15 Things You Should Know About Oklahoma Real Estate
The Oklahoma real estate industry and market are hotter than they’ve ever been. Despite the pandemic, homes, rental units, and real estate, in general, have grown.
With this growth comes a huge demand for real estate agents and brokers in Oklahoma. However, learning all of the critical facts about the industry and how to get involved is easy. The Oklahoma Real Estate Commission (OREC) makes the licensing process straightforward.
There are also several pathways for those inside and outside of Oklahoma. Agents and brokers both make good money, and the exams’ costs are cheap. Renewals are a piece of cake, only requiring a few hours of your time and a fee.
Armed with the knowledge of the industry, you’ll be unstoppable. For a comprehensive guide to the 15 things about Oklahoma real estate you need to know, keep reading.
1. The Oklahoma Real Estate Commission
To be a real estate agent in Oklahoma or a broker, you have to go through OREC. OREC stands for the Oklahoma Real Estate Commission. This government body has an online website.
On there, you can find tons of info on selling real estate or becoming a real estate agent or broker.
2. Becoming a Provisional Sales Associate
The first step of getting into real estate is becoming a provisional sales associate. If you need an Oklahoma real estate license but don’t have prior experience, this is the path you’ll take. In most cases, upgrading to a sales associate or broker inside Oklahoma requires you to have this entry-level license or an equivalent.
To become a provisional sales associate, you first need to take a 90-hour course. Next, you’ll use the OREC website to apply for a provisional sales associate license. This application will require you to pass a background check using an online system.
You’ll also have to upload some straightforward documents. This is all done through the OREC website portal. They can suggest appropriate 90-hour courses to take.
OREC will also walk you through the application and background check process. If your application gets accepted, you’ll get an invite to take the listening exam. The exam will be exclusively based on the material covered in your mandatory 90-hour course, so you’ll know what to expect.
You also have a full year from your invite to pass the exam. If you don’t manage to pass in the time frame, you only have to apply again and keep trying.
3. Costs of Exam
The costs associated with doing the OREC exam are pretty affordable. For the salesperson exam, it’s only $60 per try, regardless of whether you opt for a full or state-only exam. The cost of a Broker exam is only $75. The same applies regardless of full or state.
4. A Broker’s License in OK Requires a License in OK
There are a few prerequisites to upgrade licenses as Oklahoma City Real Estate agents. If you’re a sales associate in another state, you can get the equivalent license in Oklahoma. This is true even without a 90-hour course.
The issue is, OK can’t give you a higher license than what you already have cross-state. This means that if you want a broker’s license of any type, you only have two options. The first is to get a provisional or regular sales associate license in Oklahoma.
If you go for your first-ever license, it will likely be the provisional one. If you’re coming from another state, you have the option of the sales associate license. Either way, things will work out well once you have a valid sales associate license in OK.
Regardless of whether it’s provisional or not, you can apply for a Broker’s license. You only need to meet some experience criteria covered later. The second option is to get your broker’s license in your original state and transfer it to OK.
The bottom line is OK cannot give you a broker’s license. Unless you have an equivalent license or meet OK experience requirements.
5. There’s a Difference Between Sales Associates and Brokers
There’s a difference between associates and brokers in the Oklahoma City real estate industry. Associates are the actual real estate agents on the ground. They are the ones you meet and interact with the most.
A broker is a real estate agent that has undergone additional training. Usually, this training goes towards business compliance or real estate law. To run your own Oklahoma City real estate company, you need to be a broker.
Brokers hire associates to work for them. They manage the backroom and deal with the big picture. In essence, the broker is responsible for ensuring a company is legally compliant.
6. Getting a Broker Associate License
A Broker Associate is one step up from a sales associate. They can usually do everything a traditional broker does. However, they still need supervision by a managing, branch, or proprietor broker.
Many real estate agents opt for this license. This is because it’s a stepping stone to becoming an independent broker. It’s sort of like having training wheels while working under a more established one.
The requirements to become an associate broker are two years’ worth of sales associate experience in the past five years. You also need to take a 90-hour broker course which is different from the sales associate course. You’ll also have to put in a request to change your license from sales to broker associate.
If applying with licenses from Oklahoma, you’ll need to take the full National and Oklahoma examination.
7. Broker Associate From Another state
If you have any kind of broker’s license in another state, you can apply for the same license in Oklahoma. The first requirement is at least 2 out of the last five years of experience. You also won’t need to do a 90-hour course.
Instead, you need to take a 1-hour course in each of the three categories. These are the Broker Relationship Act, Code and Rules, and Contract and Forms. The OREC site can recommend the appropriate courses.
