Becoming a real estate agent offers an enticing blend of entrepreneurial freedom, income potential, and the satisfaction of helping people find their dream homes. Whether you’re looking for a career change, a side hustle, or have always been fascinated by property markets, real estate can be an accessible and rewarding profession. However, the path to becoming a licensed real estate professional involves several crucial steps, educational requirements, and strategic decisions that vary by state.
This comprehensive guide breaks down everything you need to know about launching your real estate career—from understanding licensing requirements and educational prerequisites to choosing the right brokerage and building a sustainable business. By the end, you’ll have a clear roadmap to navigate your journey from aspiring agent to successful real estate professional.
Understanding the Real Estate Agent Role
Before diving into the licensing process, it’s essential to understand what real estate agents actually do and how they fit into the broader real estate industry.
Real Estate Agent vs. Broker vs. REALTOR®
These terms are often used interchangeably, but they represent different credentials and responsibilities:
- Real Estate Agent: A licensed professional who can represent buyers and sellers in real estate transactions but must work under a broker.
- Real Estate Broker: Someone who has additional education and licensing beyond agent requirements, allowing them to work independently and hire agents to work under them.
- REALTOR®: A real estate professional (agent or broker) who is a member of the National Association of REALTORS® and adheres to its strict code of ethics.
Core Responsibilities
As a real estate agent, your typical duties will include:
- Helping clients buy, sell, or rent properties
- Conducting market research and property valuations
- Marketing properties through listings, open houses, and other channels
- Negotiating offers and counteroffers
- Guiding clients through paperwork and closing processes
- Building and maintaining a network of industry contacts
- Staying current on market trends and regulations
Understanding Real Estate Professional Roles
A licensed professional who can represent buyers and sellers in real estate transactions but must work under a supervising broker.
- Must complete state-required pre-licensing education
- Must pass state licensing exam
- Cannot work independently
- Earns commissions through their broker
- May specialize in buyer or seller representation
A real estate professional with additional education and licensing who can work independently and/or hire agents to work under them.
- Requires additional education beyond agent requirements
- Must pass broker licensing exam
- Can operate independently
- Can own a brokerage firm
- Can hire and supervise agents
- Responsible for legal compliance of transactions
A real estate professional (agent or broker) who is a member of the National Association of REALTORS® and subscribes to its strict Code of Ethics.
- Can be either an agent or broker
- Pays annual dues to local, state, and national associations
- Adheres to NAR’s Code of Ethics
- Has access to MLS (Multiple Listing Service)
- Receives ongoing professional development
- Can use the trademarked REALTOR® designation
State-Specific Licensing Requirements
Real estate licensing is regulated at the state level, meaning requirements vary significantly depending on where you plan to practice.
General Requirements Across Most States
While specifics differ, most states share these basic requirements:
- Age: Typically 18 or older
- Legal residency/citizenship: Must be a legal U.S. resident
- Education: High school diploma or equivalent
- Pre-licensing education: Completion of state-approved courses
- Exam: Passing the state real estate licensing exam
- Background check: Criminal history review
- Application and fees: Submission of application and payment of licensing fees
State Variation Examples
StateRequired Pre-License HoursReciprocity With Other StatesApproximate CostCalifornia135 hoursLimited$500-800Florida63 hoursYes, with several states$400-700New York77 hoursYes, with 9 states$350-700Texas180 hoursNo$900-1,200Illinois75 hoursYes, with several states$500-800
To find your state’s specific requirements, visit your state’s real estate commission website. Many states also offer reciprocity agreements that allow you to more easily obtain licenses in multiple states.
Real Estate Pre-Licensing Education Requirements by State
Hover or tap on states to see specific hour requirements
Cost range: $XXX-$XXX
Exam pass rate: XX%
Note: Requirements may change over time. Always verify current requirements with your state’s real estate commission or licensing authority.
Pre-Licensing Education
Before you can take the real estate exam, you’ll need to complete your state’s required pre-licensing education from an approved provider.
Choosing an Education Provider
You have several options for completing your educational requirements:
In-Person Classes
- Pros: Face-to-face interaction with instructors, networking opportunities, structured environment
- Cons: Fixed schedules, commuting requirements, typically more expensive
Online Courses
- Pros: Flexible scheduling, often less expensive, learn at your own pace
- Cons: Requires self-discipline, less networking opportunity, limited instructor interaction
Community Colleges
- Pros: Affordable, structured environment, potential for college credit
- Cons: May take longer to complete, less flexible scheduling
What You’ll Learn
Pre-licensing education typically covers:
- Real estate principles and practices
- Property law and contracts
- Financing and mortgages
- Property valuation and appraisal
- State-specific real estate laws and regulations
- Ethics and fair housing laws
- Property management basics
Optimizing Your Educational Experience
To get the most from your pre-licensing education:
- Research providers thoroughly – Check reviews, pass rates, and instructor credentials
- Create a structured study schedule – Especially important for online courses
- Form study groups – Connect with peers to reinforce learning
- Supplement with exam prep materials – Many providers offer additional practice tests
- Take advantage of instructor office hours – Ask questions and seek clarification
Find Your Ideal Real Estate Education Format
Answer a few questions to discover the best educational approach for your needs
Pros
- Direct access to instructors for immediate questions
- Structured learning environment with scheduled sessions
- Networking opportunities with future colleagues
- No technology barriers to learning
- Accountability and motivation from regular attendance
Cons
- Less flexible scheduling
- Typically more expensive than online options
- Fixed pace may be too slow or fast for some learners
- Commuting time and transportation costs
- Limited options in some geographic areas
Look for real estate schools that offer evening or weekend classes and have high pass rates for the licensing exam. Consider asking about payment plans if budget is a concern.
Pros
- Maximum flexibility to study anytime, anywhere
- Learn at your own pace
- Often more affordable than in-person options
- Can revisit complex material as often as needed
- No commuting time or costs
Cons
- Requires self-discipline and motivation
- Less direct interaction with instructors
- Fewer networking opportunities
- May require comfort with technology
- Less structured accountability
Look for online providers with good reviews, exam pass guarantees, and responsive customer support. Choose programs with engaging multimedia content and practice exams to reinforce learning.
Pros
- Real-time interaction with instructors and classmates
- No commuting necessary
- Structured schedule helps with accountability
- Often more affordable than in-person classes
- Recording options to review later
Cons
- Less flexible scheduling than self-paced courses
- Requires reliable internet connection
- Some technology comfort needed
- May have fewer networking opportunities than in-person
- Screen fatigue from extended online sessions
Look for programs with small class sizes, interactive teaching methods, and strong technical support. Providers with high student satisfaction rates and exam pass guarantees are often worth the investment.
Pros
- Usually more affordable than private real estate schools
- Potential financial aid or payment plan options
- Structured curriculum with experienced educators
- Well-established educational systems
- May offer both in-person and online options
Cons
- May take longer to complete than accelerated programs
- Course schedules follow academic calendars
- Classes may be larger than private schools
- Curriculum may be less focused on exam preparation
- Limited course time options in some areas
Research the pass rates of your local community college’s real estate program. Some programs also offer job placement assistance and continuing education opportunities for after you’re licensed.
Pros
- Balance of flexibility and structure
- Some networking opportunities through in-person sessions
- Personalized help with challenging content
- Often more affordable than fully in-person programs
- Variety in learning methods keeps engagement high
Cons
- Still requires some commuting
- Technology comfort needed for online portions
- Scheduling can be more complex
- May be limited availability in some areas
- Switching between formats can be adjustment
Look for programs that thoughtfully integrate online and in-person components, rather than just offering them separately. The best hybrid programs use each format for what it does best – online for knowledge acquisition and in-person for practice and clarification.
Taking and Passing the Real Estate Exam
The real estate licensing exam is a significant hurdle in your journey to becoming an agent.
Exam Format and Content
Most state exams consist of two portions:
- National portion: Covers general real estate principles and practices that apply across the U.S.
- State-specific portion: Focuses on the laws and regulations unique to your state
Exams typically contain 80-100 multiple-choice questions with a time limit of 2-4 hours.
Preparation Strategies
The pass rate for first-time test takers varies by state but often hovers between 50-70%. To improve your chances:
- Take practice exams repeatedly – Familiarize yourself with the format and timing
- Create flashcards for key terms – Real estate has its own vocabulary
- Focus on your weak areas – Target study time toward concepts you struggle with
- Join exam prep courses – Many providers offer specialized exam preparation
- Get plenty of rest before exam day – Mental fatigue can impact performance
What to Bring on Exam Day
- Government-issued photo ID
- Certificate of pre-licensing course completion
- Registration confirmation
- Approved calculator (if permitted)
- Required application fees
If You Don’t Pass
Don’t get discouraged if you don’t pass on your first attempt. Most states allow you to retake the exam after a short waiting period (usually 24 hours to 30 days). Use the score report to identify knowledge gaps and focus your studying accordingly.
Choosing the Right Brokerage
Once licensed, you must work under a supervising broker. This decision significantly impacts your early career development.
Types of Brokerages
National Franchises
- Examples: Keller Williams, RE/MAX, Century 21
- Pros: Name recognition, established training, technology platforms
- Cons: Often higher commission splits, less flexibility
Boutique/Independent Firms
- Pros: Potentially higher commission splits, specialized market knowledge, more flexibility
- Cons: Less name recognition, potentially fewer resources
Virtual Brokerages
- Examples: eXp Realty, Real
- Pros: Tech-forward, potentially lower fees, flexible working arrangements
- Cons: Less in-person mentorship, requires self-discipline
Key Factors in Choosing a Brokerage
- Commission structure – How will splits, desk fees, and other costs affect your income?
- Training and mentorship – What support is provided to new agents?
- Company culture – Does it align with your values and working style?
- Market presence – How strong is the brokerage in your target areas?
- Technology and marketing support – What tools are provided to help you succeed?
Real Estate Commission Calculator
Compare how different brokerage models affect your earnings
Net Earnings Comparison
- This calculator provides estimates based on typical commission structures and doesn’t account for all variables.
- Traditional brokerages offer varying splits (typically 50/50 to 70/30) based on experience and production.
- 100% commission models generally have higher monthly fees but can be profitable for high-volume agents.
- Flat fee per transaction can benefit mid to high-volume agents but offers fewer services.
- Cap models limit how much you pay to your broker annually, benefiting high producers.
- Virtual brokerages typically have lower fees but may offer fewer in-person supports.
- Additional costs not included: MLS fees, association dues, E&O insurance, marketing, and other business expenses.
Building Your Real Estate Business
As an agent, you’re essentially running your own business within the brokerage framework.
Creating Your Marketing Strategy
Successful agents typically use a multi-channel approach:
- Digital presence – Professional website, social media profiles, online listings
- Networking – Industry events, community involvement, referral partnerships
- Direct marketing – Targeted mailings, door knocking, cold calling
- Content marketing – Blog posts, market updates, video tours
Developing Your Unique Value Proposition
The real estate industry is competitive. To stand out:
- Identify your niche – First-time buyers, luxury properties, investment properties, etc.
- Leverage your background – Prior experience in finance, construction, or design can be valuable
- Specialize in specific neighborhoods – Become the go-to expert for particular areas
- Highlight your service approach – Communication style, availability, problem-solving skills
Financial Management for New Agents
Plan for the financial realities of a commission-based career:
- Build a 6-month expense reserve – Income may be inconsistent initially
- Budget for business expenses – Marketing, MLS fees, association dues, continuing education
- Track expenses meticulously – Many are tax-deductible
- Consider supplementary income – Part-time work until your real estate business is established
Client Acquisition and Retention
- Sphere of influence marketing – Start with people you already know
- Lead generation systems – Online platforms, open houses, networking events
- Client relationship management – Use CRM software to stay organized
- Exceptional service – Generate referrals through outstanding client experiences
Continuing Education and Career Growth
Becoming a licensed agent is just the beginning of your real estate career journey.
