How to Get a Arizona Real Estate License

Step-By-Step Guide to Become a Licensed Real Estate Agent

Arizona is known for having great weather and cheap land. What a combo! People from all over travel to enjoy the Grand Canyon and growing wine country.

This desert gem is home to some greats like Emma Stone, Michael Phelps, rock n’ roll legend Alice Cooper, and Stevie Nicks of Fleetwood Mac. The state has also been growing thanks to the booming aerospace industry that attracts investors from all over the country.

The hot markets in Phoenix, Tucson, Flagstaff, Mesa, and Scottsdale have seen tremendous growth in the last two years – and new construction continues to attract buyers and sellers. After following these 5 easy steps, you can order a bolo tie and enjoy all the perks of being an Arizona real estate agent.

Step 1: Complete the state required pre-licensing course 

Arizona requires you to take a 96-hour course before you can take the licensing exam.

This course is split into two parts:

• A 90-Hour Salesperson Pre-Licensing Course
• A 6-Hour Contract Writing Course

The topics in the courses include:

• Property Rights
• Interest and Ownership
• Transfer of Title & Title Insurance
• Liens & Encounters
• Foreclosure
• Real Estate Investment and Taxation
• Residential Financing
• Math & Equal Opportunity
• AZ Landlord Tenant Act & Property Management
• Law of RE: Rules & Regulators of the RE Department
• Brokerage: Law of Agency and Public Protection
• Real Estate Contracts
• Listings of Contract Forms and Procedures
• Real Estate Appraisal
• Legal Land Description
• Escrow and Closing
• Broker Practices, Legal Procedures & Bankruptcy
• Disclosures – Warranties, Construction & Development

The courses are designed to help you understand the nuts and bolts of Arizona real estate laws, policies, and procedures. Want to learn more? Check out the best real estate schools in Arizona. These courses can be taken online or in a classroom setting. They can take you from as little as one to three months. It all depends on what pace you’re most comfortable with.

Step 2: Take and pass the real estate exam in AZ and complete your background check

As soon as you finish the course, you can take the exam. The exam takes about 3 hours to finish. It has 100 multiple-choice questions about national and state real estate laws and practices. To pass, you must earn at least a 75%. The good news is that you can take the exam a second time if needed.

Once you pass, there’s another small step you can’t overlook. You must now focus on getting your background clearance, you have to get a Level One clearance card. This means you will have to get fingerprinted, apply for a clearance card, and pay an application fee to The Arizona Department Of Public Safety. You also have to write down all of your previous convictions, felonies, and misdemeanors.

Step 3: Apply for your real estate license with the department of real estate in Arizona

Once you’ve passed the exam and agreed to a background check, you can print out your score and other documents from below to apply for your AZ real estate license. You will then fill out your license application, and pay a first-time application fee.

You have to provide the department with:

• Original Salesperson Application & Fee
• Original Arizona Exam Score Report(s)
• Pre-Licensure Education Certificate- the 96-hour certificate with the authorized signature
• Proof of Legal Presence
• Disciplinary Actions Disclosure Form (LI-214/244)
• DPS issued AZ Fingerprint Clearance Card
• Contract Writing Course Certificate
• Disclosure Document Checklist Form (LI-400) *if applicable

It sometimes takes up to 2 months to process, so get these printed off and submitted as soon as possible to help speed it up.

Step 4: Find a brokerage

You have your certificate, but that doesn’t mean you’re clear to start buying and selling just yet. In Arizona, you must work for a licensed Brokerage. Brokerages are companies that hire agents, show them the ropes, and oversee their sales.

Here are a few factors to consider before choosing a brokerage:

• Commission 💰 – Make sure you are getting a good split of money you bring in.
• Niche – Alongside the reputation, you want the company to specialize in the types of property you want to sell. Yup, it’s that simple.
• Opportunities For Growth 📈 – You don’t want a company that puts you in a position to stay flat. You want to be moving upwards. If a company doesn’t provide that, run baby, run.
• Company Culture 📊– You need to know that the brokerage you choose meshes will with your goals and personality. This is also where reputation comes into play. The company’s reputation matters. If a lot of people don’t have positive things to say, that may be based on some tangible rumors. Do your research before you agree to anything.

Step 5: Keep up with your continuing Arizona real estate education requirements

Once you have made up your mind about joining a brokerage, you are ready to start making money. After a while, if you want to move up you can become a broker or a team lead yourself.

Also remember to stay up to date on your required continuing education courses. If you don’t, ADRE will strip you of your real estate license.

Don’t worry, if you’ve gotten this far then the CE will be a breeze.

Nice new business card by the way.

Meet the ADRE Requirements to qualify for a license

ADRE, or the Arizona Department Of Real Estate, is the state’s governing body that regulates all aspects of the real estate industry. They are the top dogs of all things real estate, and have laid out the following requirements for all license applicants:

1. Must be a US citizen.
2. You must be eighteen or older Note: If you aren’t quite 18, there are some fun TikTok videos on real estate that you should check out
3. You need to have at least a high school diploma or an equivalent🎓

If you have a prior record, or if your fingerprints have been taken before, first double check that you’ve paid all of your fines.

How much does it cost to get a real estate license in Arizona?

