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

This article breaks down all the expenses that you may incur and the factors that impact those fees when preparing to obtain your real estate license in the state of Iowa.

We will look at which expenses should be allotted with the most budget and where you can save on some fees.

Read on to fully understand how much a real estate license in Iowa costs.

Pre-Licensing Education: $90-$900

The price range when it comes to pre-licensing education in Iowa is large because there are multiple pieces to completing this requirement.

For a salesperson license, you must complete 60 hours of pre-licensing education in real estate fundamentals.

The course must be taken through an accredited real estate school. The average cost for this portion is between $300-$500.

You must also complete 12 extra hours of coursework. This can be done at any point in the licensing process leading up when you submit an application.

These 12 hours are broken down into three courses covering buying practices, listing practices, and professionalism and ethics. Average cost per course is $90-$160.

For a broker license, you’re also required to complete 60 hours of coursework in addition to being a licensed agent in Iowa for at least 24 months.

These hours are broken down into nine classes. Eight of them are six hours each, with an additional 12-hour course focused on operating a real estate brokerage.

Class bundles that include all nine requirements range in cost from $750 to $900.

Criminal Record Check: $51

Along with completing your pre-licensing education, getting your criminal record check should be one of the first things you do.

This is because results can take anywhere from 4-8 weeks, although they’re only valid for 210 days, so you don’t want to start too early.

You’ll need to submit fingerprints in order to get this search going. To do this, you must create an online account through DataPro. Once logged in, you’ll see prompts on what to do next.

At the time, you’ll also pay the $51 fee.

For more information, refer to our article on getting an Iowa real estate license with violations on your record.

Exam Fee: $95

No matter which license you’re taking the exam for, the fee is the same. You’ll pay $95 when you register for the exam through PSI.

The quickest way to schedule your real estate license exam is to do so online, but you can also call 855-898-0712.

The exam itself is broken up into two sections: a national portion and a state portion.

Regardless of exam type, you’ll have 120 minutes for the national section, and 60 for the state.

Question totals in each section do vary by exam type, but only for the national section. For each exam, you’ll have 40 questions to answer within the state portion.

For the salesperson exam, there are 80 questions in the national portion, while the broker exam only has 75.

Read our guide on what to study for the Iowa real estate exam to learn about the topics covered in the test.

Exam Retake: $95

You have unlimited retakes to pass both sections of the real estate license exam in Iowa, but you will have to pay the $95 fee each time you schedule another attempt

The minimum combined passing score for the salesperson exam is 84. For the broker exam, it’s 90.

Errors and Omissions Insurance: $148+

Another step in the licensing process you should complete prior to submitting your application is to get errors and omissions (E&O) insurance.

Within the real estate profession, E&O insurance protects you from lawsuits brought forward by any client that claims your work was faulty in any way.

It is required to have a policy in place by the Iowa Real Estate Commission, and they do offer a group plan. You can also get your own coverage.

Through the Commission, there’s a basic plan, and a variety of optional endorsements you can add on to your policy if you’d like.

Each add-on will increase the price for your coverage.

License Application: $125 for Salesperson; $170 for Broker

Once you pass the exam, you’ll receive an application on site to complete within six months. If you fail to apply in this time period, you must retake the exam.

To apply, you’ll use the same portal you registered in for your fingerprints, so you should already have an account.

Make sure you submit a complete application, answering all questions and submitting any required, additional documentation.

The fee for a salesperson license application is $125, while the broker license application carries a fee of $170.

Once your license is reviewed and approved, you’ll receive an official copy via email.

Do note that the Commission does not issue a license on inactive status. This means you will have to be sponsored by a licensed broker to ensure you receive an active license.

Review this guide on choosing the right real estate brokerage to work for as a new agent when looking for a real estate company that aligns with your career goals.

Armed with the knowledge you learned from this resource, you will be able to screen the best real estate brokerages in Iowa and find the best fit.

Continuing Education: $45-$249

Once you have an active license, you will have to complete a few continuing education courses prior to December 31st within your renewal year.

Regardless of whether a salesperson or broker, you must take 36 total hours of continuing education, broken down into:

• 8 hours in a law update course
• 4 hours in an ethics course
• 24 hours in any Commission-approved electives

You also have the option to retake the licensing exam in lieu of your continuing education hours. However, you must do this no earlier than July 1 of your renewal year.

Prices vary based on whether you’re taking each class individually, are buying the classes in a single package, or have opted to retake the license exam.

License Renewal: $125 for Salesperson; $170 for Broker

Once you have a real estate license in Iowa, it’s good for three years. At the end of this period, you’ll need to renew.

When it’s time to renew your license, an application will become available through the web portal. This is the only way to renew.

The cost to renew equals the fee you paid when you submitted your license application. That means it will cost Iowa real estate agents $125 to renew, while brokers are charged $170.

As the price for your Iowa real estate license creeps up, you may begin to wonder if there are places where it’s possible to cut costs.

Although many fees are fixed, you may have some options when it comes to the cost of your education.

Whether you’re looking at pre-licensing coursework or continuing education, it is possible to price-compare between accredited Iowa real estate schools to find the best deal, and save a little.

One of the key factors impacting price is format. An online class, which you take at your own pace, may cost less than a class offered entirely in person.

Learn more about the pros and cons of online vs in-person real estate classes before you make your choice.

You may also save by buying course bundles rather than paying for each one à la carte.

Checking and comparing costs at different places can help you make an informed decision when studying for the real estate exam, but cheaper isn’t always better.

It’s also worthwhile to take into account the extra resources an institution may offer so you can assess the full value.

Look at what additional materials each school offers within a course bundle as well as what their average pass rate is for the class and the licensing exam.

Going with a school that costs a little more but delivers stronger results may actually end up saving you money in the long run. You’ll up your chance of passing the exam the first time out.

Not having to pay for multiple exam retakes is another great way to lower the costs associated with getting your Iowa real estate license.

Refer to this guide so you can be better prepared financially when acquiring your real estate license in Iowa.

To know the estimated timeline to complete the licensing process, read our article on how long it takes to get an Iowa real estate license.

When you get your license, you can then focus your efforts on the next chapter of your journey — building a successful real estate practice.

Start by creating an action plan that enumerates the next steps you can take after passing the real estate exam.

Consider joining a real estate team to expand your network and learn from experienced agents.

I also recommend reading up on helpful resources that let you in on the life of a real estate agent as a career. This will prepare you for the challenges associated with the job.

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.