With beautiful forests, a storied manufacturing legacy, and shorelines on four of the Great Lakes, Michigan offers some of the most unique real estate opportunities in the U.S.
The Michigan housing market is currently strong: from May 2011 to May 2019, the median home sale price in the state increased from a low of $58,000 to $151,000.
Every day, more Michigan real estate brokers are taking the next step in their career by pursuing a real estate broker license. Becoming a broker enables you to start your own firm, manage a team of agents, and ultimately earn more money.
If you’re looking to become a real estate broker in Michigan, you’re in luck: with the state’s relatively simple requirements, it’s possible for an existing real estate agent license holder to upgrade to a full broker license in a matter of months. In this guide, you’ll learn exactly what it takes to get your Michigan real estate broker license.
- How Much Money Can a Real Estate Broker Make in Michigan?
- Michigan Broker Qualifications
- 4 Steps to Become a Licensed Real Estate Broker in Michigan
- Reciprocity and Portability for Michigan Brokers
- Resources to Run a Successful Brokerage
How Much Money Can a Real Estate Broker Make in Michigan?
Like in other states, the vast majority of real estate brokers in Michigan their salaries via commission, taking a portion of each real estate sale that they and their agents close.
According to the U.S. Bureau of Labor Statistics, the average salary for a Michigan real estate broker is $72,390. While this is slightly below the national average for brokers, it’s well above the mean annual salary of $51,960 for all professions.
Additionally, real estate brokers in certain cities and regions can earn far more. Take Detroit, for instance, where the average real estate broker salary is $85,510.
Michigan Broker Qualifications
To qualify for a real estate broker license in Michigan, you must:
- Be at least 18 years old;
- Meet the minimum real estate agent experience requirements;
- Successfully complete Michigan’s 90-hour broker pre-licensing course; and
- Pass the Michigan broker examination administered by PSI Services, LLC (PSI).
4 Steps to Become a Licensed Real Estate Broker in Michigan
Michigan broker licensing is governed by the Department of Licensing and Regulatory Affairs (LARA). The state’s process for qualifying and certifying brokers in Michigan boils down to four key steps:
How Long Does it Take to Become a Broker in Michigan?
Your timeline for earning your Michigan broker license will depend on how much experience you have in real estate to start with. If, for instance, you already have at least three years of relevant real estate experience, you may be able to earn your broker license in less than a year. Meanwhile, experienced brokers from states that offer reciprocity with Michigan can waive certain requirements and get their Michigan license in a matter of months.
However, if you’re completely new to the real estate industry, it may take as many as four years to meet the Michigan broker license requirements.
Step #1. Satisfy The Michigan Experience Requirements
In order to obtain your Michigan broker’s license you must have at least three years of full time experience in the real estate field. You may fulfill this experience as an active sales agent, or a range of other real estate professions, including:
- Licensed Builder
- Land Developer
- Property Manager
- Mortgage Loan Officer
Step #2. Complete the Michigan Education Requirements
Michigan real estate broker applicants must complete 90 clock hours of approved pre-licensing coursework within 3 years of application. Of those 90 hours, 30 must cover broker preparation. Of the remaining 60 hours, 9 must deal with civil rights and fair housing laws.
MBA or law degree holders may be exempt from the required 60 hours on non-broker topics.
Step #3. Pass the Michigan Real Estate Broker License Exam
Once you have the required education and experience, you can register to take your real estate broker exam.
The Michigan state broker exam is written and administered by PSI/AMP, a private company. The exam consists of 115 multiple-choice questions divided among the following topics:
- Property ownership (10%)
- Land use controls and regulations (5%)
- Valuation and market analysis (7%)
- Financing (8%)
- General principles of agency (11%)
- Property disclosures (7%)
- Contracts (18%)
- Leasing and property management (5%)
- Transfer of title (7%)
- Practice of real estate (14%)
- Real estate calculations (8%)
Candidates have a total of 210 minutes to complete the exam, and must score 75% or higher to pass. For Michigan broker exam preparation advice and sample questions, consult the Michigan Candidate Information Bulletin.
Step #4. Submit Your Broker License Application
Finally, once you’ve passed the Michigan broker exam, you can apply for licensure by filling out and submitting the broker application form. PSI/AMP will provide you with a copy of this application after you successfully pass the exam.
Brokers in Michigan fall into two categories: Individual Broker, and Associate Broker. Individual Brokers are owner-operators of their own real estate firms, while Associate Brokers work under an Individual Broker. When filling out the form, be sure to indicate which license type you’re seeking.
Reciprocity and Portability for Michigan Brokers
Unlike many states, Michigan allows out-of-state brokers to do business within its borders (including handling showings, closings, negotiations, and other common tasks) as long as they sign a co-brokerage agreement with a Michigan licensee.
If you’d prefer to do business in Michigan without a co-brokerage agreement, consider earning your Michigan license through reciprocity, which allows real estate brokers from other states to more easily earn their in-state license by using their out-of-state broker license as proof. Michigan has mutual recognition agreements with the following 13 states:
- New Hampshire
- New York
- Rhode Island
Resources to Run a Successful Brokerage
Once you’re certified as a Michigan real estate broker, you can turn your attention to building your new business. Whether you’re an associate broker working at an existing firm, or an independent broker launching your own, here are some tips and tools to help you succeed from the start.
Real Estate Broker Website
A real estate broker website isn’t just a place to promote your listings and expertise: for today’s consumers, it’s also the most trusted source of information about homes for sale. If you’re a new broker establishing your business, a professional, mobile-friendly broker website with MLS listings can elevate your brand and provide the proof your audience needs.
Resources for Real Estate Broker Websites:
Real Estate Video
Whether you’re adding them to your listings, or using them to promote your expertise, real estate videos are a powerful way to market and grow your brokerage. Studies have shown that real estate listings with videos receive 403 percent more inquiries than those without video. Plus, with today’s smartphone cameras and apps, it’s easier than ever to shoot, edit, and share great real estate videos without breaking the bank.
Resources for Real Estate Video:
- The Ultimate Guide to Real Estate Video Marketing
- The Ultimate Guide to Real Estate YouTube Marketing
Real Estate Landing Pages
While your broker website is the central hub for your business online, you’ll want to create more targeted content to attract and capture specific audiences. With real estate landing pages, you can easily build and share standalone pages that are specifically designed to generate leads. Create landing pages for home valuations, ebook downloads, appointments, or other offers, and pair them with a form to capture prospects’ contact information.
Resources for Real Estate Landing Pages:
- Custom Landing Pages: The Key to Real Estate Website Lead Generation
- Marketing Academy Secrets: How to Use Landing Pages to Convert Visitors to Leads [VIDEO]