Working as a real estate agent comes with many advantages. Many agents who decide to start their journey of becoming a real estate agent in Colorado start on the quest to build a business that offers more of a flexible schedule. 

Others want to simply break the glass ceiling and enter a career that rewards them for all the hard work and effort they invest into it. If you are tired or feel stuck in an unrewarding job now might be the perfect time to chase your goals and become a real estate agent.

Do you have what it takes to work as a Colorado Real Estate Agent? If yes, let’s dive into the basic steps of getting your real estate license in Colorado. 

How To Become A Real Estate Agent In Colorado

• You should be at least 18 years old
• You should have a high school degree or GED
• You need to take a 168 hour pre-licensing course
• You need to pass the course exam
• Complete your background check and fingerprinting
• Apply for PSI real estate exam
• Pass the Colorado Real Estate Exam with at least 75%
• You need to provide proof and E&O Insurance
• Pick a sponsoring broker
• Apply for your license

Choose Your School And Sign Up For Classes

Before you can start listing million dollar homes the very first step toward getting your Colorado License is choosing your classes and completing the mandatory educational requirements set by the state to become a real estate agent.

Colorado Real Estate Classes

Get ready for some classroom time! To become a licensed real estate agent in Colorado you must first complete your state’s mandatory education requirements. In total you will be required to complete 168 hours of state approved courses for pre-licensing. 

Click here for our recommended state approved real estate classes and pricing. The good news is that the state of Colorado allows you to take a portion of your real estate classes online. This is great because it will allow you to complete the course at your own pace and even possibly speed up the process if you put in the hard work. 

In Colorado, the 168 hours pre-licensing course is mandatory to complete. Get this course from a state-certified real estate school or platform. It consists of 6 courses in total that are:

• Law & Practice (48 hours)
• Contracts & Regulations (48 hours)
• Practical Applications (32 hours)
• Colorado Closings (24 hours)
• Legal Issues (8 hours)
• Record Keeping & Trust Accounts (8 hours)

You can take these courses online or physically in the training center. If you prefer taking them online, you can complete your course before the estimated time by working hard. They are self-paced, so you can control how early you clear them all.

Pre-licensing Education Requirements

You must complete 168 hours of state-approved real estate pre-license education.

Keep in mind you must score a 75% or higher on each final exam. So, it is important to pay close attention in class.

What Will I Learn In My Pre-License Classes?

I remember sitting in my real estate pre-licensing class. For many, real estate is like learning an entirely new language. In class you will learn many new things. One of the most important being state laws as they relate to you as a real estate agent. This will help keep you out of legal trouble once you get out in the field and start practicing real estate. Here are some subjects you will learn about in real estate school. 

• Real estate math
• Land use laws and regulations
• Fair Housing laws
• Real Estate Financing
• Contracts
• Transfer of title
• Brokerage relationships
• Disclosures
• Property analysis
• Rules of the Colorado Real Estate Commission
• License law
• Ethics
• Agency Laws

To become a licensed real estate agent in Colorado you must first complete your state’s mandatory education requirements. In total you will be required to attend 168 hours of state approved courses for pre-licensing.

Schedule Your Colorado Real Estate Salesperson License Exam

In Colorado, your real estate exam will be taken with PSI Exams. It is recommended you call and schedule with a customer service representative. Here are a couple important things to know. 

• This test can be taken by computer at the testing center.
• This is not an open book test.
• Test must be scheduled at least one day in advance.

Current PSI Test Locations in Colorado: Testing Locations

Colorado Real Estate License Background Check

Any person applying for a Colorado real estate license must be fingerprinted and pass a background check. The current cost is $39.95 for this process.

You need to submit the proof of your background check to the Colorado Bureau of Investigation (CBI). You can get this checking from CBI-approved platforms only. So, it gives you three ways for it:

• IdentoGo: Their centers spread all across Colorado and other US states. You need to book an appointment for fingerprinting and background checking. Their current cost of this process is $39.50.

• Colorado Background Applicant Services (CABS): CABS is another CBI- approved vendor that allows fingerprinting only by appointments. So, you can’t walk in and get it. For booking an appointment, visit their website and enter the code “0800REEI” to proceed.

• Fingerprint Card with Electronic Transfer: You can also submit your clear background verification even if you can’t find any physical location near you. Remember to use the FBI fingerprint card FD-258.

DORA Division of Real Estate requires this CBI-approved fingerprinting and background check to perform the FBI criminal history check. You need to have a clean one to get your real estate license. However, it took around 6-8 weeks to complete and you get your report (probably clear).

What Is The Best Way To Study For The Colorado Real Estate Exam?

Many people fail the Colorado real estate exam the first time around. This is ok. Many of the great real estate agents having huge success today failed their exam the first time around. The bad news is that it costs money to retake your exam. At the time of writing it is $44.95 to take the Colorado Real Estate exam. 

To increase the chances of passing your exam the first time we recommend checking out CompuCram. This study tool can give you a huge boost in confidence when taking the real estate exam. 

Here are 5 tips you can use to pass your Real Estate Exam. 

 What Do You Need To Bring When Taking The Exam At A Testing Center?

Don’t show up on test day only to be turned down. You will need to bring two forms of identification that have not expired and have a matching name and signature. One form of identification must have a photo to qualify. Here are some examples of accepted identification. 

• Drivers license
• US social security card
• Passport
• Debit Card with Signature
• Credit Card with Signature
• Green Card

You are allowed to bring a basic nonscientific calculator that can be used for the math portion of the exam. 

