How to Become a Real Estate Agent in Iowa

The U.S. real estate markets experienced a correction on the heels of 2018, which saw over $1 trillion in value wiped out from the market and millions of homes sold off at discounts to buyers who were worried about losing money after buying properties during the boom years of 2007-2009. Real estate agents are now seeing more activity but not all is rosy when it comes to getting new clients for their business, especially young people with no experience or knowledge about becoming an agent.,

The “how much does it cost to get a real estate license in iowa” is a question that has been asked many times. The answer is different depending on the state and county. For example, in the state of Iowa, you must pass both parts of the test and pay $300 for your license.

In Iowa, the process of becoming a real estate agent is more difficult than in most other states. You must complete 96 hours of coursework certified by the Iowa Real Estate Commission (IREC), including 36 hours of live teaching. In addition, you must submit fingerprints for a background check, pass the Iowa real estate test, apply for your license, purchase Errors and Omissions Insurance, and join a brokerage. To get your real estate license in Iowa, follow this step-by-step approach.

1. Comply with Iowa’s Legal Requirements to Become a Real Estate Agent

In Iowa, the legal qualifications for becoming a real estate agent are straightforward. In contrast to other states, Iowa does not need you to be a US citizen, but you must be at least 18 years old. Iowa, on the other hand, has tight regulations for anybody with a criminal record.

An applicant for licensure who has been convicted of a felony or a major or aggravated misdemeanor crime will not be accepted until five years have elapsed since the conviction and/or imprisonment. For further information, see the IREC List of Criminal Offenses Directly Relating to the Real Estate Profession. For further information, you may also contact the Commission’s staff through email.

What if I told you that Arkansas, Georgia, Louisiana, Massachusetts, Minnesota, Mississippi, North Dakota, and West Virginia are among the eight states enjoying reciprocity with Iowa. To qualify for a real estate license in Iowa, you must have had an active license in one of the states listed above for the previous six months, show evidence of errors and omissions insurance, and pass a background check.

In terms of mobility, Iowa is also a physical state. Agents and brokers from other states are permitted to do business in Iowa, but they are not permitted to handle real estate transactions there. They must do it remotely, and they are not permitted to enter the state for any purpose, including showings, closings, or any other cause. Check out our real estate license reciprocity and portability page for more information about real estate license portability in Iowa.

2. Take the required real estate prelicensing courses in Iowa.

If you satisfy all of the legal criteria to become a real estate agent in Iowa, the next step is to enroll in prelicensing classes. The real estate prelicensing courses in Iowa vary from those in other states. You must complete 60 hours of study, either online or in person, with an additional 36 hours of live teaching.

Costs will often vary from $209 to $475 and will include the following topics:

• Having a piece of real estate is a
• Controls and limitations on land use
• Market research and valuation
• Financing
• Agency principles in general
• Disclosures about the property
• Contracts
• Management of real estate and leasing
• Transfer of ownership
• Real estate practice
• Requirements for obtaining a license

• Maintenance of a license
• Disciplinary measures (suspension, revocation, and voluntary compliance)
• Real estate schooling
• Accounts of trust
• Agency
• Disclosure requirements for real estate
• The Civil Rights Act of 1965 in Iowa
• Assistants who aren’t licensed
• obligations of the broker
• Management of real estate

You must also finish three 12-hour live class courses in addition to the 60 hours of prelicensing training. These courses must be taken in a classroom environment or through livestream with visual and aural interaction. The following are the three live Iowa prelicensing courses you must complete:

• Professionalism and ethical behavior are being developed.
• Purchasing habits
• Practices in Listing

An certified online real estate school or a conventional classroom environment may provide the complete 96 hours of needed prelicensing study. Both the 60 hours of prelicensing courses and the 36-hour live format programs may be divided between online and in-person learning modalities.

Choose Kaplan to get started on your Iowa prelicensing study right now. Kaplan offers a variety of real estate class packages, allowing you to choose which features, tools, and price point are most appropriate for your educational needs. Exam preparation, interactive study groups, expert coaching, and more are all available as part of the packages.

For a 5% discount, go to Kaplan and use the promo code: Kapre5.

3. Get Fingerprinted & Complete a Background Check

Prior to receiving a real estate license in Iowa, all candidates must submit fingerprints and pass a background check conducted by the Federal Bureau of Investigation (FBI). To do so, go to the Iowa Professional Licensing (My Iowa PLB) website and fill out the “RE – Background Obtain” form to request the electronic fingerprint packet.

Take your fingerprints anywhere close and provide the fingerprint card with your application. You must use the fingerprint card provided by the IREC. When you submit your application to become a real estate agent in Iowa, you must pay a $51 charge, which may be paid with a credit or debit card immediately on the website.

