True Talk from a Real, Live Agent
How much it costs to become a Real Estate Agent in Michigan varies because no two agents take the same exact path into the industry, but there are many predictable expenses to consider.
Hi there — my name is Erik and I'm a Real Estate Agent based out of the Lakes Area (Commerce, Clarkston, Waterford, White Lake), but licensed to practice anywhere in Michigan!
I put together this handy guide of how much it costs to become a licensed REALTOR, plus some of the other expenses that you'll incur to get started and beyond.
Click on the links below to be taken to that section:
Costs to Become a Michigan Real Estate Agent
Costs Once You're Licensed
Total Cost for the First Year as a Real Estate Agent in Michigan
How much does it cost to get licensed as a Real Estate Agent in Michigan?
1. 40-Hour Real Estate Prelicensure Course fee
There are many different courses around the state, both in-person and online, and their prices vary.
I personally took Kaplan's 100% online Michigan Real Estate Fundamentals course three years ago and found it very thorough and easy to use.
Cost: $200-400
2. Real Estate Study Materials cost
Depending on how you learn, you may not need to purchase any study materials. But, I highly recommend buying yourself some vocabulary flash cards & an in-depth study guide that includes practice tests.
I was able to pass the exam on the first try using Barron's Flash Cards and a PSI Real Estate Exam Guide.
Cost: $30-50
3. Real Estate Salesperson License Application Fee
After you complete your Prelicensure Course, you have up to 36 months to apply for your License with the state of Michigan.
Cost: $88
4. Michigan Real Estate Salesperson Exam Fee
Once you've applied for your License and received approval from the state, you'll be able to register for and take the Michigan Real Estate Salesperson Exam. The fee is the same each time you take it, so it's important to study hard and pass it the first time!
Cost: $79
The verdict: how much does it cost to become a licensed Real Estate Agent in Michigan?
The costs to purely meet the criteria to becoming a licensed Real Estate Salesperson in Michigan include everything from taking the Prelicensure Course to passing the examination.
Total Cost: $400-600
What are the initial costs once you're licensed as a Real Estate Agent in Michigan?
If you thought you were completely out of the woods as far a costs are involved once you've been licensed as a Real Estate Agent in Michigan, you're out of luck. Other important expenses pop up shortly after that many people won't tell you about.
1. Broker Fees
As you join a Broker to begin practicing Real Estate in Michigan, you'll find yourself paying monthly fees to work underneath that Broker.
Most times, this fee includes use of the office, the ability to make photocopies, use the internet, etc. It also generally includes different insurances to help shield you from some liability.
Cost: $50-100 per month
2. Membership Dues
In order to practice Real Estate in Michigan, you also have to be a member of the National Association of REALTORS. There are many different local affiliates around the state which, through their membership, also provide you membership to the National Association of REALTORS.
Cost: $400-600 per year
3. MLS Access Fee
As a practicing Agent, you'll need access to the Multiple Listing Service (MLS), which is where all the information for homes is stored. This service is also used to disseminate information among Agents and Brokers.
Cost: $150-200 quarterly
4. Advertising Materials
There are a few must-have advertising materials that you'll need to get started as a Real Estate Agent:
Business cards
For-Sale signs
Cost: $100-200
5. Lockboxes
Once you have your first listing, you'll need to be able to provide a way to secure the property so only licensed Real Estate Agents will be able to gain access.
There are many different types of lockboxes that Agents use, but I recommend the Master Lock 5400D because it's so common and easy to use.
Also, be sure to buy 2-3... Ideally, you'll have more than one listing at a time on your roster and you don't want to be stuck without!
Cost: $40-100
The verdict: what are the initial costs to start practicing Real Estate in Michigan once you're licensed?
From joining a Broker, the National Association of REALTORS, to start-up advertising materials and lockboxes.
Total Cost: $750-1,200
The final verdict: how much does it cost for the first year as a Real Estate Agent in Michigan?
Through your first year or so of entering the Real Estate industry in Michigan — from getting licensed, to paying brokers fees & dues, to selling your first home — you'll likely spend anywhere from $1,100 to $1,800.
Total Costs: $1,100-1,800
But, in my humble opinion, it's totally worth it! Real Estate Sales is a fun, fast-paced and exciting career with unlimited earning potential.
You have the ability to make your own schedule, choose which types of property you want to specialize in, and put yourself out there.
It's a great way to connect with your community (and earn a living while you're at it!).