Getting a Second (or Third) Real Estate License in Another State

If you already hold a real estate license, and are considering an additional license because of a move, to supplement your income in a state where you spend part of the year, or live in an area where the metro area spans two state lines, a second state license might be just the thing.

Getting another license might be similar to getting your first, but not likely. Most states have vastly different time, timing, cost and education requirements from one state to the next, so minimizing expense and effort can be a little tricky.

Keep these five tips in mind:

1. Don't cancel your old license: If you're moving to a new state and won't be practicing in your old state, keep your old license active until the new one kicks in. That doesn't mean you need to keep up on your continuing education...you can let that expire if you're not keeping both, unless your move coincides with your expiration and you'll need your CEU's to have an active license so you can apply for another. Many states offer a quicker way to get a new license to agents by "reciprocity," (using your old license to by-pass some requirements in your new state) but they may also require you to have an active license, not an expired one.

2. Read the rules and regulations for your new/additional state right away: Most state licensing boards have these easily accessible on line. Reading these carefully will allow you to begin to gather things like letters of recommendation, licensing transcripts, details about your CEU's and which may or may not transfer. Some of these things will require time, input and resources from your old state licensing office, old managing broker, etc., so allow plenty of time to get the ball rolling.

3. Costs vary, a lot: Some states are much, much more expensive than others to practice. If you are moving to a state that's more expensive to get licensed, chances are, everything else is more expensive, too: local and state association dues, MLS and lock-box fees, continuing education credits. If you have time in your current state and it's a lot less expensive, get the next level of license status you can. Higher license statuses typically transfer more easily, with fewer requirements. Getting a broker's license in one state may be just 55 hours and a few hundreds dollars, but 100+ hours and twice the cost in another.

4. Contact the local realtor association immediately: Costs vary widely; different kinds of lock-boxes are used (or not at all) that require various fixed and/or monthly costs; check to see what kinds of CEU classes are offered, and how often so you can plan to get education outside your new brokerage or association if needed. Finding these fees out early will also allow you to budget better.

5. Ask for help: The state licensing board, your new state and local REALTOR associations and new, fellow agents are all great resources for assistance and questions. Holding multiple licenses is rare for most agents, so you'll likely get a lot of conflicting answers to your questions...the state licensing board answers always win in a conflict!

Holding more than one licenses really makes sense for some agents. You'll be surprised how little there is in common at the contract level and at the agent-to-agent level, so don't think that you'll know everything once you get started in your new location...some states don't even require you to take the state-level test until your RENEW your license, so be careful and make sure you understand the new laws. What is usual and customary varies state to state, even county to county, so getting a new license is just the start.

Be patient, ask a lot of questions, and relish in the fact that you're learning a new 'language' of real estate!