You’ll need your license history for all the states you’ve had one in. Going through the OREC application process is also necessary. This includes the background check.
If your out-of-state application gets accepted, you don’t need to do the full national and Oklahoma exam. The Oklahoma State-only exam will be good enough.
8. State Exceptions for a Broker’s License
While most upgrades in and out of state require two years of experience, there’s an exception. If your license is from Alabama, Arkansas, Iowa, Louisiana, Maryland, Nebraska, or either of the Dakotas, you don’t need two years of experience. You could qualify to take the State-only exam regardless of how much experience you’ve had.
The only extra requirement is your experience has to have come from the last five years.
9. Becoming an OK Broker Proprietor, Managing Broker, or Branch Broker
Becoming a broker proprietor, managing broker, or branch broker gives you flexibility. It allows you to run your own team or real estate company. To get this license, you need the 90-hour broker course, as well as a 15-hour “broker in charge course”.
This process still comes with a requirement of 2 years of experience under your belt. You’ll also need to change your license type through the OREC website portal. The transaction experience waiver must also come attached with your request.
10. Transferring to OK if You Have a Broker’s License Elsewhere
There are some extra steps if you want an upper-level broker’s license in OK but come from out of state. You’ll have to take 1 hour each of continuing education for three categories. These are:
- Oklahoma Code and Rules
- The Oklahoma Broker Relationship Act, and
- Oklahoma Contract and Forms
You still need the 15-hour Oklahoma Broker in Charge course. You also need to provide your full license history cross-state. Going through the OREC portal and passing the exam is also necessary.
11. Resident vs. Non-Resident License
There’s a difference between a resident and a non-resident license in Oklahoma. If you work for a brokerage in Oklahoma, you need a resident license. Non-resident licenses let you work for brokerages without a physical office in Oklahoma.
12. You Can Have the 2 Years of Experience Waived
A common thread across all OK real estate license types is that you need two years of experience in the last 5. When upgrading or transferring your license, you could have that requirement waived. The Point Waiver program allows this for those with adequate experience or education.
The full details are available from OREC. However, if you can prove you’ve closed a certain number of deals or taken extra courses, you could qualify. This can be a good route if you complete those deals or courses in under two years and don’t want to wait.
13. Renewing Your License
Every real estate license in Oklahoma comes with an expiry date of 3 years. You have to go through OREC and meet certain requirements to renew it. Most often, these are continuing education requirements.
These are necessary to ensure agents and brokers are up to date with current legal practices. Renewing an active sales license will cost $165.
A broker’s license, regardless of type, is $225. Renewing inactive or suspended licenses are cheaper at $90 and $140 for sales and brokers.
14. What Real Estate Agents and Brokers Make
In Oklahoma, real estate agents can expect to make around $42,290 a year on average. Salaries usually start at around $22,300 and reach as high as $101,740. In Oklahoma City, brokers have a higher floor but seem to have a lower ceiling too.
In the city, brokers make an average of $57,011, with the most typical range going from $50,000 to $72,000. Potential income can be even higher for brokers. This usually requires them to own successful real estate companies, though.
Generally, real estate is one of the best jobs in the market right now. Those working as broker associates can expect to fall in the original range, on average.
15. The Oklahoma Real Estate Market Has Never Been Hotter
An interesting fact about real estate in Oklahoma is that despite the pandemic, it’s never boomed so well. However, more people with remote jobs are looking to move to Oklahoma. The cost of living is pretty low, coming in at 84% of the US average.
Mortgage rates are also at a historic low, which makes financing a new home mortgage more affordable than ever. Homes are going at their list price, with bidding having a negligible impact on raising them.
What does this all mean? It means that there is the supply and the demand in Oklahoma to make some serious money selling homes. The vacancy rate also lets prospective buyers have plenty of options to keep things fair.
The split between homeownership and rentals leaves the door open for both types of investors. The insane thing is it’s possible to find homes for as low as $59,000, with the average coming in at around $147,000. This makes Oklahoma pretty attractive to a number of young professionals and people moving from other states.
This ultimate guide to the current Oklahoma real estate market can tell you all about it.
What You Need to Know About The Oklahoma Real Estate Industry
The Oklahoma real estate industry is pretty easy to understand. Getting a license is straightforward through OREC, and there’s always a flexible pathway. Upgrading your license and running your own real estate company is possible in 2 years or less.
Renewing your license is as easy as taking a few hours of courses, staying active, and paying a fee. The Oklahoma real estate market is also heating up, making it prime time for realtors and sellers. If you want to learn more about the real estate industry and recent trends, check out our other blog posts.