How to Prepare for the Michigan Real Estate License Exam

How to Prepare for the Michigan Real Estate License Exam

A career in the real estate industry, especially in today’s current market, can be extremely lucrative and rewarding if done correctly. In almost every state in the United States, you must have a real estate license to sell or purchase homes on behalf of your clients.

You came to the right place if you are in Michigan and need help preparing for your Michigan real estate license exam. Continue reading below to learn how best to prepare for your Michigan real estate license exam and what steps you need to take to get started.

Getting Ready for the Michigan Real Estate License Exam

Before you can qualify to take the exam, there are a few things you will need to do.

Step One: Register with the Michigan Department of Licensing and Regulation

Assuming that you are at least eighteen years of age, a United States Citizen, and don’t have a criminal background, you must first register with LARA, the Michigan Department of Licensing and Regulation. When you’re on the website, don’t be alarmed about the section that asks for the license number. You can leave that area blank.

Once registered, you will have access to the online Michigan real estate salesperson registration form. You won’t be able to complete it until you finish the next required step, pre-licensing education.

Step Two: Complete 40 Hours of Pre-License Education Hours

Before you can sit for your licensing exam, you must complete at least forty hours of pre-licensing education. There are many options available, but before you sign up for any course, make sure it has been approved by the state of Michigan. When you complete your pre-licensing education, be sure to save your copy of the certificate of completion. You must show proof of your certificate when you apply for your exam.

Step Three: Submit Your Application

With your Certificate of Completion in hand, you can submit your application for the licensing exam. There is an $88 application fee you can pay online.

Step Four: Take Your Exam

Next, you must schedule your exam with PSI, the state’s testing partner, for the Michigan real estate license exam. Once you enter your information, LARA will give you the green light to schedule your exam.

The test is three hours long, and you cannot use any textbooks or notes while you take it. There are 115 questions on the exam, and each is worth one point.

Thirty-five of the 115 questions are specific to the state of Michigan. If you fail the first time, retakes are available, but you must pay a $79 fee.

Step Five: Get Your License and Get To Work

After passing your exam, the test administrator will take your photo at the exam site and issue you your real estate salesperson license. Once you have your license, you can look for a broker and start selling under them.

What’s Covered on the Michigan Real Estate Licensing Exam

Before you begin studying for the Michigan real estate licensing exam you should have a thorough understanding of what you’ll be expected to know.

Exam Topics

The Michigan real estate licensing exam has 16 topics, and five of them are specific to Michigan.

Topics covered on the Michigan real estate exam include:

  • Contracts

  • Leasing and property management

  • Property disclosures

  • Land use controls and regulations

  • Real estate calculations

  • Property ownership

  • Financing

  • Transfer of title

  • Valuation and market analysis

  • General principles of agency

  • The practice of real estate

The portion of the exam specific to Michigan includes statutory requirements governing the activities of licenses.

Other sections of the exam related to Michigan specifically include:

  • Duties and powers of the state department and the state board of real estate

  • Additional state topics

  • Contractual relationships

  • Licensing requirements

Make sure that you study all these topics to ensure that you pass your exam. Flashcards, study guides, and practice tests are all useful tools to help you prepare for the formatting and difficulty level of the questions you’ll be expected to answer on test day.

Michigan Real Estate License Exam Passing Score

The passing score of the Michigan real estate license exam is 70%. This means that you must at least answer 80 of the 115 questions correctly. You will receive your score immediately after passing your exam as this test is administered via a computer.

If you pass, you will just receive a notification on the screen that says, “PASS.” If you fail, it will show you what you scored in each section of the exam. If you do receive a failing score, you should take this information and study the sections you struggled with so you can improve your score on your next attempt.

Tips for Passing Your Licensing Exam

Once you pass your pre-licensing courses, you will want to study hard to pass the exam. Some people claim the exam is relatively difficult, but this doesn’t have to be the case if you study and prepare well. Read on to discover some of the best ways to get ready for test day.

Join a Study Group

If you know other people who are planning to take the licensing exam as well, it won’t hurt to form a study group. Studying with others can help you stay motivated and focused, and it helps to have a partner quiz you on your flashcards and study guide materials.

If you don’t want to work with a study group, set aside time to study on your own. Be sure to give your materials your undivided attention and study in small blocks of time. You can use the Pomodoro technique to focus on your materials for a set amount of time before taking a small break.

Set Aside Time for Self-Care

Preparing for a huge exam such as the Michigan real estate licensing exam isn’t just all about studying and taking practice exams. You also need to prepare yourself for the pressures of the exam and to calm any test anxiety that you may have.

Make sure to set aside time to eat healthy and hearty meals and to get plenty of rest. Don’t force yourself to cram as much information as possible, as it won’t work out in your favor. You will instead find yourself exhausted and unable to retain information. Set aside time each day to study but also make it a priority to do things that help you relax and unwind. On test day, dress comfortably and try to eat a light breakfast and pack an extra snack if needed.

Test Smart

It isn’t uncommon for people to become anxious when taking their exams. It can be nerve-wracking to try to answer as many questions as correctly as possible while being mindful of your three-hour time limit. There are a few strategies that you should keep in mind as you take the exam to get the best possible score.

For example, don’t be afraid to skip questions you’re not confident about. You can go back and recheck your answers, so if there are any that are too difficult or don’t make sense at that moment, move on to another question. If you really have no idea and you’re running out of time, be sure select something— a twenty-five percent chance of a correct answer is better than 0 percent.

Additional strategies you can use to pass your exam:

  • Don’t pick your final answer without first reading through all of the available options.

  • If you aren’t sure, use the process of elimination and eliminate answers that are obviously wrong.

  • If you have to guess, be sure to pick the answer that feels familiar

When studying, try at least to get an 80% on your practice exams before you sit for your actual licensing exam. Take the practice test at least twice to ensure that you average the same score. Remember, if you don’t pass, you will have to pay an additional $79 to retake the exam.

Pass Your Exam with Flying Colors

If done correctly, working as a licensed agent in the real estate industry can be an exciting and very lucrative job. Before you can sit for your exam, you will want to make sure you are well prepared, so you don’t have waste time and money retaking your exam.

Preparing for your exam doesn’t need to be complicated, nor do you have to pay tons of money for your study materials. If you are ready to pass your Michigan real estate license exam with flying colors, check out our free real estate test prep today!

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