Eyeing a Career in FL Real Estate? Here’s How Much to Get a Real Estate License in Florida
Florida real estate is renowned for its diverse real estate landscape brimming with exciting developments and rewarding opportunities.
The Peach State has a unique appeal, thanks to its vast coastline, beautiful beaches, picturesque locations, and world-class entertainment and lifestyle options.
One of the most sought-after real estate markets in the country, Florida is home to some of the highest-growing destinations in the country, including Miami, Orlando, and Tampa.
The Florida real estate market is witnessing double-digit growth in the number of homes sold and with rising property valuations,
Plus, the average selling price of a Florida home has increased in value by around 80 percent in the last five years or so.
Here’s another impressive fact about Florida’s real estate growth - the state is amongst the few ones with a net positive migration rate.
Be it the pleasant sunny climate and attractive lifestyle choices or the strong economy and growing job outlook, Florida is currently among the top five fastest-growing markets since the pandemic.
As FL continues to attract homebuyers, tourists, and migrant workers from all over the country, real estate agents can find more clients to generate income and earn commission.
The demand for residential and commercial real estate in Florida has been strong over the last few years and the state holds tremendous growth potential waiting to be tapped into.
Many aspiring professionals often wonder whether a career in Florida real estate is worth it or not and if you too are planning to work as a part-time or full-time agent, keep on reading.
A career in Florida real estate can be the pathway to working in a lucrative and rewarding profession where you can easily make a six-figure income whilst being your own boss.
Due to the strong and sustained growth in Florida’s housing and residential real estate, it is one of the most attractive and flourishing markets for aspiring agents.
If you are ready to start working as a real estate agent in FL, you must first understand that a career in real estate requires a minimum level of education, training, and skills to begin with.
To work with clients and help them buy or sell properties in FL, you must obtain a state-approved salesperson license first.
The Florida Real Estate Commission (FREC) has established a set of license requirements and guidelines for aspiring real estate agents and brokers.
Only licensed professionals are legally allowed to represent clients in real estate deals and earn commissions, hence, getting your license is a mandatory step in your career journey.
If you are wondering about how to approach the process of getting licensed, you will learn about all the steps to become a real estate agent in Florida in this in-depth blog.
Understanding the growing popularity of Florida real estate
Historically, Florida is one of the most exciting and attractive tourist destinations in the country, and in the last few years, it has also gained popularity amongst homebuyers.
Currently known among the fastest-growing real estate markets in the country, Florida offers a plethora of cities and neighborhoods offering something for everyone.
Since the last few years, the demand for real estate in Florida has been growing steadily, and the median price of a single-family can go as high as $900K.
Industry research suggests that Florida has displaced Washington to become the fifth most valuable metropolitan real estate market in the country.
Miami, Orlando, Tampa, Fort Lauderdale, Palm Coast, and Jacksonville are some of the hottest and fastest-growing real estate markets in Florida.
In fact, property listings data that Miami has replaced Washington to claim the fifth most valuable metro in the country.
Housing prices have increased by a whopping 80% in Florida and the real estate market has been growing at a steady pace year-on-year.
Here are some factors leading to sustained growth and rising demand for FL real estate:
- Favorable Weather: Florida’s year-round pleasant and warm weather is a major reason for moving to the state. With its early warm springs and late autumn, Florida’s weather has become an attraction in itself.
- Growing Job Opportunities: Florida has added around half a million new jobs in the last two decades. Tampa, Jacksonville, and Orlando rank among the top cities in the country for their job outlook.
- Population Growth: Florida has been witnessing a net positive growth in the number of migrants and continues to be amongst the most attractive locations. It is projected that Florida’s population will reach 25 million by 2025 making it a lucrative market.
- Beautiful Beaches: Florida’s pristine beaches are a popular attraction for tourists and retirees. Be it Palm Beach, Fort Lauderdale, Orlando Beach, or Miami, investors and homeowners are ready to pay a premium for beach-facing luxury properties.