Licensing Renewal Requirements
Most states require:
- Continuing education credits (typically 15-45 hours every 2-4 years)
- License renewal fees
- Compliance with any updated requirements
Professional Development Opportunities
To advance your career:
- Additional certifications – Specializations like Accredited Buyer’s Representative (ABR) or Certified Residential Specialist (CRS)
- Broker licensing – Additional education to become a broker
- Leadership roles – Positions within your brokerage or real estate associations
- Coaching and mentorship – Learning from experienced professionals
Possible Career Paths
Your initial license can lead to various specializations:
- Residential sales specialist
- Commercial real estate agent
- Property manager
- Real estate investor
- Broker/owner
- Real estate coach or educator
Income Potential and Financial Planning
Real estate income varies dramatically based on market, effort, and expertise.
Income Structure
Most real estate professionals earn through:
- Commission splits – Percentage of transaction value shared with brokerage
- Referral fees – Payment for referring clients to agents in other markets
- Team arrangements – Various structures for sharing responsibilities and compensation
Income Statistics
According to the National Association of REALTORS®:
- The median gross income for REALTORS® was approximately $54,330 in 2023
- Agents with 16+ years of experience earned a median of $85,000+
- New agents (less than 2 years) earned a median of $8,500
Real Estate Agent Income Progression
How agent earnings typically grow with experience
Managing Income Fluctuations
Strategies to handle the commission-based income model:
- Income averaging – Save during profitable periods to cover slower months
- Diverse income streams – Rental property management, referral fees, etc.
- Tax planning – Work with an accountant who specializes in real estate professionals
- Business entity structure – Consider LLC or S-Corp status as your business grows
Frequently Asked Questions About How to Become a Real Estate Agent
How long does it take to become a real estate agent?
The timeframe varies by state and individual circumstances, but typically takes 3-6 months from starting pre-licensing education to receiving your license. This includes completing educational requirements (1-3 months), passing the exam, and processing your application.
How much does it cost to get a real estate license?
Initial costs typically range from $500-$1,200, including pre-licensing education ($300-$800), exam fees ($100-$300), background check ($50-$100), and license application fees ($50-$250). Additional startup costs include association dues, MLS fees, and marketing expenses.
Can I be a part-time real estate agent?
Yes, many agents start part-time while maintaining other employment. However, understand that availability is crucial in real estate, and some brokerages may have minimum production requirements or prefer full-time agents.
Do I need a college degree to become a real estate agent?
No. Most states only require a high school diploma or equivalent. However, courses in business, marketing, or finance can be beneficial for your real estate career.
What’s the difference between a real estate agent and a REALTOR®?
A real estate agent is anyone licensed to help people buy and sell real property. A REALTOR® is a licensed real estate agent who is also a member of the National Association of REALTORS® and subscribes to its strict Code of Ethics.
Is being a real estate agent stressful?
Real estate can be stressful due to irregular income, client demands, and competition. However, many agents enjoy the flexibility, helping clients, and unlimited income potential that offset these challenges.
Next Steps: Your Action Plan
Ready to start your real estate career? Follow this action plan:
- Research your state’s specific requirements – Visit your state’s real estate commission website
- Choose and enroll in a pre-licensing course – Select based on your learning style and schedule
- Create a study schedule – Set aside regular time to complete coursework
- Build a financial runway – Save 3-6 months of expenses to support your transition
- Research brokerages in your area – Schedule interviews with at least 3-5 firms
- Develop your business plan – Consider target market, marketing approach, and budget
- Schedule your exam – Once pre-licensing is complete, book your test date
- Begin networking – Start building your professional connections before you’re licensed
By following these steps and approaching your new career with dedication and a strategic mindset, you’ll be well-positioned to join the ranks of successful real estate professionals.
Disclaimer: The information provided in this article is for general informational purposes only and should not be considered as professional advice. Real estate licensing requirements, exams, and regulations vary by state and change over time. Always verify current requirements with your state’s real estate commission or licensing authority before beginning the licensing process.
This article contains general information about financial and business considerations, but it is not financial or legal advice. Consult with a qualified professional regarding your specific situation before making any decisions. The income figures cited represent industry averages and are not guarantees of future earnings, which depend on numerous factors including market conditions, individual effort, and business strategies.
