It is 2011 and time to post updated costs associated with becoming a licensed agent. These costs are explained in detail in previous posts; here is an overview of updated costs:
Before starting, be aware it is possible to be denied a license, for example for judgements or writing bad checks. It is possible to apply for the license first to make sure it will be issued after all requirements have been met. If worried about past financial issues, or moral turpitude issues, please call me for a copy of the law which lists the reasons a license could be denied.
Cost of Pre-Licensing school - varies by school. List of schools can be found on the SD Real Estate Commission website under education -
http://sdrec.sd.gov . Total cost of the school will include either 116 hours in class & materials or 54 hours online plus 62 hours in the classroom & materials. SD does require sales tax on the full amount.
Cost of SD state tests after passing class - student must pass 3 exams - a simulation exam ($95), national multiple choice exam and state multiple choice exam. Multiple choice exams may be taken together for one fee of $95, or can be taken separately for fees of $95 each. Some students end up retaking one of these tests before passing all three - each retake is also $95. (Before selecting a school, talk about pass rates first time taking the test and request references from previous students to minimize extra costs in retaking the state exams).
State application for license (must be received at SD Real Estate Commission within 2 years of passing all state tests). Application fee - $225, background check & fingerprint card - $43.25. Any charge for the process of getting fingerprinted would be additional.
Errors and Ommissions Insurance is required by law if you are working as a licensed agent (may be waived if you are leaving your license inactive). 2011 basic policy for the entire year is $182. A proration chart for the year is available on the license application available for download from
http://sdrec.sd.gov . There are also additional endorsements available which you may want. Please refer to the application for costs (personally I carry the basic policy plus three endorsements and my 2011 cost was $227 for the year.)
If the brokerage where you associate is a member of your local board of REALTORS you will need to join the local board, the SD Association of REALTORS, and the National Association of REALTORS. The local board is the entity which owns the local mls. There are many resouces available to agents if they are members of these associations. If they are not members, they are not REALTORS even though they are licensed to sell real estate in South Dakota. The initial fees will cover many items and will vary by board and what time of the year you join. It may be over $3000 (plus monthly dues) so it is getting numbers which match your individual situation.
The cost of doing business varies also by company. Discuss these costs with the broker of the company where you will be associated.
As an independent contractor you are responsible for your own equipment. A partial list includes computer, cell phone, camera, software needed such as contact manager, email manager, and word processor.
When exploring total costs be sure to include the cost of operations. These could include items like business cards, signs, copies, postage, and advertising.
Any questions, please give me a call! Carol Lawhun, Instructor, REALTOR, Certified Residential Specialist (CRS), Accredited Buyers Agent (ABR), Certified Negotiation Expert (CNE) Cell phone - 605-390-2338