- Attractive Lifestyle: Florida’s charm can be attributed to its world-class lifestyle and attractive choices for residents and tourists. Beautiful beaches, scenic views, and larger-than-life entertainment centers make FL an excellent real estate destination.
- Rewarding Bax benefits: The lack of income tax attracts residents and real estate investors. This translates to savings on capital gains and the lack of any additional taxes. This makes Florida amongst the top most affordable states for living.
As evident, working as a real estate agent in Florida real estate can unlock opportunities to earn a six-figure income while enjoying a stable work-life balance in a dynamic industry.
Like other states, Florida real estate is also governed by a set of state and federal laws and regulations to establish the standards of professional conduct and protect consumer rights.
This is why getting your license is a mandatory requirement to be able to work with clients, help them buy or sell properties, and earn commissions via deals.
Thanks to the lower entry barrier, you do not need to spend years getting a college degree or completing advanced education to become eligible for a real estate license.
If you are wondering how long to get real estate license in Florida and start a career, keep on reading as we walk you through all the steps and the state-specific requirements.
What does a real estate agent do?
Before pursuing a career path and committing to a decision, it is important to understand what’s in store for you in this profession.
Real estate agents handle multiple tasks juggle numerous duties as part of their job profile and earn a fixed or variable amount of money or commission for their services.
Although your day-to-day job duties and responsibilities will depend on your employer, here are some of the tasks you will perform as a newly licensed real estate agent:
- Interview and meet potential clients to understand their needs and requirements
- Respond to texts, emails, or phone calls and follow up with prospects
- Assist clients in the selling, buying, or leasing of residential or commercial properties
- Negotiate on behalf of clients and help them get the best value for their money
- Assisting homeowners in setting up their property for showings and visits
- Reviewing and supervising the formulation of deeds, contracts, and agreements
- Liaison with industry professionals such as underwriters, appraisers, and loan officers
- Formalizing and drafting deeds, contracts, and agreements
- Maintaining paperwork and documentation disclosures related to a transaction
- Participate in marketing and networking events to generate business
- Promote your services via online and offline channels and mediums
A career as a real estate agent in FL is exciting, dynamic, and rewarding, however, one must also be prepared to juggle multiple tasks and perform a diverse set of duties.
Next, let us walk you through the commission structures for real estate agents and how you will earn money as an agent.
Different Types of Real Estate Agent Commission Structures in Florida
With an average commission rate of around 5.25%, the top real estate agents in FL can make as much as $120K to $180K annually, depending on their skills and expertise.
For example - for a Florida property worth $350K in selling price, the average commission rate will be between $17,500 to $21,000 approximately.
The final calculation of the commission amount is agreed upon and finalized as part of a contract between a seller and their agent based on three types:
- Fixed commission: Under this commission structure, an agent is paid a fixed amount in exchange for their services. This price is usually pre-determined by the seller and agreed upon by the agent or broker as part of the real estate transaction. This means you get more predictability, confidence, and transparency for both clients and agents.
- Percentage-based commission: One of the most common commission methods in the industry, a fixed percentage for the commission is pre-determined on the basis of the value of a property. Generally, agents and brokers make anywhere between 5-6% of the final selling price.
- Hybrid Commission: A blend of fixed and percentage-based commission payout, this is one of the popular commission structures for real estate agents in Florida. It works in an incentive-based way where an agent is promised a fixed commission and a variable component on top of it in case they are able to close more deals.
If you are a new or an upcoming real estate agent, your commission rate will depend on your brokerage firm or the sponsoring broker with whom you will work in the beginning.
Plus, your skills, experience and the market outlook will also determine your earnings.
By now, you would have gained clarity on how real estate agents earn money and what they are expected to do in their job roles.
Next, let us walk you through the steps to get real estate license in Florida and embark on a fulfilling and rewarding career path.
