When you start a career in real estate, you’ll need to budget for some startup costs. You probably know you'll have to pay licensing fees to the state government. But there are a number of other expenses that will come out of your bank account before you sell your first property. We want to help you prepare for these costs so that your new business is in the best financial shape possible.
So let's look at how much it costs to get an Arizona real estate license and start working as a real estate salesperson in Arizona.
Real Estate Examination and Licensing Fees: $202
The good news is that Arizona is one of the less expensive states to obtain a real estate license in. Here is a breakdown of what you'll pay to the Arizona Department of Real Estate and the Arizona Department of Public Safety when you get your license. - Pearson VUE Testing Examination Fee: $75 - State Original License Fee: $50 - State Real Estate Recovery Fee: $10 - Arizona Department Of Public Safety Finger Print Clearance Card Fee: $67
Pre-Licensing Education: $400-$650
Before you can sit for your real estate salesperson licensing exam, you’ll have to take the 90-hour pre-licensing real estate course, plus the six-hour contract writing course. Sometimes these two courses are offered together, and sometimes you have to register for them individually.
The cost of the course will vary depending on which ADRE-approved Arizona real estate school you attend. If you take the class online, expect to pay $400-$650. If you take it in person, it will cost more. Our Arizona real estate course is priced on the low end, at $429.
Real Estate Broker Fees: $200-$600+ per Month
When you are starting out as an Arizona real estate salesperson, you'll have to work under a broker. Brokers can offer their agents a lot of benefits and cover many business expenses. For example, they might give you an office to work in, purchase office supplies and internet service, and cover your errors and omissions insurance. And of course, you have to pay them for these benefits.
Broker rates might be as high as 50% of your commissions plus a monthly desk fee. Or it might be as low as a flat $200. You might be tempted to choose the cheapest broker you can find. But remember, a good broker can help you sell more houses. So it might be worth it to pay the higher fees if they offer training and networking opportunities to grow your business.
Initial Marketing Expenses: $1,000+ per Year
When you first start out as an Arizona real estate salesperson, you'll spend a good portion of your budget on marketing before you sell your first house. It might sound like a lot of money to spend before you've actually earned a commission, but you have to spend it if you want clients. Many first-year agents spend $1,000-$2,000 on maintaining a website, purchasing business cards, putting up signs, and other marketing expenses.
Membership Dues: $200+ per Year
Once you become a real estate salesperson, you might want to consider joining the National Association of REALTORs (NAR). It's a powerful professional association that offers its members a lot of benefits. It costs about $200 per year to join.
If you don't want to join NAR, you will still need to become a member of your local board, and you'll have to pay for access to the Multiple Listing Service.
Total Cost of Arizona Real Estate License: ~$2,652
Obviously, the exact costs to get your Arizona real estate license and start practicing will vary. But just over $2,500 is a good ballpark figure if you're trying to plan out a first-year budget.
Get Started on Your Arizona Real Estate Career with Aceable
Our 90-hour pre-license education course is ADRE approved, and it will prepare you for a successful career. Register for our Arizona real estate course today!