How Hard Is the Alabama Real Estate Exam and How to Pass It the First Time?
This article will help you understand the Alabama real estate exam format and content, and how you can prepare to ensure you pass the test on your first try.
We discuss how you can make the most of your study time. We also have tips to gear you up on exam day itself.
Here’s all you need to know to make the exam experience a successful one for you.
Best Way to Pass the Alabama Real Estate Exam
How to Study for the Alabama Real Estate Exam
Preparing for the exam requires learning what it takes to be a real estate agent and the laws that govern the profession. The Alabama Real Estate Commission-approved pre-licensing education covers all of that.
There are 60 hours of required coursework. You can study in a manner that best suits your learning style and scheduling needs. Your choices include the following:
- Conventional in-person, classroom-based learning
- Virtual classroom with real-time interactive engagement
- Online classes that you complete at your own pace
You may choose the best teaching method that suits you from any of the accredited real estate agent schools in Alabama.
Each path has its pros and cons. As you’re weighing those, consult our video guide on real estate classes online vs. classroom courses. You’ll learn about the experiences of two veteran agents with both.
If your class has a study group, it can also be beneficial to participate. Doing so can help you learn faster and avoid procrastination. It also allows you to compare notes and clarify concepts.
Once you’ve gained the core base of knowledge, you can then use other study resources that provide the review, practice, and repetition you need to pass the exam.
A prep course, for example, aligns directly with the exam content. It’s also organized to make it easier to go over each topic. It typically includes review questions and practice tests as well.
Even if you don’t take a prep course, it’s a good idea to take as many mock exams as possible. They help you retain info, identify knowledge gaps, and perfect your pace for the actual test.
Also, here are some general study tips that can set you up for test-day success:
- Have a go-to study spot with limited distractions.
- To increase retention, repeat content in spaced intervals.
- Review material after each class to cement it in memory.
- Take good notes in class to use as part of your review.
- Keep study sessions short but study regularly.
Survey of Experts
Did you take your pre-licensing real estate course online or in person?
Do you think taking a real estate pre-licensing course online can save students time compared to in-person courses?
What is the name of the school where you completed your pre-licensing course?
Expert Insight
Do you see any advantages of taking an online course over the in-person class?
My goal was not to get my license fast.
Not only am I a Realtor, I’m a mother as well. So, I wanted the flexibility of being able to spend time with my kids and their busy schedule while working on obtaining my real estate license at my own pace.
That’s why I opted for online courses. If someone chooses to move at a faster pace, I also feel like online courses will be the best option.
Even though you are limited to how much progress you can complete in a day, you are still able to move at your own pace.
It may work for some, and not for others.
If you are capable of creating the good habits of staying diligent, determined, on top of your work, and positive, you should have no issue with taking the course online.
However, some people just need the structure and accountability that is forced with an in-person class.
As someone who was working while in real estate school, it definitely helped me to be able to do it on my own time.
You can take the online course in the comfort of your own home or even on vacation. You can do it any hour of the day and at your own pace.
Scheduling! Online gives you the option to work on your own time.
Yes. You can work at your own pace.
What to Study for the Alabama Real Estate Exam
Knowing what to expect on the test helps you do your best. Therefore, one of the most helpful hints you can come by is where to get an idea of what is on the real estate exam.
In this case, that’s the handbook published by the testing company PSI Services. This guidebook outlines topics you’ll be tested on. It also shows a count of questions for each.
According to the outline, ten content areas are related to general principles and practices in the real estate field. Alabama-specific questions, on the other hand, cover the same number of topics.
You’ll benefit from focusing on the specified areas when preparing for the exam. You can then allocate your study time based on the question count.
For example, over half of the general knowledge questions focus on contracts, real estate practice, agency relationships, and finance. So, plan to give these more than a cursory glance.
Almost two-thirds of the questions covering real estate law in Alabama deal with licensing and violations that may result in disciplinary action. The breakdown is as follows:
- Violations (15 questions)
- Licensing (10 questions)
The handbook also provides a leg up in another way. For each general content area, it indicates how many questions require recall, application of knowledge, or analysis of concepts to answer.
7 Tips for Passing the Alabama Real Estate Exam
When exam day arrives, ensure you’re equipped for your best performance. Know the material inside out. You can use the following strategies to improve your test-taking ability.
1. Prioritize how you answer questions
If you take too long on some items, you may run out of time. Instead of answering questions in order, get the easy ones out of the way. Then tackle the tough ones in a couple of passes.
