Learn how to get a Colorado real estate license today!

Starting a real estate career in Colorado is exciting, especially with the state’s booming housing market and high earning potential. 

Whether you’re new to real estate and live in the state or an experienced professional seeking reciprocity, earning your Colorado real estate license is the first step of your path to real estate success.

This guide will break down the requirements and process stated by the Colorado real estate commission. We will also explain the benefits of working in Colorado, and provide helpful tips to start your career.

What it means to hold a Colorado real estate license

A license issued in Colorado grants authority to act as a real estate broker. Unlike other states, Colorado doesn’t use the term “real estate agent.” All licensees start as associate brokers. With experience, you can advance to an independent broker or employing broker role.

To earn a license, you must meet specific education, exam, and background check requirements. Once licensed, you can help clients buy, sell, and rent properties across the state.

Why become a real estate broker in Colorado?

Colorado offers incredible opportunities for real estate brokers. The state has a strong economy, a growing population, and one of the most lucrative housing markets in the country.

High earning potential

Real estate brokers in Colorado earn some of the highest salaries in the nation. According to the Bureau of Labor Statistics, the average annual wage for real estate brokers in Colorado is $76,850, making it the fifth top-paying state.

Here’s how Colorado compares:

• New York: $111,800
• Massachusetts: $84,180
• Connecticut: $79,780
• Alaska: $79,360
• Colorado: $76,850

Top-performing brokers in the 90th percentile earn up to $128,350 per year. Earnings vary by city, but Colorado’s high median income and competitive housing market offer plenty of opportunities for motivated brokers.

A booming housing market

Colorado’s real estate market continues to grow. In 2023, it remains a seller’s market, with rising home prices and limited inventory driving competition.

• Median Home Price: $576,900 as of late 2022, up 3.7% from the previous year.
• Strong Demand: Home shortages mean buyers often face bidding wars while sellers benefit from rising prices.

Best cities

The cities holding the most promise for brokers are:

1. Denver: Due to high demand, along with steady price growth, Denver is among the best-performing markets.
2. Aurora is known for its community-oriented way of life with rising property values and competitive home sales.
3. Colorado Springs has become one of the fastest-appreciating markets in the nation, with home values appreciating 143.7% over the past decade alone.

Requirements for a real estate broker license in Colorado

To qualify for a real estate license, you must:

1. Be at least 18 years old.
2. Complete 168 hours of pre-licensing education.
3. Pass the Colorado real estate licensing exam.
4. Submit fingerprints for a background check.
5. Provide proof of Errors & Omissions (E&O) Insurance.
6. Apply for your license using the Colorado Division of Real Estate.

Let’s explore each step of getting a boker license in Colorado in detail.

Step 1: Complete pre-licensing education

Colorado requires 168 hours of approved coursework before you can take the licensing exam. These courses cover essential topics like real estate law, contracts, ethics, and property management.

You can choose to study online or in person. Online courses are top-rated because they offer flexibility. Make sure the Colorado Division of Real Estate approves your chosen school.

Step 2: Pass the Colorado real estate licensing exam

After completing your coursework, you must pass the Colorado broker licensing exam, which tests your knowledge of general real estate principles and Colorado-specific laws.

The exam has two parts:

1. National section: Covers general real estate knowledge.
2. State section: Focuses on Colorado laws and regulations.

You’ll need to score at least 75% on each section to pass. The PSI Testing Services administer the test, consisting of multiple-choice questions.

Step 3: Submit fingerprints for a background check

Colorado requires a background check to ensure applicants meet ethical standards. You must submit fingerprints to the Colorado Bureau of Investigation (CBI). This step can take 2–6 weeks, so plan accordingly.

Step 4: Provide proof of errors & omissions (E&O) insurance

E&O insurance is mandatory for all active licensees in Colorado. It protects you from liability for mistakes or omissions while performing your duties.

You can purchase group policies through providers like RISC (risceo.com). Be sure to submit proof of coverage when applying for your license.

Step 5: Apply for your license

Once you’ve completed the previous steps, you can apply for your license using the Colorado Division of Real Estate. You’ll need to:

• Submit your application online.
• Pay the licensing fee (around $485).
• Provide proof of your education, exam results, and E&O insurance.

How long does it take to get a real estate broker license in Colorado?

The process usually takes 2 to 4 months.

• Education: Most students complete their 168 hours in under six months, though schools like VanEd allow up to a year.
• Background check: Fingerprints and processing can take 2–6 weeks.

Planning and staying on schedule will help you complete the process quickly.

Colorado broker license reciprocity

Colorado offers limited reciprocity for licensees from other states. This means you may not need to complete the entire education or exam if you already hold a real estate license elsewhere.

Special reciprocity rules

• Licensed attorneys: Must complete 12 hours of coursework and pass the full broker exam.
• Expired Colorado licenses (issued before 1997): Requires 72 hours of coursework and passing both parts of the broker exam.
• Expired Colorado licenses (issued after 1997): Requires passing both parts of the broker exam.
• Out-of-state licensees: Must pass the state portion of the broker exam.

Maintaining your license

Colorado real estate licenses must be renewed every three years. Renewal requires 24 hours of continuing education. Stay organized to avoid missing deadlines and ensure your license remains active.

Why now is the time to start

The Colorado real estate market is doing well, with many people wanting to buy homes, prices going up, and a growing population. Being a broker in Colorado brings not only good money but also the joy of helping clients with one of life’s biggest choices, buying or selling a home.

If you are well-prepared, you can seize these opportunities. Starting now positions you to thrive in a growing and resilient market.

Final thoughts

Obtaining your Colorado real estate license feels so good. With its swelling house market, attractive salaries, and the potential for flexibility in careers, Colorado has become an attractive destination for real estate practitioners. That done, follow through on education, then pass the test and compliance with licensing requirements of a state would really set someone up for success.

For many more study tools and resources, Lexawise is the place to help you prepare for the licensing exam and launch your career confidently.