How to Get a Michigan Real Estate License

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

Real estate is booming, and getting your real estate license in Michigan might be the perfect path towards career success. You will enjoy impressive income potential, a flexible schedule, and you will help people achieve their dreams of owning or selling a home. Basically, the career is loaded with perks.

Here is a quick breakdown of the requirements needed to become a Michigan real estate agent: 

• Complete 40 hours of real estate related education (or approved education)
• Submit a completed exam application
• Obtain authorization to test
• Pass the licensing exam for a Michigan salesperson
• Obtain employment with a Michigan broker

Step 1: Take Michigan Pre-Licensing Course

LARA requires you to complete a 40-hour Michigan Real Estate Fundamentals Course that includes a minimum of four hours of civil rights law and equal opportunity housing course. 

When looking for a Michigan real estate education class, always take the time to read the testimonials of students who have taken the course. Reviews give you an insight into what to expect. Try to find a course that offers a high satisfaction rate. Check out the best real estate schools in Michigan. 

Another serious thing to consider is the course’s pass rate. Some educational courses will not publicize how many students pass and go on to obtain their Michigan real estate license, but others will proudly proclaim their successes. You want to go with an educational curriculum that offers impressive success percentages. 

Whatever real estate school you decide to attend will submit a certificate showing that you completed the required hours and courses set forth by the State of Michigan. Also, be sure to file a copy of your completed educational certificates in your own records in case you need them for future reference or proof. 

One thing to note about the real estate education courses is that you can take them in-person or online. Many people opt for virtual classes so they can set their own pace and avoid in-person learning.  

Also, a 40-hour course is not that lengthy. It is like working a full 40-hour workweek. If you tackle the course hard, you can finish it quickly or opt to go slow. Many people like to take a crash course to get their license quickly, but others like to take their time to absorb everything to feel confident when they start their new career. 

Step 2:  Real Estate License Application

Once you complete your actual real estate education, it is time to apply for your license!   You’ll want to go to the Michigan Department of Licensing and Regulatory Affairs website to apply for your license. 

Remember, your application and fee are valid for one year, so once you apply, you have a year to take the actual real estate exam. 

Another thing to note is that you will be asked to indicate your employing broker on your application, but this is not a necessity. You can wait until after you take the exam. Let us be honest, sometimes it is hard to find a broker who is willing to take you on before taking your exam, so you might need to take the exam and then secure a broker to list on your form. 

Step 3: Get Authorization to Take Exam

You might think that you can just rush down to take your real estate exam in the state of Michigan, but it is not so simple. You need to receive authorization to move forward with the exam. 

Upon application approval, LARA will send you authorization that allows you to register for the real estate exam. Once you receive the go-ahead, you will want to schedule your exam. 

Step 4: Pass the Michigan Licensing Exam

After you receive your authorization, it is time to schedule and take the exam. 

• The salesperson exam has 115 questions, and you must score at least a 70% to pass. 

You receive your score immediately after you complete the exam. Don’t worry though, we’re sure you’re going to ace it!

When taking the exam, you will be allowed 180 minutes.

You will need to present two forms of ID that match your name and signature to take the test. 

Calculators are also allowed, but they must be silent and battery-operated. They also should not contain any alphabet. 

The exam is always administered on a computer.  It is a multiple-choice exam that is broken down into the following sections: 

• Financing
• Property ownership
• Contracts
• Land use regulations
• Market analysis along with valuation
• Specialty areas
• Transfer for title
• Property conditions and disclosures
• Basic real estate calculations
• General principals of a real estate agency

Step 5: Find a Sponsoring Broker

You will need to be sponsored by a licensed Michigan Employing Broker. You can apply with specific sponsoring brokers. If you have an employing broker, you will need them to confirm at least 48 hours before the exam date so that you will receive your photo-released license upon passing. If you do not have a confirmed broker before taking the Michigan real estate exam, you will need to obtain one using the LARA website.

