Last updated: February 2026 | Data sources: Bureau of Labor Statistics (BLS), National Association of Realtors (NAR), State Real Estate Commissions
How to Become a Real Estate Agent: Overview
Becoming a real estate agent is one of the fastest paths to a flexible, high-income career that doesn't require a college degree. According to the Bureau of Labor Statistics (BLS), the median annual wage for real estate sales agents is $56,320, with top performers earning well over $125,000 per year. The BLS projects 3% job growth for real estate agents from 2024 to 2034, with approximately 46,300 openings projected each year.
Whether you're looking for a career change, a side hustle, or a long-term entrepreneurial path, getting your real estate license is achievable in as little as 4-12 weeks depending on your state. Here's everything you need to know.
Quick Facts: Becoming a Real Estate Agent
| Detail | Info |
|---|---|
| Time to Get Licensed | 4-12 weeks (varies by state) |
| Education Required | High school diploma/GED (no college required) |
| Pre-Licensing Hours | 40-180 hours depending on state |
| Total Startup Cost | $500 - $3,000 |
| Exam Pass Rate | ~50-60% first attempt nationally |
| Median Salary | $56,320 (BLS, May 2024) |
| Top 10% Salary | $125,140+ |
| Minimum Age | 18-19 (varies by state) |
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Step 1: Meet Your State's Basic Requirements
Before you can begin the licensing process, you must meet a few basic eligibility requirements. These are straightforward in most states:
- Age: You must be at least 18 years old in most states (Alaska and Nebraska require 19)
- Residency: Most states require you to be a legal U.S. resident. Some states require state residency, while others allow out-of-state applicants
- Background check: Most states conduct a criminal background check. Felony convictions — especially for fraud, forgery, or financial crimes — can disqualify you
- Education: A high school diploma or GED is typically the only formal education required
The good news: No college degree is needed. Real estate is one of the highest-paying careers accessible without a four-year degree.
Step 2: Complete Pre-Licensing Education
Every state requires you to complete a certain number of hours of pre-licensing coursework from an approved provider before you can sit for the exam. The number of hours varies dramatically by state.
Pre-Licensing Hours by State (Major States)
| State | Required Hours | Avg. Course Cost | Key Notes |
|---|---|---|---|
| California | 135 hours | $200-$600 | 3 courses x 45 hours each |
| Texas | 180 hours | $300-$900 | 6 courses x 30 hours; most hours of any state |
| Florida | 63 hours | $150-$400 | Can complete in 2-3 weeks |
| New York | 77 hours | $200-$500 | Includes 75-hr salesperson course |
| Illinois | 75 hours | $200-$500 | Includes 15 hours of applied topics |
| Ohio | 120 hours | $300-$600 | Includes 40 hours real estate law |
| Pennsylvania | 75 hours | $200-$500 | 4 courses required |
| Georgia | 75 hours | $200-$400 | Includes 25 hours of post-license |
| Arizona | 90 hours | $200-$500 | 6 modules |
| Michigan | 40 hours | $150-$300 | One of the lowest requirements |
| Colorado | 168 hours | $400-$800 | Includes contracts and closings |
| Virginia | 60 hours | $200-$400 | Principles and practices |
Course format options:
- Online self-paced: Most flexible; complete on your schedule ($100-$500)
- Online live/virtual: Instructor-led via Zoom or similar ($200-$600)
- In-person classroom: Traditional format at approved schools ($300-$900)
- Hybrid: Combination of online and classroom ($200-$700)
Pro tip: Choose an accredited school and complete your hours as quickly as possible. The longer you stretch your coursework, the more you'll forget before the exam. Many agents complete their hours in 2-6 weeks with focused effort.
Step 3: Pass the Real Estate Licensing Exam
This is where most aspiring agents stumble. The national first-time pass rate is only about 50-60%, meaning nearly half of all test-takers fail on their first try. Proper preparation is essential.
Exam Format
The real estate exam consists of two parts:
| Component | Details |
|---|---|
| National Portion | 80-100 multiple-choice questions covering property ownership, land use, valuation, contracts, financing, agency, and fair housing |
| State Portion | 30-50 state-specific questions on local laws, regulations, and practices |
| Passing Score | Typically 70-75% on each section (varies by state) |
| Time Limit | 2-4 hours total (varies by state) |
| Format | Computer-based at a Pearson VUE or PSI testing center |
| Cost | $50-$150 per attempt |
Pass Rates by State
| State | First-Time Pass Rate | Notes |
|---|---|---|
| Texas | ~56-59% | Considered one of the harder exams |
| California | ~50% | Low pass rate due to volume and difficulty |
| Florida | ~50-55% | High failure rate on state portion |
| New York | ~55-60% | Moderate difficulty |
| Illinois | ~60% | Slightly above national average |
| Ohio | ~65% | Higher pass rate |
What's on the Exam
National section topics:
- Property ownership and land use (15-20%)
- Laws of agency and fiduciary duties (12-15%)
- Contracts and agreements (12-15%)
- Real estate financing (10-12%)
- Property valuation and market analysis (10-12%)
- Transfer of property title (8-10%)
- Fair housing and civil rights (8-10%)
- Real estate math (10-15%)
State section topics vary but typically include:
- State licensing requirements
- State-specific contract forms
- Local real estate practices
- State environmental regulations
- State fair housing laws
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Step 4: Apply for Your License
Once you pass the exam, you'll need to apply for your license through your state's real estate commission:
- Submit your application — Available online in most states
- Provide proof of education — Your school will usually report this automatically
- Pass a background check — Fingerprinting required in most states (allow 2-4 weeks)
- Pay the license fee — Typically $50-$300 depending on the state
- Receive your license — Processing takes 1-4 weeks in most states
Total Costs to Get Licensed
| Cost Category | Range | Notes |
|---|---|---|
| Pre-licensing education | $100-$900 | Online is cheapest; Texas is most expensive due to 180 hours |
| Exam fee | $50-$150 | Per attempt; budget for a retake |
| License application | $50-$300 | One-time fee |
| Background check/fingerprinting | $30-$100 | Required in most states |
| Study materials | $0-$200 | Free with OpenExamPrep! |
| Total | $230-$1,650 | Most agents spend $500-$1,000 |
First-Year Operating Expenses (Beyond Licensing)
Most new agents are shocked by the ongoing costs of running their business. Beyond the $500-$1,650 to get licensed, expect to spend an additional $5,000-$15,000 in your first year:
| Expense | Annual Cost | Notes |
|---|---|---|
| Realtor association dues | $600-$1,500 | Local + state + NAR ($201 national) |
| MLS fees | $150-$600 | Required to list and search properties |
| Desk/office fees | $0-$2,100 | eXp: $85/mo; KW: $75-$175/mo; RE/MAX: $300-$2,500/mo |
| E&O insurance | $100-$665 | Required in many states; protects against claims |
| Marketing | $1,000-$5,000 | