Business & Sales
How to Become a Real Estate Agent
To become a real estate agent, you complete your state's pre-licensing course (40 to 180+ hours, depending on the state), pass the state license exam, and join a sponsoring broker. Most people are licensed in 2 to 6 months. Expect to spend about $500 to $2,000 on courses, exam, license, and startup fees.
- Time to start
- 2–6 months
- Typical cost
- $500–$2,000
- Median pay
- $52,830 per year (sales agents)
- Education
- High school diploma or GED
- License / certification
- State real estate salesperson license (required in every state)
- Job outlook
- +2% (2025–35), slower than average
Steps to become a real estate agent
Check your state's licensing rules
Every state licenses real estate agents, but the rules differ. Go to your state real estate commission's website and note the required pre-licensing hours, minimum age, background check rules, and exam vendor. Requirements range from 40 hours in Massachusetts to 180 hours in Texas.
Complete a pre-licensing course
Enroll in a state-approved pre-licensing course, online or in person. Courses cover property law, contracts, financing, agency, and fair housing. Many online courses let you go at your own pace, so a full-time student can finish faster than the state's minimum timeline suggests.
Pass the state real estate exam
Schedule your exam with your state's testing vendor, often PSI or Pearson VUE. Most state exams have a national section and a state-law section, and you must pass both. Use practice tests in the final two weeks and focus on the state section, where many people lose points.
Choose a sponsoring broker
New agents must work under a licensed broker. Interview at least three brokerages and compare commission splits, desk or monthly fees, training, and lead sources. In many states, you need a sponsoring broker before the license becomes active.
Apply for your license and background check
Submit your license application, fees, and fingerprints to the state. Some states require fingerprints before the exam, others after. Once approved, your license is assigned to your sponsoring broker.
Join the local association and MLS
To call yourself a REALTOR, you join a local association, which also makes you a member of the state association and the National Association of REALTORS. Membership is often how you get MLS access, which you need to list and search homes. Budget for annual dues and MLS fees.
Build your first pipeline
Tell everyone you know that you are licensed, and keep a simple contact list in a CRM. Hold open houses for agents in your office, and ask to shadow experienced agents on showings and listing appointments. Plan for several months before your first closing, since you are usually paid only when a deal closes.
Find a state-approved real estate pre-licensing course
Make sure the course is approved by your state's real estate commission; a cheaper course that is not approved will not count toward your license.
- Online self-paced pre-licensing course
- Live online or classroom pre-licensing course
- Pre-licensing bundle with exam prep
- Community college real estate courses
- Brokerage-sponsored licensing programs
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How much it costs and how long it takes
| Expense | Low | High | Note |
|---|---|---|---|
| Pre-licensing course | $100 | $1,000 | Online courses are usually the cheapest; in-person classes cost more. |
| State exam fee | $50 | $120 | Per attempt; retakes cost the same. |
| License application fee | $50 | $350 | Set by your state. |
| Fingerprints and background check | $40 | $90 | |
| Exam prep or practice tests | $0 | $200 | Optional, but many people buy them. |
| Association and MLS dues (first year) | $500 | $1,500 | Varies a lot by local market. |
| Errors and omissions insurance | $0 | $600 | Some brokerages include it; others pass the cost to agents. |
| Marketing and startup (cards, signs, website) | $100 | $1,000 | |
| Total | $840 | $4,860 | Timeline: 2–6 months |
Exams and how to prepare
State real estate salesperson exam
A multiple-choice exam with a national section (property ownership, contracts, financing, agency, valuation) and a state section (your state's license law and rules). Question counts and passing scores vary by state.
How to prepare: Finish your pre-licensing course, then take timed practice exams until you score well above the passing mark. Spend extra time on state law and real estate math.
Prepare for the state real estate exam
Exam prep packages with timed practice tests are the most useful add-on; pick one built for your state's exam vendor.
- State real estate salesperson exam (national and state sections)
Real Estate Agent salary and job outlook
Employment of real estate brokers and sales agents is projected to grow 2% from 2025 to 2035, slower than average, with about 40,400 openings each year.
Source: BLS Occupational Outlook Handbook, May 2025 data (real estate sales agents)
Printable PDF
Real Estate Agent Career Kit: 90-Day Action Plan
- 90-day action plan with checkboxes
- Documents checklist
- 12 interview questions with tips
- Resume lines, common mistakes, 13-week tracker
Frequently asked questions
How long does it take to become a real estate agent?
Most people get licensed in 2 to 6 months. The biggest factor is your state's required course hours, which range from about 40 to 180+. Exam scheduling and license processing add a few weeks.
How much does it cost to get a real estate license?
Plan on roughly $500 to $2,000 total. That covers the pre-licensing course, exam fee, license application, and fingerprints, plus first-year association and MLS dues. Costs depend heavily on your state and local board.
What is the difference between a real estate agent and a REALTOR?
A real estate agent holds a state license to help people buy and sell property. A REALTOR is a licensed agent who is also a member of the National Association of REALTORS and agrees to follow its Code of Ethics. You join through your local association.
Can I become a real estate agent without a degree?
Yes. Most states require only a high school diploma or GED plus the pre-licensing course. A degree in business or finance can help, but it is not required.
Is the real estate exam hard?
It is manageable with preparation, but many people fail on the first try. The state-law section and real estate math trip people up most. Take several full practice exams before test day.
How much do new real estate agents make?
The BLS median for sales agents was $52,830 in May 2025, but income in the first year is often much lower. Most agents are paid by commission, so you earn only when deals close. It can take several months to close your first transaction.
Can I be a real estate agent part time?
Yes, many agents start part time while keeping another job. The challenge is responding quickly to clients during work hours. Ask brokerages how they support part-time agents before you join.
Can I get a real estate license with a criminal record?
It depends on your state and the offense. Most states review applications case by case and consider how long ago it happened and whether it relates to honesty or fraud. Some commissions offer a pre-application review, so check before you pay for a course.
Sources
- BLS Occupational Outlook Handbook: Real Estate Brokers and Sales Agents
- National Association of REALTORS: How to Become a REALTOR
- California DRE: Salesperson License Requirements
- Texas State University: Texas 180-Hour Real Estate Pre-Licensing
- ARELLO: What Is ARELLO
Requirements vary by state and employer and can change. Confirm details with the official sources above before you spend money on training.