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How To Become A Real Estate Agent In Michigan in 2023

Real estate agents have many benefits. They get to choose when they work and how much they work. They get to help home buyers and sellers meet their home goals. There is also the benefit of financial freedom. This is something that Michigan residents know first hand when they take the steps to become a real estate agent in Michigan.

To get a real estate license in Michigan there are several steps that must be taken. They have to be taken in sequence for the process to be successful.

The hours needed to complete the real estate licensing requirements in Michigan are actually less than some of the other states. It will have everything you need to know about being an agent in Michigan as well as the market.

Knowing the market that you will work with is imperative to your success as a real estate agent. This is also why there is a sponsoring broker required for licensing.

How Much Money Real Estate Agents in Michigan Make

Another thing that prospective real estate agents need to know in addition to the real estate licensing requirements in Michigan is how much money agents can make.

Knowing what to expect when it comes to yearly earnings in the state of Michigan is important no matter what career you are going into. There are many factors that will affect the final amount that each real estate agent makes.

However, the median income for real estate agents in Michigan is somewhere around $46,160. This is just the average amount. There are some agents who will make less and others who will make more.

The low end of the spectrum is $25,300 while the high end that is made up of the top 20% of earners is $85,000 a year.

There are many things that can play into this number. One of the big factors is the area. Not every area of Michigan will be a high earning area. It is wise to start your career in a bigger city with an active real estate market if possible.

Another factor that will affect earnings is the amount of time the agent works. This is a largely commission-based job. So new agents may need to put more time into working the business to grow the business.

There is also how much experience an agent has to take into consideration. Typically the highest earners are the real estate agents with the most experience, however, that isn’t always the case.

Pre-Requirements To Become A Real Estate Agent In Michigan

In order to get a real estate license in Michigan, it is imperative to know, understand, and meet the pre-requirements. These are requirements that have been established by the state licensing board of Michigan.

If these requirements are not met then you will not be issued a license. The pre-requirements for Michigan are not difficult or many.

A future agent has to only meet three initial requirements to be able to proceed with the licensing process. These are an important part of how to become a real estate agent in Michigan.

The first requirement is an age requirement. The prospective student must be 18 years of age or older. To execute contracts a person needs to be a legal adult in the state of Michigan.

The next basic requirement is to be a US citizen or legally allowed to work in the United States. Along with this requirement is the need for a high school diploma or equivalent.

One of the more unique pre-requirements to get a real estate license in Michigan is to be of “good moral character.”

This is stating that you need to be an honest person to help others buy and sell homes. If all of those basic requirements are met then it is time to move on to the main requirements.

Pre-Licensing Course

How to become a real estate agent in Michigan starts here with the pre-licensing courses that are required by the state licensing board. The Michigan Course is shorter than some of the other state courses.

This cuts down on the overall time it takes to become a licensed and practicing real estate agent in Michigan.

This course is 40 hours in length and must be taken from an accredited real estate school. There are in-person and online options available.

The online options are usually self-paced and on-demand unless it is a live webinar. In that case, it will operate more like an in-person class.

The choice of an in-person class, while not convenient, does have benefits. One of those is weekly access to an instructor during class. Students have the ability to ask questions and get help with touch subjects.

There is some instructor access with some of the online programs available. However, it is not as immediate and personal. But online classes are more convenient and usually are more budget-friendly.

There is no limit to the number of hours that are taken online. The entire course can be taken online if the student chooses.

The course will cover important aspects of real estate such as contract law, real estate math, Michigan laws, and more. It is designed to prepare students for the real world of real estate in Michigan.

Taking a course from a reputable and experienced school is how to get a real estate license in Michigan. We suggest one of the best online real estate schools in Michigan.

Because of the length of this course, if you have enough time in one week, you couldn’t complete all of the material in one workweek. This can really shorten the amount of time it will take to become a real estate agent in Michigan.

Pass The Course Final Exam

When trying to get a real estate license in Michigan one of the important steps is passing the final exam. At the end of the 40-hour course, there is a cumulative final exam.

Before you are able to take this final exam you will have to pass a practice exam. Once that is passed you will be able to sit for the final exam.

This is an exam that will cover everything you have learned in the course. There are additional exam prep courses that can be taken to help with preparation.

To get a real estate license in Michigan the exam does require a minimum passing score of 70% for students to be able to move on to the next step of the licensing process. While the steps seem tedious it is how you become a real estate agent in Michigan.

Align With a Sponsoring Broker

Often when the final course exam is passed it is time to sit for the state licensing exam. But when it comes to how to get a real estate license in Michigan that isn’t the case.

The step that is taken to get a real estate license in Michigan after the final is to align with a sponsoring broker. This is imperative to become a real estate agent in Michigan.

A broker is the one who owns the office and oversees all of the business. They are responsible for every sale and transaction. Even when they are done by other real estate agents.

It is a benefit to have a sponsoring broker because they will help you learn the ins and outs of the market and the business as a whole. How to get a real estate license in Michigan is more than simply taking a course and passing an exam.

Knowing how the business works in a specific market is also an imperative skill to get a real estate license in Michigan.

However, depending on the area you are in it may be difficult to find a broker willing to be a sponsor. Being a broker that sponsors a new agent to become a real estate agent in Michigan does carry a lot of liability.

So it is a good idea to have connections in the real estate world before you start the licensing process. That will make things go smoother and more quickly so you can become a real estate agent in Michigan.

Begin the Application

Before you are able to sit for the Michigan state exam you will need to fill out an application for your license. The fees are due at the time the application is submitted.

When the application is submitted the students then receive what is called an exam candidate identification number. This must be used when scheduling the exam with PSI Exams.

Filling out the application is actually only one part of the application process. The other part of it is physically taking the state licensing exam which is done through PSI Exams

It is imperative that both parts of the application process are completed correctly and passed to get your real estate license in Michigan.

Applicants do have a year from the time they submit the application form and fees to complete the exam and get licensed. After that the process will have to start over.

Pass the Michigan State Exam

This is an exam that has been written by the state licensing entity for Michigan. It will cover everything that has been learned during the 40-hour pre-licensing course.

The state exam is not a short test. Students are given 180 minutes to complete the test. It consists of 115 questions.

There are two sections. Once section is for state information and one is for national information. This is a test that needs to be passed for successful completion of the licensing process.

Many students do pass the state and national licensing exam on the first try but there are a number of instances where students fail and have to retake the test.

If you have to retake the exam, the fees will need to be paid again unless you have taken an exam prep course with a passing guarantee. Those who struggle with test taking should consider taking a prep course.

These cover not only the topics that will be covered on the exam but also the strategies that work. Typically they have several practice tests available for students to take as well as a test bank of practice questions.

You can schedule to take the Michigan state exam with PSI Exams. Just set up an account with them, look up the candidate identification number given to you by the state of Michigan when you applied for the license, and then, you will need to pay to schedule the exam. Once you make payment, a scheduling button will appear where you can choose from a wide range of dates in the future to take your state exam.

Obtain Your License

Once it shows in the system that you have passed your exam then your license will be sent to you. However, it is important that you list an employing broker on your application.

If you fail to do so then your application will be seen as not finished. You will not be able to get your license until employer information is submitted to the state application office.