Because the fingerprinting and background check procedures may take up to four weeks, get started as soon as possible. This procedure may potentially begin while you are completing your real estate prelicensing course. The normal turnaround time for processing is three to six weeks after the IREC receives your completed background application, fingerprint card, and fee, and it is valid for 210 calendar days.

Review the IREC Application Instructions – Background Check Packet Request form for further information.

4. Take the Iowa Real Estate Exam if you’re interested in becoming a real estate agent

It’s time to take the Iowa real estate license test once you’ve finished your prelicensing study and background check. To become a real estate agent in Iowa, you must pass both the national and state components of the exam, which are both conducted on a computer.

At the completion of the test, your score will be shown on the screen, and a score report will be sent to you. You will get a real estate license application along with your score report if you pass the test. If you fail the test, your score report will provide a diagnostic evaluation of your strengths and shortcomings, allowing you to study and repeat it.

Details about the Iowa Real Estate Exam

Make Your Exam Appointment

PSI, a leading supplier of state licensing examinations, administers the Iowa real estate exam. To schedule your exam, you must first register on the PSI website, which grants you access to the scheduling portal. For extra exam information, you will also get a copy of the Iowa Candidate Information Bulletin.

The test costs $95 and may be paid with a credit or debit card immediately on the website. Exam results are only valid for six months from the date of passing the exam, thus it’s critical to apply for your real estate license as soon as possible after passing.

You must pass your real estate test before you can be successful in real estate. The exam prep package from PrepAgent will make you feel confident and prepared to ace the test on the first attempt. With resources like flashcards, video, audio, vocabulary, live webinars, and more, you may study for up to a year. Furthermore, PrepAgent offers a no-risk, money-back guarantee to ensure that you are entirely delighted with the program.

PrepAgent is a great place to start.

5. Decide the company you want to work for.

You must identify a sponsoring brokerage with which to associate your license in order to apply for and maintain an active real estate license in Iowa. Because you can’t submit an original application as inactive, you’ll need a sponsoring broker to sign the “Broker Certification” part of your application to confirm you’re with their firm.

Many young realtors struggle in their first year and either move to a different agency or leave the business altogether. Check out our in-depth advice on how to pick a real estate business to work with, since this choice may make or break your early success.

Although there are numerous successful brokerages in Iowa, the top five brokerages reported for 2022 are shown below:

(Image courtesy of Real Trends 2022.)

In 2021, the Iowa cities with the highest median home sales prices are

Knowing the local real estate market price might offer you an advantage over the competition. It will also offer you an idea of where you’d want to conduct business as well as the ability to evaluate your earnings potential, both of which are probable factors in your choice to pursue a real estate profession.

Check out the sales statistics from Towncharts.com below to get a feel of which towns in Iowa provide the most income potential for real estate agents:

6. Acquire Errors & Omissions Insurance

In order to have an active license, all Iowa agents are required to have Errors and Omissions Insurance (E&O). This is used to protect real estate businesses from mistakes made during professional service. Some brokerages provide their real estate agents and brokers with E&O.

If you do need to purchase E&O Insurance yourself, the IREC works closely with Rice Insurance Services, LLC to provide affordable options. Complete the E&O Form to start your enrollment.

7. Submit an application for an Iowa real estate license.

Once you find a sponsoring brokerage and obtain E&O insurance, you’re ready to submit the Iowa real estate application for licensure. Iowa no longer accepts paper applications, so you must submit everything electronically through My Iowa PLB under the username you created during the fingerprinting process.

You must also include the following paperwork with your application:

• The licensing price is $125.
• The Iowa real estate licensing test must be passed in order to get a license.
• Proof of E&O insurance
• Proof of completing 60 hours of prelicensing coursework is required.
• Proof of completing the three 12-hour live courses successfully:
  • Professionalism and ethical behavior are being developed.
  • Purchasing habits
  • Practices in Listing

After completing the real estate test, you must submit your application to the IREC within six months. In addition, all essential schooling must be completed within the previous 12 months before the application deadline. View the progress of your application on the My Iowa PLB website by reviewing the IREC application requirements sheet and the Application Status reference guide for additional information.

8. Begin Your Real Estate Agent Career in Iowa

You’re ready to start your professional career as a realtor in Iowa now that you’ve studied how to become a real estate agent in Iowa. Here are some of our articles with material that is ideal for new real estate agents if you want to learn more:

Iowa is a great place to become a real estate agent. The state has many opportunities for people interested in this field. There are also some requirements that you will need to meet before getting your license. Reference: iowa real estate background check.

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