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The real estate broker exam is a difficult one, but it’s not impossible. For those who are serious about becoming a real estate agent, here is the step-by-step guide to passing the real estate broker exam in 8 steps.
If you’re looking to pass the real estate broker exam, follow these 8 steps.
You must pass the broker’s test if you wish to enhance your license and become a real estate broker. Start by looking through your state’s license criteria, then take prelicensing classes, prep courses, stick to a rigorous study plan that includes practice tests, and ultimately register for and take the exam.
The eight stages to passing the real estate broker test are outlined here.
1. Become acquainted with state licensing requirements.
Because the real estate broker test is very state-specific, check with your state’s real estate board to learn how to qualify for the exam, what it will cover, how to register for it, and other essential details. To register for the test, you’ll need to show that you have one to two years of experience as a licensed agent, fulfill prelicensing education requirements, and fill out the appropriate documentation.
2. Enroll in real estate pre-licensing classes
Your state real estate board will need you to complete specific prelicensing courses before you can register for and take the real estate broker test. The specific courses needed vary by state, but they usually range from 75 to 150 credit hours and include topics like real estate practice, finance, and business law. Prelicensing classes often range in price from $100 to $1,000, depending on state regulations and the course provider.
Because they don’t concentrate on practice questions and examinations, prelicensing courses aren’t intended to be utilized as real estate broker exam prep. Instead, these courses guarantee that aspiring brokers have the necessary expertise to supervise other agents. To discover more about local regulations, go to the website of your state’s real estate board.
Keep in mind that many jurisdictions will only accept certificates from a list of authorized course providers when selecting a prelicensing course. As a result, make sure you choose one that is legal in your jurisdiction.
3. Take a course to prepare for the real estate broker exam.
The regulations governing real estate may vary from year to year. As a result, the best method to acquire all of the most up-to-date material required to pass the current estate broker’s test is to enroll in a real estate broker exam prep course. Exam prep companies provide useful resources like lectures, flashcards, outlines, and videos to assist agents with various learning styles.
Consider utilizing an online course provider like Real Estate Express if you’re ready to begin test prep broker training. They provide highly rated courses and study materials for a variety of states, and the best part is that you may study at your own speed from the convenience of your own home office.
4. Exam Preparation on Your Own
The real estate broker test includes a lot of national and state-specific information, so whether you take a prep course or not, you should continue to study the subject on your own and only register for the exam after you believe you’ve understood the exam topics. Real estate management, real estate-specific legislation, and brokerage finance are examples of frequent topic areas that differ by state.
Exam Topics Review
Because the real estate broker test covers such a large amount of material, you should acquaint yourself with the list of topic areas before you begin studying. Although some subjects, such as contract law, agency law, fiduciary ties, and real estate finance, appear on all examinations, they differ by state.
The real estate broker test covers a variety of topics, including but not limited to:
- Contracts: The test often includes contracts such as listing agreements, offer and purchase contracts, promissory notes, and buy and lease options.
- Property transfers: Because property transfers are the foundation of the real estate business, the broker test includes topics such as title insurance, deeds, escrow, and tax consequences and regulations.
- Test takers should be prepared to answer questions on property types and features, how to define property, encumbrances, and government rights in land ownership (e.g., eminent domain).
- Agency laws and fiduciary responsibilities: The agency sections of the test will cover subjects such as how to establish and terminate agency relationships, agent responsibilities, and required disclosures for home purchasers using an agent.
- Property valuation and financial analysis are covered in the real estate broker test, with some questions requiring the use of a calculator.
- Test takers should be familiar with loan kinds, financing, credit regulations, and financial papers such as mortgages and promissory notes.
- Real estate practice and disclosures: Aspiring brokers should be familiar with concepts such as truth in advertising, fair housing, ethics, property management, and disclosure statements.
Make a study plan and stick to it.
You should also make a study schedule that allows you enough time to learn and review each topic. Take a practice test to assess your abilities and decide where to concentrate your efforts if you’re uncertain what to focus on. Create a study plan that prioritizes tough topics depending on how much time you have before the test.
It’s usually recommended that you study real estate broker test topics for at least one hour two or three times each week. Depending on your goals, you may study various topics on different days but set out at least one day a week for an overall review. For these study sessions, it’s recommended to use the test prep materials that came with your exam prep courses.
5. Become an expert in practice questions and exams
Spend extra time answering practice questions and taking full-length practice tests, in addition to studying the content covered on the exam and attending prep classes. This can assist you with memorizing key material, understanding how content will be evaluated on the exam, and identifying areas where you are having difficulty.
Recognize the Exam Structure
A broker test typically lasts two to five hours and consists of 100 to 200 questions covering a wide range of subjects. When answering practice questions, most states only let test takers use a basic calculator, so don’t use a graphing calculator or a mortgage calculator.
Use both free and paid practice questions to put yourself to the test.
Online, a limited number of sample questions and practice tests are accessible for free. Paid real estate broker test prep programs, on the other hand, usually offer the best quality, state-specific questions. These questions may help you develop confidence or identify areas where you need to study more. They can also give you an idea of the kind of questions that could occur on your test.
6. Take the real estate broker examination.
In most cases, prospective brokers must register for the licensing test as part of their overall license application. Although the registration procedure differs by state, several states enable test takers to prepare and submit all exam registration documents online. Some states need you to finish your broker license application before you can register for the test, so check with your state to see when you should register for the exam.
Although each state has its own registration procedure, the following are common requirements:
- Some states, like the real estate salesperson licensing procedure, require broker license candidates to submit fingerprints as part of a background check. Consult your state’s real estate commission for a list of approved suppliers for fingerprinting.
