Your Step-by-Step Guide to Becoming a Realtor in Arizona
Do you dream of a career where you can earn well, work flexible hours and be your own boss? If yes, then a career in real estate might exactly be what you are looking for!
Real estate is a dynamic and fast-growing industry with numerous opportunities for growth and success.
For anyone who wants to be a part of a lucrative industry with avenues for personal and professional growth, real estate is the place to be.
The real estate market in Arizona is showing signs of steady demand and growth which means it is a good time to put your plan into action.
Thanks to record low interest rates, pleasant weather and a stable economy, Arizona’s real estate market is emerging as one of the most attractive investment destinations for homebuyers and investors.
Overall, now is a good time to start a career in real estate, and the easiest way to do so is to become a licensed realtor.
Did you know that the average base salary for an Arizona real estate agent is around $120K annually!
If you are a resident of Arizona and are considering becoming a realtor in AZ, then now is the time!
Becoming a realtor is the most common first step taken by aspiring real estate professionals.
If you really want to enter the industry, it’s about time you learn about what it takes to become one.
Now becoming a realtor might sound complex or complicated, but it actually is a step-by-step process which we will discuss in detail in this article.
Keep on reading to find out everything you need to know about obtaining a real estate license in Arizona and starting your career the right way.
Introduction to Real Estate Licensing in Arizona
What Does a Realtor Do?
A realtor, by definition, is a licensed real estate agent who is a registered member of the National Realtors Association.
Realtors are real estate professionals with a certain level of experience in the market and as of 2023, there are more than 1.5 million realtors in the United States.
A realtor is responsible for showing property listings to prospective buyers and helping homeowners sell off their homes.
Realtors can work as independent contractors to help people buy and sell real estate. Working independently means that a realtor has the flexibility to work on their own schedule but it also comes with the additional responsibility of managing a lot of work single-handedly.
Being a full-time realtor isn’t for the faint hearted as it requires juggling multiple tasks and responsibilities everyday. Some of these include:
- Keep track of cold and warm leads and update the same in a timely manner
- Manage appointments with current and potential clients
- Explore property listings for sale or purchase in the local market
- Assist clients move through the different stages of closing a real estate transaction
- Showing properties and giving property tours to existing and potential clients
- Ensuring all paperwork and documentation is verified and in compliance with the laws
Why Become a Realtor?
If you are wondering whether becoming a realtor in AZ is worth it or not? The answer is certainly yes!
The professional life of a realtor is filled with exciting opportunities and rewarding moments.
Whether it is the thrill of earning a handsome commission for closing the deal or the satisfaction of helping a client buy their dream home, a realtor gets it all!
On top of it, you can literally be your own boss as a realtor and work on your own schedule. You can provide real estate services as a consultant or open your own firm too.
Being a realtor also gives you access to the prestigious and coveted National Realtors Association, a member’s only institution which brings together the most skilled, knowledgeable and experienced professionals from the industry.
Not to mention the handsome salary benefits you get as a realtor - it is fairly easy to make $100K by having a couple of years of experience in the industry.
Imagine earning a steady paycheck and getting extra commission on top of it, isn’t that reward worth the risk and the effort?
Overview of the Real Estate Market in Arizona
Arizona is home to a thriving real estate market thanks to its sunny climate and sprawling land spaces.
Affordability is one of the key highlights of the Arizona real estate market and it’s no surprise then that the population of the state has grown by 800K in the last decade!
Market data estimates that the average selling price for an AZ home is around $409K and home prices are expected to increase in the coming years.
The state population is growing at a fast pace and due to the low interest rates, it has become easier for home buyers to afford mortgage loans.
Another reason for rising demand is the limited supply of inventory in the housing market. As more people migrate to Arizona for jobs and living, there are not enough homes for sale to meet the demand.
Speaking of buying homes, affordability across the Arizona housing market is non-uniform and varies on the basis of location, economic factors and climate.
Arizona Realtor License Requirements
Now that we have discussed in detail about the role of a realtor and the numerous advantages of becoming one, let us move on to more actionable tips on how to become one.
Listed below are some of the most important Arizona realtor license requirements which you must follow exactly to obtain a realtor license.
