How To Become A Real Estate Agent In South Dakota

Written by Chris Lynch in AGENTS

How To Become A Real Estate Agent In South Dakota

How To Become A Real Estate Agent In South Dakota

Choose Your School And Sign Up For Classes

Before you can start listing million dollar homes the very first step is toward getting your South Dakota real estate license is choosing your classes and completing the mandatory educational requirements set by the state to become a real estate agent.

Complete your South Dakota Real Estate Classes

Get ready for some classroom time! To become a licensed real estate agent in South Dakota you must first complete your state’s mandatory education requirements. In total you will be required to complete 116 hours of state approved courses for pre-licensing. 100 Hours can be completed online. The additional 16 hours must be completed live with an instructor.

Click here  for real estate pre-license school. The good news is that the state of South Dakota allows you to take the majority of your real estate classes online. This is great because it will allow you to complete the course at your own pace and even possibly speed up the process if you put in the hard work.

In the state of South Dakota you must also be at least 18 years of age and have a GED or High School diploma to become a licensed real estate agent.

South Dakota Pre-licensing Education Requirements

Complete 116 hours of state approved pre-license courses.

  • 100 Hour Nebraska Real Estate Principles and Practices Course
  • 16 hours of live in class training to cover the state specific information about South Dakota real estate laws.
Keep in mind you must score a 75% or higher on each final exam. So, it is important to pay close attention in class.

What Will I Learn In My Pre-License Classes?

I remember sitting in my real estate pre-licensing class. For many, real estate is like learning a entirely new language. In class you will learn many new things. One of the most important being state laws as they relate to you as a real estate agent. This will help keep you out of legal trouble once you get out in the field and start practicing real estate. Here are some subjects you will learn about in real estate school.

  • Real estate math
  • Land use laws and regulations
  • Fair Housing laws
  • Real Estate Financing
  • Contracts
  • Transfer of title
  • Brokerage relationships
  • Disclosures
  • Property analysis
  • Rules of the Nebraska Real Estate Commission
  • License law
  • Ethics
  • Agency Laws

To become a licensed real estate agent in South Dakota you must first complete your state’s mandatory education requirements. In total you will be required to attend 116 hours of state approved courses for pre-licensing.

DCI and FBI Fingerprint & Background Checks

Submit your finger prints to the South Dakota state police. Call and Confirm with the South Dakota Real Estate Commission that your criminal background report has been received.

Schedule Your South Dakota Real Estate Salesperson License Exam

Your real estate exam will be taken with PSI Exams. It is recommended you call and schedule with a customer service representative. Here are a couple important things to know.

  • This test can be taken by computer at the testing center.
  • This is not an open book test.
  • Test must be scheduled at least one day in advance.

What Is The Best Way To Study For The South Dakota Real Estate Exam?

Many people fail the real estate exam the first time around. This is ok. Do not give up so fast! Many of the great real estate agents having huge success today failed their exam the first time around. The bad news is that it costs money to retake your exam. At the time of writing it is $$98 to take the South Dakota Real Estate exam.

To increase the chances of passing your exam the first time we recommend checking out Prep Agent. This study tool gave me and many other agents a huge boost in confidence when taking the real estate exam.

In fact, Prep agent is so confident in their study tool that they offer a 100% refund if you use the tool and fail your real estate exam.

What Do You Need To Bring When Taking The Exam At A Testing Center?

Don’t show up on test day only to be turned down. You will need to bring two forms of identification that have not expired and have a matching name and signature. One form of identification must have a photo to qualify. Here are some examples of accepted identification.

  •   State Driver’s License
    • U.S. Learner’s Permit (plastic card only with photo and signature)
    • National/State/Country Identification Card
    • Passport
    • Passport cards
    • Military ID
    • Military ID for spouses and dependents
    • Alien Registration Card (Green Card, Permanent Resident Visa) 

You are allowed to bring a basic non scientific calculator that can be used for the math portion of the exam.

How Long Will I Have To Complete The South Dakota Real Estate Exam?

You will have 420 minutes (7 hours) to complete the entire exam. So do not stress. You have plenty of time to get this done.

  • The National section time is 150 minutes (2.5 hours)
  • the State section time is 90 minutes (1.5 hours)
  • Broker Simulation response test is 180 minutes (3 hours)

You can schedule your exam on the PSI Page: Exam Scheduling 

Pass Or Fail- How Long Does It Take To Get Results?

Taking the real estate exam can be nerve racking. Once complete we all become anxious and want to know if we passed or failed the big test. The good news is that you will know the results immediately in the PSI testing center after you complete your exam.

