South Dakota’s real estate market is a roller coaster right now. With today’s mortgage rates on a dip (7.5% for a 30-year fixed-rate mortgage and 6.81% for a 15-year fixed-rate mortgage), new buyers are getting in on the action.
What does this mean for you?
Simply put: Opportunity. If becoming a real estate broker in South Dakota is on your mind, it’s the perfect time to make a move. This guide will walk you through the steps to become a licensed broker in this exciting market.
Here’s what you need to know:
Becoming a Real Estate Salesperson in South Dakota
It’s important to lay down the groundwork first. Here are the initial, pretty straightforward requirements according to the state resource page before you can proceed:
- Are you a U.S. citizen or a legally admitted alien? Check.
- 18 years of age or older? Check.
That’s it! If these apply to you, you’re good to go. The next part is where things get really interesting.
South Dakota wants to make sure that you know your stuff before you set foot in this fast-paced industry. And to be honest, you want to be as prepared as possible too.
To ensure you’re ready to excel in this field:
- Complete 116 hours of pre-license coursework. The flexibility of online learning enables you to progress at your own pace.
Think of this coursework as building blocks for your successful real estate career. It not only prepares you for your exam but also provides valuable insights that make you an efficient real estate professional.
The Path to Licensure: Application and Examination
Finally, you’re nearing your goal of becoming a licensed real estate salesperson. Now, let’s outline the steps involved:
To kick-start the process, you need to submit the South Dakota real estate license application with all the required documentation. Make sure to be accurate and thorough to avoid any delays.
The South Dakota Real Estate Exam is up next. It’s crucial to understand the scope and requirements of the examination.
- Exam fee: Allocate $98 for the examination fee.
- Exam structure: The exam consists of three parts –
- State Multiple-Choice: 100 questions
- National Multiple-Choice: 57 questions
- Broker Simulation: 11 simulations
- Timeline: You’ll have 420 minutes (7 hours) to complete the entire exam, with specific time allocations for each section.
Prepare diligently and focus on getting a firm grasp of the Candidate Handbook, not just passing the exam. Note: If you’re already a practitioner from another state, there’s no need to provide proof of education.
License Fees and Continuing Education
As you’re gearing up to make your mark in South Dakota’s real estate scene, don’t forget – it’s not just about the exams. Having a handle on the costs involved and the ongoing learning commitment is just as important.
Here’s an overview of these critical elements:
- License Application Fee: There is a one-time, non-refundable license application fee of $225.00.
- Errors and Omissions Insurance: Upon receiving your real estate license, you are required to purchase Errors and Omissions insurance coverage.
- Continuing Education: Earning your real estate license is only the beginning. If you’re a newcomer to the world of broker associates, remember to rack up your learning hours. You have to tackle 30 hours of additional education, dubbed Post License Period 1, from the time you obtain your license until the following licensing year.
Just a heads-up: as you dive into post-license learning, you might already be covered. The package that prepped you for your licensing may sneak in these additional courses as a bonus. So make sure to check before buying a new course.
How Long Does it Take to Get a South Dakota Real Estate License?
After acing your exam, the next step is waiting on your background report. The process typically takes from 2 to 4 weeks, and once approved, you’ll receive an official license document via email from the South Dakota Real Estate Commission.
On average, the complete journey from start to finish ranges between 3 to 6 months.
Real Estate Job Outlook in South Dakota
If you’re thinking about dipping your toes in the South Dakota real estate scene, the good news is now might be the perfect time. Encouraging data from the Bureau of Labor Statistics hint at an upswing in jobs, cementing this industry’s growth potential.
Plus, with the median yearly income for real estate brokers floating around $52,030 as of 2022, it’s not just about charting a promising career, but it’s also about reaping a robust financial reward.