How to Get an Iowa Real Estate License: Step-by-Step Guide

If you want to become a real estate agent in Iowa, you must get a real estate license.

In this guide, we’ll walk you through the process of getting licensed in Iowa, covering everything from prerequisites to FAQs. 

Let’s dive into the steps!

How to Get Your Real Estate License in Iowa

Here’s a step-by-step guide to the process of becoming a licensed agent in Iowa:

Step 1: Meet the Eligibility Requirements

Before you start the process, ensure you meet these eligibility requirements:

• Be at least 18 years old.
• Have a high school diploma or GED.
• Be a U.S. citizen or legally present in the United States.

Step 2: Complete the Required Pre-Licensing Education

Iowa requires aspiring real estate agents to complete 60 hours of pre-licensing education from an accredited real estate school. 

These courses will help you understand the foundational knowledge needed to work as an agent.

Topics covered in your courses include:

• Iowa real estate law
• Property ownership and land use controls
• Contracts, agency, and fiduciary responsibilities
• Financing and mortgages
• Property valuation and market analysis
• Real estate math

You’ll need to pass a final exam at the end of your pre-licensing course to receive your certificate of completion. This certificate is required when applying for your real estate exam.

If you want to enroll in a real estate school, we partnered with Kaplan to provide exceptional real estate courses to Iowa students. 

Sign up through US Realty Training and get a discount.

Step 3: Apply for the Iowa Real Estate Exam

Once you’ve completed the pre-licensing course, the next step is to apply for the Iowa Real Estate Exam. 

Here’s what you’ll need:

• A completed exam application form
• Certificate of completion for your pre-licensing education
• Proof of identity (usually a government-issued photo ID)
• Payment of exam fees

Applications are submitted to Pearson VUE, the company that administers the exam. After your application is processed, you will receive details on scheduling your exam.

Step 4: Pass the Iowa Real Estate Exam

The Iowa Real Estate Exam is a significant milestone in the licensing process. The exam consists of two parts:

1. National Portion: Covers general real estate knowledge applicable across the U.S.
2. State Portion: Focuses on Iowa-specific real estate laws and regulations.

The national portion consists of 80 multiple-choice questions. The state portion consists of 40 multiple-choice questions. 

The total time allotted is 3 hours and 30 minutes: 2 hours for the national portion and 1 hour and 30 minutes for the state portion.

You must score at least 70% on both sections to pass. Also, you must take the exam within 12 months of completing your Pre-Licensing education.

We provide an Iowa real estate crash course and exam prep package to make studying and passing easy. This program provides 8+ hours of video content that explains concepts, vocabulary, historical events, and laws on the exam. 

Step 5: Purchase E&O Insurance

You must have proof of an Errors and Omissions insurance policy in place before you can qualify for a real estate license in Iowa. 

Step 6: Submit a Background Check and Fingerprints

Before you can receive your license, you must complete a background check. This includes submitting your fingerprints to the Iowa Division of Criminal Investigation. The background check ensures that you meet the state’s standards for ethical conduct.

Step 7: Find a Sponsoring Broker

In Iowa, real estate agents must work under the supervision of a licensed broker. You will need to secure a sponsoring broker before submitting your final license application. It’s essential to find a broker who fits your professional goals and provides the right support and mentorship.

Step 8: Submit Your License Application

Once you’ve passed the exam, completed the background check, purchased E@O insurance, and found a sponsoring broker, you can submit your final application for an Iowa real estate license. 

Be sure to include the following:

• Exam results
• Background check documentation
• Sponsoring broker information
• License application fee

Once your application is approved, you will be an active real estate agent in Iowa.

FAQs About Getting a Real Estate License in Iowa

Here are the most common questions we get from students becomes agents.

How Much Do Iowa Real Estate Agents Make?

The income of real estate agents in Iowa can vary depending on factors such as experience, location, and the number of transactions completed. According to ZipRecruiter, real estate agents in Iowa earn an average salary of $80,582 annually. 

Indeed also provides valuable insights, showing that entry-level agents might earn lower salaries initially, but experienced agents have the potential for higher earnings through commission-based income.

These earnings depend heavily on the effort agents put into lead generation, networking, and their ability to close deals, making real estate in Iowa a career with high-income potential.

How Much Does an Iowa Real Estate License Cost?

The cost to obtain an Iowa real estate license typically falls between $600 and $1,000. Here's a breakdown of some of the common costs:

• Pre-licensing course: $300 to $600, depending on the provider and whether it’s in-person or online.
• Exam fee: $95 for both the state and national portions of the exam.
• Background check & fingerprinting: $51 to complete the required background check.
• License application fee: $125 to submit your final application after passing the exam. You may also want to budget for additional expenses, such as study materials, travel costs to take the exam, and post-licensing continuing education fees.

Is Becoming a Real Estate Agent in Iowa Worth It?

Absolutely! Becoming a real estate agent in Iowa offers a career with flexibility and substantial earning potential. As a real estate agent, you have the freedom to set your own hours and work at your own pace.

Since your income is largely commission-based, there is no cap on how much you can make. The more effort you put into lead generation and marketing, the higher your income potential.

What Should I Know Before Becoming a Real Estate Agent?

Before jumping into a career as a real estate agent, it’s important to consider the following:

• It takes time to build a client base: Many new agents find that it can take several months or even years to build a steady stream of clients.
• Marketing yourself is key: As a real estate agent, you’re essentially running your own business. You’ll need to be proactive in marketing your services through networking, social media, and referrals.
• Be prepared for a flexible but demanding schedule: While the job offers flexibility, real estate agents often work evenings and weekends to accommodate client schedules.
• Continuing education is required: Becoming a real estate agent does not mean you stop educating yourself once you have passed your licensing tests. Staying up-to-date with the latest market trends, laws, and technology is essential for success in real estate. Agents need to complete continuing education throughout their careers.

Can I Get an Iowa Real Estate License if I’m Already an Agent in Another State?

Yes! Iowa has reciprocity agreements with several other states, making it easier for agents licensed in another state to get an Iowa real estate license. Here's how it works:

If you’re licensed in a state that has a reciprocity agreement with Iowa, you may be able to bypass some of the licensing requirements, such as pre-licensing education.

Iowa offers reciprocity agreements for real estate licensing with the following states:

1. Arkansas
2. Georgia
3. Louisiana
4. Massachusetts
5. Minnesota
6. Mississippi
7. North Dakota

You'll still need to submit an application, pay the required fees, and possibly pass the Iowa-specific portion of the real estate exam to demonstrate your knowledge of state laws and regulations. 

It’s recommended that you contact the Iowa Real Estate Commission to determine the specific requirements based on your current state’s license.

How Often Do I Renew My Iowa Real Estate License?

In Iowa, you are required to renew your real estate license every three years. 

The renewal process includes completing 36 hours of continuing education within that period. The courses are broken down as follows:

• 8 hours of mandatory law updates to stay informed about the latest changes in real estate laws.
• 4 hours of ethics training to ensure you understand the code of conduct in real estate.
• 24 hours of elective courses, which can be chosen based on your interests and career goals (e.g., advanced negotiation techniques, property management, etc.). Renewal ensures you stay up-to-date with changes in the industry and continue to meet the standards set by the Iowa Real Estate Commission.

Final Thoughts

Becoming a licensed real estate agent in Iowa can be a highly rewarding career if you’re willing to put in the time and effort. 

Whether you’re looking for financial freedom or flexibility, the opportunities are plentiful.

If you’re ready to get started, enroll in our partnered Iowa real estate licensing course today and get a discount.