Have you ever wondered about becoming a real estate broker in Virginia and wanted to know the investment cost? In this article, we will analyze the figures so that you can have a better understanding of the cost to become a real estate broker in Virginia.
Detailed analysis of the cost to obtain a real estate license in Virginia:
To understand the cost, let's start with the pre-licensing course for real estate brokers in Virginia. The cost of this course ranges from around $100 to $550. The first step in your journey to becoming a real estate broker in Virginia is to enroll in the 60-hour required course determined by the state.
You can register for courses at any real estate school approved by the Virginia Department of Professional and Occupational Regulation (DPOR). Real estate schools differ in their curriculum, student support, and cost, so take some time to compare schools to find the best option for you.
In addition, you should also pay attention to the following factors when considering real estate schools:
- State pass rate on the exam.
- Access to course materials.
- Student support.
- Cost.
The cost may vary for each provider. For example, the pre-licensing course offered by Aceable costs $179, while some other real estate schools may charge up to $550. Although price is an important factor, you should not choose the cheapest school. Make sure your school has a good track record of students passing the exam on their first attempt. (See cost #2!)
Once you have completed your course, you can register for the exam and obtain your real estate license. The current exam fee for a real estate license in Virginia is $60 per attempt. This is a challenging exam, and many people need two or three attempts to pass. That's why the pass rate is crucial when choosing your real estate school. You want to give yourself the best chance to pass the exam on your first try. Passing the exam on your first attempt will save you time and money.
After obtaining your real estate license, you will need to pay an initial application fee of $170. You will need this real estate license to operate as a real estate broker.
In addition to the licensing fees, you will also have other costs associated with being a real estate broker:
Other costs to become a real estate broker:
Next, let's consider some costs related to working as a real estate broker.
Cost #1: Brokerage office fee: Ranging from $0 to $500 per month.
New brokers must work under the supervision of a broker, and some brokers charge monthly fees to brokers in exchange for office space, mentoring programs, and training.
Cost #2: Membership fees: Ranging from $400 to $500 per year.
You will want to join professional organizations such as the National Association of Realtors (NAR) and your local real estate association. These organizations provide tools and resources that can help you succeed as a real estate broker. You do not have to join both NAR and VAR, but if you do, the total cost for both together will range from $400 to $500 per year, plus initial registration fees of around $100 to $250.
Cost #3: Multiple Listing Service (MLS) fees: Around $65 per month or $780 per year.
An MLS service package is crucial to your success as a real estate broker. The registration fee may be part of joining your local real estate association, or you may have to pay separately. Prices vary, but typically a local MLS service package costs around $65 per month.
Cost #4: Marketing materials: Ranging from $200 to $3,000 per year.
You can start marketing for free on social media. However, you will need to allocate a budget for printing needs such as business cards, real estate flyers, signs, and mailers to advertise yourself and your properties. You may also need a website and may invest in paid advertising in local newspapers and magazines.
Cost #5: Continuing Education (CE): Varies.
After the first year as a real estate broker, you will need to complete 30 hours of CE. After that, you must complete 16 hours of CE in each renewal period lasting two years. Brokers need to complete 24 hours of CE in each renewal period lasting two years. CE costs can vary widely.
Cost #6: Living expenses: Varies.
The real estate field is different from many other professions. Real estate brokers are usually not employees; they are independent contractors. This means you will work on commission rather than receiving a predetermined salary. You may have to pay for your own insurance and contribute to your retirement fund.
It may take time to complete your first transaction. You will need to find your first clients and complete that transaction before receiving any income. This whole process can take anywhere from two to six months. That means there will be a period of two to six months without income. According to the Bureau of Economic Analysis, the average cost of living in Virginia is $3,563 per month per person, so consider what you need to budget when you start.
Total cost to become a real estate broker: At least $1,710+.
When you add up all these costs, you should expect to pay at least $1,710 in the first year as a real estate broker in Virginia.