How to Get a Real Estate License in Iowa

Getting your real estate license in Iowa starts with becoming a licensed salesperson. After two years of active experience, you can upgrade to a broker license if you want more independence or plan to run your own firm. 

Here’s how both paths work.

Starting as a Real Estate Salesperson

So, here’s what you need to do to become a licensed real estate salesperson in Iowa first. You’ll have to work under a supervising broker while you learn the business and build your client base.

Age and Basic Requirements

Iowa keeps the age requirement straightforward as the rest of states—you need to be at least 18 years old. Be free of any license application denials in any state within the past 12 months and must not have had a real estate license revoked in any state within the last two years before applying.

No high school diploma is officially required, though most brokerages prefer candidates who have one. So, if your goal is to become a broker, keep this in mind.

For the full list of requirements, check out the complete Iowa real estate license requirements before you start the process.

Complete Your Pre-Licensing Education

Iowa requires 60 hours of approved pre-licensing coursework for salesperson applicants. You can take these classes online or in person, depending on what works better for your schedule.

The coursework covers Iowa-specific real estate law, contracts, agency relationships, fair housing, property rights, and basic finance. Most people finish this in 2-4 weeks if they’re studying consistently.

Pass the Salesperson Exam

After completing your education, you’ll take the Iowa real estate salesperson exam through PSI. The exam has two parts: a national section and an Iowa-specific section. You need to pass both.

The test includes 120 questions total, and you’ll have 120 minutes to complete the national portion and 60 minutes for the state-specific portion . You need a score of at least 70% on each section to pass.

Preparing for the Exam

The exam tests your ability to apply concepts, not just memorize definitions. So, practice exams are your best friend here. They show you how questions are worded and which topics get the most attention.

Quality Iowa salesperson real estate exam prep makes a real difference. Lexawise gives you access to the biggest question bank in the industry so you can study online at your own pace. It even has a mobile app, which means you can squeeze in practice questions during your lunch break or while waiting for an appointment.

Focus on understanding agency law, contract terms, and Iowa-specific regulations, so you’re not wasting time on material that won’t be on your exam. These areas trip up a lot of test-takers.

Submit Your Application

Once you pass the exam, you’ll submit your application for a real estate license through the Iowa Real Estate Commission. You’ll need to provide proof of education, your exam results, and pay the licensing fee.

Here’s the important part: you must have a sponsoring broker before your license can be activated. You can’t practice real estate in Iowa without broker supervision as a salesperson.

Upgrading to Broker

After working as a licensed salesperson for at least two years, you can apply for your broker license. This gives you the independence to open your own firm or manage other agents.

Broker Education Requirements

For an Iowa broker license, you need to complete an additional 108 hours of approved broker education (on top of your original 60 salesperson hours). This advanced coursework covers property management, business planning, broker responsibilities, and managing transactions.

You can take these courses online or in a classroom setting. Expect to spend 2-3 months completing the coursework if you’re studying part-time.

The Broker Exam

The broker exam is more comprehensive than the salesperson test. It also includes 120 questions and covers both national and Iowa-specific content, but at a deeper level.

You need to score at least 75% to pass. The questions focus more on broker responsibilities, managing transactions, and complex scenarios you’ll face running your own business.

Using solid Iowa broker real estate exam prep materials helps you tackle the more advanced concepts. The broker exam expects you to understand not just the rules, but how to apply them in complicated situations.

With Lexawise you can take practice tests that challenge you and help you to level up and become ready for your broker test, with all exam topics and level of difficulty as your real exam.

After Passing the Broker Exam

Once you pass, you can apply for your broker license. Unlike salespersons, you don’t need a sponsoring broker. You can hang your license with another brokerage or open your own firm right away.

Opening your own brokerage requires additional steps like registering a business entity, getting errors and omissions insurance, and setting up proper accounting systems. But you’ll have full control over your business from day one.

Which Path Should You Choose?

Everyone starts as a salesperson in Iowa—it’s required. Use those first two years to learn the business under an experienced broker. You’ll handle real transactions, build your client base, and figure out if you even want to pursue a broker license.

After two years, evaluate whether upgrading to broker makes sense for you. If you want to open your own firm or manage other agents, go for it. If you’re happy working under a broker without the extra responsibilities, there’s no requirement to upgrade.

Timeline and Costs

So, let’s review which timelines and costs you’ll have to face for both path:

Salesperson Path:

• Pre-licensing education: 60 hours (during the 12 months before taking the exam).
• Exam and application process: 1-2 weeks.
• Total timeline: 2-3 months.
• Education costs: $600-1200.
• Exam fee: Around $100.
• License application: $125 for three years.

Broker Path:

• Pre-licensing education: 60 hours (during the 24 months before taking the exam).
• Hold an active real estate salesperson license with at least 24 months of real estate experience.
• Total timeline: minimum of 2 years of experience as a salesperson plus the time for broker education and exams.
• Education costs: $600-1000.
• Exam fee: Around $100.
• License application: $185 for three years.

Both paths also require fingerprinting and background checks, which add another $50-75 to your costs.

After You Get Licensed

Getting your license is just the beginning. You’ll need to build your business, whether you’re working under a broker or running your own firm.

• Find the right brokerage. If you’re going the salesperson route only, interview with multiple brokerages. Ask about commission splits, training programs, lead generation support, and company culture. The right fit matters more than you’d think.
• Invest in marketing. You’ll need business cards, a professional headshot, and likely a website or social media presence. Budget at least $500-1,000 for startup marketing materials.
• Learn your market. Spend time understanding local neighborhoods, pricing trends, and what buyers in your area actually want. This knowledge separates successful agents from struggling ones.
• Build your network early. Your first clients often come from personal connections. Tell everyone you know about your new career. Attend local events, join community groups, and make yourself visible.

Continuing Education

Iowa requires continuing education to renew your license every three years. Salespersons need 36 hours of approved coursework, including specific required courses. Brokers need 45 hours.

Stay on top of this. Letting your license expire means going through the application process again, and nobody wants that hassle.

Is Real Estate Right for You?

Real estate offers flexibility and income potential, but it’s not for everyone. Your first year will be tough as you build your client base. Most agents work evenings and weekends because that’s when clients are available.

You’ll need some financial cushion to get through the startup phase. Commission-based income means inconsistent paychecks, especially early on.

But if you like working with people, can handle rejection, and want control over your earning potential, real estate can be rewarding. Successful agents in Iowa make solid livings, and you’re building a business that can grow over time.

Ready to Start?

If you’re leaning toward becoming a real estate agent in Iowa, start with your pre-licensing education. Choose a reputable school with up-to-date materials that reflect current Iowa law.

Once you’ve completed your coursework, invest in quality exam prep. Lexawise offers comprehensive exam preparation with over 4,500 practice questions, unlimited practice tests, and detailed explanations that help you understand the concepts, not just memorize answers. You’ll also get access to an AI chat tutor and 24/7 expert support when you need help.

The sooner you start, the sooner you can begin building your real estate career in Iowa.