How Much Does It Cost to Get a Real Estate License in Colorado?

This article aims to help you become financially prepared when obtaining your real estate license in the state of Colorado.

We give you a rundown of the expense associated with each licensing step and factors that impact the price tag. You’ll also learn how much to budget for staying licensed and active.

So that you know, first-time real estate licensees in Colorado are categorized as brokers. There isn’t a real estate agent title.

With that said, here’s a detailed answer to the question, “How much does a real estate license cost in Colorado?”

Qualifying Education Courses: $350-$1,250

The Colorado Division of Real Estate requires first-time brokers to gain specific competencies by completing 168 hours of qualifying education at an approved occupational school.

That instruction consists of six courses of various lengths, ranging from eight to 48 hours. You’ll find these courses offered at a package price.

If you pick the self-paced online bundle, you can anticipate paying $350 to $500. Packages at the higher end of the range generally have a longer access period or an add-on like exam prep.

If you choose in-person instruction, you’ll need to bump up the amount you’ll add to the cost to get your real estate license. A price tag of $1,000 or more is typical in this instance.

Livestream instruction, where classes are taught via a video conferencing platform, has a price point of around $750.

Those who prefer traditional home study with a textbook can find a 168-hour package for about $600. That price also buys exam prep and access to an interactive study group.

Read our guide on real estate school online vs classroom courses to compare the pros and cons of each method.

Exam Fee: $44.95

You need to pass the licensing exam to confirm that you have attained the required level of knowledge. The Division of Real Estate contracts with PSI Services to conduct the exam.

You must make an appointment to take the test and pay a fee when you schedule it.

The current fee is $44.95, which you pay directly to PSI. That amount covers your first attempt to get a passing score.

If you fail the exam, you’ll have to schedule a retake. While you’ll owe another fee, you do get a modest discount. Each retake costs $42.50. Even so, repeating the test will cost you more.

Our article on how to pass the Colorado exam the first time can help you prepare effectively. It contains a wealth of tips on how to study and perform your best on test day.

Additionally, we have pointers on studying for the real estate exam.

Exam Prep: $60-$200

When you’re getting a real estate license in Colorado, the cost of exam prep is an expense you may or may not incur. A prep course isn’t mandatory. The decision to enroll in one is up to you.

You can focus on the national or state portion of the exam in your prep. Or, you can purchase a package that covers both parts of the licensing test. Your choice impacts the price.

Courses tailored to the individual sections run in the range of $60 to $90. You’ll find bundles that include both starting at $99. That’s typically the price for an on-demand course online.

Courses delivered live online are more expensive than self-paced ones. Be prepared to pay up to $200 for real-time exam prep via Zoom.

Fingerprinting and Background Check: $50+

You must undergo a criminal background check before submitting an application for licensure.

How much is a real estate license background screening in Colorado, and what does it entail? You must be fingerprinted, and your prints are checked against state and federal arrest records.

As for cost, the Colorado Bureau of Investigation charges $39.50 for the criminal records check. The additional surcharge you’ll pay for fingerprinting varies based on the service you use.

There are a couple of approved third-party fingerprinting vendors:

• Colorado Fingerprinting: This company has centers across the state and charges a $15 rolling fee for fingerprints.

• IdentoGO by Idemia: They have locations throughout Colorado and the United States and impose a $10 applicant-processing fee.

Both vendors do digital fingerprinting. And you need to register and schedule an appointment.

The process is discussed in detail in our article on getting a Colorado real estate license with violations.

Errors and Omissions Insurance: $239

As an active real estate licensee, you’re required to be covered by a professional liability policy. Known as E&O insurance, it protects you from claims for negligent actions or inadequate work.

The Division of Real Estate contracts with Rice Insurance Services to provide an affordable group policy option. How much do you need to budget for this insurance?

An annual premium will add $239 to the cost of a real estate license in Colorado.

You might pay less if your premium is prorated based on when your coverage begins. You may also pay a different amount if the brokerage you work for covers you under their umbrella policy.

