If you want to become a real estate agent in Michigan, there are a series of steps you’ll need to take. This article will cover Michigan real estate license requirements from start to finish.
The path to becoming a Michigan real estate salesperson is fairly easy. You must complete 40 hours of pre-licensing coursework, apply for a state license, pass the Michigan real estate exam, and then locate a broker to hold your license.
We will go through each of these Michigan real estate license requirements in detail below.
Michigan Real Estate License Prerequisites
To qualify for a Michigan real estate license, you must meet these basic prerequisite requirements:
- Have attained a minimum age of 18 years
- Have good character.
- Have at least a high school diploma or its equivalent.
- Have a valid Social Security number.
Michigan Real Estate License Requirements
Assuming you have met the prerequisite requirements listed above, here are the steps you’ll need to take to get your real estate license in Michigan.
Step 1: Take the Required Michigan Real Estate Pre-Licensing Course
To begin the process of obtaining your Michigan real estate license, you are needed to enroll in 40 hours of pre-licensing classes.
We like the Michigan Pre-licensing course by Colibri Real Estate.
This Michigan real estate course will equip you with the fundamentals of the real estate trade and also prepare you for the real estate license exam in Michigan.
Michigan Pre-licensing courses will cover the legal and financial aspects of buying and selling real estate. Other topics that you will learn are listed below:
- Property ownership
- Land use controls and regulations
- Valuation and market analysis
- General principles of agency
- Property disclosures
- Leasing and property management
- Transfer of title
- The practice of real estate
- Real estate calculations
- Licensing requirements
- Contractual relationships
Selecting a good Michigan real estate school is critical to ensure that you grasp all the material that you are taught to boost your chances of being a competent real estate agent.
A good real estate school will provide a variety of modes of learning to ensure that you fully understand the pre-licensing courses. You can choose between traditional learning (in-person classes), Live-stream classes, and online classes. Each mode of learning has advantages and disadvantages, which are outlined below!
Should You Get Your Michigan Real Estate License Online?
These are a series of classes provided online for you to log in and learn at your own convenient time.
Online Real Estate Classes Pros:
- Work at your own pace anywhere as long as you have internet
- Take classes when it’s convenient for you
- It is the least expensive option
Online Real Estate Classes Cons:
- Little interaction with real estate pros
- Technology doesn’t always work as it should
- You can only access your instructors via email or phone
Should You Get Your Michigan Real Estate License in a traditional Classroom Setting?
Traditional Classroom Pros:
- You get to meet and network with other future realtors
- Easy access to the instructor
Traditional Classroom Cons:
- Relatively more expensive than online classes
- Commuting and traffic is a major hassle
- Finding class times to fit your schedule is tricky
Should You Get Your Michigan Real Estate License through Live-Stream Classes?
This is where you learn in a live online class from the comfort of your home. Many of the best online real estate schools offer both online and Live-stream classes.
Real Estate Live-Stream Classes Pros:
- No commute
- It is ideal if you live far from in-person schools
- You can ask instructors questions in real-time
Real Estate Live-stream Cons:
- Finding classes to fit your schedule is a bit tricky
- No interaction with other students
- You may experience hitches with technology and may miss a class.
What Are The Best Michigan Real Estate Schools?
For online pre-licensing in Michigan, we recommend the following three real estate schools:
- AceableAgent Michigan Pre-Licensing Course
- Colibri Real Estate Michigan (they also offer Live-stream option)
- The CE Shop Michigan
How Much Does Michigan Real Estate Pre-Licensing Cost?
The cost will typically range anywhere from about $150 to $300.
Michigan real estate pre-licensing course costs vary depending on which school you choose and the particular course package you choose.
Here are Some Michigan Pre-Licensing Pricing Examples:
Real Estate Express Michigan Pre-Licensing Costs:
The Colibri Real Estate Pre-Licensing course for Michigan costs between $115.20 for the basic package and up to $253.20 for the ultimate learning package (with the current discount). See below:
AceableAgent Michigan Pre-Licensing Costs:
The Michigan Pre-Licensing course at AceableAgent costs between $155 for the basic package and up to $315 for their premium package (with the current discount). See below:
The CE Shop Michigan Pre-Licensing Costs:
The CE Shop Michigan Pre-Licensing course costs between $149.25 for the course-only package and up to $276.75 for their premium package (with the current discount). Keep in mind that the CE Shop premium package also includes your first renewal courses. See below:
The course usually takes between 2 to 4 weeks to complete.
