Your practical guide to working in NY real estate as an agent
Does a career in New York’s lucrative real estate sound exciting and rewarding to you?
Do you wish to be a part of a dynamic, ever-evolving industry where opportunities for growth are plenty?
If you answered yes, then now is a good time to start preparing for your goal and achieve your professional dream of becoming a real estate professional in NY.
Starting a new career in real estate requires time, training, and patience to complete all the steps in becoming a licensed professional.
One of the hottest real estate markets in the country and around the world, New York is home to thousands of real estate professionals.
Did you know that real estate agents in New York can easily make as much as $200K in annual income every year?
For real estate agents, brokers, realtors, and appraisers, New York offers a great mix of growth and earning opportunities.
Becoming a real estate agent in New York involves a series of steps and prerequisites and if you successfully complete them, you will earn your New York real estate license.
We understand that it might seem overwhelming and confusing to fulfill a set of licensing requirements, especially if you do not know where and how to start.
However, to help you get started in the right direction, we have put together this in-depth guide which covers all the necessary steps involved in getting your real estate license.
This article will outline all the important aspects of preparing for a career in real estate, right from qualifying criteria to education and licensing requirements.
Whether you are a complete beginner or someone looking to switch fields, you will be thoroughly clear about what to expect.
The need for a real estate license
Having a New York real estate license is mandatory for all aspiring and experienced real estate professionals.
Whether you wish to become a salesperson, broker, or realtor, you must apply for and obtain your NYSDOS (New York State Department of State) license.
Getting a real estate license is a crucial step in working in real estate, especially if you are interested in building a long-term successful career.
With a license, you will legally be able to work with clients of all sorts anywhere in the state and help them in buying and selling real estate.
A license is legal proof that you have met all the qualifying and eligibility requirements to become a trained real estate salesperson.
Only licensed professionals get the opportunity to grow their careers, earn commissions, and advance in their profession with the help of networking events and communities.
Most importantly, clients and consumers also prefer working with licensed, fully qualified agents and brokers as it provides them the confidence and peace of mind required for any financial transaction.
For beginners and aspiring real estate professionals, there are two main license types to choose from.
First is the NY real estate salesperson license which is going to be the starting point of your real estate career.
Second is the NY real estate broker’s license which you can apply for after gaining experience and skills in the industry for a few years.
If you are not sure how to proceed forward with getting your license, worry not. We are going to outline all the steps involved in the licensing journey in the coming sections.
Eligibility Requirements for a NY salesperson license
According to the New York State Department of State (NYSDOS), all aspiring real estate professionals must qualify for the job by meeting the eligibility requirements listed below.
- 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 no history of felony or any unlawful activity
To prove that you are a good fit for a career in real estate, you must meet the above-listed statutory requirements.
Education Requirements for Salesperson License in NY
Since you will be starting your career as a real estate agent working under the supervision of a senior broker or brokerage firm, you must apply for the New York salesperson license first.
As per the NYSDOS, all applicants must complete mandatory training, also known as, pre-licensing education to become eligible for applying for a salesperson license.
You will be required to complete 77 hours of state-approved pre-licensing education during which you will learn about the fundamentals of the industry along with the key job responsibilities of a real estate agent.
Completing pre-licensing education will equip you with the necessary knowledge, skills, and training on how the real estate industry works, what are its underlying laws, and guidelines and how to navigate the industry as a professional.
Some of the courses you will cover during your education are:
- Principles of Real Estate
- Real Estate License Laws
- Law of Agency
- Real Estate Finance
- Contracts and Leases
- Fair Housing Laws
Students have the freedom to choose between an in-person New York real estate course or enroll in a fully virtual, online learning program.
Many students prefer learning in an online, self-paced format as it allows more flexibility and freedom to define your own schedule and learn at your own desired pace.
Although there are a multitude of real estate schools, courses, and classes to choose from, it is recommended that you only select a state-approved education provider.
