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How much does it cost to become a real estate sales person in Georgia?

Many people who inspired to be a real estate agent in Georgia want to know how to become one and how much it costs to become one. This article covers the cost of becoming a real estate sales person.

  1. A Georgia resident needs to take 75 hours of Georgia Sales Pre-license class and pass the class exam with at least 75% accuracy rate. There are classroom options and online options. Online options cost between $200 to $400 ($325 on Class room lessons cost around $400 ($449 on MetroBrokers Academy
  2. Georgia Bureau of Investigation (GBI) back ground check at local police station, which is required to obtain a license, $15
  3. Candidate needs to take Georgia State Salesperson Exam, include national and state exam. Exam takes 4 hours. AMP administers ( the computerized exam at this time. The cost for the exam is $115.
  4. License fee. If the candidate passes the state exam, s/he pays $170 non-refundable license fee for the state to issue him/her a real estate sales license.
  5. New licensee needs to take 25 credit hours of Georgia Real Estate Post Licensing classes. Online version costs around $139.99 (
  6. Electronic lock box key from Supra, activation fee is $50 and monthly service fee is $15.81
  7. Join a realtor association so standard real estate forms can be used. Activation fee is $25, yearly membership fee is $400 (
  8. Join a real estate broker. This can be as low as $25/month or even free. But normal cost is around $100/month.
  9. Print business 1,000 business card, cost is $54


One Time cost:

Pre-license class


Background Check


Exam Fee


License Fee


Post-License classes


Electronic Lockbox key activation


Realtor association joining fee


Business card


Total One Time Fee



Yearly cost:

Broker fee ($100/month)


Lock box key fee ($15.81/month)


Realtor Association ($400/year)






How to become a real estate sales person in Georgia?

There three major kinds of real estate agents in Georgia: real estate sales person, real estate broker and real estate community association manager. All three kinds of real estate agents are under supervision of The Georgia Real Estate Commission & Appraisers Board (GREC). There is a lot of information on the GREC site, but there is no clear instruction on how to become a real estate agent. One have to hunt for such information. This article tries to lay out a road map for any person interested to be a real estate sales person.

Georgia’s real estate agent exam is administrated by AMP (Click here to got to AMP Web site). A Georgia real estate candidate hand book is available for download on AMP Web site. Here are requirement of becoming a real estate sales person in Georgia (there are other ways to become a real estate sales person, please check the candidate hand book)

  1. At least 18 years old;
  2. Be a resident of Georgia unless qualifying under non-resident status;
  3. Graduated from high school or had equivalent education;
  4. Successfully completed required 75-hour Salesperson’s Pre-license Course at a school approved by the Georgia Real Estate Commission. GREC site has a link on approved schools.
  5. Took Georgia real estate sales person exam and answered at least 75% of 152 questions correctly.
  6. Passed Georgia Bureau of Investigation (GBI) criminal record check (could be completed in most police stations)
  7. Completed a 25- hour post-license course in first year of license in an approved schools.

Does Home Ownership Build Wealth?

Date: 2015-10-31


It is common saying that home ownership builds wealth and provides tax shelter. But a lot of homeowners were deep in debt and were forced to sell their homes from 2011 to 2013.  The home ownership rate decreased from its high of 69% in 2007 to 63% in 2015 (source: US Census)

001 - Home Ownership Rate

This brings the question: does home ownership still build wealth. That’s a question I wanted an answer, especially after I became a real estate agent recently – I want my clients to make the best decision under his/her circumstance.

Did home ownership build wealth before?

To predict the future, one has to look back to the past. According to Federal Housing Finance Agency (FHFA) monthly House Price Index (HPI), house price increased from 100 to 230 in 2007, then dropped back to 180 in 2011 and recovered to 230 in Aug 2015.
002 - Monthly House Price Index for US

Time Period

Increase Number 0f Year

Average Increase/Year

1991 – 2007 230 – 100 = 130 16 8.125%
2007 – 2011 180 – 230 = -50 4 -12.5
2011 – 2015 230 – 180 = 50 4 12.5
1991 – 2011 180 – 100 = 80 20 4.0%
1991 – 2015 230 – 100 = 130 24 5.416%


House price fluctuated in short term, but it increased in long term. If one purchased a house at 1991 and sold it at the depth of the housing recession of 2011, the house still appreciated 4.0%/year.

Hold on, was the price increase caused by inflation? That is a valid question. Let’s check the inflation during this period.

003 - Inflation Calculator


Using an inflation calculator, total inflation from 1991 to 2015 is 74.7%. Average annual inflation was 3.11%.

Even the owner sold the house in 2011, the house price appreciation was higher than inflation by 0.89%. For last 24 years, home price appreciation was 2.30% higher than inflation (5.416% vs 3.11%). The extra 2.3% can add up over a long period – it doubles the original amount in 31 years!

Home ownership did build wealth for long term home owners!

Does home ownership provide tax shelter?

To answer this question, one has to use some real world number. I picked a median price house for Gwinnet, which was $175,000 in 2015. The house was built in 1980 in Suwanee with 1,116 ft2, 3 bed rooms and 2 full bathes.

Internal Revenue Service (IRS) allows tax filers either take standard deduction or itemized deduction. If itemized deduction is used, only interest payment is allowed.

Current interest rate is 3.948% for 30 year mortgage with 20% down payment. An Excel spreadsheet is created to calculate monthly payment, interest payment and principle payment. First year’s payment calculation is shown below:

004 - Mortgage Payment Calculation

First year has the highest interest payment (when loan balance decreases, interest payment decreases with it). First year’s total interest payment is $5,938.

IRS’s website showed that standard deduction for single filer was $6,200 and $12,400 for married filed jointly in 2014. The owner of this median priced home probably would not enjoy any annual tax benefit.

Home ownership likely does not provide annual tax saving.

However, IRS also allows capital gain exclusion of up to $250,000 for single filer and $500,000 for married filed jointly. If the house price increases 5% per year in next 30 year, owner of the house above would reach $500,000 capital gain in about 27 years (house price $675,100). That capital gain is tax free if owner meets IRS requirements.

005 - Home Price and Home Equity

Home ownership does provide capital gain protection.


Home ownership is still a good wealth building tool and it also provides capital gain tax protection.