Step 2: Apply For Your Michigan Real Estate License
Before the end of 36 months of completing your Michigan pre-license course, you can apply for a real estate license.
Ideally, you’re ready to apply for your Michigan real estate license online once you’ve completed your pre-licensing classes.
The first step you need is to create an account with the Michigan Professional Licensing User System (MiPLUS).
Here is a great video that will help you get familiar with Michigan’s MiPLUS system:
There is an $88 application fee to apply for your Michigan real estate license. The application fee for becoming a licensed real estate agent may be waived for qualified veterans.
You can choose the broker with whom you will work through the online application.
It is not required to identify the broker prior to taking and passing the exam, but you will not receive a photo ID or become officially licensed until this step is completed. This process usually takes 1 hour.
Step 3: Obtain Your Michigan Real Estate Exam Authorization
To proceed with sitting for the Michigan real estate exam, you must, first of all, obtain authorization to actually take the exam.
LARA is in charge of authorizing you to register for the real estate exam when your application has been approved. Once you have an authorization, you can proceed to schedule your exam with PSI. You’ll want to schedule your exam as soon as you get the go-ahead.
Step 4: Schedule and Pass the Michigan Real Estate License Exam
Your Michigan real estate license exam must be scheduled online once you’ve completed the 40 hours of pre-licensing coursework and the online application.
After your application has been approved, you will receive an email from the State of Michigan confirming your eligibility to take the exam.
Register for and pass the Michigan real estate salesperson’s exam at the exam provider’s website, PSI. You can schedule your exam via the PSI website here: https://candidate.psiexams.com
PSI’s Michigan testing centers are located in the following cities:
• Grand Rapids, Michigan
The Michigan real estate exam usually takes about 3 hours. Your exam grade will be available as soon as it is completed with a separate score for each of the exam’s major sections.
Should You Take a Michigan Real Estate Exam Prep Course?
Yes, we think so. It can relieve you of a lot of stress before taking the exam with a preparation course. You can take the exam feeling confident you will get that passing grade, the first time. It’s a good idea to prepare for the Michigan salesperson examination with a real estate exam prep course.
We recommended you take one of these two Michigan real estate exam prep courses before taking the state exam:
- PrepAgent’s Michigan Exam Prep Course (most thorough).
- Real Estate Exam Scholar Michigan (best cost).
What’s the minimum passing score for the Michigan Real Estate Exam?
The passing grade for the real estate exam in Michigan is 70%. The cost to take the Michigan real estate exam is $79.
If you don’t pass the exam, you can retake the exam as many times as you want, but you must pay the $79 exam fee each time.
You should arrive 30 minutes early at the real estate examination site.
Step 5: Broker Sponsor Requirements in Michigan
After passing your real estate exam, you must be sponsored by a licensed Michigan Employing Broker to practice as a real estate salesperson.
In Michigan, real estate agents are required to work under the supervision of a licensed broker. Begin your broker search by looking into the brokerage firms in your area.
You don’t have to wait until you pass your real estate licensing exam to start talking to brokers in your area. You can enter which brokerage you’ll be working with once you’re fully licensed on the application form.
You may be drawn to work with well-known real estate firms, and they frequently have programs to help a new salesperson navigate the new profession.
Smaller brokerages, on the other hand, should not be overlooked. These agencies’ brokers may also be able to provide valuable insights and assist you in making meaningful connections.
Michigan Real Estate Compensation
Whether you approach a large agency or a small business, you must understand how you will be compensated. Here are some topics you should discuss when looking for the best brokerage for you.
1). What’s The Commission Split?
When assisting people with the purchase or sale of real estate, real estate agents typically earn a 3 percent commission. Your broker will receive a portion of the commission, while you will receive the remainder. Some brokerage firms will request a 50/50 split on commissions. Inquire with each potential broker about your split.
Monthly desk fees are typically not charged by brokerages that offer an even split. Desk fees are due whether or not you make a sale that month. Inquire whether a brokerage charges desk fees and how much your monthly fees will be.
