Excellent choice. This 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 guide you through the process and share everything you need to know to become a real estate agent in Minnesota.
Please note that your sponsoring brokerage is required to submit the real estate license request on your behalf through the MCD online PULSE Portal. The application fee is $110.
For more information, download the Guide to Real Estate Licensing, brought to you by the Minnesota Commerce Department.
If you do the online pre-licensing course, you can go at your own pace and potentially finish in about 3 weeks. It typically takes a few weeks to get your appointment for the state exam. Then, the last thing to do in becoming a licensed real estate agent is to wait for approval from the Commerce Department. Although the approval process for renewals tends to take only seven days, new application processing can take much longer. Demand on the department greatly impacts processing time, so it might be best to expect approval to take several weeks. All in all, you could potentially get your license within 8 weeks, but for most aspiring agents it will take three to six months.
There are several fees involved when getting your real estate license Minnesota…
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:
Learn more about costs to become a real estate agent in Minnesota:
To get your real estate license, you’ll have to attend a school that’s approved by the Minnesota 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 top online real estate schools, you’ll want to compare pricing, but there are a few other things you will need to consider:
In Minnesota, 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 Minnesota is processing your application. There are a few ways to do this:
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.
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You made it through 90 hours of classes, passed the state exam, and selected a great broker — congrats! The next step is getting you mentally prepared to build a successful, thriving new business.
As a new REALTOR, 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.
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.
Most agents will describe the real estate licensing exam as “not easy.” It’s important that you take lots (and lots!) of practice tests to prepare for the exam. If you still aren’t feeling 100% comfortable about passing, we highly recommend taking an exam cram course online. Many of the top real estate schools offer an exam prep course for less than $150.
You need a minimum score 75% to pass the Minnesota Real Estate Salesperson Exam, with (at least 60/80 on the national portion and 38/50 on the state portion).
The Minnesota salesperson exam consists of 80 national questions and 40 questions that are state-specific. All are multiple choice and you’ll have 4 hours to complete the exam.
If you fail all or part of the exam, you only need to retake the failed portion of the exam. Reservations for reexamination may not be made at the test center, and candidates must wait 24 hours before scheduling to ensure previous exam results are processed. The fee is $65 per attempt.
To become a broker, you must have a minimum of three years of active licensed real estate experience (within five (5) years of applying for the brokers exam). The experience must be obtained in Minnesota or another state with comparable requirements. A 30-hour Broker’s course is required before you sit for the broker exam. After passing the exam, apply for license as either a primary broker or become associated with a licensed primary broker. If you choose the latter route, the primary broker must submit the application for your license. The fee is $190.00 ($150 plus a $30 for the real estate education, research and recovery fund and a $30.00 technology surcharge.
If you are a licensed agent in Florida or Michigan, 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.
In Minnesota, the applicant must reside in and hold an active real estate license in one of the following reciprocal States: Colorado, Iowa, Nebraska, North Dakota, South Dakota, and Oklahoma. A Minnesota licensed primary broker must submit the application on the behalf of the non-resident. The fee is $130.00 and you can apply on the PULSE Portal.
Minnesota Department of Commerce requires that newly licensed agents take 15 hours of continuing education each year. You can take CE courses online and usually there are several free CE courses available throghout the year with your local REALTOR association or brokerage.
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 your plan is to jump in and build a thriving business, 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 are able to lay the foundation for your new real estate business and get a consistent stream of sales each month or quarter.