There are a number of reasons to get a real estate license in Colorado. The real estate business is a dynamic and exciting industry that attracts all kinds of people. Because of this, it could be a good option for a wide range personality types.
Real estate in Colorado fell in the last few years. However, as recently as this year, the market has risen nearly 4%. What this means is that it is on an upswing and agents are going to be benefiting.
If you want in on this resurgence, now is a great time to become a real estate agent in Colorado. There are all kinds of options for classes and online courses to become licensed. There are also a great deal of brokers in the state who hire new agents.
In order to get licensed, you are going to have to make a commitment. You do not become a real estate agent in Colorado overnight. It is going to take some work and perseverance on your part. Luckily, there are many schools to help you on your way.
In this article, we will cover all the steps required to get a real estate license in Colorado. By understanding what it takes, you can adjust your expectations for your journey. This is an important part of any new career venture and can help keep you motivated.
Why Become a Real Estate Agent in Colorado?
People choose a career in real estate for a wide variety of reasons. Perhaps you have not decided exactly why you want to become an agent. Knowing your preferred style of work can help you make this decision.
Real estate agents work a flexible schedule. This can be both positive and negative depending on your lifestyle. If you are someone who does not mind working nights and weekends, this could be a great fit. Real estate agents often have to show houses after regular business hours.
Real estate agents also have to have very good interpersonal skills. If you are not somebody who likes dealing with people, this might not be the best choice for you. You will have to deal with the public on a very intimate, personal level.
However, if you are somebody who is outgoing and excited to help people on their journey, this could be perfect. Buying a house is one of the biggest decisions of a person’s life. As a real estate agent, you get to be there for them and help them through it.
Colorado specifically has a world-renowned housing market. Many of the wealthiest people in America live in Colorado. Because of this, being a real estate agent there can be incredibly lucrative.
Becoming a Real Estate Agent for Investing
One of the more interesting reasons to become a real estate agent is for the purpose of investing. Many investors hire outside agents to deal with their real estate investments. This can be a smart move depending on the situation.
If you are an investor, you might be wondering how to become a real estate agent in Colorado. Luckily, the process for investors is exactly the same as for those who want to be agents. You simply must complete the same education hours and go through the same steps.
One of the benefits to being your own agent is that you get to keep a bigger cut of the profits. When you hire an outside real estate agent, you must pay them a commission. By eliminating the outside real estate agent and doing yourself, you eliminate the commission.
Even though a real estate license in Colorado is an investment in and of itself, it could be worth it. Real estate agents get paid commissions and by keeping those commissions for yourself you can maximize your profits.
It is important with any new career move to set goals. You should know what you’re capable of and what your limitations are. Knowing your limitations is a key skill that is honed by some of the most successful people.
The first goal that you should set is a timeline. In order to become a real estate agent in Colorado, you must complete 168 hours of education. This education must be completed at an accredited real estate school.
How long you take to complete these 168 hours is up to you. Most real estate schools will give you six months or more to complete your education. If you are incredibly motivated, you could complete it in much less time.
If you are somebody who wants to complete your education quickly, look into self-guided lessons. Some real estate schools offer a choice of live, online classes or self-learning. The self-learning courses can be taken as quickly as you like.
The real estate license requirements in Colorado are stringent. They are some of the most intensive in the United States. It is important to know this going in so you can expect a more comprehensive experience.
By setting your goals, you can know what to expect when you get a real estate license in Colorado. This will help you be prepared as you take each step to have everything that you need.
Step One: Take the Courses
The first step to becoming a real estate agent in Colorado is taking the 168 hours of education. These hours must be completed either in person or online using one of the online real estate schools in Colorado. Many real estate schools offer online classes that can be taken in the comfort of your own home.
The courses will consist of things like Colorado real estate law, current legal issues, contracts and regulations and practical applications. All of these things will help you in the real world of selling real estate in Colorado. They will also prepare you for the license exam.
168 hours might seem like a lot of time but it will go by quickly. If you are dedicated to learning the material, you will thrive. Most real estate schools have a very high pass rate as well as a high pass rate for the exam.
Knowing what type of learner you are will help narrow down which real estate school you should go to. Some offer in-person instruction while others offer completely self-guided courses. Knowing which one you do best in will help save you a lot of headaches down the road.
The courses also come in a wide range of prices. They are usually separated out by a few different basic or premium packages. Knowing your budget for school will help you make this decision quickly and easily.
Step Two: Take the Final Course Exam
Before you can complete your 168 education hours, you will have to pass a final exam. This is a different exam than the Colorado real estate license exam. This only ensures that you complete your education hours.
