Regardless of whether you have reasonable real estate experience or are just starting out, diving into the world of real estate can feel like a big jump. In this article, we are going to be your expert guide in showing you everything you need to be prepared for your journey of becoming a Louisiana real estate agent.
From the pre-licensing education to the final application and everything in between, there are a lot of steps to becoming a Louisiana real estate agent. At first glance, the process can seem overwhelming, but we are here to break it down for you.
Follow along to find out exactly what to expect from each part of the process.
The Real Estate Market in Louisiana
The Louisiana real estate market is quite versatile, between the residential properties, rental properties, and large amounts of farming/hunting land available. On average, homes take about stay on the market for about 110 days, and Louisiana is primarily a seller’s market right now. However, new construction on residential buildings and developments is almost constant in certain towns, making for a lot of available properties in larger cities like Baton Rouge.
To be truly successful in the Louisiana 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 Louisiana real estate journey.
Benefits of getting into Louisiana Real Estate
The first benefit is a quite obvious one — the income. According to salary.com, a real estate sales agent in Louisiana averages $41,000 to $53,000 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 median home price in Louisiana is around $164,675, which means when a real estate agent makes a sale, they have a commission of 5%, or around $8,234.
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 thriving in the Louisiana real estate market.
Do I Prequalify?
There are a couple of things to check on before you can start the process of becoming a real estate agent in Louisiana. The overall requirements of obtaining a Louisiana real estate license include the following:
- You must be at least 18 years old
- You must have a high school diploma or equivalent
Once you have those boxes checked, you are ready to begin the journey of becoming a Louisiana real estate agent!
1. Complete 90 Hours of Pre-License Education
There are a lot of approved real estate schools to choose from across Louisiana. Pick whichever one calls to your heart, and complete 90 hours of educational real estate courses. There are both in person and online options available for you.
2. Take and Pass the Course Final Exam
Congratulations! You have made it through your pre-licensing education, clocked your hours, and are now ready to show your knowledge. Before you can take your final course exam, you must register with the Louisiana Real Estate Commission (LREC). Once you register, you will receive an account ID that you can use throughout the rest of the licensing process.
In order to pass the exam and earn your certificate, you must receive a passing score of at least 75%.
3. Take and Pass the Louisiana Real Estate Exam
You heard us, another exam. Don’t worry, we are here to prepare you so you know exactly what to expect.
The Louisiana Real Estate Sales Associate Examination is administered by PSI, an outside agency. Once you have been registered with the Louisiana Real Estate Commission and have your ID number, you can apply for the state exam. When approved, you can schedule your exam on the PSI website, by telephone at 888-579-4644, or by mail. There is an $85 examination fee.
On the day of your Louisiana 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.
The exam will have 135 questions split between two portions: a national portion which you will have 105 minutes to complete and a Louisiana-specific portion with a 75-minute time-frame.
Some topics covered in the exam include the following:
- State Laws and Rules
- Land use controls and regulations
- Leasing and Property Management
- Transfer of Title
- Licensing Requirements
You must receive at least a 75% to become an Louisiana real estate salesperson, and the score will immediately be given to you once you complete the exam.
4. Complete a Background Check
Before you can apply for your Louisiana real estate license, as a requirement of the Louisiana Real Estate Commission, you must complete a background check. You can order your criminal background history report from the Clearbox website, and must submit it with your application within 180 days.
The background check requires a $75 fee, which you can pay with a credit/debit card when you order or you can send in a check.
5. Submit Your License Application
Your next step is to complete and submit your Louisiana real estate license application.
You can submit your Louisiana Real Estate License application through your My LREC portal. Your score report and pre-licensing education completion certificate will be automatically transferred to the LREC.
You can find more information about how to submit your Louisiana Real Estate License Application in the PSI Louisiana Candidate Bulletin.
6. Obtain E&O Insurance
You are required to have an Errors and Omissions (E&O) insurance policy in place before you can maintain an active Louisiana real estate license. You can find more information on obtaining E&O insurance on the LREC website.
In order to be a licensed and active practicing real estate agent in the state of Louisiana, 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?
- What systems do they use?
- What types of agents are they looking for?
- Do they provide education and training for agents?
- 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 Louisiana?
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! From application to active licence, there is verything you need to know about joining the exciting world of Louisiana real estate.
Now that we have taken you this far, we would love to provide you with more resources and information to help you thrive in your real estate career. Get the ball rolling and be the best agent you can be with our Showcase IDX Grow Your Real Estate Business Academy courses.