Working as a real estate agent comes with many advantages. Many agents who decide to start their journey of becoming a real estate agent in New York start on the quest to build a business that offers more of a flexible schedule.
Others want to simply break the glass ceiling and enter a career that rewards them for all the hard work and effort they invest into it. If you are tired or feel stuck in an unrewarding job now might be the perfect time to chase your goals and become a real estate agent.
Do you have what it takes to work as a New York Real Estate Agent? If yes, let’s dive into the basic steps of getting your real estate license in New York.
How To Become A Real Estate Agent In New York
- Must be at least 18 Years old
- Must have a high school degree or equivalent degree.
- Complete all 75 Hours of your real estate pre license class.
- Complete RE- Background Check
- Schedule your exam with NYS License examination
- Pass the New York Real Estate Exam with 70% score or higher
- Pick A Sponsoring Broker
- Complete Additional Required Courses ( 22.5 Hours )
- Submit your license application
Choose Your School And Sign Up For Classes
Before you can start listing million dollar homes the very first step toward getting your New York License is choosing your classes and completing the mandatory educational requirements set by the state to become a real estate agent.
New York Real Estate Classes
Get ready for some classroom time! To become a licensed real estate agent in New York you must first complete your state’s mandatory education requirements. In total you will be required to complete 75 hours of state approved courses for pre-licensing.
Click here for state approved real estate classes and pricing. The good news is that the state of New York allows you to take a portion 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 New York there are additional required courses that must be taken a maximum of 24 months before applying for your real estate license. These classes must be taken in person or via a live camera class. They total an additional 22.5 hours of classroom time. You must provide evidence of completion of each of these courses.
- 1 agency hour
- 3 fair housing and diversity hours
- 1 legal matters hour
- 2.5 ethical business practice hours
- 15 elective hours
New York Pre-licensing Education Requirements
You must complete 75 hours of state approved real estate pre-license education along with 22.5 hours of additional training courses.
- 75 Total hours
- 0 Elective hours
- 75 Mandatory hours
Keep in mind you must score a 70% 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 an 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 New York Real Estate Commission
- License law
- Ethics
- Agency Laws
To become a licensed real estate agent in New York you must first complete your state’s mandatory education requirements. In total you will be required to attend 75 hours of state approved courses for pre-licensing.
Schedule Your New York Real Estate Salesperson License Exam
In New York your real estate exam will be taken with the New York Salesperson License Examination. 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.
- Tests must be scheduled at least one day in advance.
Current New York Salesperson License Examination Locations in New York:
123 William Street, 2nd Floor, New York, NY 10038
New York Real Estate License Background Check
Any person applying for a New York real estate license must be fingerprinted and pass a background check. The current cost is $15 for the service.
New York law requires all real estate licensee applicants to get a background check. This process can take 8-10 weeks to complete, but there is some good news. You do not need to wait for your completed background check before applying for your license.
What Is The Best Way To Study For The New York Real Estate Exam?
Many people fail the New York real estate exam the first time around. This is ok. 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 $15 to take the New York 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 agents are 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.
- Drivers license
- US social security card
- Passport
- Debit Card with Signature
- Credit Card with Signature
- Green Card
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 New York Real Estate Exam?
The written exam is multiple-choice. Applicants will be allowed 1 ½ hours to complete the exam. It has a total of 75 questions. Applicants are required to score more than 70% marks.
The New York Real Estate exam is split up into two real estate exams. One state and one national. You will have a total of 90 minutes to complete both. ( 1.5 Hours )
You will have 90 minutes to complete the New York State written exam. Some people even complete their exam early. Do not stress you have 1.5 hours to focus and get this done.
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 after you complete your exam.
Can I Retake The Real Estate Exam If I Fail?
Yes, If you fail you can retake the real estate exam. First you must submit a new registration form and the $15 testing fee to schedule to take the test again.
But stay positive, many agents have failed the real estate exam multiple times and have gone on to have very successful careers.
How Long Does It Take To Become A Licensed Real Estate Agent In New York?
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 New York Real Estate Agent. The two most time intensive parts of the process are completing your 75 hours of real estate pre-license classes, your 22.5 hours of additional course work and then completing your background check which can take a month or two to complete.
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 business.
This is just an average timeframe. Keep in mind everyone works at a different pace. If you are taking some of your courses online you may be able to work through the course work 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 New York 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 A New York Real Estate License?
It will cost around $445-$665 to get your New York Real Estate License. Some of these costs are fixed such as the FBI background check and exam fee.
- $55 – Initial Application
- $55 – Renewal
- $15 – Written Exam
- $10 – Change of Personal Name and/or Address (No fee is required if a name change is the result of a change in marital status)
- $10 – Duplicate License/Registration Request
- $300-$500 for NY Real Estate pre license classes.
Total New York Real estate license cost estimate $560
Sign up for New York Real Estate Classes Here: Real Estate Express
Note- These are just averages and subject to change at any time.
Does New York Have Reciprocity With Any Other States Regarding A Real Es
tate License?
New York has reciprocity agreements with eleven other states, and they are:
- Arkansas
- Colorado
- Georgia
- Mississippi
- Oklahoma
- Pennsylvania
- West Virginia
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 a part 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 New York 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 New York City 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.