So, How Do You Get Your Real Estate License in NY? Read This Beginners’ Guide to know
When it comes to the most popular and attractive real estate markets in the world, New York remains at the top of the charts.
The real estate landscape in NY is brimming with opportunities for homebuyers, migrants and investors.
While NYC as a whole is an alluring real estate market with strong demand, the state has also seen growth in areas like Buffalo, Rochester, Albany and Syracuse.
The state has a unique metropolitan charm and has stood the test of time as one of the highest valued destinations for real estate.
The median price of a NY home is around $850K , signalling an impressive 4 percent growth from the previous year.
Thanks to the stable economic outlook, world-class amenities and a growing job outlook, New York’s real estate market continues to witness heightened demand from both renters and buyers.
For aspiring real estate agents and brokers, working in NY can be the ideal launchpad for a prosperous career filled with opportunities to earn commission and work with clients.
Did you know that the top real estate agents in NY can easily make around $105K in annual income and salaries can go as high as $140K depending on your experience and skills.
The luxury market in NY can be even more lucrative and rewarding for real estate agents where the potential to earn is a lot more and some agents can earn around $250K annually.
Imagine earning a 5 to 6 percent commission by helping close a real estate deal worth $500K for a NY property - you can easily make around $30K and take around $12K to $15K for yourself.
Now if you are excited to learn about the exciting possibilities of NY real estate, now is a good time to start preparing for it.
If you are already wondering how do I get my real estate license in NY and start a career, we will answer all your questions and clear your doubts.
To help you get started, we have put together this in-depth guide for beginners which will walk you through all the steps you need to complete to become a licensed professional.
Understanding the role of the New York State Department of State in your licensing journey
To work as a real estate agent in NY, you will have to fulfill the various license requirements and guidelines established by the NYSDOS (New York State Department of State).
The NYSDOS is the state’s highest authority for real estate professionals and firms - it is integral to the functioning of the industry and is responsible for licensing regulations, laws, jurisdiction and complaints related to industry professionals and firms.
Since you will come across the NYSDOS many times before and during your real estate career, it is important to learn more about what its core role and responsibilities which are:
Licensing: The NYSDOS licensing services department is the state’s official authority for establishing the licensing rules and regulations for agents, brokers, appraisers and realtors. It also performs the function of verifying the qualifying requirements for applicants and issuing and renewing licensure for professionals.
Education: The NYSDOS is responsible for establishing the qualifying education requirements and overseeing the different curriculum requirements, industry standards and benchmarks for the real estate professionals.
Compliance: TheNYSDOS is the state authority in charge of establishing the compliance standards and guidelines for professionals. It is also responsible for enforcing legal and ethical code of conduct with the professional standards established by the state and federal authorities.
As an aspiring real estate agent, it is essential to be thorough with the NYSDOS and its guiding standards and benchmarks, especially as real estate is a heavily regulated industry.
By doing so, you will ensure that you are fully compliant with the state and federal laws and are putting your best foot forward as a real estate professional.
You might be wondering how to get a New York real estate license and start working with clients in a popular market.
However, before we give you the step-by-step process, it is important to learn about some key basics and foundational concepts first.
What does a real estate agent do
With a low entry barrier and accessible job opportunities, working in NY real estate is easier than you think, especially since you do not need a college degree to get started.
Real estate agents are licensed professionals who work with clients and help them buy, sell or lease residential or commercial properties.
Agents work with both sellers and buyers and take their commission after a real estate transaction is completed.
Buyer’s agents meet and interview clients, understand requirements, help them identify their goals and outline their ideal property needs and goals.
This includes preferred locations, budgets and financing plans and the required mortgage financing.
Seller’s agents work with their clients to create property listings on marketplaces and property sites while determining the right selling price. This includes taking photographs of the property, coming up with property descriptions and features.
Seller’s agents help clients organize property tours and showings to attract potential buyers and present the property.
Generally speaking, day in the life of a real estate agent is never dull and involves multiple job duties and tasks such as:
- Conducting market research and find out emerging opportunities in popular regions and strong buying environments
- Responding to emails, texts or phone calls from potential clients and inquiries
- Scouting for potential clients by visiting property listings and checking local property database and listing platforms
- Guiding clients through the various stages of a real estate transaction - from the paperwork and application to the price bidding and negotiation
- Complete necessary paperwork and update the necessary deal documentation required as part of a real estate transaction
- Generating market reports, forecast summaries and promotional brochures to follow up with potential clients
- Creating marketing material and coordinate promotional events to boost their presence and attract new clients
- Managing and updating databases, property listings and related documents on behalf of their employer and clients.
Real estate agents start as generalists who manage multiple duties and tasks at work. However, as they gain experience, they can take on managerial roles and responsibilities.
In New York’s flourishing real estate landscape, there are abundant opportunities and benefits for building a career. Let’s take a detailed look at them below.
Benefits of working in NY real estate
You might be wondering how to get my real estate license in NY and reap some of the rewarding benefits and exciting perks which come with the job.
Here are some of the key benefits of choosing a career as a real estate agent in NY.
1. High earning potential:
Real estate agents in NY can easily make a six figure income and even as a beginner, you will have the ability to make good money in commissions.
For a real estate agent, the earning potential is without any cap as the more deals you close, the more commissions you can earn.
Due to a non-existent upper barrier on income, top agents can make as high as $150K in NY’s strong real estate market.
As you gain experience and advance in your career, you can even choose to establish your own commission rate to directly control your earnings.
