There are a lot of exciting reasons for entering the world of Arizona real estate. Whether you are looking for supplemental income, networking opportunities, or are simply interested in learning more about the real estate industry, becoming a licensed real estate agent is a great place to start.
However, with so many steps to obtain your licensure, the process may seem a bit daunting. No need to worry, we are here to help!
This article will show you everything you need to know about becoming a real estate agent in Arizona. From the pre-qualifications to the final exam, we are breaking down each step to make it as simple as possible.
Follow along to see everything required to obtain a real estate license in Arizona and what to expect from each step.
The Real Estate Market in Arizona
The Arizona housing market, much like it’s weather, has been sizzling hot in the past couple of years. Record-low interest rates are helping boost sales, and while it still has a strong seller's market, the buyer demand refuses to die down in Phoenix. The Greater Phoenix real estate market is on fire, making every season a buying season. Overall, it is a great time to invest in Arizona real estate.
However, to be truly successful in the Arizona real estate market, you have got to be hard-working, self-motivated, honest, and enjoy helping people. If you check all of those boxes, then it may be time to follow the steps below and start your Arizona real estate journey.
Benefits of getting into Arizona Real Estate
The first benefit is obvious — the income. According to salary.com, a real estate sales agent in Arizona averages $39,000 to $51,000 per year. These numbers will fluctuate based on commission percentage, number of homes sold, the split with your broker, if you have any caps, and the value of the homes.
For further insight, the average price for a home in Arizona is around $300,000, which means when real estate agents make a sale, they have a solid commission — often 5% or $15,000.
Aside from gaining a good amount of income, becoming a real estate agent has many other benefits, including:
- Flexibility in your work
- Constantly varying environments and tasks
- Helping people
- YOU are the boss
- Gaining knowledge and insight about people, your community, and your area
Now that you have an idea of what you are walking into, let’s get into the actionable steps that will have you on your way to becoming an Arizona real estate agent.
Do I Prequalify?
Before you can start the process of becoming a real estate agent in Arizona, you need to make sure that you pre-qualify. The overall requirements of obtaining an Arizona real estate license include the following:
- You must be at least 18 years old
Once you have that box checked, you are ready to begin the journey of becoming an Arizona real estate agent!
1. Complete 96 Hours of Pre-License Education
There are many registered real estate education institutes to choose from across Arizona. Pick whichever one calls to your heart, and complete 96 hours of educational real estate courses. There are both in person and online options available for you. All coursework must be completed within 6 months of enrollment.
Some courses you will take in your pre-licensing education may include:
- Property Rights – Private & Governance
- Real Estate Interest and Ownership
- Transfer of Title & Title Insurance
- Liens & Encounters
- Foreclosure – Carryback Documents & Financing
- Real Estate Investment and Taxation
Within your real estate education, you are required to complete a 6-hour contract writing course, which you will receive a separate certificate for.
2. Pass the Course Final Exam
Congratulations! You have made it through your online or in-person classes and are now ready to show your Arizona real estate knowledge. Once you complete all course materials, meet the 96-hour requirement, and pass the practice test, you can take the course final exam.
Your final exam must be taken with a proctor present, which you can schedule in advance with whichever real estate school you take classes through. Once you pass the exam, you will receive a certificate of completion, which you will need to submit with your application later (step 5).
3. Obtain Required Documents
In order to move forward to the next steps of receiving your Arizona Real Estate License, you need to make sure that you have all the required documents.
Before scheduling the Arizona Real Estate Exam, you must have the following:
- Fingerprint Clearance Card - The Fingerprint Clearance Card is issued by the Arizona Department of Public Safety (DPS). This process can take 8-10 weeks. You can find more information about the Fingerprint Clearance Card on the DPS website.
- Disciplinary Actions Disclosure Form (LI-214/244) - Information and documentation relating to the applicant’s background must be provided upon application for licensure. You are required to give your date of birth and Social Security Number for this form.
- Disclosure Document Checklist (LI-400) - When applying for an original license and disclosing a criminal conviction, additional documents and information may need to be provided.
4. Take and Pass the Arizona Real Estate Licensing Exam
You heard us, another exam. Don’t worry, we are here to prepare you so you know exactly what to expect.
The Arizona Real Estate Licensing Exam is administered by Pearson VUE, an outside agency. You can schedule your exam appointment online, by telephone at 888-405-5776. There is a $75 examination fee.
On the day of your Arizona real estate exam, bring the following:
- Two (2) forms of identification
Once inside the exam site, you’ll be asked to place all electronic devices, bulky clothing, and other personal items in a secure location, and you will be asked to sit in front of a computer to take the test.
You will have 5 hours to complete the 195-question exam. Some topics covered in the exam include the following:
- Real Estate Statutes
- Commissioner’s Rules
- Arizona Water Law
- Transfer of Title
- Leases and Leasehold Estates
You must receive at least a 75% to become an Arizona real estate salesperson, and the score will immediately be given to you once you complete the exam. The testing center will give you the license application form and instructions for applying when you receive your passing score report.
For more information on the Arizona Real Estate Salesperson Exam, you can view the Pearson VUE Candidate Handbook.
5. Submit Your Completed License Application
Within 1 year of passing your licensing exam, you must complete your Arizona real estate license application. The application will be given to you at the testing site when you pass your exam, and you will receive further instructions there. There is an application fee of $75 plus a $60 additional fee for a first-time license.
Your application could take anywhere from 1 week to 2 months to process.
You can find more information about submitting your license on the Arizona Department of Real Estate (ADRE) website.
6. Choose a Sponsoring Real Estate Broker
In order to be a licensed and active practicing real estate agent in the state of Arizona, you are required to be associated with a registered real estate brokerage firm or broker. Working with the right real estate broker is an important decision and a key factor in your growing career.
Here are some things to consider when selecting a sponsoring broker:
- What is their local and national reputation?
- Do they provide education and training for agents?
- What systems do they use?
- What types of agents are they looking for?
- Do they provide agents with marketing materials and potential leads?
- What benefits do they have?
- What is their commission structure?
- Is there opportunity for growth?
Want to Become a REALTOR® in Arizona?
Every Realtor is a real estate agent, but not every real estate agent is a Realtor. Want to take your business a step further, have great networking opportunities, and be part of an evolving real estate community?
Here are your steps to becoming a REALTOR®:
- Obtain your state real estate license
- Join your local REALTORS® Association — The National Association of REALTORS® (NAR) has over 1,400 associations across the U.S. You can find one closest to you with their “find an association” tool.
- Pay the one-time application fee — The amount varies in each association.
- Upkeep NAR membership dues — Once you are a REALTOR®, you must pay the annual association fee of $150 per year.
There you have it! Everything you need to know about becoming a real estate salesperson in Arizona.
Now that we have taken you this far, we would love to provide you with more resources and information to help you thrive in this new venture. Get the ball rolling and be the best agent you can be with our Showcase IDX Grow Your Real Estate Business Academy courses.