How to Become a Real Estate Agent in Michigan

Planning to start a career as a real estate agent? To get your real estate license, you will need to take classes at a real estate school, and satisfy all the requirements set forth by the Michigan State Board of Real Estate Brokers & Salespersons.

 

Here's what you need to know to become a real estate agent in Michigan:

1) Licensing Requirements

2) Duties of a Real Estate Agent

3) What is a REALTOR®?

4) Income Potential

5) Real Estate Schools

 

How to Become a Real Estate Agent in Michigan

1) Real Estate Agent Licensing Requirements

In Michigan,  real estate agents MUST be licensed by the Michigan State Board of Real Estate Brokers & Salespersons.  To obtain your real estate license, you must:

  1. Satisfy the minimum requirements to apply for the real estate exam:
  1. Apply to take the State exam. 
  2. Pass the exam. 
  3. Pay the appropriate fees.
  4. Apply for Real Estate License.  Within one year of taking the exam.

Newly licensed agents must work under the supervision of an employing real estate broker.  Most new agents start out by working for one of the large brokerages like Coldwell-Banker, Century-21, Remax, etc. If you would like to have your own business and work for yourself, you must upgrade to a broker's license.

 

2) Duties of Real Estate Agents

A real estate agent's main job is to assist their clients in the process of buying and selling real estate.

Their list of duties include:

 

3) What is a REALTOR®?

A real estate agent becomes a REALTOR® when he or she pays an annual fee to be a member of the National Association of REALTORS® and subscribes to its Code of Ethics.

The agent generally joins through the local board or association.

For example, in Grand Rapids, once you have obtained your real estate license, you may pay a fee to join the Grand Rapids Association Of REALTORS®.  This also makes you a member of the Michigan Association of REALTORS® and the National Association of REALTORS®.

All REALTORS® are real estate agents but not all real estate agents are REALTORS®.

 

4) Income Potential

Real estate agents are generally paid based on a percentage of the sales price. The seller will generally pay 4-6% of the sales price as the fee and that will be split 50/50 between the seller and buyer's broker.

For example, if the fee for a $100,000 house is 6%, the buyer's broker will be paid 3% or $3000 and the seller's broker will be paid 3% or $3000 as well.   The agent is paid by his or her broker, according to their previously agreed-upon commission split.  This is often 50/50 for beginning agents, so in that case the agent in our example would receive $1500. 

According to the National Association of REALTORS®, the Median Sales price for an existing single-family home in the Grand Rapids area was $132,900 for the fourth quarter of 2004.

 

5) Real Estate Schools

Here are some approved real estate schools offering the pre-licensing courses for the state of Michigan (each at multiple locations):

Career of Academy Real Estate     810.844.2626

Central Michigan University    989.744.3362

Delta College        989.686.9444

Michigan Association of Realtors    517.372.8890