Can I Retake The Real Estate Exam If I Fail?

Yes, the good news is that in the state of South Dakota if you fail you can retake the exam. If you passed one section of the exam and failed the other ( National or state law) you are only required to retake the only the section you failed and the section you passed. The downside is you will be charged $98 each time you have to retake the exam.

But stay positive, many agents have failed the real estate exam multiple times and have gone on to have very successful careers.

Apply For Your South Dakota Real Estate License

Once you pass the exam you are ready to apply for your real estate license. Remember your application must be submitted within 60 days of passing your exam. with the application form, you must also attach the following documents:

  • Non-refundable application fee of $225.00
  • Proof of completed real estate education requirements
  • Completed SD and FBI fingerprint cards and a separate check for $43.25 made payable to DCI
  • Proof of Errors and omissions certificate of coverage
  • Original exam score reports with a passing score 

How Long Does It Take To Become A Licensed Real Estate Agent In South Dakota?

Yes I am sure you are excited and want to get licensed ASAP. You should expect the process to take about 4 to 5 months to become a South Dakota Real Estate Agent. The two most time intensive parts of the process is completing your 116 hours of real estate pre-license classes and completing your background check.

Aside from just completing your real estate classes and studying you will need to spend your time doing other important things like interviewing brokerages and deciding which one is the right fit for you and your new real estate business.

This is just an average timeframe. Keep in mind everyone works at a different pace. If you are taking courses online you may be able to work harder and get through the courses a little faster or maybe it takes you a little more time to get through the course work.

Either way try not to overwhelm yourself and focus on getting a little further along in the process each day. Many people set out on the journey to become a Kansas agent and quit before they even start because they simply overload themselves with work. Keep the focus on working toward your goal little by little each day.

How Much Does It Cost To Get An South Dakota Real Estate License?

It will cost around $966-$1466.25 to get your South Dakota Real Estate License. Some of these cost are fixed such as the FBI background check, exam fee and license fee.

Total South Dakota Real estate license cost estimate $1,216.12

Sign up for real estate pre-licensing classes here: Real Estate Express

Note- These are just averages and subject to change at anytime.

Which states does South Dakota have license reciprocity?

South Dakota does not share full reciprocity with any state. You must pass the State portion of the exam in order to become licensed in South Dakota.

How To Choose The Right Brokerage?

Selecting your broker is a business choice that we all have to make at some point in our career. As a new agent you likely do not know what to look for or what questions to ask. As an experienced agent who has worked at multiple offices here are some things to consider.

Training- This is important. One of the biggest complaints I hear from new real estate agents is how lost they often feel. Many times they feel the brokerage they choose to partner with has poor mentorship or even worse no mentorship at all. When interviewing brokers it is important that you ask if they have a mentorship program in place for new agents.  If the answer is yes make sure you dig deeper and ask how the program works. What are the expectations for the new agent and what are the expectations for the mentor. You need to find out how much support and training they actually provide.

Splits- Every brokerage offers a different compensation model and as a new agent this is important to consider. However, do not make this your main focus. I see many new agents make commission splits the main reason they choose a brokerage. This can be a huge mistake. Focus on what kind of value and training is being offered for that split. The harsh truth is that 100% of nothing is still nothing.

On going monthly fees- Some brokerages charge monthly fees to stay apart of the company. This is something to consider if you have a small savings account. As a new agent you might be looking to stretch your dollar until you get a couple closings under your belt.  Joining a company with high ongoing monthly fees can put a dent in your savings account.

Commission Cap- This is in the same boat as commission splits in my opinion. As a new agent this should not be your main focus. You should be focused on support and training. However, as a business person it is a question you should be asking. Some brokerages will cut off your commission fees once you “cap”.  Every brokerage and market is different but on average we have seen the brokerage cap between 14k-21k. Once you pay that amount into the brokerage your commission will shift to 100% in some cases with a small broker transaction fee.

Conclusion

Becoming a real estate agent in South Dakota is something worth working towards.  To make this all happen it is going to require work and consistency but if you love the idea of selling homes in Rapid City, Pierre or any other city in South Dakota it is worth all the effort and hard work to make your dream become a reality.

Study hard and do not quit even if you fail your exam the first time around. Many of the greatest agents I know today in my local market did not pass the exam the first time around.

Chris Lynch

Hi! I'm Chris . I'm a Realtor on a mission to help more Real Estate entrepreneurs succeed in real estate . Along with writing and producing content, I work activity in the real estate field as a Team leader and Real Estate Investor.

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