So you’re thinking about becoming a real estate agent? Great plan! It doesn’t cost much to get your real estate license in Michigan, and your earning potential is basically unlimited.
According to Indeed, the average salary of a real estate agent with one to two years of experience is $80,047! That is pretty incredible considering you don’t need a pricey college degree.
There are a few hoops to jump through in order to become a real estate agent, but they won’t cost you much compared to what you can make. In fact, you can completely cover the cost of becoming a real estate agent in Michigan with the commission from your very first real estate deal.
What It Costs to Get Your Real Estate License in Michigan
Let’s take a look at the different real estate license costs in Michigan and the requirements of getting your Michigan real estate license.
Cost #1: Pre-License Real Estate School Course: $179 - $345
The first step in your journey to getting a real estate license in Michigan is to take the state-required pre-license courses.
Real estate schools vary in terms of curriculum, student support, and cost, so spend a little time comparing schools to find the best option for you. As you look at real estate schools, pay special attention to:
Exam pass rates. How well do the students from each school do on the state real estate exam?
Access to the course materials. Do you have to attend courses on campus? Can you access the coursework from your cell or tablet?
Student support. Will there be real estate professionals available to answer your questions?
Price. How much is your real estate school? Will your student experience be worth the expense?
Cost #2: Application Fee: $88
To apply for a license, simply submit an application through the Michigan Professional Licensing User System (MiPLUS). There will $88 application fee associated with this.
Cost #3: Exam Fee: $79 per attempt
Next, you’ll need to take the state exam. The current exam fee for the sales agent license is $79 per attempt. It’s a difficult test, and many people need two or even three attempts to pass it. Passing on the first try will save you time and money. This is why it’s important to check out pass rates when choosing a real estate school!
The Total Michigan Real Estate License Cost - $346 - $512
Adding all these costs together, you should expect to pay somewhere around $350 to $600 total to get your real estate license in Michigan, with the biggest variable in cost being which real estate school you choose.
Other Costs to Become a Real Estate Agent
Next, let’s take a look at some of the costs associated with being a new agent.
Cost #1: Brokerage Desk Fees: $0 to $3,600 per year (varies)
New agents must work under a broker, and some brokerages charge monthly fees to agents in exchange for office space, mentoring programs, and training. You’ll want to do your homework when you pick a brokerage to join.
Cost #2: REALTOR® Dues: Up to $1,100 per year (approximate)
Most agents choose to become official REALTORS® by joining the National Association of REALTORS® (NAR), as well as the affiliated state and local boards. These organizations offer tools and resources that can help you succeed as an agent.
The combined costs of joining these three organizations will vary, as each local association has its own fee structure. But using the Southwestern Michigan Association of REALTORS® as an example, you should expect to pay up to $1,100. (This includes a one-time application of $400 and the fee associated with access to their MLS system.)
Cost #3: Marketing Materials: anywhere from $200 to $3,000 per year
You will need to budget some money for your marketing needs. You’ll need to print business cards, property flyers, signs, and mailers, and create a website to advertise both you and your properties.
Cost #4: Living Expenses: Varies
It can take months to close your first deal. You’ll need to find your first clients and see that deal through to close before you collect a commission check. Many experienced in the industry suggest new agents have a nest egg saved up equal to three to six months of their living expenses.
The Total Cost of Becoming a Real Estate Agent - $1,700+
Adding all these costs together, you should expect to pay somewhere around $1,700 to $8,600 (plus living expenses) for your first year as a real estate agent in Michigan. These are rough estimates, but it gives you an idea of what to expect.
Pre-License Real Estate School Courses: $179 - $345
Application Fee: $88
Exam Fee: $79 per attempt
Brokerage Desk Fees: anywhere from $0 to $3,600 per year
Membership Dues: Up to $1,100 per year
Continuing Education Courses: $45 per year
Marketing Materials: $200 to $3,000 per year
Living Expenses for 2 to 6 months
Is a Michigan Real Estate License Worth the Cost?
With all these upfront fees, and the slow start to your new income, you may be wondering: Is my real estate license worth it?
As long as you’re a hard-working self-starter, the answer is a resounding YES! Don’t forget — the commission check from one big sale could cover your whole year’s worth of costs.
The Bottom Line
A career in real estate is exciting, fulfilling, and flexible. And it’s also high-paying if you’re willing to work hard and stick with it!
AceableAgent currently offers payment plans at checkout to help break up the upfront cost of getting your real estate license. Through our partnerships with Affirm and Klarna, we can offer monthly payment plans that best suit your needs.
Ready to take the next step toward becoming an agent? You can learn more about how much it costs to get your license and even sign up to take a pre-licensing course today!
Updated 11/11/22