If you’d like to become a real estate agent in Colorado, 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.
One quick note: in Colorado, real estate agents are called brokers. This is a difference in name only, as they have the same role as real estate agents in other states.
There are a number of steps in the Colorado 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 the Colorado Real Estate Licensing Exam
Step 4: Complete a Background check
Step 5: Obtain E&O Insurance
Step 6: Submit a Real Estate License Application
Before explaining each step, consider if becoming a Colorado Real Estate Agent is right for you.
The Benefits of Working as a Colorado Real Estate Agent
According to the Bureau of Labor Statistics data, Colorado is the fifth top-paying state for real estate agents.
The Denver housing market is one of the most competitive in the country. This seller’s market has driven home prices up, and houses are averaging just about 22 days on market.
At salary.com, the average salary for a real estate agent in Colorado is listed as $42,000 to $54,000 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 Colorado, the average price of a home is around $559,838. Real estate agents often make a 5% commission on sales, which would be $27,991.
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 Colorado real estate license, you need to be at least 18 years-old. As long as you are, you can start the licensing process.
1. Complete Pre-License Education
In addition to a high school diploma or its equivalent, to qualify as a real estate agent in Colorado you need to complete 168 hours of real estate education courses. There are a number of real estate schools in Colorado that you can use for this, both in-person and online.
The 6 Required Courses:
- Real Estate Law & Practice – 48 hours
- Colorado Contracts & Regulations – 48 hours
- Colorado Closings – 24 hours
- Colorado Record Keeping & Trust Accounts – 8 hours
- Colorado Legal Issues – 8 hours
- Colorado Practical Applications – 32 hours
At the end of each course you will need to take an exam – they will have either 20 or 50 questions. After taking each individual exam, you can then take the Final Exam.
2. Pass the Final Exam
The Final Exam is made up of 100 questions specific to Colorado and 100 questions that address national real estate information.
To pass the exam, you must receive a score of at least 75%. Upon passing the final, you will earn a certificate of completion.
3. Pass the Colorado Real Estate Licensing Exam
At this stage you’ll be ready to take the third and final exam, the Colorado Real Estate Salesperson Exam. This one is administered by PSI, an outside examination agency. You can apply to take the exam by mail, online, or by phone at (855) 744-0313. The fee for the exam is $44.95, and to retake the exam it’s $42.50.
On the day of your exam, make sure to bring two (2) forms of identification.
At the exam site, you will need to place all electronic devices, bulky clothing, and other personal items in a secure location. You will then be asked to sit at a computer to take the test.
The exam is made up of 154 questions, split into two sections. You’ll have 120 minutes to take the 80-question National section, and 110 minutes to complete the 74-question Colorado-specific section.
The topics covered in the exam include:
- Real Estate Principles
- General agency principles
- Practice of real estate
- Property disclosures
- Property valuation and financial analysis
- Financing
- Contracts
You must get at least 75% on the national portion and 71.5% on the state portion to pass and become a Colorado real estate agent – the score is immediately given to test takers upon completion of the exam. If you do not pass, you will have an opportunity to schedule a retake of the exam.
PSI offers a handbook that includes more information on taking the Colorado real estate exam.
4. Complete a Background Check
Before submitting your Colorado license application, you will need to complete a background check. This involves submitting a set of fingerprints to the Colorado Bureau of Investigation.
Choose one of these 3 provider options to do this:
- IdentoGo
- Colorado has a number of IndentoGo centers. They require that you schedule an appointment
- Colorado Applicant Background Services (CABS)
- CABS also requires that you schedule an appointment through their website.
- Fingerprint Card with Electronic Transfer
- This is an option if there’s no physical location near you or if you are an out-of-state resident. If you choose to submit fingerprints using Electronic Transfer, make sure to use FBI fingerprint card FD-258.
5. Obtain E&O Insurance
You will need to obtain an Errors and Omissions (E&O) insurance policy before applying for your Colorado real estate license. Check out the RISC website for more information on how to do this.
6. Submit a Real Estate License Application
Once you’ve completed the previous steps, you can now complete and submit your Colorado real estate license application through the Colorado Division of Real estate and eLicense. You have to submit your application for your license within one year of passing the Colorado real estate exam.
Once you create an eLicense account, follow the instructions for completing the application. With this account you can also keep track of your application status and pay the initial application fee.
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
With a competitive housing market and a high home-ownership rate (67% higher than the national average), it could definitely pay off to pursue a real estate career in Colorado.
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.
"*" indicates required fields
