Becoming a real estate agent in the State of Michigan could turn into a very successful and profitable career. This is due to the ever-booming housing markets, besides the thriving cities of Detroit, Grand Rapids, and Ann Arbor; demand for real estate professionals is pretty high throughout the state. At the same time, becoming licensed as a real estate agent requires dedication, education, and completion of a number of legal and procedural steps.
In this article, we will take you step by step through what you need to know to become a real estate agent in Michigan, from meeting the eligibility requirements right through licensure to getting started.
• Age: You must be at least 18 years old.
• Legal Status: You must be a United States citizen or legally resident and have work permission in the United States.
• Criminal History: Michigan requests that you disclose any criminal conviction. Certain crimes, particularly felonies involving dishonesty, will render you ineligible for the license, although you could also appeal such disqualification.
Step 2: Finish the Pre-Licensing Education
One pivotal demand for licensure as a real estate agent in Michigan is the completion of the required pre-licensing education. LARA requires all applicants to complete a 40-hour real estate education course provided by an approved provider.
Course core areas of focus will include:
-Real Estate Law: Understand the governance that the State of Michigan has over each transaction in real estate, including property rights, contract, agency, and disclosures.
-Principles of Real Estate: This is a somewhat intensive course in which subjects to be discussed will include listing, selling, and buying of real estate, along with financing and appraisal methods.
-Property Management: The important concepts of residential and commercial property management will include leasing, landlord/tenant law.
– Ethics and Professional Responsibility: Course of study in the ethical standards and professional responsibilities which the licensees are expected to maintain.
Most schools can offer multiple flexible options for completion from online classes to in-person sessions. Be certain that your school is accredited by the state of Michigan and LARA-approved.
Step 3: Pass the Michigan Real Estate Salesperson Exam
Once you complete the course work requirements for pre-licensure, you need to prepare yourself to take the Michigan Real Estate Salesperson Exam. The exam is purposed to prove your knowledge of laws, practices, and principles in place that regulate the practice of real estate in Michigan.
Exam Format: The Michigan Real Estate Salesperson Exam comprises of two portions: one portion is on the national level regarding the general principles of real estate, while the second portion is on the state level concerning the laws and regulations of Michigan.
Passing Score: The passing score of the examination is 70% each in both sections. Exam Fees: Examination fees are about $79.
Accordingly, it is recommended to study your course materials and take practice exams prior to actually taking an examination. There are study guides available to help in preparing for the test, as well as additional online resources. The exam is offered via Pearson VUE and upon completion of your pre-licensing education will be able to schedule your exam at a Pearson VUE test center in Michigan.
Step 4: Apply for Your License
Once you have passed the licensing examination, you are now ready to apply for your real estate salesperson license. Applications are submitted online via the website of LARA. You will be required to upload the following:
Pre-Licensing Education Completion Proof: Upload your transcript or certificate from the course provider.
Proof of Passing the Real Estate Exam: Upload your exam results from Pearson VUE.
– Criminal Background Check: You will be required to undergo a criminal background check, which will include fingerprinting, as part of the application process.
– Application Fees: The total cost of applying for a Michigan real estate salesperson license is approximately $88.
Upon approval of your application, you’ll get the license to practice as a real estate agent in Michigan.
Step 5: Get a Sponsoring Broker
In Michigan, all real estate agents must work under the guidance of a licensed real estate broker. A broker is a seasoned real estate practitioner who has satisfied requirements in addition to those necessary for licensure as a broker.
Before you can start practicing as a real estate agent, you will have to find yourself a sponsoring broker to work for. This broker will be there to mentor and support you in your career in real estate.
When choosing a broker, here are a few things you want to look at:
– Reputation: Look for a broker in good standing with the profession and with successful experiences in the field.
– Support and Training: Find a broker that will mentor, train, and provide resources to help you achieve success; this is more crucial as one starts working.
– Commission Structure: Determine the commission split or how you will get paid since this will affect how you make money as an agent.
Most real estate companies in Michigan have training for all new agents; therefore, one should always ask for such opportunities when interviewing brokers.
Step 6: Get E&O Insurance
While it is not required according to the law, getting E&O insurance is highly advisable if you desire practicing as a real estate agent in Michigan. E&O insurance will protect you in case there is an error or omission on your side while transacting real estate, which may cause litigation or financial loss.
Not all, but many real estate agencies incorporate E&O insurance into their services, but you may also buy coverage for yourself. It’s a good thing in which to invest once you begin working with clients and dealing with real estate transactions.
Step 7: Continue Your Education
It is important to continue education and keep current on industry trends, changes in real estate law, and best practices once licensed. Michigan requires all real estate agents to complete 18 hours of continuing education every three years in order to renew their license.
These courses generally deal with new legislation that may have been passed dealing with real estate, and ways to improve ethical behavior when conducting your business transactions or even managing rental properties. Continuing education keeps you competitive in the field and the best service provider for your clients.
Step 8: Start Your Career as Real Estate Agent
Once you have completed all the steps and obtained your license, it is time to start your career. A good career in real estate does not happen overnight; it does take its time, requires devotion, and, most importantly, the will to serve your clients well.
Here are a few tips that would help you get started:
– Networking: Join local real estate associations, attend events, and have contacts with people in the industry, like mortgage brokers, appraisers, contractors.
Sell yourself: develop a marketing plan that includes building a solid Internet presence, utilizing social media to your advantage, and more traditional advertisements such as business cards and flyers.
Seek experience by working with clients with smaller transactions or team up with other agents with more experience until you build your skills and confidence.
– Customer service: A reputation for great service provides repeat clients and referrals, which is key to long-term success.
Conclusion
Becoming a real estate agent in Michigan is quite achievable with the proper steps being followed. Complete the education requirements, pass the exam, find a sponsoring broker, and further your professional studies-these will see you well into the rewarding world of real estate. The Michigan real estate market gives a wide expanse of opportunities, and with enough hard work and determination, it is possible to build an lucrative career in this exciting field.
Good luck, and welcome to the world of Michigan real estate!
