Michigan Real Estate Exam: Everything You Need to Know

Before you begin your real estate career, you've got to pass the Michigan real estate licensing exam and get your license.

No need to stress, though! Preparing and passing the exam might seem daunting, but with the right tools and resources, you'll be ready to ace the exam and get your license with ease. 

In this article, we'll guide you through everything you need to know as you gear up for your Michigan real estate exam, like:

• How to schedule your Michigan real estate licensing exam 
• What you need to know for the test
• How difficult the exam is
• Study tips and tricks for passing the exam 

How to Schedule the Michigan Real Estate Licensing Exam

Before scheduling your real estate exam in Michigan, you’ll have to submit your application for salesperson licensing first. This includes paying an $88 application fee for new salesperson candidates and supplying the confirmation that you’ve completed your education requirement. 

From there, the Bureau of Professional Licensing will review your application and confirm you’re eligible to take the real estate licensing exam. 

Michigan has contracted a third-party company called PSI Services to administer the exam for their real estate licensure candidates. You can easily schedule your exam through their website to find a date and PSI testing location that is convenient for you. As you schedule your exam, you’ll be asked to pay a $79 examination fee that solidifies your entry for the exam. 

Where Do You Take the Michigan Real Estate License Exam?

As you schedule the exam, you’ll have to pick which PSI Testing location you’d like to take the exam at. There are several locations throughout the state, making it convenient for test takers. 

Locations include: 

• Grand Rapids
• Southfield (Lahser)
• Gaylord
• Marquette
• Dearborn
• Holt
• Southfield (Crossroads)

Can You Take the Exam Online?

While Michigan does offer some remote exam testing, they do not yet offer this for the real estate licensing exam. Because of this, you’ll have to take the exam in-person at one of the PSI Testing locations. Since PSI Testing is a national company, you can take your licensing exam at any of their locations. Once you’ve paid for the examination, you’ll be prompted to enter your zip code, and a list of the testing sites closest to you will appear.

What to Bring on the Day of Your Exam

We recommend showing up 30 minutes early to the test center so you can get settled and check in for the exam without hurrying or feeling rushed.

To ensure there are no problems checking in to the exam, it's important to have the right forms of identification. Here’s what you’ll need: two non-expired forms of identification that include your signature. One must be a primary government-issued and photo-bearing ID with a signature, while the other must just have your signature. Some examples of valid primary IDs include:

• Government-issued Driver’s License
• U.S. Department of State Driver’s License
• U.S. Learner’s Permit (plastic card only with photo and signature)
• National/State/Country Identification Card
• Passport or Passport card
• Military ID
• Alien Registration Card
  

A secondary ID is something as simple as a debit card or other item that verifies your identity and signature. 

In terms of your personal belongings, the fewer things you bring, the better. However, we do recommend bringing a small, silent handheld calculator that you can use for the math questions. The testing center won’t provide these, and it can be helpful to have them. 

What is on the Michigan Real Estate Exam?

When it comes time for your test, you want to be prepared and ready to conquer each question. The best way to do that is to really understand what you can expect on the exam. The Michigan real estate exam consists of two sections: a national, more general real estate section, and a state-specific section with questions about Michigan. Both of these sections are multiple-choice and timed. 

The national portion of the exam is meant to test your general knowledge of the real estate industry with the following sections: 

• Property Ownership (8% of questions)
• Land use controls and regulations (5% of questions)
• Valuation and market analysis (7% of questions)
• Financing (10% of questions)
• General principles of agency (13% of questions)
• Property disclosures (6% of questions)
• Contracts (17% of questions)
• Leasing and property management (3% of questions)
• Transfer of title (8% of questions)
• Practice of real estate (13% of questions)
• Real Estate calculations (10% of questions)

In the state-specific section, you’ll be tested on the nitty-gritty of laws and policies related to real estate in Michigan, like:

• Duties and Powers of the Department and the State Board of Real Estate (3 questions)
• Licensing Requirements (5 questions)
• Statutory Requirements Governing the Activities of Licenses (10 questions)
• Contractual Relationships (5 questions) 
• Additional State Topics (12 questions)

Will There Be Math on the Exam?

On the real estate exam, about 10% of the questions will be about calculations and math concepts real estate agents often utilize. Some common topics include property area calculation, how to calculate property value, settlement and closing costs, return on investment and more. 

While you can bring a small calculator for the exam, the questions should be fairly straightforward to answer. If you’re not sure, you can always skip a question!

