How to Become a Real Estate Agent in North Dakota

To become a real estate agent in North Dakota, you must be licensed by the North Dakota Real Estate Commission. You must first complete the required education at an approved real estate school.

 


Here's what you need to know to become a real estate agent in North Dakota:
1) Licensing Requirements
2) License Renewal and Continuing Education Requirements
3) What is a REALTOR®?
4) Income Potential
5) Real Estate Schools


How to Become a Real Estate Agent in North Dakota

1) Real Estate Agent Licensing Requirements in North Dakota
You MUST be licensed by the North Dakota Real Estate Commission  in order to be a real estate agent in North Dakota.

To obtain your North Dakota real estate agent's license so that you can practice as a real estate agent in North Dakota, you must:

i) Satisfy the minimum requirements requirements to apply to sit for the real estate exam:

ii) Submit a completed North Dakota Real Estate Salesperson Application

iii) Upon receiving notification of your eligibility, Register, Take and pass the North Dakota salesperson exam. There is a $130 exam fee. The exam is 3.5 hours long with 100 questions for the national portion and 40 questions on the state portion. To pass, you'll need to answer at least 75% correctly on both portions.

iv) Complete and submit application for real estate license to the Nebraska Real Estate Commission.

 

2) License Renewal and Continuing Education Requirements

The North Dakota real estate salesperson license is valid for 2 years. To continue practicing as a real estate agent in North Dakota, you must complete the required continuing education and pay the appropriate license renewal fees.

The continuing education requirement is 16 hours of courses approved by the Commission.

 

3) What is a REALTOR®?

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

The agent generally join through the local board or association.

For example, in Fargo, ND once you have obtain your real estate license, you may pay a fee to join the FARGO MOORHEAD AREA ASSOCIATION OF REALTORS®.

Joining the local board makes you a member of the NORTH DAKOTA 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 may pay 4 to 7% of the sales price as the fee and that will usually be split 50/50 between the seller and buyer's broker.

In Fargo, ND, the 2004 median home price is approximately $124,000. Assume that the fee is 6%, the buyer's and seller's broker is each paid 3% or $3720.

This fee is then split further between the broker and agent. Generally, for starting agents, the split is 50/50. So in this case, the agent will end up receiving $1860 for the transaction.

There is no limit as to how much an agent can make in a year - the sky's the limit.

Based on Fargo's median home price and the above example, a real estate agent in North Dakota can make about $18,600/year by selling 10 houses a year. By selling one house per week, the real estate agent in North Dakota will have a salary of $96,720.


5) Real Estate Schools

The first step to becoming a real estate agent in North Dakota is to take the required classes at an approved real estate school. School status may change so it is best to call the North Dakota Real Estate Commission at 701.328.9749 prior to signing up for a class.

Real Estate School in ND:

Division of Continuing Education
University of North Dakota
PO Box 9021
Grand Forks, ND 58202
Tel: (701) 777-2661