- Character requirements: States often ask candidates to undertake a character assessment in addition to fingerprinting. For example, as part of both a moral and financial character assessment, most states require applicants to disclose information regarding criminal crimes, professional licensing disciplinary proceedings, and liens or unpaid judgments.
- Experience documentation: To become a broker, you must have one or more years of experience as a licensed real estate agent, depending on your state. Determine if you must show this experience before taking the test or after passing the exam but before obtaining your license by contacting your state.
- Proof of education: Broker license candidates must usually submit a certificate of completion to the state real estate commission after completing the necessary prelicensing courses.
7. Take the Real Estate Broker Exam
Make sure you have all of the required papers and documentation on test day (photo ID, a basic calculator, and your registration confirmation, for example), and arrive at the test center at least 30 minutes before the exam. Once you’ve arrived, go through the testing techniques you’ve been rehearsing in your head, and remember to relax.
The passing mark for the real estate broker test varies per state, but it typically ranges from 70% to 80%. Furthermore, various states inform you of your test results in different methods; some notify you instantly, while others need you to log in to an online platform to see your scores. This information should be provided on the test day.
Once you’ve passed the test, you’ll need to prepare and submit an application for a real estate broker license in your state.
8. Fill out your license application completely.
Before you may become a broker, you must first register for the real estate broker test and then prepare and submit a licensing application. Before applying for a broker’s license in certain states, you must first pass the licensing test. Others allow you to apply and then complete your application after you have passed the test. Although you can usually finish this procedure online, certain states need you to send your completed application.
To prevent any delays, be sure to include all necessary paperwork, fees, and evidence of schooling with your application. The length of time it takes for an application to be approved varies per state, but anticipate to wait several weeks.
5 Pointers to Help You Pass the Real Estate Broker Exam
The greatest test-takers are aware of what to anticipate when they arrive at the testing center—and how to make the most of their time there. Take a lot of practice exams and use tried-and-true methods to guarantee you pass the exam.
The following are the top five real estate broker exam tips:
1. Practice with timed tests
Working under time restrictions is, for many, the most challenging aspect of the real estate broker test. Take timed practice tests to learn how to pace oneself. This will help you control your tension, avoid lingering too long on tough questions, and finish on time.
2. Use Test-Taking Techniques
On exam day, the testing method you employ may help you save time and energy while maintaining your confidence. Develop excellent test-taking techniques while studying so you’ll be ready to use them on exam day.
The following are some test-taking methods for the real estate broker’s exam:
- If you don’t know the solution to a tough question right away, skip it for the time being and return to it later. Spending too much time on one question detracts from time spent on other questions that might be answered more quickly.
- Work your way backward to the right answer: Use the elimination method to cross out any responses that you know are wrong. If you’re uncertain, this approach will increase your chances of choosing the right answer from the remaining options.
- Please take your time: Although the real estate broker test is timed, it’s critical to concentrate on your method for answering questions thoroughly and properly. Take your time answering difficult questions and don’t be concerned if others finish ahead of you.
- Don’t alter your answers: Once you’ve gone through a question and decided on an answer, don’t go back and modify it. According to studies, you’re much more likely to alter a correct response to an incorrect one than the other way around.
3. During the study, simulate the test-taking experience.
Only allow yourself access to the resources you’ll have on test day while going through practice questions and taking practice examinations. In most states, for example, you will just have a basic calculator to help you with arithmetic problems. There will be no mortgage calculator, study aids, or other tools available to you.
4. Take Care of Your Health
It may be very difficult to take the broker license test and move from a real estate salesman to a broker. As you prepare for the exam and in the days leading up to the exam, make time to concentrate on your mental and emotional wellness. Include pauses in your study regimen, set aside time for things you like, stick to an exercise program, spend time outside, and emphasize a healthy sleep pattern, for example.
5. Relax
Get a good night’s sleep before the exam, come 30 minutes early to the testing location, and go for a stroll to get your blood circulating. Then, when you’re ready to take the test, take a few moments to relax and go through your exam plan. Take a deep breath or a drink of water to settle your nerves if you start to feel nervous when you arrive at the test center or throughout the exam. Then put your previously established test-taking techniques into action.
Most Commonly Asked Questions (FAQs)
What is the difference between a real estate broker and a real estate agent?
Without the supervision of another registered broker, a real estate broker may represent customers in the acquisition or sale of real estate. A real estate agent, on the other hand, cannot operate alone; he or she must be supervised by a registered real estate broker.
What are the requirements for becoming a real estate broker?
You must have at least one to two years of experience as a licensed real estate agent before you can become a real estate broker. In addition, you must finish prelicensing classes, pass a real estate broker test, and meet all administrative criteria.
Is it true that brokers earn more than real estate agents?
The average real estate broker income in 2018 was $70,400, according to the National Association of Realtors (NAR), while real estate agents earned an average of $31,900 during the same time period. Salaries for both, however, are greatly influenced by geography and market activity.
Why are real estate agents required to operate under the supervision of a broker?
To comply with state law, most real estate agents must operate under the supervision of a broker. This implies that an agent must display his or her license at a broker’s office and split commissions with them, but they may also use the brokerage’s resources.
Conclusion
Tests for real estate brokers vary by state, but if you study the subject, develop a study plan, and use tools like practice questions and exams, you’ll almost certainly pass. However, before enrolling for the test, make sure you check the state criteria to confirm you are qualified. Depending on where you reside, you may be required to pass the real estate broker test either before or after you apply for your license.