You can purchase E&O insurance outside of the state’s contracted provider if you prefer, as long as it meets Division requirements. In that case, your cost will depend on several factors:

• The insurance provider
• The plan/coverage limits
• Whether it’s a group policy

License Application: $485

The final step in the licensing process is completing a broker application, which you can do online. As a first-time applicant, you’ll need to register for an account before applying.

In addition to answering all applicable questions, it’s also your responsibility to upload all required documentation requested and remit the appropriate fee.

In Colorado, the real estate license fee for brokers is $485. It’s a fixed cost.

The fee is also non-refundable. Keep that in mind as you apply. Your application could be denied if you don’t provide all the required information, and you may lose the fee you paid.

Also, your application deadline is one year from the date you pass the exam. You must retake the test if that time passes and you haven’t applied. That’s additional money out of your pocket.

You will need to be supervised by a sponsoring broker, who will be the one to file your actual application. Find one from our directory of top real estate brokerages in Colorado.

Our article on how to choose the right broker to work for can help narrow down your selection.

Continuing Education Courses: $200+ Every Renewal Cycle

Colorado is on a three-year licensing cycle. Therefore, as you put your budget together, you’ll need to consider expenses for renewal in addition to your initial outlay.

The cost to renew your Colorado real estate license includes a couple of elements. Continuing education is one of them—after your first renewal.

You don’t have to complete any CE during your initial licensure period, which ends December 31, the year you get your license. After that, you’re on the hook for 24 CE hours every cycle.

Those hours are comprised of mandatory and elective courses as follows:

• A minimum of 12 hours of Annual Commission Update courses
• Any combination of approved elective courses that total 12 hours

What’s the price tag? Some schools offer CE renewal packages that allow you to combine bundled courses to meet the 24-hour requirement. Look to pay $200 or so to do that.

Including separate courses in the mix will generally cost slightly more. Individual courses run $30 to $40 each.

License Renewal: $387+

After your first renewal, your license expires on December 31 every three years. Your fee depends on whether you make or miss that deadline. For the latter, when you pay matters, too.

You can remit your renewal as early as November 1. Plus, you have a 31-day grace period. Pay anytime between, and you’ll owe the base Colorado real estate license renewal fee of $387.

Once January 31 has come and gone, you’ll rack up penalty fees as described below:

• If you reinstate your license within 32 days to one year of the expiration date, you must add $192 to the base renewal and pay $579.
• When you reinstate more than one year out but less than three years, the fee is $771.

Also, you must have fulfilled the continuing education requirements to reinstate your license. If you haven’t, the extra cost of a reactivation or reinstatement course is about $200.

Colorado real estate agents can’t reinstate their license if more than three years have passed since its expiration. Beyond that, they must reapply and cover all applicable costs.

Your investment in pre-licensing and continuing education is a significant one. What can you do to lower this expense and free up dollars to help you with other startup costs?

Consider these five tips:

• Look for markdowns. When Colorado real estate agent schools run sales or offer a promotion code, you can reap significant savings, sometimes up to half off the regular price.

• Opt for e-learning. Providers have lower overhead for online programs and typically charge less than they do for traditional classes, making them a more affordable option.

• Pick a renewal package. À la carte is more expensive than package pricing. So, keep an eye out for CE bundles that will get you to the required hours.

• Compare prices before you enroll. Every school has a different pricing structure. Take time to find the one that best fits your needs and your budget.

• Take discounts and find free CE. Incorporate CE into your list that comes with a membership discount. And ask employing brokers if they cover CE for licensees.

These expenditures will help you get and renew your broker’s license. To take a more in-depth look at the licensing process, check out our article on getting a Colorado real estate license.

Also, get expert insight on an anticipated timetable from our post on how long it takes to get a real estate license in Colorado.

When you get your license, take time to review the following resources to give you a headstart on your real estate career in the state:

• I Just Got My Real Estate License, Now What?
• What Are the Pros and Cons of Being a Real Estate Agent as a Career?
• Ultimate Guide to Joining a Real Estate Team

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.

__

If you want to contribute your expert advice on a topic of your expertise, feel free to apply to our Expert Contributor Program.

__

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.