2. Don’t let curveballs throw you
Chances are, you won’t know the answer to everything on the test. Take curveball questions in stride. Make an educated guess and move on. Don’t lose your focus or momentum.
3. Fully process questions before you answer
Even though it takes precious seconds to read each question carefully, that’s time well spent. You will likely get the answer wrong if you don’t fully understand what the question is asking.
4. Don’t angst about patterns in your answers
For example, if you notice that three or more consecutive questions all had “C” for an answer, you shouldn’t assume one of them is wrong. If you’re confident you are right, keep going.
5. Dissect long or complex questions
Sometimes it takes a little doing to filter out extra information. Scrutinize the question to see what’s relevant. Focus on that and then pick from the answer options.
6. Have a strategy for guessing
You’re left with fewer contenders to choose from when you weed out answer choices. Eliminate those that are obviously wrong. Next, go for the outliers. Then look at what’s most specific.
7. Answer everything
Answering wrong is no worse than not answering at all. But if you take a chance and guess, you could be right and earn the points.
Get more tips on how to study for the real estate exam.
Expert Insight
Tips to help future agents pass the real estate exam.
Practice the math. Memorize your measurements. Score over 80% in all categories prior to taking the test.
Block off time to complete the course and test as close to each other as possible. There is a lot of information to remember for the exam.
The longer you take from start to finish, the more likely you are to forget details.
Take the test once, then go back and review every question/answer word for word. Take your time reading the questions, and don’t fall into semantic traps!
You may find that certain questions could reveal answers to seemingly unrelated questions. After that, you should feel confident in pressing the submit button.
I can’t say this enough: study, study, study! It took me three tries before I passed the exam. The first time I missed by 3 points and the second time by 2 points.
The most valuable tip I can give you is to review all definitions and math equations, and make sure you have a clear understanding. Some of the questions will be a little tricky!
I think the exam is structured to fail the first time to make more money. The questions on the test were different from the course.
I’d be willing to bet a majority of those who come in and take the test are surprised with what they find.
They could ace all the practice tests for the course they took, then when they look at the license test, they’re like: “What is this?’
What Is the Cost of Taking the Alabama Real Estate Exam?
You will spend $79 for each attempt to pass the exam. Before that, you must cover the cost of the pre-licensing course, which you have to complete prior to taking the exam.
Anticipate paying between $250 to $450 for the 60-hour course. Add on another $75 to $100 if you’re planning to take a separate exam prep course.
For all the licensing expenses to keep in mind, read our article – How Much Does It Cost to Get a Real Estate License in Alabama?
How Hard Is It to Pass the Alabama Real Estate Exam?
What Is the Alabama Real Estate Exam Pass Rate?
Education providers report that the pass rate for the Alabama exam averages about 50 percent.
To get current data, go to the Commission website. They post a 12-month rolling report of the pass rate broken down by the schools approved for the pre-licensing course.
As well as showing how many people pass the real estate exam on the first try, the report also presents data for all candidates (including retakes).
With the data presented by each school, you can see how candidates fare based on where they studied. The report also includes the type of course (online, classroom, or both).
Given that half of those who take the Alabama real estate salesperson exam have to retest, it’s clear that the test is difficult. For that reason, you need to prepare thoroughly.
How Many Questions Are on the Alabama Real Estate Exam?
The salesperson exam for incoming Alabama real estate agents has 140 multiple-choice questions used to calculate your test score. Here’s how they are divvied up:
- Forty (40) questions relate particularly to Alabama real estate law.
- The other 100 questions cover concepts that are uniform across states.
Even though the exam has national and state questions, it’s not divided into two separate parts. Instead, the questions are mixed randomly in a single-section test.
PSI may mix in an additional 10 questions, five state-specific and five national. They sometimes pretest items for future versions of the exam. Unlike the others, these questions are not scored.
You won’t be able to identify the pretest questions. Just be aware that you may see more than 140 items when taking the real estate exam. Regardless, you have 3.5 hours to finish the test.
How Many Math Questions Are on the Alabama Real Estate Exam?
Ten math questions appear on the exam. To answer them correctly, you need to be able to apply basic math concepts and perform transaction calculations.
Examples of math problems you’ll have to solve include the following:
- Low-to-value ratio
- Down payments
- Commission splits
- Discount points
- Transfer/seller fee
What Score Do You Need to Pass the Alabama Real Estate Exam?
To pass the exam, you must earn a score of 70. That’s a scaled score, not a raw score. What’s the difference?