The need for a real estate license
Many beginners and first-time applicants often wonder whether getting a license has any practical, real-world benefits beyond being a mandatory regulatory requirement.
The need for a Florida real estate license is multifold - firstly, it helps you become compliant with the state and federal laws and secondly, it prepares you for working as a professional.
Real estate is a fast-moving, dynamic, and competitive industry and it is important to stay aware and updated about the latest laws, trends, and industry standards.
In the process of getting your license, you will complete a series of steps and familiarize yourself with state and federal laws, consumer rights, code of conduct, markets, and other fundamental aspects of working as a professional.
Getting a license is crucial to starting your career and getting one is an essential stepping stone in building a successful career, whether as a part-time or a full-time agent.
Earning your license will prepare you for the challenges and expectations of working in an ever-evolving, competitive profession like real estate.
More importantly, you will learn about how to do your job duties and serve consumers as a professional.
Now that you have learned about why getting a license is a mandatory step in building a thriving career, it is time to get the answer to how to get your Florida real estate license.
Basic eligibility requirements for Florida real estate agent
Like other states, there are certain minimum statutory requirements to prove your eligibility to apply for a Florida salesperson license.
The Florida Real Estate Commission (FREC) requires aspiring real estate agents to fulfil the following eligibility requirements:
- You must be at least 18 years of age or older
- You must possess a high school diploma or GED equivalent
- You must be a legal resident of the U.S. or a lawfully residing alien
Complete the Florida pre-license education requirements.
If you meet the above statutory requirements, you can proceed to tackle the next requirements in the list of how to get your Florida real estate license.
Like most states, Florida also requires aspiring real estate professionals to complete the mandatory education and training to become qualified for working with clients.
The FREC requires all applicants to complete 63 hours of pre-licensing qualifying education from a state-approved education provider.
The education curriculum must cover the mandatory courses as mandated by the FREC and the state and federal guidelines for real estate salespersons.
The pre-licensing coursework is designed to give applicants an overview of the state and national real estate industry.
The curriculum of the coursework covers key topics and fundamental subjects that will give you an understanding of important principles of real estate, in addition to the FL state laws.
The pre-licensing education will provide you with the required knowledge and necessary skills to work with consumers and assist them in real estate transactions.
Pre-license course curriculum will help you become a knowledgeable and skilled professional, ready to tackle the challenges and expectations of a career.
Completing 63 hours of Florida salesperson pre-license coursework is a mandatory requirement and you have the choice to choose your preferred learning medium.
Whether you want to join a physical, classroom-based real estate college in FL or enroll in an online pre-license course, you can take your pick.
Note that you must choose a state-approved education provider to ensure that you are learning from an accurate, relevant, and up-to-date curriculum.
Pass the Florida Real Estate licensing exam.
The purpose of completing 63 hours of pre-license education and training is to prepare to take the Florida real estate license test.
Florida Real Estate Commission (FREC) requires all applicants and students to take the salesperson licensing test and score a minimum of 75 percent to pass the test.
If you are wondering how to obtain real estate license in Florida, you must prepare to take and pass the test by scoring at least 75 percent or above.
The exam comprises questions covering both state and national-specific portions and consists of 100 questions in total.
The exam is a closed-book, multiple choice question and if you are wondering, the questions are based on the topics and subjects covered in your pre-license course curriculum.
You can choose to schedule the test as per your preferred day and date by visiting the website of the Florida DBPR (Department of Business and Professional Regulation).
However, you will have to pay around $36 to take the test and if you are unable to pass the test on your first attempt, you can retake the test after 24 hours.
Note that you will also have to clear the federal background verification and criminal history check by submitting an electronic scan of your fingerprints to the Florida DBPR for review.
Clearing the background verification check is a mandatory requirement to prove good moral conduct and meet the standards of honesty, integrity, and truthfulness.
Once you pass the state license test and clear the background check, you can submit your salesperson license application for review and approval.