Top Ten Tips for Passing the Real Estate Licensing Exam
On the first night of a real estate licensing class, I will have the class introduce themselves and share a bit about their past. I always ask them why they decided to embark on a career in real estate and often get what seems like a rehearsed automatic response out of many. It goes something like this, “Well, I just love people, and I love houses, and all of my friends and family have always told me that I would do great in the real estate business.” I chuckle inside as I hear those responses because while inspiration might get you started, perspiration and dedication will play a much more critical part in making it to the finish line. As an instructor, helping students condition themselves and brace for what is ahead is a delicate task—balancing nurturing the dream and applying small doses of reality.
State licensing exams are generally tricky, and preparing for a real estate career begins by eliminating obstacle one: the exam. The dreams of friendly buyers and sellers and big, beautiful homes can get lost quickly in the difficulty of mastering the material necessary to get through that exam. Obtaining a real estate license does not require extraordinary intelligence, but it does require exceptional focus, particularly if you are not an exceptional learner. As an instructor, I prioritize honesty with students about the challenge that is before them while instilling hope in them that it is achievable. I strive to affirm their inspiration while challenging them with the idea that inspiration is a good starting point, but dedication and hard work must follow. Throughout the students’ experience in the classroom, I share many tips that will aid them in developing a good strategy for passing the state exam; below are my top 10.
Tip 1: Master Vocabulary
Real estate terms are very foreign to most students who don’t have a real estate background. The building blocks of learning any new language is to master vocabulary. Every chapter in our curriculum has key terms that will be used throughout the content of that chapter. I encourage the students to purchase a flashcard app or make their own. I am a little old school and believe that the more senses one incorporates in the learning process, the more likely one is to remember the material.
If a student makes their own flashcards, they benefit from
· Seeing the flashcards (visual learning)
· Writing the words (tactile learning)
· Hearing the words and definitions and reciting them (auditory learning)
Most students are only vaguely aware of their learning style, so incorporating the eyes, hands, ears, and mouth can be extremely helpful. Building a solid vocabulary is crucial, but memorizing definitions won’t cut it.
Tip 2: Become an Analytical Thinker
The real estate exam is concept-driven and designed to determine if the student understands the material enough to problem-solve. Therefore, there aren’t many questions where they give you a definition of a word and offer four terms for you to choose from. As an instructor, I can take the pre-license state exam whenever I choose, and I do take it fairly often. My goal is to recognize the style of questions so that I can adjust and improve learning materials to encourage thinking and problem-solving in a particular manner. Most of the questions on the state exam assemble groups of terms where the student must grasp the different aspects of these terms and apply them to the problem.
For instance, take the following question:
“If a seller owns a property whereby the taxes on the property ($6,284 annually) are paid in arrears, what would be the proration of taxes if the seller sells the property and closes on July 24th?” Assume that the seller owns the property on the day of closing. There is an assembling of words that are easily understood by many (seller, property, taxes), but there are some words that many non-real estate people might not recognize, such as “arrears”, “proration”, and “closing”.
This question is highly reflective of the type of questions one is likely to encounter on the state exam. In addition to unfamiliar words, there is the issue of some basic math applications that must be understood. There is the dilemma of not only getting the math correct, but once you apply the math and come up with a number, you must determine who gets credited and who gets debited.
I encourage questions and interaction in the classroom so I can get a clearer picture of the state of mind the class is in. If students depend on memorizing definitions to prepare, they have yet to do what is necessary to process most questions on the state exam properly. The Oklahoma Real Estate Academy provides our students with almost 1,000 questions to help them develop the mental muscle necessary to problem-solve and understand the material.
Tip 3: KISS – Keep it Simple, Stupid!
When the plain sense makes perfect sense, make no other sense. It may seem ironic that Tips 2 and 3 sound like opposing views, but let me explain. You must be a critical and analytical thinker, but some people outthink themselves. An over-thinker suffers from the paralysis of analysis. Each question must be read slowly, repeatedly, and carefully.
