How to Become a Real Estate Agent in South Dakota

If you're thinking of becoming a real estate agent in South Dakota, you'll need to be licensed by the South Dakota Real Estate Commission. You must complete the required education at an approved real estate school.

South Dakota currently has reciprocity agreements with the following states: Alabama, Alberta, Colorado, Georgia, Idaho, Iowa, Kansas, Kentucky, Minnesota, Mississippi, Montana, Nebraska, North Dakota, Oklahoma, Oregon, Tennessee and Wyoming.

This allows a resident living in a reciprocal state to apply for a South Dakota non-resident real estate license.


Here's what you need to know to become a real estate agent in South 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 South Dakota

1) Real Estate Agent Licensing Requirements in South Dakota
You MUST be licensed by the South Dakota Real Estate Commission  in order to be a real estate agent in South Dakota. While most states call it a "salesperson license", in South Dakota it is referred to as an "associate broker's license".

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

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

  1. 60 hours of Course I (Principles and Practice of Real Estate)
  2. 40 hours of Course II (broker level)

iii) Register, Take and pass the South Dakota salesperson exam. The exam is 3.5 hours long, with 100 questions on the national  portion and 40 questions on the state portion. There is a $130 exam fee. To pass, you'll need to answer at least 75% correctly.

iv) Complete and submit application for real estate license to the South Dakota Real Estate Commission along with:

 

2) License Renewal and Continuing Education Requirements

South Dakota real estate licenses are valid for 2 years. You must submit the license renewal fees and complete required continuing education to continue practicing as a real estate agent in South Dakota.

The continuing education requirement is 24 hours with at least 12 hours of required subject matter. There is a renewal fee of $125.

 

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 Sioux Falls, SD once you have obtain your real estate license, you may pay a fee to join the REALTOR® ASSOCIATION OF THE SIOUX EMPIRE.

Joining these local boards makes you a member of the South 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 Sioux Falls, WV, the 2004 median home price is approximately $130,000. Assume that the fee is 6%, the buyer's and seller's broker is each paid 3% or $3900.

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 $1950 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 Sioux Falls' median home price and the above example, a real estate agent in South Dakota can make about $19,500/year by selling 10 houses a year. By selling one house per week, the real estate agent in South Dakota will have a salary of $101,400..


5) Real Estate Schools

The first step to becoming a real estate agent in South Dakota is to take the required classes at an approved real estate school. School status may change so it is best to call the South Dakota Real Estate Commission at 605.773.3600 prior to signing up for a class.

Below are real estate schools in South Dakota that are currently approved by the South Dakota Real Estate Commission.

 

Real Estate Schools in Sioux Falls, SD:

PRO-ED
3109 W. 41st St., Suite 103
Sioux Falls, SD 57105
1-800-658-3959 or 605-331-4900
Southeast Technical Institute
2301 Career Place
Sioux Falls, SD 57107
1-800-247-0789 or 605-367-7624 
Dave Anderson School of  Real  Estate
3023 E. 10th St.
Sioux Falls, SD 57103
1-800-658-3688 or 605-334-0400 

 

Real Estate Schools in Rapid City, SD:

Kahler School of Real Estate
2020 West Omah
Rapid City, SD  57702
605-343-7500
Black Hills School of Real Estate
2700 W. Main
Rapid City, SD  57702
605-343-2700