If you are the type of person who gets nervous about a test, most real estate schools will help you with that. They are designed to cater to huge swaths of people. Because of this, they are meant to be accessible.
The coursework for most real estate schools includes test prep and exam practice. This will include practice for your course final exam as well as the Colorado real estate license exam. This will be very helpful if you are the type of person who likes to be as prepared as possible.
One of the benefits of the final exam is that it will help you gear up for the license exam. This is especially important if you get test anxiety. You will not be able to take the license exam until you pass the course exam.
The score that you need to pass will depend on the real estate school you go to. Some real estate schools will allow you to pass with a final score of 70%. However, others require that you get 85% or more.
Step Three: Get A Background Check
You will need to get a background check in order to get a real estate license in Colorado. This requires you to send in your fingerprints and have your criminal history run. This is standard in most states and is not exclusive to Colorado.
The benefit of the background check is that it protects you and your potential clients or employers. By having your history on record, you can defend yourself in any disputes. This is an important protection for any real estate agent.
It is crucial that you send your fingerprints in and begin the process of the background check early. Ideally, you should do this before taking the real estate license exam. It can take up to six weeks for your background check to go through, so doing it early is best.
If you have been convicted of a crime, this does not automatically disqualify you from becoming a real estate agent. You will have to submit some extra paperwork, but you will still be able to apply. There are a number of criminal offenses that are allowable under Colorado real estate law.
Step Four: Take the License Exam
The Colorado real estate license exam is probably the most difficult real estate license requirement in Colorado. This is only because it is a cumulative test that covers everything in the coursework. It will require studying and memorization in order to pass.
When thinking about how to get a real estate license in Colorado, you probably thought about this test. This is because many certifications are associated with difficult exams. While the license exam is difficult, it is by no means impossible.
Some real estate schools will offer certain test prep extras in their premium packages. These can include things like practice exams and take-home tests. If you are someone who needs that extra preparation, this could be a good option.
The main purpose of practice tests and exams is to get you used to the idea of the license exam. Many of the tests in school will closely match the questions of the license exam. This will get you familiar with the format and ready for the real thing.
One of the downsides of these extra exam prep packages is that they can be quite expensive. The premium packages offered by schools can be almost one and a half times as much as the basic ones. Because of this, they might not be a viable option for everybody.
Step Five: Get Errors and Omissions Insurance
One step that is exclusive to Colorado real estate is acquiring errors and omissions insurance. This insurance protects you from any claims should you make mistakes in the beginning of your career. It is an important step and another layer of protection for when you are starting out.
In figuring out how to become a real estate agent in Colorado, errors and omissions insurance is crucial. not many other industries have insurance specifically for mistakes and errors. It is reassuring to know that this is in place to protect everybody involved.
This insurance is not required in most other states. Instead, other states require you to sign on with a brokerage right after you receive your license. In Colorado however, you can work independently right away.
By having errors and omissions insurance, you can protect yourself during this period of adjustment. Should any claims against you be declared, you will have a way to deal with it. This can be a great comfort to many beginners.
Ideally, if you have done your due diligence with school, you will not have to use errors and omissions insurance. The purpose of such rigorous education is to get you as well versed as possible. The insurance is merely there as a backup.
Step Six: Apply for Your License
After you have completed all of your education hours and pass the exam you will have to apply for your license.This consists of paying a fee and sending in all your information. This application is your final step to becoming a real estate agent in Colorado.
It is very important that you remember to keep all of your paperwork from your education and exams. All of this will be necessary when sending in your final application. It will also be necessary to have your identification and any other relevant information.
Applying for your license could take up to six weeks. If you send in your information and it is not complete, it will be sent back. This sends you to the beginning of the line again and you must wait another six weeks.
This process is why it is so important to keep track of all your paperwork and certificates. They will all be important later on down the line. This is good practice for the complicated business of selling houses.
Becoming a real estate agent is not for everybody. It requires a very distinct personality type and a love for all things houses. If you do not fit this description, it might be best to look at other career options.
If, however, you love these things and think the job is right for you, you are on the right track. It is a perfect time to be figuring out how to get a real estate license in Colorado. With the housing market on the upswing, the potential for profit is growing.
If the monetary and time investment is something you think you can manage, it is a solid option. There are always new houses being built and those new houses need agents to sell them. If you can be there to fill that hole in the market, you could stand to make a lot of money.
There are, of course, no guarantees in life or in the real estate market. However by being as prepared as you possibly can, you can maximize your odds of success. Setting your goals early and understanding what the job and requirements entail can give you a head start.