Learn How To Get a New York State Real Estate License in a Step-by-Step way
New York real estate is one of the most popular real estate markets in the world and it continues to attract investors and homebuyers from all over the country.
Since the last few years, New York has continued to post staggering growth numbers and strong demand, creating rewarding opportunities for real estate agents and brokers.
Real estate is influenced by numerous factors such as demographics, economic outlook, demand, government policies and income potential of individuals.
When it comes to NY, the demand for real estate is unwavering as the Empire State continues to be one of the most sought-after and alluring destinations in the world.
Be it local migrants from states like California, Washington and Dallas or international buyers, owning a piece of New York is a dream come true for many.
For aspiring real estate agents and brokers, New York can offer an ideal destination to embark on a rewarding and fulfilling career journey.
Working in New York’s flourishing real estate market can help you unlock opportunities for career growth and success, especially if you value financial independence.
Did you know that the top real estate agents in NYC can earn as much as $120K in a year while enjoying a stable work-life balance in a dynamic market.
With a median home price of $800K, you can easily make anywhere between 5 to 6 percent in commission and build a thriving income stream.
As the number of homes sold in NY increase and the median prices also rise, the opportunity for making commissions and earnings is also improving significantly.
The Bureau of Labor Statistics points towards a growing demand for skilled real estate agents in NY and if you are keen to pursue this career path, now is a good time to start.
To work with clients in NYC and be a part of real estate deals, then it is mandatory that you earn your real estate license first.
Getting your NY real estate license is a must to earn commissions and work legally in the industry as a professional.
If you are new to the world of real estate and want to learn how to become a licensed professional, then this in-depth guide will help you get started in the right direction.
We will walk you through all the steps on how to get a real estate license in NY state and fulfill all the state and federal license requirements.
Since pursuing a career path is a major professional decision, it is important to prepare yourself for it.
Let us walk you through the various aspects of how to plan for a career in real estate to ensure you achieve your professional goals.
The career path of a real estate agent
Imagine the freedom of being your own boss and defining your own work-life schedule while getting to choose your own clients? Sounds like a professional dream come true, doesn’t it?
A career in real estate offers unmatched flexibility, freedom and professional autonomy while providing enough opportunities for earnings and commissions.
Whether you want to work as a part-time or a full-time real estate agent, your job duties and responsibilities are going to be similar.
New York’s dynamic, flourishing and booming real estate landscape will require you to bring your best foot forward as a professional.
Before you start preparing for a career, it is important to understand what the job entails and what is the career profile all about.
Real estate agents are licensed professionals who are responsible for working with clients and assisting them in buying and selling of real estate.
As a real estate agent, you will be the go-to-person for guiding your clients and helping them navigate the journey of closing a real estate deal.
As a licensed agent in NY, you will fulfill the expectations and needs of your clients i.e. buyers, sellers and investors and help them to get the best value for their money.
A day in the life of a real estate agent is never dull as you will be handling a diverse range of tasks including administrative, operational, marketing, pre-sales and client servicing.
It is the duty of a real estate agent to understand the needs and requirements of their clients and best represent their clients’ interests in a real estate deal.
To become a real estate agent in NYC, you start your career by applying for a salesperson license and working under the supervision of a state licensed broker or brokerage firm.
As you gain more experience, you can choose to work for yourself and start your own independent real estate agency.
After going through the career profile and path of a real estate agent, you might already be wondering how can I get my real estate license in NY and embark on a new career.
Benefits of getting a NY real estate license
Getting a license is a mandatory requirement to start a career and since it requires completion of multiple steps, many beginners often wonder whether it is worth it or not.
Beyond the legal and regulatory guidelines which you must meet to work with consumers, getting licensed also offers numerous additional career benefits.
The journey to obtain your license might seem overwhelming and difficult at first, but it is definitely worth putting the time, effort and resources into.
Here are some of the key benefits of earning your NYC real estate license.
Higher earning potential:
As a licensed agent, you can earn as much as you want without any restrictions or limitations to your career.
Unlike other high-paying professions, real estate has no cap or limit on how much money you can make - the more deals you close, the more commissions you earn.
The top real estate agents in NY can earn as much as $120K annually due to the strong demand and consolidated presence of high net worth individuals.
NY’s diverse real estate landscape can provide you the opportunity to become financially independent and achieve your monetary goals with ease.
Imagine earning a six figure income while achieving your professional goals and securing your future - getting a license is the first step to realize this dream.
Career independence:
Do you dream of working in an industry where you can achieve professional autonomy and be your own boss?
With a NY real estate license, you will be allowed to work with clients anywhere in the state and choose your own working hours.
Licensed real estate agents can work on their own and independently run their own real estate business or agency in New York.
If you seek an independent career profile where you can take control of your career growth and path, then it is a must to obtain your license.
Better networking opportunities:
Getting your license will unlock a plethora of networking opportunities which can boost your career and unlock new business for you.
If you want to grow your skills as a professional and become a successful real estate agent, then you must apply for a license.
During the journey to getting a license, you will also meet fellow students, industry experts, trainers, instructors and other real estate professionals.
Only licensed real estate agents get access to exclusive groups, networking events and members-only communities which are valuable in expanding your network.
Legal compliance:
Without a license, you will not be allowed to legally participate in a real estate deal or assist clients in buying or selling properties in New York.
The state of New York requires all real estate professionals to earn a state approved license by following the state and federal guidelines.
