In addition to a viable income, being a real estate agent has many other perks. You have the flexibility of work time, a variety of clients and tasks, and the satisfaction of helping people. You can be your own boss, solve problems, and constantly learn about markets, people, neighborhoods, construction, and more. But how do you get a real estate license in Hawaii to enjoy all these great perks? Here's a step-by-step guide that will lead you along the path of obtaining an Oahu real estate license.
(1) Prequalify
Before you start the process of getting your Oahu real estate license, you need to meet some general requirements. You must be at least 18 years old and either a U.S. citizen, a U.S. national, or an alien authorized to work in the United States. You'll also need a social security number. Additionally, you need to have a reputation of "competency, honesty, truthfulness, financial integrity, and fair dealing." The Hawaii Real Estate Commission will assess this during the license application. If you have any concerns about your background that might affect your licensure, you can request a non-binding decision from the commission before proceeding to the next steps.
(2) Complete 60 hours of approved pre-licensing education
To become a licensed real estate agent in Hawaii, you must complete 60 hours of pre-licensing education from a Hawaii registered real estate pre-license school. There are both in-person and online options available. These courses cover a wide range of topics related to Hawaii real estate, including licensing laws, ethics, laws, encumbrances, liens, and easements, tenancy and ownership, and more.
(3) Pass the course's final exam
Once you have completed all the required lessons, you will need to pass the course's final exam. This exam typically consists of 130 questions, and the passing score is 70 percent. School Completion Certificates are valid for two years from the date of issuance, so make sure to move on to the next step within two years.
(4) Pass the Hawaii licensing exam
The next step is to pass the Hawaii licensing exam. This exam is administered by an outside agency called PSI, and you can register for the exam online or via phone, mail, or fax. The exam costs $61. On the day of the exam, make sure to bring two forms of identification, your printed or original Hawaii School Completion Certificate, and any other applicable certificates. The exam consists of 80 questions about general real estate information across the United States and 50 Hawaii-specific questions. You'll have a total of 240 minutes to complete the exam. The passing score is 70 percent, and you'll receive your score immediately after completing the exam. If you don't pass, you'll have the opportunity to identify areas that need more studying before taking the exam again.
(5) Submit a completed licensing application
Once you have successfully passed the exam, you can apply for your Hawaii real estate license. At the test center, you'll receive an application form along with the instructions for applying. Make sure to file the application and pay the fees within two years of passing the exam.
(6) Choose a sponsoring broker
To practice real estate in Hawaii, you'll need to be affiliated with an active Hawaii real estate brokerage firm or broker. Choosing the right sponsoring broker is a crucial decision for your new real estate career. Consider their reputation, technology, the types of agents they're looking for, education and training support, marketing materials and potential leads, benefits, commission structure, and growth potential.
Hawaii is a great place to be a real estate agent. While obtaining a Hawaii real estate license requires effort and commitment, it is obtainable with disciplined studying and support. This path can lead to a rewarding career where you can make a fair salary, especially in an in-demand market like Hawaii.
Frequently Asked Questions
How much do realtors in Hawaii make?
Commission rates for real estate agents in Hawaii typically range from 4.5% to 6%. Both the sellers and buyers' agents receive a portion of the commission, which is usually split between the agents and their brokerage firms. For example, if a licensed agent sells a home for $700,000, their take-home pay could be $8,400. If an agent sells one home per month with similar commissions and payouts, they could make around $100,800 annually.
What does a real estate agent typically do?
A real estate agent acts as an advocate for their clients. For sellers, their responsibilities include pricing the home, preparing it for sale, marketing, hosting prospective buyers, collecting and presenting offers, and assisting with the closing process. For buyers, they accompany them on home searches, find properties that fit their needs and budgets, help with offers, negotiate, and guide them through the closing and escrow process.
Is being a real estate agent a safe profession? Is the real estate business growing?
In Hawaii, real estate is always in demand due to the limited supply of housing on the islands. Licensed and professional real estate agents are valuable in this market. However, becoming a successful agent requires hard work, self-motivation, honesty, and a passion for helping people. With the right networking and marketing efforts, real estate can provide a competitive and stable income. If you are ready to embark on a rewarding career, consider taking the steps above to get your Hawaii real estate license soon.
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