run the national background check. If you go through IdHSC, it typically takes about 2 to 3 weeks to process. If you use IdentoGo, it could be up to 4 weeks. Get more details about the background check process.

02 | Pass the Kentucky Real Estate Exam

  • Once you’ve successfully completed the course and your background check you can schedule your licensing exam with PSI, the testing administrator. There are a total of 130 multiple-choice questions on the exam and you need a minimum score of 75% to pass. If you don’t pass the first time, here are your options.

04 | Select a Sponsoring Broker

  • In order to activate your license, you’ll need to select a broker. Keep reading below for tips on what to look for when picking the best real estate brokerage for newly licensed agents.

05 | Submit Licensing Application

  • This final step is simple! Once you’ve passed your state exam, you can submit your application to KREC. In addition to the application fee of $130, there are a few documents you’ll need to include with your application:
    • Certificate of completion for your sales associate pre-license course
    • Copy of high school diploma, GED, or college transcript
    • Proof of Errors and Omissions (E&O) insurance coverage
    • If you have been licensed as an agent in any other state, submit a license history certification for every state you have been or are currently licensed
Woman wondering how much is costs to get a real estate license.

Cost to Get a Real Estate License

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

  • Pre-License Real Estate Course – $400 to $750
  • Exam Application Fee – $100 (per attempt)
  • Salesperson License Application – $120
  • E&O Insurance Processing – $10
  • Background Check / Fingerprinting – $18 to $85
  • State exam prep courses or materials – $25 to $150 (optional)
** Total Cost to Get Licensed = $725 to $1,180

Many aspiring agents don’t realize is that there are MORE expenses to consider when you become a real estate agent in Kentucky. There are Board of Realtor dues, MLS dues, business cards, advertising, broker fees, continuing education, and more. See the full list…

WHAT EXPENSES TO EXPECT AS A NEW AGENT >


Find the Top Online + In-Person Real Estate Schools

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

You’ll want to compare costs while looking for the best online real estate schools in Kentucky, but there are a few other factors to consider as well. Is there any phone support if you have problems or need assistance with a certain subject if the course is entirely online? Is their “pass rate” highlighted on their website so you can see how many students pass the state exam on their first try? Are there any assurances, study guides, or practice tests available?


How to Select a Kentucky Real Estate Broker

In Kentucky, 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.” Aligning with the right brokerage firm can be key to your success when you are a newly licensed real estate agent.

Keep in mind that many brokerages are independently owned franchises while researching and meeting with them. So if you meet at one RE/MAX or Keller Williams office and you like what you hear, you may also want to interview another franchise that’s just down the street. From franchise to franchise, the culture, training, support team, and even the fees and commission shares might differ.

We also highly recommend looking into virtual or cloud-based brokers. Several are perfect for brand new agents, especially those that are starting out as part-time agents. You often have support after traditional business hours, live classes are recorded so you can learn at your own pace.

IMPORTANT QUESTIONS TO ASK WHEN INTERVIEWING BROKERS >>
PRO TIP: Don’t worry about commission splits, focus on SUPPORT.

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?



Frequently Asked Questions


How difficult is the KY real estate exam?

If you ask local real estate agents, most would describe the Kentucky real estate licensing exam as “not easy.”  Less than 62% pass on the first try, so it’s important to study and take an exam prep course a week or two before the state licensing exam.

The Kentucky salesperson examination consists of 130 questions; 80 national questions and 50 state-specific questions.  All questions are multiple-choice, and you’ll have 240 minutes (4 hours) to complete the examination.


What if I fail the Kentucky real estate exam?

It’s not uncommon for people not to pass the exam on the first try, so don’t worry! If you pass one portion of the exam but don’t pass the other, you just have to retake the portion you failed. You’ll be able to take the exam as many times as you’d like within a four (4) month window. After four months, you’ll have to retake both sections of the licensing exam. The cost to retake the exam is $100 per attempt.


How long does it take to get a real estate license?

Once you decide to become a real estate agent in Kentucky, you’re excited to get started ASAP selling homes, right? Before you leave your current job, it’s important to understand how long the licensing process can take.  Here is what an average timeline looks like:

  • Complete your 96-hour pre-licensing real estate courses – 2 to 8 weeks
  • Apply / Schedule your state real estate exam scheduled – 1 to 2 weeks
  • Fingerprints and background check completed – 2 to 4 weeks
  • Interview and select a real estate brokerage – 1 to 2 weeks
  • Real estate commission to process your license application – 1 week

If you take an online course you should be able to expedite things. Also getting that background check done and brokers interviewed, will put you in a great position to be licensed in less than 8 weeks.


How much do real estate agents make in Kentucky?

The annual earnings for real estate agents in Kentucky are going to vary greatly from person to person and location to location. Indeed.com reports that agents with 1-2 years experience make $95K on average and those with 10+ years experience average $116K+.

To calculate how much you could potentially earn as a Kentucky real estate agent, follow these steps:

  • Google “average home sales price in (Your Town)”
  • Multiply that by 2.5%
  • Multiply that by the number of homes you think you’ll sell
  • Then factor in the broker split to see how much you’d earn on an annual basis

Quick example:

  • The average sales price in Lexington KY is currently $280,000
  • $280,000 x 2.5% = $7,000
  • Let’s say you plan to sell 6 homes your first year. $7,000 x 6 homes = $42,000
  • Your new broker has a 70 / 30 commission split. $42,000 x 70% = $29,400 (YOUR NET)

If you live in another town or specialize in a luxury neighborhood and the average sales price was $600,000. You would earn at least $65,000 in commission selling the same number of homes. Your location, level of experience, and broker splits are going to play a big role in how much you can make as a real estate agent in Kentucky.


Is Getting a 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 (like we did above) to see if the cost of getting and maintaining your real estate license is really worth the time and expense.

If you plan to jump in and make a career in selling homes in KY, 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. 



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