How To Become A Real Estate Agent In Maryland
If you’re reading this then you’ve probably decided that spending hours seated at a desk plugging away at some mindless task is not for you. You want a career with flexibility, opportunity for upward mobility, and an avenue to express your creative ideas. If this is you, then maybe a career in real estate is the perfect fit for you.
So why choose Maryland? Well, besides their famous blue crabs, baseball prowess, and being the birthplace of the national anthem, the state is also well-known for its strong housing market.
Housing prices went up by 9.0% on average throughout the state last year. This signifies an increased demand for housing and who is going to step in to broker these deals? Why you of course. An increase in housing prices means an increase in your income as most real estate agents are paid based on a commission.
Let’s take a brief look at some of the advantages of choosing a career in real estate. After this, we’ll give you a step-by-step guide on how you can obtain your real estate license in Maryland. Keep on reading!
Steps To Get Your Maryland Real Estate License
- Must be at least 18 years old
- Must have a high school degree or GED
- Complete all 60 hours of your real estate Pre Licensing Classes.
- Complete Background Check
- Schedule your exam with PSI exams
- Pass the Maryland Real Estate Salesperson Exam with a 70% score or higher
- Pick a Sponsoring Broker
- Submit your license application
Advantages of Choosing a Career in Real Estate
Here are some of the numerous benefits you stand to gain from choosing a career in real estate:
- Flexible work hours
- Unlimited income potential
- A larger and more diverse social and business network
- Increased business knowledge
- Greater opportunities for upward mobility
- The privilege of helping others achieve their dreams of owning the right property, and much more
Do you think you have what it takes to be a successful real estate agent in the State of Maryland? If yes, let’s dive into the basic steps of getting your real estate license in Maryland, the requirements, and how best to streamline the process.
Choose Your School and Sign Up For Classes
Before you can start listing million-dollar homes, the very first step toward getting your Maryland License is choosing your classes and completing the mandatory educational requirements set by the state to become a real estate agent.
Maryland Real Estate Classes
Get ready for some classroom time! To become a licensed real estate agent in Maryland, you must first complete your state’s mandatory education requirements. In total, you will be required to complete 60 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 Maryland 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 speed up the process if you put in the hard work.
Maryland Pre-licensing Education Requirements
You must complete 60 hours of state-approved real estate pre-license education. However, there are no additional training courses. It includes a 60-Hour Principles and Practices for Salesperson Course with different real estate concepts.
Keep in mind you must score 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 is state laws relating 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 Maryland Real Estate Commission
- License law
- Ethics
- Agency Laws
To become a licensed real estate agent in Maryland, you must first complete your state’s mandatory education requirements. In total, you will be required to attend 60 hours of state-approved courses for pre-licensing.
Schedule Your Maryland Real Estate Salesperson License Exam
In Maryland, you will schedule your real estate exams with PSI Exams. It is recommended you call and schedule with a customer service representative. Here are a couple of important things to know.
- This test can be taken by computer at the testing center.
- This is not an open-book test.
- The tests must be scheduled at least one in advance.
- You will have to reschedule or cancel two days in advance.
Current PSI Test Locations in Maryland: Testing Locations
Maryland Real Estate License Background Check
Any person applying for a Maryland real estate license must be fingerprinted and pass a background check. Submit your fingerprints for criminal background checks. This will cost $31.25, and you must work with an authorized vendor. Normally, it takes 3 to 4 business days to complete your background check. However, there could be some delay, lasting up to one month. You don’t need to wait for your completed background check before applying for your license.
What Is The Best Way To Study For The Maryland Real Estate Exam?
Many people fail the Maryland real estate exam the first time around. This is ok. Many of the great real estate agents having huge success today failed their exams the first time around. The bad news is that it costs money to retake your exam. At the time of writing, it is $44 to take the Maryland Real Estate exam.
To increase the chances of passing your exam the first time, we recommend checking out Prep Agent. This study tool gave many other agents and me 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 acceptable identification.
- Driver’s 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 you can use for the math portion of the exam.
How Long Will I Have To Complete The Maryland Real Estate Exam?
There are two portions to the exam:
- General (National) Portion – 90 minutes
- State Portion – 30 minutes
- Total – 120 minutes
Number of Questions on Salesperson’s License Exams:
- National – 80 questions
- State – 30 questions
- Total – 110 questions
The Maryland Real Estate exam is split up into two real estate exams. One state and one national. You will have a total of 120 minutes to complete both. (2 Hours) You will have 30 minutes to complete the Maryland State portion of the exam. You will have 90 minutes to complete the national portion of the exam. Some people even complete their exams early. Do not stress; you have 2 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 completing your exam.
Can I Retake The Real Estate Exam If I Fail?
Yes, if you fail, you can retake the Maryland real estate exams. After completing your pre-license course, you take the exams as many times as you want. For each attempt, you must submit a new registration form and a testing fee of $44. 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 Maryland?
I am sure you are excited and want to get licensed ASAP. You should expect the process to take about 3 to 5 months to become a Maryland Real Estate Agent. The most time-intensive part of the process is completing your 60 hours of real estate pre-license classes. Moreover, it may take some time for the Maryland Real Estate Commission to approve your application.
Aside from 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 coursework a little faster, or maybe it takes you a little more time to get through the coursework.
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 Maryland 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 Maryland Real Estate License?
It will cost around $765 – $1,000 to get your Maryland Real Estate License. These costs are fixed, such as the FBI background check and exam fee.
- $31.25 for a background check
- $44 for Maryland Real Estate Exam Fee
- $90 for Maryland Real Estate License Application Fee
- $300-$600 Realtor Board Dues
- $199- $424 for Pre-license Courses
- $100 for any additional study aids or courses.
Total Maryland Real estate license cost estimate: $764.25
Sign up for Maryland Real Estate Classes Here: Real Estate Express
Note- These are just averages and are subject to change at any time.
Does Maryland Have Reciprocity With Any Other States Regarding a Real Estate License?
Maryland has reciprocity agreements with two states only, and they are:
How To Choose The Right Brokerage?
Selecting your broker is a business choice that we all have to make at some point in our careers. 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, you must 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 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 offered for that split. The harsh truth is that 100% of nothing is still nothing.
Ongoing 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 of 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 Maryland is something worth working towards. To make this all will require work and consistency, but if you love the idea of selling homes in Baltimore, Columbia, or any other city in Maryland, 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.