How Long Will I Have To Complete The Colorado Real Estate Exam?

The exam consists of two portions:

• General (National) Portion – 120 minutes
• State Portion – 110 minutes
• Total – 230 minutes

The license exam has the following number of question:

• National – 80 questions
• State – 74 questions
• Total – 154 questions

The Colorado Real Estate exam is split up into two real estate exams. One state and one national. You will have a total of 230 minutes to complete both. (3 Hours and 50 Minutes) 

You will have 110 minutes to complete the Colorado State portion of the exam. You will have 120 minutes to complete the national portion of the exam. Some people even complete their exam early. Do not stress, you have 10 minutes less than 4 hours to focus and get this done. 

Pass Or Fail- How Long Does It Take To Get Results?

Taking the real estate exam can be nerve racking. Once complete we all become anxious and want to know if we passed or failed the big test. The good news is that you will know the results immediately after you complete your exam. 

Can I Retake The Real Estate Exam If I Fail?

Yes, If you fail you can retake the real estate exam. First you must submit a new registration form and the $42.50 testing fee to schedule to take the test again.

But stay positive, many agents have failed the real estate exam multiple times and have gone on to have very successful careers.

How To Obtain E&O Insurance In Colorado For Licensing?

Unlike the other state real estate licensing, you need to obtain Errors and Omissions Insurance (E&O Insurance). If you are with any real estate company, your E&O Insurance will come under the company’s policy. However, the Colorado Real Estate Commission approved RISC Insurance Services LLC to provide the group insurance policies.

How Long Does It Take To Become A Licensed Real Estate Agent In Colorado?

I am sure you are excited and want to get licensed ASAP. You should expect the process to take about 4 to 5 months to become a Colorado Real Estate Agent. The two most time intensive parts of the process are completing your 168 hours long pre-licensing course and the background checking. So, if you count from starting your pre-licensing classes to getting your license, it can take around 6-8 months.

Aside from just completing your real estate classes and studying you will need to spend your time doing other important things like interviewing brokerages and deciding which one is the right fit for you and your new business. 

This is just an average timeframe. Keep in mind everyone works at a different pace. If you are taking some of your courses online you may be able to work through the course work a little faster or maybe it takes you a little more time to get through the course work. 

Either way try not to overwhelm yourself and focus on getting a little further along in the process each day. Many people set out on the journey to become a Colorado agent and quit before they even start because they simply overload themselves with work. Keep the focus on working toward your goal little by little each day. 

How Much Does It Cost To Get A Colorado Real Estate License?

It will cost around $700-$1,000 to get your Colorado Real Estate License. Some of these costs are fixed such as the FBI background check and exam fee. 

• $39.50 fingerprint fee

• $44.95 for Colorado Broker exam fee

• $200 for Broker license application fee

• $300-$400 for pre-license courses

• $230 for E&O Insurance fee

Total Colorado Real estate license cost estimate $814.45

Sign up for Colorado Real Estate Classes Here: Real Estate Pre-licensing.

Note: These are just averages and subject to change at any time. 

Does Colorado have reciprocity with any other states regarding a real estate license?

Colorado has reciprocity agreements with all other states of the US. Some most common are:

• Alaska

• California

• Nevada

• Michigan

• Florida

• New York

• Alabama

• Virginia

• Hawaii

• Vermont

How To Choose The Right Brokerage?

Selecting your broker is a business choice that we all have to make at some point in our career. As a new agent you likely do not know what to look for or what questions to ask. As an experienced agent who has worked at multiple offices here are some things to consider. 

Training: This is important. One of the biggest complaints I hear from new real estate agents is how lost they often feel. Many times they feel the brokerage they choose to partner with has poor mentorship or even worse no mentorship at all.

When interviewing brokers it is important that you ask if they have a mentorship program in place for new agents. If the answer is yes make sure you dig deeper and ask how the program works. What are the expectations for the new agent and what are the expectations for the mentor. You need to find out how much support and training they actually provide. 

Splits: Every brokerage offers a different compensation model and as a new agent this is important to consider. However, do not make this your main focus. I see many new agents make commission splits the main reason they choose a brokerage.

This can be a huge mistake. Focus on what kind of value and training is being offered for that split. The harsh truth is that 100% of nothing is still nothing. 

On-going monthly fees: Some brokerages charge monthly fees to stay apart of the company. This is something to consider if you have a small savings account.

As a new agent you might be looking to stretch your dollar until you get a couple closings under your belt. Joining a company with high ongoing monthly fees can put a dent in your savings account.

Commission Cap: This is in the same boat as commission splits in my opinion. As a new agent this should not be your main focus. You should be focused on support and training. However, as a business person it is a question you should be asking.

Some brokerages will cut off your commission fees once you “cap”. Every brokerage and market is different but on average we have seen the brokerage cap between 14k-21k. Once you pay that amount into the brokerage your commission will shift to 100% in some cases with a small broker transaction fee. 

Conclusion

Becoming a real estate agent in Colorado is something worth working towards. To make this all happen it is going to require work and consistency but if you love the idea of selling homes in Denver, Colorado Springs, Boulder, or any other city in Colorado it is worth all the effort and hard work to make your dream become a reality.

Study hard and do not quit even if you fail your exam the first time around. Many of the greatest agents I know today in my local market did not pass the exam the first time around.

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