Below is a list of costs associated with getting your Arizona real estate license:

Pre-licensing education and training costs:

The majority of Arizona real estate schools charge anything between $400 and -$800. The best real estate schools in Arizona might even charge more. Therefore, how much you pay depends on the school or online program you select. This involves finding an accredited and qualified real estate school to clock your hours. As stated earlier, the state of Arizona requires you to finish 96 hours of education.

Real estate licensing and exam fees

This fee schedule is estimated to cost about $135. The breakdown of this cost is as follows: The fee for an Arizona real estate salesperson license examination is $75, and the fee for a first-time license is an additional $60 (Original License Fee is $50; the Real Estate Recovery Fund Fee is $10).

Real estate broker fees

These fees are estimated to cost anything from $30 to $450 per month. The real estate broker fees are the fees that you have to incur when you want to become associated with a recognized and accredited broker. As it is your first year, there are some things that your sponsor broker will provide. These things, such as office supplies, photocopies, internet, and any other business expenses, are usually associated with the daily operation of your business. It is also likely that you will have to pay a desk fee every month to help reimburse some of these costs.

Real estate membership dues

Membership dues and feels usually cost around $200 or more each year. And while they can qualify as a tax break in the state of Arizona, they are still a significant expense for many Realtors. This fee typically depends on how many associations you want to join. For instance, you can become part of your local association or even the Arizona real estate board.

Every one of these boards comes with a membership fee that has to be paid monthly or yearly for you to be able to enjoy the numerous advantages and networking options they offer. The local MLS or Multiple Listing Service will also have fees associated with them. Depending on where you are in the state, you may have to pay your monthly dues either to your broker or to the association directly.

Continuing Education

Becoming a real estate agent does not mean you stop educating yourself once you have passed your AZ real estate tests.  To stay an active agent, you have to meet SAE and CE requirements. Some CE courses are offered for free through local boards of realty. Additional designations, though optional, may also come with fees.

Here’s a quick breakdown of what Arizona agents can expect to pay in their early years.

• Pre-Licensing Education: $400-$600
• Cost to Take the Licensing Exam: $135 per attempt
• Cost to Obtain a Fingerprint Clearance Card: $67
• Cost of Optional Fees (Realtors’ Fees, etc.): $150-$500
• Renewal Fees: $60-$125
• Continuing Education Fees: These vary according to the type of classes you are taking

How long does it take to become a real estate agent in Arizona? 

Arizona limits the number of classes you can take per day to 2, or 10 hours, which means the minimum required time to complete the pre licensing course is 9 days. If you count only working days, this would be 2 weeks. Applying for the exam and taking the exam itself can take 1-3 weeks, depending on how many candidates have applied.  

The mandatory fingerprint scan takes up the most time, as it takes around 8 to 10 weeks to get checked. 

After you apply for your license, it can take anywhere between 1 week to 2 months for your application to be processed. Once the ADRE has checked and approved everything, you will receive your license.

The total time it takes to obtain an Arizona Salesperson’s License depends on the person, but in general, can be completed in a few weeks to a few months.

What’s the real estate agent salary in Arizona? 

Real estate is known for bringing in a sizable income. But the amount you make will vary depending on a wide range of factors. These include how much you hustle, your commission split with your broker, and the quality of your leads and lead generation tools. 

The state you are living in will also affect your salary. States with higher living expenses will have higher home values. As a result, you will yield larger sales amounts and take home bigger commissions. 

So how much money are you likely to be making? This article will provide salary information for the top 10 states where real estate is hot so you can figure out what your income will be like. 

Arizona agents make an average annual wage of $55,580 which breaks down to $26.72 an hour. 

Agents in certain cities will make more than agents in other cities. Here are some average salaries for the highest paying cities for real estate agents in Arizona:

• Phoenix: $109,881 per year
• Tucson: $102,185 per year
• Goodyear: $98,938 per year
• Scottsdale: $108,479 per year
• Glendale: $101,103 per year
• Yuma: $97,929 per year
• Tempe: $105,477 per year
• Gilbert: $100,830 per year
• Peoria: $97,852 per year

How Much Do Homes Cost in Arizona?

Arizona homes are currently selling for an average of $428,120. They have risen in value by almost 24% over the past two years and 40.7% in the past five years. However, prices also vary depending on the region you are living with. 

Here are some averages to consider based on location:

• Maricopa County: $488,100
• Prima County: $369,900
• Yavapai County: $590.000
• Pinal County $399,000
• Mohave County: $385,000
• Coconino County: $663,300 
• Navajo County: $449,000
• Gila County: $449,000
• Yuma County: $300,000 
• Cochise Country: $282,000

What are Commission Splits Like in Arizona?

Commission splits in Arizona range from 5-6%. This the average for many states. However, some brokers may offer lower splits if the home is high priced, if they are working with a repeat customer, or if they want to beat the competition. 

You must also consider the commission split with your broker. See the listings below to get an idea of brokerage commission splits in Arizona: 

• Keller Williams: 70/30
• RE/MAX: 95/5, 80/20, 70/30. 60/40 (capping system)
• Century 21 50/50, 70/30, 8% franchise fee (capping system)
• Coldwell Banker: 50/50, 60/40, 70/30 (capping system)
• Compass: 50/50

Keep in mind that commission splits may vary from office to office. However, this list gives you a good idea of what you can expect.