If you’d like to become a real estate agent in Alabama, it helps to understand everything involved before you start the process. Here, we’ll cover the benefits of the profession as well as everything that is required to receive your license.
There are a number of steps in the Alabama real estate licensing process, so we’ve broken it down to keep things simple. To get your license, you will need to:
Step 1: Complete the Pre-Licensing education
Step 2: Pass the final exam
Step 3: Pass State Licensing Exam
Step 4: Choose a Sponsoring Broker
Step 5: Complete a Fingerprint-Based Background Check
Step 6: Submit a Real Estate License Application
Step 7: Complete Post-Licensing training
Before explaining each step, consider if becoming an Alabama Real Estate Agent is right for you.
The Benefits of Working as an Alabama Real Estate Agent
At salary.com, the average salary for a real estate agent in Alabama is listed as $39,000 to $51,000 per year. This varies depending on your commission percentage, the number of homes you sell, if you have any caps, what your split is with your broker, and the value of the homes sold.
In Alabama, the average price of a home is around $150,525. Real estate agents often make a 5% commission on sales, which would be $7,526.
Salary aside, becoming a real estate agent includes these other benefits:
- Flexibility in your schedule
- Unlimited income potential
- Career mobility
- Helping people
- Familiarity with your community and neighborhoods
- Varying environments and tasks
If this sounds like a good fit for you, these are the things you should consider next.
Do You Prequalify?
To begin the process of obtaining your Alabama real estate license, first make sure that you meet the following requirements:
- Be at least 19 years old
- Be a U.S. Citizen or permanent resident alien, or legally present in the U.S.
- Be able to show proof of residency in any state in the U.S.
- Have proof of high school graduation or the equivalent.
- Must not have been convicted of a felony or a crime involving moral turpitude.
- Must not have had a real estate application or license rejected or revoked in any state within the past two years.
As long as you meet these prerequisites, you can take the next steps towards obtaining your license.
1. Complete Pre-License Education
In addition to a high school diploma or its equivalent, to qualify as a real estate agent in Alabama you need to complete one course to get your real estate license: a 60-Hour Salesperson Pre‑Licensing Course. There are a number of options for these courses, both in-person and online. like this one at CameronAcademy. You have 12 months to pass the Alabama state exam after completing the course. If you miss the deadline, you must retake the course.
2. Pass the final exam
Once your course is complete and before scheduling your pre-licensing course exam, you will need to register with the Alabama Real Estate Commission.
This exam must be taken with a proctor present, and can be scheduled through the real estate school you take classes through.
In order to pass the exam and earn your certificate, you must get a score of at least 70%.
3. Pass the State Licensing Exam
Once you’ve registered with the Alabama Real Estate Commission and passed the final course exam, you can apply to take the Alabama Real Estate Salesperson Examination. This will be administered by an outside agency, PSI. You can schedule your exam on PSI’s website, by phone at 888-818-5824, or by mail, using the ID number you received with your registration from the previous step. The fee for the exam is $77.
On the day of the exam, you will need to bring 2 forms of ID.
Once you’re in the exam site, you will need to place all electronic devices, bulky clothing, and other personal items in a secure location. You will then sit at a computer to take the test.
You are allowed 3.5 hours to complete the exam, which includes 140 questions. It’s split into two parts: a national portion with 100 questions to be answered in 150 minutes, and a state portion with 40 questions and a 60-minute limit.
The exam topics include:
- Licensing Requirements
- Contracts
- Land use controls and regulations
- Leasing and Property Management
- Transfer of Title
- Purpose of License Law/Rules and Regulations and Role of Commission
To pass this exam, you need to get a score of at least 70%. This score will be given to you as soon as the exam is completed. Upon passing, the testing center will give you your score report, with a printed application form and instructions on how to apply for your real estate license.
You can find more information on the Alabama Real Estate Salesperson Exam at the PSI website.
4. Choose a Sponsoring Broker
To become a licensed and practicing real estate agent in Alabama, you need to be associated with a registered brokerage firm or broker. Before submitting your application, you’ll need to have secured this sponsorship. It’s important to choose the right broker, as they’ll play a key role in growing your real estate career.
Consider the following when choosing a broker to work with:
- Their reputation as a broker or brokerage firm
- The types of agents they look for
- If they provide education and training for agents
- If they provide marketing materials and potential leads
- Which systems they use
- The benefits they offer
- What is their commission structure?
- What is the growth potential?
5. Complete a Fingerprint-Based Background Check
All Alabama real estate agent applicants must submit to a fingerprint-based federal and state criminal background check, by working with the Alabama Real Estate Commission’s processing company, Gemalto. The commission will not process your license issuance until it has received and reviewed the criminal history record information along with your application. The criminal record information will be sent directly to the Commission from Gemalto, and will only be available to the Commission for 30 days. Because of this they recommend that applicants submit the application form (by mail or in-person) to the Real Estate Commission on the same day that you complete the fingerprinting process.
6. Submit a Real Estate License Application
You must submit your real estate license application to the Alabama Real Estate Commision within 90 days of passing the licensing exam.
With your application, you will need to send in the following:
- The completed application, which you will receive at your testing center
- The $210 application fee
- Your Criminal History Release form and fingerprinting
If your application is approved, you will receive a temporary license. At this time you can move on to the next step.
You can find more information about submitting your license at the AREC website.
7. Complete Post-Licensing training
Once you’ve received your temporary real estate license, you will need to complete 30 hours of post-licensing training to receive your permanent license. To start the course, you will need to provide the same ID number you used to schedule your licensing exam (see step 3). There are a number of online options for the post-licensing training, like this one at www.vaned.com.
To maintain an active license, you need to complete this last step within 12 months of your application being approved.
Once you’ve completed all of these steps and passed the exams, you will have your Alabama Real Estate Agent License. At this point, you might want to consider if you’re interested in becoming a Realtor. Here is what that means:
Real Estate Agent vs Realtor: What’s the difference?
For a real estate agent to become a Realtor, they need to become a member of the National Association of Realtors®. The NAR is an organization for real estate agents and other industry professionals. Members are required to subscribe to standards and a code of ethics set by the association. Membership offers access to market data and transaction management services, and other benefits.
To become a part of this community, these are the steps you need to take:
- Get your state real estate license
- Join your local REALTORS® Association – find one close to you with their “find an association” tool
- Pay the application fee – this varies by association
- Maintain membership dues – to keep your title of REALTOR®, you need to pay an annual fee of $150
Become a top Real Estate Agent!
Now that you’re a Real Estate Agent. You’ll need a website to show off your listings, attract buyers and sellers and if your ambitious get real estate coaching or digital marketing from some of the best in the field. Reach out to us at RE Digital to learn how we can help you become a top performer.
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