Age and Educational Requirements
First and foremost, you must meet the basic eligibility criteria in order to apply for a realtor’s license in Arizona.
To prequalify for the same, you must be at least 18 years of age or older. Also, you must be a legal resident of the state or a lawfully admitted alien.
Next comes the educational requirements to obtain a realtors’ license in AZ.
Every applicant must have a high school diploma, GED or equivalent in your education.
Background Check and Fingerprinting
A critical step to ensuring your application gets approved is to fulfill the background check and fingerprint requirements.
To do so, every applicant must obtain their most recent electronic fingerprints from a state recognized center and submit them to the Arizona Department of Public Safety.
Along with your electronic fingerprints, you should also send the fingerprints clearance card, a disciplinary actions disclosure form and a disclosure document checklist.
You will be required to pay a one-time processing fee of $67.
Completion of Pre-Licensing Education
As per the state real estate agency, the Arizona Department of Real Estate (ADRE), every applicant must complete the pre-licensing education from a state approved college or course provider.
This step is mandatory to be eligible for appearing for the Arizona real estate licensing exam.
The 90 hour pre-licensing education will prepare you for the licensing exam and it will also expose you to the fundamental topics and subjects of the industry, such as:
- Real Estate Laws
- Real Estate Ownership and Interest
- Property Rights and Usage
- Liens and Encounters
- Real Estate Investment
- Foreclosure
The ADRE requires every applicant to complete an additional 6 hour writing course as part of their preparation for the state licensing exam.
Note that you have the flexibility to enroll in an in-person college or school or learn from an online course provider as per your convenience.
Passing the State Exam
After all the application and education requirements have been fulfilled, you will finally face the most important test to become a licensed realtor in Arizona.
The state licensing exam is a test to assess your knowledge and understanding of the industry, its rules, regulations and guidelines.
You would have covered the exam syllabus as part of your pre-licensing coursework.
In order to clear the licensing exam, you must score at least 75% or above in the multiple choice questions format. You will get five hours to attempt a total of 195 questions.
Note that it is important to take your final licensing exam in the presence of a proctor, as directed by the Arizona Department of Real Estate (ADRE).
You will have to pay $75 each time you take the licensing exam.
If you successfully clear the exam, you will receive a certificate of completion from the Arizona Department of Real Estate (ADRE).
Application Process and Fees
Congratulations on clearing the licensing exam in Arizona! You are now just one step away from becoming a realtor in AZ and starting your real estate career.
Within 1 year of passing the exam and receiving your certificate of completion, you must submit a license application to the Department of Real Estate (ADRE) in Arizona.
Your application will include a bunch of important documents and paperwork, including:
- Your residency proof of Arizona
- State licensing exam score card
- Pre-license course completion certificate
- Disciplinary actions disclosure form
- Disclosure document checklist form
- Fingerprint clearance card
Along with the above documentation, you will have to pay a $60 fee for processing your application.
If you have carefully submitted all the required documents and duly fulfilled the state licensing requirements, you should receive your Arizona real estate license within a month or two.
As the next step, every newly licensed holder must find a sponsoring broker in Arizona to work with and learn from.
This step is important because it is a lawful regulation as established by the ADRE and without working with a state licensed broker, your license will not be activated.
Okay so now that you have activated your real estate agent license, what comes next?
Wondering how to get a realtor license in Arizona and expand your horizons?
After receiving your real estate license in AZ, you can then proceed to joining the National Realtors Association.
To do so, you must have a minimum duration of work experience and pay a one-time joining fee.
FAQs About Becoming a Realtor in Arizona
What is the minimum age to become a realtor in Arizona?
You must be at least 18 years of age or older.
What educational requirements are needed to get a realtor license in
Arizona?
You must have a high school diploma, GED or equivalent.
Additionally, you must complete the 90 hour pre-licensing education from a state approved college or course provider.
How long does it take to complete the pre-licensing education?
It depends on the person and their learning ability, but generally, it takes a few weeks to a few months to complete the pre-licensing education.
What is the passing score for the state exam?
You must score at least 75% or above in the state licensing exam to pass it.