2. Professional autonomy:
Do you dream of working for yourself and taking control of your professional growth and career development?
Working as a NY real estate agent can give you the opportunity to be your own boss and make your own decisions.
As you gain expertise, you can choose your own clients, negotiate deals and earn commissions as a broker or a realtor.
The freedom to achieve professional autonomy is an attractive benefit for many people who want to join NY real estate as an agent.
3. Flexible schedule:
Real estate agents are not governed by the typical nine-to-five job routines and schedule.
Agents can define their own work schedule and choose to set their own working hours which is a huge advantage of anyone who wants better work-life balance.
The flexibility to manage your time is one of the benefits why people choose to transition to real estate as it gives them the ability to work with greater flexibility.
As a real estate agent, you can define your work appointments, set your own schedule and even choose your vacation days as per your own discretion.
4. Access to a professional network:
The ability to meet new people, forge new connections and network with industry professionals is a great benefit of joining this career.
Licensed real estate agents get to join exclusive communities and members-only groups which can help you grow your professional network.
The ability to meet industry peers, trainers and experts and learn from them is a huge advantage in today’s competitive industry.
Basic Qualifying Requirements to becoming a Real Estate Agent in NY
To obtain a real estate license in the state of NY, you must fulfill the eligibility and educational requirements established by the NY Department of State.
To obtain a license, every applicant must meet the minimum state and federal requirements:
- Be at least 18 years of age or older
- Be a legally residing citizen of the United States or a lawfully permitted alien
- Own a valid NYC driver’s license or any other non-driver ID proof
- Have a high school diploma or GED equivalent
If you meet the above statutory requirements, you can proceed to meet the next set of NY salesperson license requirements.
NY Pre License Requirements for a Salesperson License
If you are wondering how to get a real estate license in NYC, the key step is to fulfill the pre-licensing education requirements.
The New York Department of State requires aspiring real estate agents to complete 75 hours of pre-licensing education to qualify for a license.
Pre license education consists of foundational courses such as principles of real estate, state and federal laws and other fundamental topics to prepare you for the job role.
Completing 75 hours of pre license education is not only a mandatory requirement to be fulfilled but it is a solid foundation to equip yourself with the knowledge of real estate industry laws, principles and processes. .
The coursework can be completed in-person from a university or a college in New York or you can enroll in an online course provider who is accredited by the state.
For those who are not sure, the New York Department of State’s website has a list of all state approved course providers.
Completing pre-license education in New York will cost you anywhere between $100 to $600, depending on the course package, content delivery medium, and the type of features you choose.
Overall, the final cost for your pre-licensing education will be determined by the course provider and the type of package you choose.
Preparing for New York Real Estate Licensing Exam
After you have completed pre-licensing education from a NYSDOS approved education provider, you will become eligible to take the NY salesperson license exam.
The exam is a closed-book, multiple choice questions test and to pass the test, you must score at least 75% or above.
Tips for preparing for the NY Salesperson License Exam
Passing the NY license exam can be daunting and overwhelming, especially if you are a beginner.
To boost your preparation and the odds of passing the test on your first attempt,you must invest in preparing for it.
Many students prefer to choose comprehensive real estate courses and exam preparation packages which offer preparation resources and test materials such as virtual lessons, on-demand coaching, doubt clearing sessions and expert-led instructional videos.
By taking mock tests and practicing using sample questions, you can better understand the exam format and the type of questions you can expect to face in the real test.
Gaining confidence is important for succeeding in the exam and the best way to do so is to make use of practice materials and learning resources.
Here are some of the best practices and exam preparation tips which can help you increase your chances of success in the license exam.
- Enroll in a pre-licensing course training to learn from professionals and 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.
- Plan your calendar in advance and use specific time-blocks to dedicate to practicing each topic. Give yourself enough time to work on your strong and weak subjects.
- Complete practice tests more often and pay attention to the questions you find difficult to solve in time. Try to work on solving difficult, tricky questions more often.
- Find a study partner to prepare alongside for the licensing exam. Learning with a study buddy can help you stay motivated and can help solve doubts or assist with learning.
- Be thorough in your understanding of real estate laws and regulations. It is common to misinterpret or misread the small details which can make or break your chances.
- 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.
- Clarify your doubts by reaching out to teachers and trainers without any hesitation. Make sure you understand the solutions and their reasoning clearly and not just for the sake of memorizing the answer.
- Take and review class notes as your progress through the coursework. This will help you memorize important information faster. You can also make note cards and flashcards to review important concepts and topics.
- Go through previous years’ NY real estate exam questions and sample tests carefully and be on the lookout for frequently asked questions and key patterns so as to prepare them better.
Passing the Federal Background and Criminal History Check
The NYSDOS license guidelines require aspiring real estate professionals to meet the minimum standards of honesty, integrity and good moral conduct.
To obtain your license and work with clients in NY, you must complete a mandatory federal background verification and criminal history check.
As per the Department of State, every applicant is required to submit an electronic scan of their fingerprints for review.
Joining a Real Estate Brokerage
The NYSDOS requires newly licensed agents to work under the supervision of state licensed brokers or brokerage firms to gain practical experience.
To activate your license, you must find employer sponsorship and submit the details to the Department of State for review.
Finding sponsoring brokers should not be a challenge as New York is home to thousands of them.
To do so, you can start by reaching out to brokerage firms and brokers in your locality or region and find the one suitable for your goals.