As per the New York State Department of State (NYSDOS), only licensed professionals can earn commissions through real estate deals.
This means without a valid salesperson license, your career prospects will be limited and restricted.
Clearly, getting a license is not merely a career formality, but a career investment which will pay off in the short and long run.
Now that you have learned about the importance and benefits of getting a license, we will walk you through the steps on how to get your real estate license in NYC easily.
Basic Eligibility Requirements for NY real estate license
Like most states, New York also requires aspiring real estate professionals to meet the minimum eligibility requirements before applying for a salesperson license.
The NYSDOS requires you to meet a set of minimum eligibility requirements to qualify for a licence which are:
- You must be at least 18 years of age or older
- You must be a legal resident of the state of New York
- You must have a valid driver’s license
- You must have a high school diploma or GED equivalent
Only if you meet the basic statutory requirements, you should proceed to complete the next set of requirements to earn your a salesperson license in New York.
The New York State Department of State (NYSDOS) is the official de facto authority for issuing and renewing licenses for real estate professionals and firms.
The NYSDOS is integral to the working of the state’s real estate industry - from establishing the state regulations and licensing laws to enforcing jurisdiction, the department ensures the highest standards are established and enforced.
During your licensing journey, your paths will cross with the NYSDOS numerous times and it is important to understand their core duties.
The function of the New York Department of State’s Division of Licensing Services
The NYSDOS performs multiple functions which are integral to the functioning and operation of the real estate industry and its professionals and firms such as:
- Licensing: The NYSDOS licensing services department is the state’s leading authority for establishing the licensing rules and regulations for agents, brokers, appraisers and realtors.
- Compliance: The Division of Licensing Services in New York is responsible for ensuring compliance with the legal, ethical and professional standards established by the state and federal authorities.
- Education: The department is responsible for establishing the qualifying education requirements and guidelines for aspiring real estate professionals. It sets the standards and defines the benchmarks for education providers in NYC.
Educational requirements for a NY real estate license
If you are thinking about how do you get a real estate license in NY and what are the exact education requirements for the same, keep on reading.
In New York, aspiring real estate agents are required to complete minimum education and training to qualify for a salesperson license.
The New York State Department of State (NYSDOS) requires all applicants to complete 75 hours of pre-licensing course credits to become eligible for a license.
The pre-licensing coursework will cover the basics of the real estate industry, including real estate laws, real estate finance, contracts and consumer rights.
Completing these courses will prepare you for working in the industry and help you understand what is expected from you as a professional.
Here are some of the key topics and courses you will complete:
- Real estate laws and regulations
- Principles of Real Estate
- Real estate practices
- Types of property and their ownership
- Real estate contracts
- Legal descriptions
- Real estate financing and basic terms
- Property valuation and real estate appraisal
- Consumer rights and fair trade
Students have the flexibility to complete their education from a physical, in-person real estate college or enroll in a pre license course online.
Pre-licensing education costs in New York are generally in the range of $100 to $700, depending on the course package, medium of learning and the pass rate of the educator.
Pre-licensing course providers and schools in NY have different packages and tiers for courses with their unique set of features and benefits.
After completing your coursework from a state approved education provider, you will become eligible to take the New York Department of State Salesperson licensing exam.
Passing the New York Real Estate Licensing Exam
To obtain your real estate license in NY, you must take and pass the state real estate license test and prove your knowledge and competence.
The salesperson license test covers both state and national specific portions and includes 75 multiple choice questions.
You will get 90 minutes in total to attempt all the questions and you must score at least 75 percent or above to pass the exam.
Many beginners and first time applicants often wonder about the difficulty of the license test and whether it is possible to pass the test on the first attempt or not.
The difficulty of the exam depends on your level of preparation - the more knowledgeable and confident you are, the higher will be the odds of passing the exam with confidence.
Preparing for New York Real Estate Licensing Exam
You might be thinking how do you get your real estate license in NY and start working as a licensed professional.
Taking the exam can be daunting and to boost your preparation, you must invest in choosing the right education provider.
It is important to understand that successfully completing the NY state exam is not an easy task, as the questions come from a range of topics and subjects.
Here are some practical and useful exam preparation tips which will come in handy
- Enroll in exam prep courses and study packages to get access to practice tests and mock exam papers. You will gain knowledge and skills that you will not be able to gain on your own.
- Be thorough in your understanding of NY real estate laws and regulations. Most of the exam questions are based on fundamental laws.
- Understand previous years’ NY real estate exam questions in detail. Try to find common questions and repeating patterns to focus more on those topics.
- Complete practice tests more often and pay attention to the questions you find difficult to solve in time. Try to work on difficult questions more often.
- Make and prepare class notes as your progress through your courses. Make note cards and flashcards to review and highlight important concepts and topics.
- Find a study partner to study alongside for the test. Learning with a study buddy can help you stay motivated and can help solve doubts or assist with learning.
- Plan your study calendar in advance and use time-blocks to dedicate to completing each topic. Give yourself enough time to work on your strong and weak subjects.
- Start with the topics you are most comfortable with first and then work your way up from there. You must practice both easy and hard questions but first build confidence. However, do not ignore tricky questions or keep them for last minute preparation.
Passing a real estate exam can seem like a daunting task, especially if you are attempting it for the first time.
However, with smart practice and careful preparation, you can easily achieve your goals and kickstart your career.