When starting a small business, budgeting for start-up costs is crucial for a successful business launch. The same is true of real estate. As a real estate broker, you’ll essentially be your own small business and thus be responsible for covering the costs of working in real estate. To help you prepare, we’ve broken down the costs you’ll need to cover as you start your new real estate career.
Overview of the Real Estate Licensing Process in North Carolina
Understanding the process of getting licensed in North Carolina is essential for understanding the costs associated with getting your broker’s license. Here are the steps to becoming a licensed real estate broker in North Carolina and the approximate time needed to complete each step.
Step 1: Take your pre-licensing course.
Estimated time to complete: 1 – 7 weeks (depending on class format)
Complete the required 75 hours of pre-licensing education from an accredited school.
Step 2: Submit your real estate application to the North Carolina Real Estate Commission.
Estimated time to complete: 10 days (for processing)
Submit the real estate broker application, background check, and associated fees.
Step 3: Study for the real estate exam.
Estimated time to complete: Varies (1-3 weeks)
Schedule your exam at a Pearson VUE testing center and study for the exam.
Step 4: Pass your North Carolina real estate exam.
Estimated time complete: 1 day
Take and pass the real estate license exam.
Step 5: Find a broker-in-charge.
Estimated time complete: 2 weeks
You must have a broker-in-charge supervise you until you complete your post-licensing education.
Step 6: Complete your post-licensing education.
Estimated time complete: 6 weeks
Complete the 90 hours of post-licensing education to remove your provisional status from your license. This must be completed within 18 months of getting your license.
Step 7: Keep up with continuing education.
Estimate time complete: 8 hours each year
You must complete 8 hours of continuing education each year to keep your broker’s license active.
North Carolina Real Estate Pre-Licensing Education Costs
Estimated cost: $529 – 949
Before you can sit for your real estate licensing exam, you need to complete 75 hours of pre-licensing education from an accredited real estate school, such as Superior School of Real Estate. There are three learning formats to choose from: in-person classroom, livestream classroom, and self-paced online. The format you choose depends on your learning preference and schedule flexibility.
If you like a more traditional learning format in which you go to a physical classroom and learn from an instructor, then the in-person classroom format is for you. However, if you like the traditional classroom environment but want to learn from the comfort of your home, the livestream learning option may be best for you. And if you prefer to learn at your own pace, the self-paced online option is for you. All three options provide excellent instruction and preparation for the real estate exam and cost the same, too!
While the learning format doesn’t affect your pre-licensing education cost, what you include in your education package (such as extra study materials and career resources) does. For a more bare-bones route, you can expect to pay around $529, while a package that has all the bells and whistles will cost you approximately $949.
North Carolina Real Estate Exam Fees
Estimated cost: $60 – 260
You must take the real estate exam once you complete the pre-licensing education requirement. There are two parts to the exam: state and national portions. For both portions of the exam, the fee is $60. If you need to retake a portion, or if you are only required to take one portion (i.e., if you are already licensed in another state), the exam fee is $50.
Since you want to pass the real estate exam on the first attempt, consider extra exam prep to help you study for the exam. Superior School of Real Estate offers two exam prep programs: CompuCram® North Carolina Exam Prep and an 8-Hour Livestream Crammer Session. You can take these as stand-alone options or as part of the Career Ultimate pre-licensing education package.
NCREC Licensing Fees
Estimated cost: $120
In addition to pre-licensing education and exam fees, you will need to pay the North Carolina Real Estate Commission (NCREC) an application fee of $100 and complete a background check, which costs approximately $20.
Post-Licensing Education and Continuing Education Costs
Estimated cost: $995
You will receive a provisional broker license once you complete your pre-licensing education, pass the real estate exam, and NCREC approves your application. As a provisional broker, you’ll have 18 months to complete 90 hours of post-licensing education, after which your provisional status will be removed, and you’ll be a fully licensed North Carolina real estate broker. The cost to complete your post-licensing education varies, but you can expect to pay around $800.
Additionally, real estate licenses are issued for one year, ending on June 30, with the renewal process beginning 45 days before that date. In order to keep your license active, you will need to complete 8 hours of continuing education each year. These courses can be in-person, online via livestream, or self-paced. Each 4-hour course costs approximately $75.
You’ll also need to pay a $45 license renewal fee to NCREC.
Additional Costs to Consider
While technically, the following costs are not required to get your broker’s license, you should probably factor them into your budget to give yourself some extra wiggle room when preparing to start your real estate career.
Membership fees for professional organizations
Estimated cost: $200-300 per year
Joining a professional organization, such as the National Association of REALTORS®, can be beneficial, particularly for networking and educational opportunities. However, you typically have to pay a membership fee, which can vary based on the association.
Errors and omissions insurance
Estimated cost: $500-1,000 per year
Errors and omissions (E&O) insurance helps protect you from the financial fallout of lawsuits due to mistakes, injuries, or overly litigious clients. While some states require brokers to have E&O insurance, North Carolina does not. However, you can purchase E&O if you want peace of mind, or your brokerage may cover the cost.
Marketing and advertising expenses
Estimated cost: $50-100 per month
As an entrepreneur, you are typically expected to pay for your own marketing and advertising costs, such as social media ads, business cards, signage, etc. However, some brokerages may help you cover these costs or at least have discounted prices available to their brokers.
Office fees and technology costs
Estimated cost: $35-75 per month
Some brokerages require brokers to pay a desk or office fee to help cover the costs of technology and office supplies. Other brokerages usually account for those costs in the broker-brokerage commission split. However, if you are required to pay a desk fee, it is usually not that expensive.
Cost-Saving Tips
Although the cost of entry for a career in real estate is much less than that of a job that requires a four-year degree, the costs can add up quickly. Luckily, you only have to pay most of these costs once. Still, it’s always wise to find ways to save money so you don’t exceed your budget. Here are some tips to help you save money to get your North Carolina real estate license.
1. Take advantage of packaged deals and discounts.
Rather than buying individual courses or study tools, find opportunities to package them together. It may seem more expensive when you go to checkout, but you’ll save money in the end.
2. Pass your real estate exam on the first try.
Since you have to pay a fee for each exam attempt, you want to try to pass the real estate exam on the first attempt. You can study by taking practice tests to see which parts of the exam you have trouble with or take an exam prep course to review all the exam topics.
3. Reduce your discretionary spending.
If you don’t have a budget that you stick to, now is the time to start. It may sound unpleasant, but budgeting is a very useful tool for seeing where your money is going each month. You may even find that you are still paying for a subscription you no longer use. Plus, many apps make budgeting super simple. Just find some spending areas to cut down on a little bit, and you’ll be surprised by how much money you can save each month.
While getting your real estate license involves numerous costs, the total cost is manageable, especially if you follow some cost-saving tips. The key is knowing what to expect before you go for your license since the better you prepare for these costs, the better you can stay on track as you grow your real estate career.
If you have any questions about the costs associated with getting your real estate license or the real estate licensing process in general, Superior School of Real Estate is here for you. Superior has helped more new brokers pass the North Carolina real estate licensing exam on the first attempt than any other school in North Carolina. Attend one of our career nights, read the Superior Plan, and take our 75-hour pre-licensing course to kick-start your real estate career.