This will help you learn from the NYSDOS-approved curriculum and ensure that you are getting the most accurate and up-to-date knowledge.
Examination requirements for NY salesperson license
Whether you complete your pre-licensing education from a college or enroll in a New York real estate license course online, once you obtain the certificate of completion, you must take the NY salesperson licensing exam.
To schedule your exam, you can submit your application to the NYSDOS website online and choose your preferred date and time.
The exam consists of 75 multiple-choice questions based on the course curriculum covered during your pre-licensing education. You will have to tackle all the questions in 90 minutes.
Passing the final exam is mandatory, as per the NYSDOS licensing requirements, and to do so, you must score at least 75 percent or above.
Many real estate course providers offer exam prep resources and study materials which you must take advantage of.
By practicing with sample questions and mock tests, you will gain a better understanding of what to expect on the exam day and how to prepare for the state and national-specific portions of the test.
After you successfully pass the salesperson license exam in NY, you will be eligible to submit your licensing application for review and approval.
Costs to obtain a NY real estate license
While it is no surprise that getting a real estate license can demand your time and effort, you must also be prepared to invest the money in starting your career.
Now that you have learned about the steps to obtain a salesperson license in NY, you might be wondering how much it will cost to obtain your license.
To help you plan your budget and understand the costs involved, we have outlined the major expenses you will face in your licensing journey.
Pre-Licensing Education Cost
Pre-licensing courses and real estate training schools have unique packages with specific sets of features and benefits tailored for different students.
You can choose the desired learning package on the basis of how much support they provide and the type of curriculum you will need to prepare for passing the licensing exam.
Some real estate schools also charge extra money for providing additional prep tests and learning resources, however, most online real estate course providers offer exam prep learning material as part of their teaching packages.
When it comes to the cost, in-person, classroom-based learning is generally more expensive as compared to an online pre-licensing course.
Pre-licensing education costs in New York are generally in the range of $100 to $500, depending on the type of learning, content medium, and expertise of the course provider.
Examination Cost
In order to obtain your license, you need to schedule your NY salesperson licensing exam.
To do so, you will need to pay a one-time examination fee of $15.
If you wish to save money, you must study hard and prepare well for the exam if you want to clear the exam in just one attempt.
However, if you are unable to pass the exam on your first attempt, you can reschedule the exam by paying $15 again.
Note that you can only take three unsuccessful attempts at the salesperson licensing exam, post which, you might have to retake the pre-licensing course classes all over again.
Background Verification Cost
To become a licensed real estate salesperson in NY, you must undergo a background verification and criminal history check.
As per the NYSDOS guidelines, completing a federal background check is the minimum set of guidelines and regulations that must be fulfilled in order to obtain a state license.
Every applicant is required to submit their latest fingerprints, along with any documentation related to a history of felony or criminal investigations.
To complete this step by submitting your electronic fingerprints to the Department of Criminal Justice Services will cost you a one-time fee of $75.
Applicants will also be required to pay an additional Fingerprint vendor fee of $13.75 to a live scan vendor in the state of NY.
You can choose to pay these fees online or schedule an appointment at a state-approved location near you which can process electronic fingerprints.
License renewal cost
Simply getting your NY salesperson license is not enough to advance in your career as the state laws require all active license holders to complete additional education for license renewal.
Keeping your NY real estate salesperson license renewed and up to date is critical to ensuring you are compliant with the state and federal guidelines.
To keep your real estate license active and avoid getting it void, you must renew your license every two years from the date it was issued to you.
The NYSDOS requires active licensees to complete continuing education every two years to keep themselves updated and current with industry laws and regulations.
Generally, it will cost you anywhere between $100 to $250 to complete additional continuing education in NY.
You will be required to pay a license renewal fee of $65 for every renewal within your due date.
In case you fail to complete additional education or submit your license renewal application on time, you will have to pay late fees and penalties to the Department of State.