Is the Michigan Real Estate Exam Hard?

While the real estate exam is meant to be challenging, it’s definitely far from impossible! With the right studying and attitude going into the exam, you’ll be able to pass and get on with your real estate career. But knowledge is power when it comes to preparing, so make sure you clearly understand what to expect on exam day. 

How Many Questions Are on the Michigan Real Estate Exam?

Across the two sections, there are 115 questions that you'll have 180 minutes (3 hours) to answer. The majority of questions are in the national section, with 80 questions in that specific area. There are only 35 questions on the state-specific portion.

Although you have learned most of this material in your educational classes, taking a multiple-choice test can present a different set of challenges. With the right strategy and preparation though, you can make sure you use your time wisely and pass each section.

To make the most of your exam time, it's helpful to familiarize yourself with the types of questions you'll encounter. Practice tests are a great way to get a feel for the exam format and try taking the test with a timer, so you know exactly where you may need to focus your study efforts.

What is the Passing Rate for the Real Estate Exam in Michigan?

In order to pass the real estate exam, you’ll need to get 70% of the questions right. This is a cumulative 70% across the entire test, so not just 70% on one section. If you fail the exam, you’ll be able to see your scores for each section and give you an idea of how you can better prepare in the future. 

If you do fail, we recommend taking note of where your strengths and weaknesses are so you can hone in on those areas to prepare for the next time. 

How Many Times Can You Take the Real Estate Exam?

While it can be disappointing to fail the real estate exam, you can retake it as many times as you need to to pass with a 70% or more. Keep in mind, though, that you’ll have to pay the examination fee every time you retake your exam, which can get expensive if you need to take it more than once. If you fail, you’ll be able to reschedule your exam after 24 hours. 

How to Pass the Michigan Real Estate Exam

Even if you’re able to retake the exam, who wants to spend their time and money doing that? It’s much easier to put in the time and effort the first time to ensure you pass your Michigan real estate exam and begin your real estate career. 

Once you’ve finished your educational requirements, we recommend these tips and tricks to prepare for the exam.

Create a Study Schedule

Consistency is key to setting yourself up for success and passing the Michigan real estate exam. Try to create a study schedule several times a week and stick to it! With a specific routine in place, you’ll have the structure needed to set a dedicated time to study for the exam.

While every night is ideal, studying every other night for several weeks can give you the time necessary to really learn and prepare for the exam. Even small 15 or 30-minute time blocks can make a huge difference in your study schedule and ensure you learn the material! You'll appreciate taking the time to schedule and maintain a consistent exam prep routine in the future.

Use Acronyms and Mnemonic Devices

One study strategy that helps with memorization is acronyms or mnemonic devices. Try developing a phrase or acronym that relates back to a real estate vocabulary word or process. Don’t take our word for it, though — This strategy has been used in classrooms for decades and utilizes rhyming words or phrases to help your brain remember vocabulary words. Those in Michigan might be familiar with a common mnemonic device for remembering the Great Lakes — HOMES. Have fun with it, and create your own study phrase that is specific to you.

Join a Study Group

There’s strength in numbers! While some people focus better by studying alone, joining a study group allows you to build connections with fellow students and learn new methods of studying and retaining information. You’ll be able to collaborate with others to discuss ideas and solve problems and have some extra accountability to get your studying done.

Get Guided Help

The more support and resources you have access to, the better. One way to access additional study tools and preparation is through a guided help prep course. Unlike your pre-licensing educational classes, a guided prep course is specific to the test, giving you the study skills and information like practice tests that help you pass the exam.

With countless practice questions and study guides, our Michigan real estate exam prep gives you a sneak peek at what you might be tested on and outlines where your strengths and weaknesses are. Plus, the extra investment in a guided prep program can help you save money in the long run by minimizing the chances you have to take the exam more than once.

With our packages starting at $49.99, you’ll get access to:

• Over 1,500 Michigan real estate exam practice questions
• Customizable practice state exams
• Vocabulary flashcards
• Video explanations by real estate experts

You can add real estate crash course videos. It's 8+ hours of video content that teaches you the concepts, vocabulary, historical events, and more. Led by our head instructor, Robert Rico, our crash course videos teaches you everything you need to know to pass on your first try.

Final Thoughts on the Real Estate Exam in Michigan

If you want to become a Michigan real estate agent, passing your exam is one of the last hurdles to clear. When you're so close to the finish line, giving yourself the time and resources to prepare for your final licensing exam with the help of a guided prep course is essential.