2). Do They Offer a Commission Cap?
You should also discuss your cap, or the maximum amount that the agency will deduct from your commissions in a given year. Once your brokerage has earned a certain amount of money based on your sales, you will keep 100% of your commissions for the rest of the year.
How Much Does a Michigan Real Estate License Cost?
The cost of obtaining a real estate license in Michigan is approximately $405 which includes the state’s required 40-hour pre-licensing course and the state licensing. The exam fees are fixed costs, whereas the cost of pre-licensing education (and optional exam prep materials) varies depending on the provider you choose.
Michigan Real Estate License Costs Breakdown:
- Michigan Pre-licensing Classes (40 Hours) $179 (through Colibri Real Estate)
- Exam Prep Materials $59 (through Ambition)
- Michigan Real Estate License Application Fee $88
- Testing Fee $79
- Total cost $405
Michigan Real Estate License Requirements FAQs
We know you’re eager to begin your new real estate career, but first, review some of the frequently asked questions that new real estate agents frequently have about the industry.
How hard is the real estate exam in Michigan?
To pass the Michigan real estate exam, you must correctly answer 70% of the questions. Unfortunately, the licensing department does not publish the pass rates. We recommend using a real estate exam prep package to better prepare for the Michigan real estate license exam.
Can I get my Michigan real estate license online?
Yes, you can complete all of your Michigan real estate classes from the comfort of your own home. To complete your salesperson exam, you must go to one of the PSI Exam testing centers.
If you’re looking for an online real estate school in Michigan, we recommend Colibri Real Estate. Hundreds of thousands of real estate agents have started their careers thanks to Colibri Real Estate’s easy-to-follow online lessons. To learn more, you can read our Colibri Real Estate reviews.
How much money does a REALTOR in Michigan make?
According to Indeed, real estate agents in Michigan earn an average annual salary of $70,258. Real estate agents usually do not receive a salary or a consistent paycheck, and their earnings purely come from commissions.
New real estate agents may choose to keep their “day jobs as their client base grows.”
How long does it take to become a real estate agent in Michigan?
You can obtain your Michigan real estate license in less than three months. This is because Michigan requires real estate salespeople to take 40 hours of pre-licensing courses, you could finish your pre-licensing course of study in as little as one week.
What is the cost of acquiring a Michigan real estate license?
A Michigan real estate license can be obtained for less than $500. This sum is calculated using the application fee, exam fee, and the variable cost of your pre-licensing coursework and exam prep materials.
What if I have a real estate license from another state?
Michigan does not have reciprocity with any other state, so you must complete all of the steps we listed in order to become a real estate agent in Michigan (even if you are licensed in another state).
However, if you have a real estate license in Michigan, you can work as an agent in one of these states without having to go through the entire licensing process:
What is the Michigan Department of Licensing and Regulatory Affairs (LARA)?
LARA offers simple services and online tools to Michigan consumers, businesses, and professionals. One of the department’s responsibilities is to keep track of real estate licensees, and they make certain that licenses are kept up to date and that real estate schools are teaching the correct material.
LARA also oversees the real estate licensing exam.
In addition to issuing licenses, LARA has the authority to revoke them. If you violate your profession’s laws, LARA may take action after conducting an investigation.
Michigan Real Estate Licensing Requirements – Final Thoughts
We hope this guide has given you the best insight regarding the entire process and all the required steps of applying for a real estate license in Michigan.
The most important thing to remember is to have all the necessary documents in place, as well as all the fees required to facilitate the entire process.
Also, it does not take long to be licensed in Michigan, so start your process today with one of these 3 top schools.
Learn the real estate requirements for another state:
Wishing you all the best in your real estate career.
About The Author: This article was researched and published by Tim Schroeder. As a husband and wife real estate team residing in Florida, Tim Schroeder brings deep expertise with over 8 years of experience as a licensed real estate agent.
Deb and Tim Schroeder have earned numerous real estate industry awards and recognitions. They have been recognized by Orlando Magazine as a “Top 100 Real Estate Professional” as well as earned Top Producer Designations with the Orlando Realtor Association for 6 years straight.