If you’d like to become a real estate agent in Alaska, 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 Alaska 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 Pre-License Education
Step 2: Pass the Alaska Real Estate Licensing Exam
Step 3: Choose a Sponsoring Broker
Step 4: Obtain E&O (Errors and Omissions) Insurance
Step 5: Submit a Real Estate License Application
Before we move on to the steps to get your license, consider if becoming an Alaska real estate agent is right for you.
The Benefits of Working as an Alaska Real Estate Agent
At salary.com, the average salary for a real estate agent in Alaska is listed as $48,629 to $63,318 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 Alaska, the average price of a home is $336,889. Real estate agents often make 5% commission on sales, which would be $16,777.
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 prequalify as an Alaska real estate agent, you need to:
- Be at least 19-years old.
- Be a U.S. citizen or a lawfully admitted resident of the U.S.
- Not be under indictment for conspiracy to defraud, or fraud
As long as you meet these prerequisites, you can take the next steps towards obtaining your license.
1. Complete Pre-License Education
To qualify as a real estate agent in Alaska. you need to complete 40 hours of pre-license education. The course can be taken in a live classroom or online, and there are a number of real estate institutes available across Alaska, with prices ranging between $375 and $500.
The pre-licensing education covers these (and other) topics:
- Licensing laws
- Real estate practice
- Forms of ownership, transfer, and recording of title
- Powers of the Alaska Real Estate Commission
- Financing and settlement
- Closing
- Condos, Timeshares, and Unit Developments
- Environmental Issues
One popular online option for the Alaska real estate licensing course is Colibri Real Estate. Classes are self-paced, and they include the option of live interactive sessions for extra support.
2. Pass the Alaska Real Estate Licensing Exam
Once you’ve completed your course, you can apply to take the Alaska Real Estate Salesperson Exam. This will be administered by Pearson VUE, an outside agency. You can register for the course at the Pearson VUE website, or you can register by phone at (800) 274-5992.
Alaska has a number of testing centers that you can choose from. The exam fee is $100, which needs to be paid when you make your exam reservation.
On the day of the exam, you will need to bring two (2) forms of photo 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.
Candidates get four hours to complete the exam and your results will be given to you upon completion. The questions are divided into two parts: general and state law. There are 80 general practice questions and 40 State Law questions.
Some of the topics covered in the exam are:
- Real estate practice
- Contracts
- Property ownership
- Leasing and property management
- Transfer of title
- Valuation and market analysis
- Financing
- Real estate calculations
To pass the test you need to get a score of at least 75. Your score will be given to you as soon as the exam is completed.
For more information on the exam and licensing, you can see the Pearson VUE candidate handbook here
3. Choose a Sponsoring Broker
To become a licensed and practicing real estate agent in Alaska, 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?
4. Obtain E&O (Errors and Omissions) Insurance
To receive a real estate license in Alaska, all applicants have to get errors and omissions insurance. This protects real estate professionals if mistakes are made in their work. Some brokerages provide their agents with E&O insurance, if not you need to purchase your own policy. If you choose your own provider, you will need to complete and submit the Affidavit of E & O Insurance Equivalent Coverage form.
5. Submit a Real Estate License Application
Upon completing and passing your exam at the testing center, they will provide you with instructions on how to submit your application. They will also give you your score report and any other documentation you might need to apply.
You need to file your application within 6 months of passing the licensing exam. The total fee for the application is $390 – this includes an application free of $200, a license fee of $140, and a recovery fund fee of $50. The completed application, along with the fees, proof of E&O insurance, and your employing brokerage information all be submitted together to the Alaska Real Estate Commission.
Once you’ve completed all of these steps successfully, you will receive your Alaska 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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