How To Become A Real Estate Agent In Minnesota
Choosing a career as a real estate agent has gained increasing popularity in recent years for many reasons. Growing wages, flexible hours, and great upward mobility have made the profession quite attractive. If you’re among the growing population seeking to enter the profession then the State of Minnesota is a great option.
The North Star State is experiencing a strong recovery from the effects of the pandemic. Strong income growth, a steady decline in the unemployment rate, an increase in demand for rental properties, and a healthy budget surplus all point towards a state strongly on the road to economic recovery.
While all this bodes well for the State of Minnesota, it’s even better news for a real estate agent. The real estate industry has historically been rye most lucrative at times when the economy is strongest. A burgeoning economy leads to a rise in rental, commercial, private, and industrial property real estate.
The road to becoming a licensed agent
However, the road to becoming a successful real estate agent is not easy for newbies. Most real estate agents in Minnesota make between $43,559 and $56,716 in their first year depending on their location, education, performance, network, area of specialization, and several other factors.
The requirements required to become a part of this illustrious (and profitable) profession are similar among most states. However, there are some key details that you may need to take into consideration if you’re considering a career in real estate in the State of Minnesota.
Do you think you have what it takes to be a successful real estate agent in Minnesota? Are you confident that you can conquer the housing market within the North Star State? If yes, let’s dive into the basic steps of getting your real estate license in Minnesota, the requirements, and how best to streamline the process.
Source:
https://www.salary.com/research/salary/benchmark/real-estate-agent-salary/mn
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 Minnesota? 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.
How To Become A Real Estate Agent In Minnesota
- Must be at least 18 years old
- Must have a high school degree
- Complete all 90 Hours of your real estate Pre Licensing Classes.
- Complete RE-Background Check
- Schedule your exam with Pearson VUE
- Pass the Minnesota Real Estate Exam with a 75% score or higher
- 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 Minnesota License is choosing your classes and completing the mandatory educational requirements set by the state to become a real estate agent.
Minnesota Real Estate Classes
Get ready for some classroom time! To become a licensed real estate agent in Minnesota, you must first complete your state’s mandatory education requirements. In total, you will be required to complete 90 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 Minnesota 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 Minnesota, there are additional required courses in the form of 3 courses. These classes must be taken in person or via a live camera class. They total an additional 30 hours of classroom time.
You must provide evidence of completion of each of these courses.
Minnesota Pre-licensing Education Requirements
You must complete 90 hours of state-approved real estate pre-license education along with additional training courses in the form of 3 courses.
There are three courses that you must complete before you apply for a real estate salesperson license, known as “Course I,” “Course II,” and “Course III.” Each course consists of 30 hours of instruction.
You must complete Course I before taking the salesperson’s examination. You must complete Course II and Course III before applying for your license.
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 an entirely new language. In class, you will learn many new things. One of the most important is 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 Minnesota Real Estate Commission
- License law
- Ethics
- Agency Laws
To become a licensed real estate agent in Minnesota, you must first complete your state’s mandatory education requirements. In total, you will be required to attend 90 hours of state-approved courses for pre-licensing.
Schedule Your Minnesota Real Estate Salesperson License Exam
In Minnesota, your real estate exam will be taken with Pearson VUE Minnesota Real Estate. 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 test must be scheduled at least one day in advance.
Current PSI Test Locations in Minnesota: Testing Locations
Minnesota Real Estate License Background Check
Any person applying for a Minnesota real estate license must be fingerprinted and pass a background check. The current cost is $35 for the service.
Minnesota law requires all real estate license 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 Minnesota Real Estate Exam?
Many people fail the Minnesota 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 $63 to take the Minnesota 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 accepted 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 can be used for the math portion of the exam.
How Long Will I Have To Complete The Minnesota Real Estate Exam?
There are two portions to the exam:
- General (National) Portion – 150 minutes
- State Portion – 90 minutes
- Total- 240 minutes
Number of Questions on Salesperson’s License Exams:
- National – 80 questions
- State – 50 questions
- Total- 130 questions
The Minnesota Real Estate exam is split up into two real estate exams. One state and one national. You will have a total of 240 minutes to complete both. (4 Hours)
You will have 90 minutes to complete the Minnesota State portion of the exam. You will have 150 minutes to complete the national portion of the exam. Some people even complete their exams early. Do not stress; you have 3 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 $63 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 Minnesota?
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 Minnesota Real Estate Agent. The two most time-consuming parts of the process are completing your 30 hours of real estate pre-license classes 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 Minnesota 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 Minnesota Real Estate License?
It will cost around $870-$1300 to get your Minnesota Real Estate License. Some of these costs are fixed, such as the FBI background check and exam fee.
- Background Check fee $33.25
- The fee for an initial real estate salesperson license is $110.
- Minnesota Real Estate Exam fee $65
- $360-$500 for Pre-license Courses
- $200-500 Realtor Board Dues
- Additional study aids or courses $100
Total Minnesota Real estate license cost estimate $868.25
Sign up for Minnesota Real Estate Classes Here: Real Estate Express
Note – These are just averages and are subject to change at any time.
Does Minnesota have reciprocity with any other states regarding a real estate license?
Minnesota has full reciprocity agreements with the following states, and they are:
However, Minnesota offers partial reciprocity for Wisconsin license holders.
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, 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.
Ongoing 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 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 Minnesota 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 Cascade Township, Kenny city, or any other city in Minnesota, 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.