You have total freedom to choose your sponsoring broker. Here’s some things agents look at when choosing a brokerage:

• Commission Rate
  • Look at each brokerage’s commission rate when you’re shopping around. If they’ve got a good rate, your commission checks will be larger than life. 💸
• Niche
  • Maybe you want a brokerage that focuses on a niche on a location or a specific category of real estate like commercial retail, single family homes, or fixer-uppers. So if you have a specific interest you can find a broker who shares that interest.
• Culture
  • Maybe the company’s culture is important to you. If so, get to know what they’re all about, how they work, and what’s important to them.

Mission Complete

Those are the steps you need to get your Michigan real estate license. Yes, you might have to trudge through paperwork, check boxes, file forms, burn the midnight oil, chug coffee … but after all that … you’ll have your license. We recommend printing it out on super-gloss and framing it. Leave some room next to it for your first commission check; A LOT of room!  

That’s all folks! Once you make it through these steps you’ll have a brand new career ahead of you. If there’s anything we can do to help you make it through these steps please let us know. We’ve got pre-licensing classes, cram courses, and all sorts of resources to help.

LARA Requirements to get a real estate license

Hello criteria, pleasure to meet you!

Let’s answer the most obvious question straight out of the gate. “What the heck is LARA and why do I need to impress them?!” Well, LARA is short for Licensing and Regulatory Affairs and it’s their job to make sure all agents in Michigan are capable, qualified, and can lawfully work in the state. To do so, they have some basic criteria you must meet. Luckily, most of the requirements are pretty straightforward.

Let’s meet the criteria:

1. You must be at least 18 years old.
2. You must be a U.S. citizen or a lawfully admitted alien.

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

The overall cost of your Michigan real estate is mainly determined by the prelicensing course provider you will choose. The price of prelicensing courses starts at only $29 and can go as high as $900 or more depending on the school of your choice. 

Other mandatory costs that apply are:

• An application fee of $88. 
• An examination fee of $79
• A license renewal fee is $78

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

As the prelicensing course in Michigan lasts for only 40 hours, it can be completed within 2 or 3 weeks, which allows you to use that extra time you have to study harder or take an additional prep course. Most schools allow you to take the course online, giving you the additional flexibility and opportunity to study at your own speed. To find a list of approved real estate prelicensing courses, look no further than this page!

Once you’ve finished the prelicensing course, you need to register on the official licensing system called iCola or by sending a paper application by mail. Once you register, you will receive an email with your Exam Candidate ID number within two days of registration. After you receive your Candidate ID, you can start your application to take the exam. The exam will be scheduled depending on the seating availability in the testing center of your choice, but it shouldn’t be longer than two weeks. After this final step, it’s all up to you. How fast you will pass both portions of the exam and finalize the process depends on your 

Keep in mind that all fees and results are valid within one year of applying, and you have to pass the examination within that time frame. If you fail to do so, you will be required to reapply all over again. 

How much do real estate agents make in Michigan?

A real estate agent in Michigan earns around $57,170 per year on average, but the top 10% of agents earn as high as $95,700 per year. 

Agents and brokers from the South Bend-Mishawaka metro area are among the highest-paying agents in Michigan with a mean annual wage of $66,610 and a sizable $131,130 annual 90th percentile wage, one of the highest among all states. Other areas where agents earn more than the national average are Bay City, with an annual mean wage of $59,400 and Detroit-Warren-Dearborn with $58,520.  

Three metro areas in Michigan have an annual 90th percentile wage higher than $90,000: Ann Arbor, Detroit-Warren-Dearborn, and South Bend-Mishawaka. This goes to show that working in real estate can bring a lucrative income for agents and brokers.

Perspective from a real estate pro:

Jason Gelios
Realtor and Top Producer in Detroit, MI
Community Choice Realty

“In order to succeed and become a top producer, you have to be willing to take chances, even when you don’t want to. Eventually, once you’ve got enough experience and sales under your belt, you can build a team to take care of the tasks you don’t enjoy doing. However, that doesn’t happen without a lot of hard work first. 

Something else new agents should know is that they need to focus on their brand first and foremost. I see it all the time where agents just recycle old, used marketing tips to each other, or ignore the digital side of the industry. Big mistake! Build your brand, so that you can become a pillar in the community. That’s how you make money!”