I could spell out for you a very lengthy resume’ that qualifies me as a most recognized educator and accomplished content writer, but I will not bore you with my services to the real estate industry or my certifications and honors. I say this to qualify my following statement: I have taken the real estate exam many times and still read questions that baffle me. A few questions have caused me to scratch my head and sit in consternation over the objective of such a question. There have been some questions that, upon reading, I conclude that I don’t even know what information the examiner is seeking. However, when I re-read the question, seeking to discover the objective, I recognize what the examiner wants. Rather than pondering the endless possibilities of the question, I seek the driving objective of the examiner and proceed with a common-sense approach to my answer.
Tip 4: Major on the Major and Minor on the Minor
Different topic areas covered in the real estate licensing course have various appeals to students; some material is easier to understand than others, depending on a student’s natural inclination, experience, and comprehensive abilities. Some subject areas constitute very little weight on the state exam, and some subject areas are highly testable. PSI (the testing entity for the Oklahoma real estate licensing exam) has an excellent breakdown of subject areas and the percentage of questions that each subject area carries on its website. Through my many years of teaching the licensing course, I have observed that many students are just not math-oriented. Teaching a real estate math class to twenty adults can feel like teaching a mixed grade-level class from 1st to 12th grade in a public school. There is a broad spectrum of students when it comes to math, so I have tried to tailor math classes to help the weaker students achieve some degree of success and present some challenging questions so that the math geniuses won’t get bored. The good news is that the state exam has only eight math questions. I am not suggesting that anyone wave the “white flag” on math; however, if a student is inept at math, they may want to scrutinize the amount of time and mental energy they want to give that area. For instance, there are approximately 14 questions on the state exam on contracts/contract law. If contracts and contract law are areas a student seems to have a handle on, that student may want to spend more time mastering the contract material. If a student scores 13/14 on the contract law section and only 4/8 in the math section, that is still a combination of 17 out of 22, which is a total percentage score of 77%
Tip 5: Learn the Lesson of Elimination
I have attended many national conferences where the top dogs at PSI have been in attendance. I have sat down to meals with them, cornered them in hallways, listened to their presentations, and courted them heavily. The testing examiners don’t give you many specific content questions, but they have shared with me some helpful insight. I have also served on the education committee for the Oklahoma Real Estate Commission, headed that committee for about four years, and helped form some of the state-specific questions for the state exam that PSI uses. PSI officials have repeatedly told me that a good test question needs a reasonable detractor. A detractor is a good, reasonable answer to a question but not the correct answer. In other words, out of 4 potential answers, one is the correct answer, and one is a detractor that would cause most students to do a double-take. The other two potential answers are usually easily detected as incorrect potential answers by the studious test taker. A good strategy when taking the multiple-choice state exam is to read carefully all four potential answers before making a decision and eliminate the most obvious potential answers. If you can get down to 2 potentially reasonable answers, you have created a 50% chance of getting the question correct rather than a 25% chance of getting it right, doubling your odds. Remember, because there is usually a detractor, don’t answer the question too quickly. Read all four potential answers before making your decision.
Tip 6: Know your Saturation Point
I am an early riser and am incredibly sharp from about 4:00 in the morning until noon. So, I do my critical thinking, writing, devotional time, and studying during my peak times. Night owls think I’m a weird dude and can’t imagine such nonsense as studying before the sun even comes up. I am also the most creative and receptive to learning when I do it in short spurts. So, I usually read and study for about an hour and then reward myself with a snack, or a walk through my vegetable garden. Relaxing my mind between study periods refreshes and resets my mental clock to take on new material. I am acutely aware of the time frame where nothing seems to stick anymore, and I stop studying. When you set aside time to study, know when enough is enough, and quit. If you attempt to continue your study once your mind is tired, it often ends in frustration that is not conducive to learning. On the whole, near examination time, it may be more beneficial the night before the exam to take a quick look at your notes and then get a good night’s rest - rather than cramming all night and tiring your body and mind.