A raw score represents the number of questions on the exam that you get right. Scaled scores are raw scores that are statistically adjusted and converted onto a common scale.
That accounts for variations between different versions of the real estate exam difficulty-wise. So, there’s a consistent passing standard no matter which questions make up your exam form.
This equating process helps ensure fairness to all candidates taking the exam as the scaled score and the level of knowledge required to pass the test don’t change.
Survey of Experts
How difficult was it for you to study and pass the Alabama real estate license exam?
How many attempts did it take you to pass your real estate license exam?
Expert Insight
What would you recommend real estate students to invest extra in to ensure passing the exam on the first try?
I took all 60 hours of test prep training in two weeks, including an additional course called Kaplan Math Study. Then, I studied for one week leading up to my exam and passed with a 94%.
My buddy, who started the same time I did, took 6 months to complete the 60 hours, did not take the math portion, and failed twice before giving up.
I would recommend real estate students to invest extra time studying. Take many practice exams, reach out to your real estate friends to help out with studying and advice, and lastly, time yourself while studying.
The exam is timed and you want to make sure you are moving at a good pace and not spending too much time on one question.
Study the materials. I found that the state exam and how it asked questions were confusing, and sometimes could cause second guessing.
Create note cards and know your definitions front and backwards.
The exam is loosely based on what you studied in the course.
Many students come to the real test and they are unfamiliar with a lot of questions because they never studied in that way for those particular questions.
What Happens if You Fail the Real Estate Exam in Alabama?
How Many Times Can You Fail and Retake the Alabama Real Estate Exam?
You can retake the exam an unlimited number of times. The caveat is that you must complete all attempts within six months of finishing the pre-licensing course.
If that time elapses and you’ve only racked up failing scores, you’ll have to repeat all 60 hours of those classes. Then you can try to pass the exam again.
How Long Do You Have to Wait to Retake the Alabama Real Estate Exam?
PSI instructs candidates to report to the test center supervisor to get their real estate exam results. That score report shows whether the outcome is a pass or fail.
So, you’ll immediately know if you need to retest. But, you can’t contact PSI on exam day to make a retake appointment. Instead, you must wait a day before scheduling online or by phone.
You may not have to wait long for a test slot. According to the Candidate Handbook, you might be able to make a reservation as soon as the next day or two, if there’s a seat available.
As for timing, consider whether to wait until you’ve done an additional review of the content on which you tested poorly. You’ll get info on your performance weaknesses on your score report.
Apart from knowing when to retake the exam, make sure you know how much time you need to allot when completing the whole licensing process.
Read our article on this topic – How Long Does It Take to Get a Real Estate License in Alabama?
Do You Have to Pay to Retake the Alabama Real Estate Exam?
Yes, you must pay to take the exam again. Note that Alabama does not offer a reduced retake fee. Consequently, you’ll pay $79 each time you register for the test.
The Alabama salesperson exam is challenging. But with proper preparation, you’ll be well on track to earn your license and get your new career underway.
Obtaining that license doesn’t only focus on acing the exam, though. Make sure you don’t miss any items on the list when completing all the requirements for getting an Alabama real estate license.
This includes undergoing a background check before you are allowed to apply for a license. Read our article on getting an Alabama real estate license with violations to know how the process goes.
Before you get approved for a license, you need to choose a broker to work for. You can pick one from our database of top-rated real estate brokerages in Alabama.
Use the proven tips in our guide for new agents to plan your next steps after passing the real estate exam. Having a strategic plan can help you achieve your goals.
Also, consider the pros and cons of joining a real estate team versus making a go of it as an independent agent.
You can also add to your arsenal of resources our article on the pros and cons of being a real estate agent. It takes a look at the experiences of industry experts on the field.
To help you build and grow your real estate career quickly, we at Real Estate Bees created a directory for real estate professionals.
It’s designed to help you get more exposure for your business, including receiving leads. Create a free profile by signing up here.
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About the Author
Kristina Morales is a REALTOR® with over 20 years of professional experience. She actively practices real estate in Ohio but also has practiced real estate in California and Texas. Conducting her real estate business in three states has allowed her to gain unique experiences that make her a well-rounded realtor. She obtained her Bachelor of Arts in Business Management and her MBA with a concentration in Banking and Finance. Prior to real estate, Kristina had an extensive corporate career in banking and treasury. She ended her finance career as an Assistant Treasurer at a publicly traded oil & gas company in Houston, TX.