cost of real estate class Archives - Demetree School of Real Estate

How Much Money Does It Cost To Get A Florida Real Estate License?

This is a frequent question that I get asked. The short answer is that it costs around $500, but can cost much more depending on where you go to school.

Application fee that is paid to the state of Florida $62.75
State exam fee $57.75 each time you take it. In other words, you can pay $57.75, or you can pay a lot more. If you are taking the exam three or four or five times, this starts to add up.
The fingerprint fee is quite variable. You shouldn’t pay more than about $80 for this. If your school does the fingerprints and they are charging a lot more, that’s likely because the school is getting a kickback from the fingerprint company. If it is worth it to you for convenience, that’s fine.
The largest variable in cost is the price of real estate school. Schools range from less than $100 to more than $600. Typically (but not always), online classes cost less than in-person classes. Some schools have an all-inclusive price that includes a pre-licensing class, state exam review, and a bunch of other material. Other schools charge a separate price for each class. The all-inclusive real estate school package might actually be costing you more money.

For both in-person or online classes, there is very little correlation between the quality of the instruction and the cost of the class. There are great schools at all price points and terrible schools at all price points.

Several years ago, before I owned a school, a cousin of mine asked me where she should go to real estate school. I recommended School A. She ended up going to School B. She and several friends thought that School A might be inferior because it was the cheapest in town. School B was the most expensive in town.

She ended up getting a teacher who was less than stellar. My cousin, who had a decent knowledge of real estate just from growing up in our real estate family, called me on every break to ask me if certain things the teacher said were correct. Most of them weren’t. It was a bad situation for everyone. My cousin and several of her classmates hired me for tutoring just to help them get through the class test. It was the perfect demonstration that in the real estate school business there is no correlation between price and quality.

Ignore Sunk Costs When Getting Your Florida Real Estate License

In business, there is something called a sunk cost. This is a cost that has already been paid and cannot be recovered. The most important thing I learned in graduate school was to ignore sunk costs. This applies to time and money.

Let’s say you are creating a widget related to film cameras. You’ve invested a million dollars into researching this widget, building the prototype, testing it, etc. It is going to take another $300,000 investment to finalize the product until it’s ready for market. Then digital cameras are invented, so the widget you invented is no longer necessary. The market for your widget is shrinking rapidly. What do you do?

Finish the project. You have already invested a million dollars and five years in this project. That’s a lot of money to throw away.
Scrap the project. It will save you the additional $300,000. Yes, you wasted some time and money, but you can’t recoup that no matter what you choice.

The correct answer is B. You ignore the sunk costs. You cut your losses now instead of continuing to invest time and money into a losing proposition.

Let’s try one more scenario…

You were hoodwinked into purchasing a package “deal” from a local real estate school. You purchased the pre-licensing class, review class, exam review book, and special software program. You attended the pre-licensing class, but the instructor was terrible. He wouldn’t answer questions. He denigrated students. And the only reason you passed the class test is because you watched other instructors on YouTube. It is now time for you to take the review class, what do you do?

Take the class at your original school. You already paid for it. You might waste two days of your life in the review, fail the state exam, then spend more money and time taking it again, but at least you will have gone to the review you paid for.
Cut your losses with the first school, and enroll in the state exam review at Demetree School of Real Estate. Even though you paid too much for the first package, at least now you are on the right track and will soon have a real estate license.

Of course, the correct answer is again B. Do not let sunk costs, that is money you have spent and cannot recover, affect your future decisions. You make the decision without regard for time and money you have spent and cannot recover. I’ll admit that this is much easier said then done.

The essence of the sunk cost fallacy is that if you are in a hole, quit digging. Don’t allow the money you can’t recoup to influence your decision.

Too often, people choose A. This happens so much that is has a name. It’s called the sunk cost fallacy. It’s where we think that the money already spent (sunk cost) should have some bearing on the decision. The question we should ask is, “Do I go to a school where I had a bad experience or do I go to another school?” If we just answered this question, we would make a good decision. But too often, we change the question which result in a second bad decision – one bad decision chasing an earlier bad decision.

It is very easy to think, “I’ve already invested this much time and money into something, so I need to continue doing it.” Pay attention and don’t let yourself make the wrong decision.

Please note that I, Karen Climer, have no affiliation with Climer School of Real Estate. My father, Ron Climer, sold that school in 2014. Since that time, I have had no affiliation with that school. If you are looking for me, you will find me at Demetree School of Real Estate.