Tip 7: Organize Study Groups
Even if you learn best alone, never underestimate the value of meeting with other students to study. Others may offer ideas, acronyms, videos, illustrations, applications, different viewpoints, or material that could help you move the needle further and make a difference in passing or failing the state exam. Forming a study group can maximize the emotional experience of learning, and our emotions greatly impact our memory cells. The dynamic of learning together is powerful, so take advantage of it. Take the lead in your class and try to compile a list of names and contact information so that you can schedule a time and place to get together and study. The Oklahoma Real Estate Academy classroom is often available for study groups and instructors can attend upon request.
Tip 8: Study as if You Must Teach the Material to Someone Else
This may be the teacher coming out in me, but there is nothing like preparing material for teaching. If you had to teach the material to someone else, it would significantly affect your commitment to understanding it. A student’s grasp of what you have taught them will help you gauge your own comprehension. Every now and then, I will give some instructions or explanation about a particular matter to my oldest grandson, and often, he will turn around and explain it back to me (occasionally adding a twist). It is his way of processing and applying information. My poor wife has had to hear me explain things to her, which she is frequently not interested in, but she patiently listens and gives me feedback. I often walk around the house teaching the material out loud to myself to be sure I can communicate it effectively. If you can communicate the subject effectively, you will most likely be able to apply your knowledge to answer specific questions on the state exam.
Tip 9: What’s the Worst that can Happen?
You fail the state exam the first time, so what. In my career, I have taught approximately 250 real estate licensing courses and over 3,000 students. On an extremely frequent basis, I hear these words from a student: “I am a horrible test taker”. “Horrible” is the most common word they use to refer to themselves about testing. When I hear these words, my empathetic side kicks in immediately. I wonder if this self-esteem issue developed because of an overly strict parent regarding grades or by past failures. Other times, they may have a learning disability such as dyslexia. Regardless of the cause, test-taking is a highly uncomfortable experience for many.
However, I have observed that many people learn by failing. They must first determine what they don’t know to prioritize their efforts. Some cannot process their weak areas until they see them in test results. Failing a test is only a circumstantial setback, and every circumstantial setback can either become a giving-up point or an opportunity to assess, process, and progress.
A former student who became a good friend told me from the beginning that he would probably fail the state exam a few times before finally passing it. I thought that was a debilitating attitude, but I later realized it was a matter of self-awareness. He took the state exam eight times (a record to this day as far as I know) before finally passing it. I admired his grit and determination. Most of our students pass the state exam on the first attempt, but to those who do not, don’t give in to your discouragement.
The Oklahoma Real Estate Academy is a gentle place to land if you seek a real estate license. We empathize with every kind of struggler who dreams of making a different life for themselves, and we love being part of the dream. We have become a rescue school for many who have taken the course through other institutions whose only contact with the student was at enrollment. We will be there for you throughout your process; we are just a bunch of hand-holders who enjoy the walk with our students.
Tip 10: Have Fun
Your attitude will determine your altitude, as someone once said. Determine from the onset of your real estate journey that the expected outcome will be adventurous. It’s a challenging process, but your choices determine the outcome. Set your mind towards making it fun and enjoy the ride from day one until that first closing. Fun people attract more business as well. Explore fun techniques such as creating rhymes, puzzles, speed drills, acronyms, funny stories, rewards, etc. Learning complex material can sometimes seem daunting, but making it fun will provide the mental will to get it done. Never lose sight of the reason you started the process by imagining the result of getting it done.
I don’t want to brag, but I have earned the right to speak on the matter of passing the real estate licensing exam through much hard work over many years. I offer these tips with extreme authenticity based on a long career pursuing excellence. I have not only taught many students but also been the instructor of instructors, which is a different level of learning. My advice comes from many years of trial and error. I have worked diligently to feed learners’ passion while staying focused on the task. I have found that the more fun I can make the process, the greater the results. My son, one of our very capable instructors at the academy, requested that I pen my approach to learning. I have procrastinated weeks before actually compiling this information. Once I applied myself to the task, I thoroughly enjoyed the writing and have written feverishly as thoughts flooded my mind. I had fun putting these thoughts into words as I contemplated how useful these words can be to you.
-Steve
