Current Kentucky Real Estate Income, Sales, and Trends

Graphic of KY Residential Statistics showing various housing data for Kentucky including a homeownership rate of 68.8%, total housing units at 1,994,323, and a median gross rent of $891, along with a breakdown of housing value percentages in different price ranges.

Most agents work as independent contractors for a sponsoring broker, meaning they only get paid commission and not a salary. While this may prove challenging, especially in the beginning, the opportunity for unlimited income potential is one of the biggest draws of working in the world of real estate.

Exactly how much you make depends on a number of factors, such as how the broker splits the commission between the agency and the agent, average home prices in the region, business expenses and the strategies you use to not only garner new business, but receive those all-important referrals.

While not as common, there are firms that will pay a base salary.

According to the most recent reporting data by leading job recruiting websites, a Kentucky real estate agent averages $71,388 per year. This is about 25% less than the national average.

With the unlimited income potential in this field, know that many agents can make much more than this. This sort of income data is often gathered through self-reporting of a smaller group of people in a particular field, and may not be the most representative sample.

The top 10 regions in the state and the annual average salary is below. There is about a 19% difference between the highest and 10th-highest earning areas.

  1. Elizabethtown: $80,274
  2. Louisville: $78,155
  3. Owensboro: $77,802
  4. Lexington: $77,404
  5. Richmond: $77,207
  6. Paducah: $76,935
  7. Bowling Green: $75,372
  8. Covington: $74,222
  9. London: $74,102
  10. Frankfort: $65,763

Real Estate License Renewal and Mutual Recognition in Kentucky

Real estate licenses renew in March of even-numbered years. The Real Estate Commission will send a reminder email.

Submit renewals online with your KREC eServices account or complete KREC form 208 and mail it in with the renewal payment.

The fee for an active renewal is $130 and the fee for renewing an inactive license is $120.

Licenses not renewed by March 31st of the even numbered year are automatically canceled. There is a $200 late renewal fee along with additional fees to bring the license back up to date.

If mailing in the renewal, send to:

Kentucky Real Estate Commission
50 Mero Street 2NE09
Frankfort, Kentucky 40601

Make out the check or money order to the Kentucky State Treasurer

Continuing Education Requirements

Complete 6 hours of continuing education courses approved by the Commission.1 Three of these hours must be for classes approved for law credit.

CE courses must be completed by December 31st of each calendar year, unless an agent is otherwise exempt. Course subjects that count towards the law credit include:

  • Kentucky license laws
  • Agency
  • Contracts
  • Fair housing
  • Environmental law
  • 1031 tax laws
  • ANSI standards
  • Antitrust
  • Landlord-tenant law
  • Planning and zoning issues
  • Misrepresentation classes

Ethics classes are generally not approved for law credit except those that substantially reference license laws. Such classes include Code of Ethics vs License Law, Unethical, Illegal or Just Plain Dumb and Agents, Ethics and the Law.

Kentucky Core Course

Every four years, real estate agents must complete the Kentucky Core Course, which covers state, federal, and common laws relating to real estate. No other CE course can take the place of this requirement.

In the year you take it, it will satisfy your CE requirements for that year. It is available in the classroom format, live webcam, and online.

Errors and Omission Insurance

All Kentucky real estate agents must have active errors and omission insurance before submitting a renewal application.2

Screenshot of a form from the Kentucky Real Estate Commission for certification of insurance coverage related to real estate licensing, including sections for individual and firm coverage details.
(Image by: Kentucky Real Estate Commission5)

If you have private coverage, submit the insurance certificate with the application.

Reciprocity Agreements

As of October 2023, 5 states and Kentucky have reciprocity agreements in place. This includes Florida, West Virginia, Tennessee, Illinois, and Virginia.

To get a real estate license in Kentucky if originally licensed in the above states, review the information below for requirements and application instructions:

Florida

  • Sales associates must have an active license in Florida for at least one year
  • Brokers must have an active license in Florida for at least two years.

Ohio

  • Sales associates must have an active license in Ohio for at least one year
  • Brokers in Ohio must have an active license for at least two years

Tennessee

  • Sales associates must have an active associate broker license for at least one year
  • Brokers must have an active license for at least 3 years

West Virginia

  • Sales associates in West Virginia must have an active license for at least one year
  • Brokers in West Virginia must have an active license for at least one year

Illinois

  • A sales associate must have an active license as a broker for a minimum of one year
  • A broker must have an active managing broker license for at least two years

Education Requirements

Take a KREC-approved 40-hour reciprocal license law course3

Background Check

Submit fingerprints for a national criminal history check. Remember to complete this step before registering for the exam.

Waiting on the results before taking the test, however, is not necessary. The results are only valid for 90 days so take the test and submit your licensing before it expires.

Exam

Schedule your reciprocal licensing exam through PSI.4 Do not schedule the exam before meeting all eligibility standards.

The test results will be voided if taken before doing so.

Apply for a License

To apply for your license, follow these steps:

  1. Mail the application. The testing site will provide a paper application upon passing both sections of the test.
    Send it to the commissioner’s office along with payment in the form of a check or money order.
  2. Submit the application online. Within 36 to 48 hours of passing the exam, the Real Estate Commission will send an email with instructions for submitting the licensing application.
    Submit payment with an electronic check or credit/debit card.
  3. Submit the application within 60 days of passing the exam or the results will be voided.

What To Include With the Application

When submitting your application, ensure to include the following essential documents:

  • Proof of errors and omissions insurance coverage
  • Certificate of completion of the reciprocal license law course
  • License history certification or letters of good standing from every state in which you worked as a real estate agent.
  • License fees: $130 for an inactive license and $120 for an active license

References

1Commonwealth of Kentucky. (2023). KREC -Approved Providers. Kentucky Department of Professional Licensing. Retrieved October 27, 2023, from <https://oop.ky.gov/education.aspx>

2Commonwealth of Kentucky. (2023). Errors & Omissions (E&O) Insurance and Extended Reporting Period (ERP). Kentucky Real Estate Commission. Retrieved October 27, 2023, from <https://krec.ky.gov/newstatic_info.aspx?static_id=196>

3Commonwealth of Kentucky. (2023). Providers. Kentucky Real Estate Commission. Retrieved October 27, 2023, from <https://krec.ky.gov/newstatic_info.aspx?static_id=219>

4PSI. (2023, September 7). Science, technology and expertise. PSI. Retrieved October 27, 2023, from <https://www.psiexams.com/>

5Kentucky Real Estate Commission. (2019, July). Certification Of Insurance Coverage. Kentucky Real Estate Commission. Retrieved October 27, 2023, from <https://krec.ky.gov/Documents/203-CertificateofInsuranceCoverage.pdf>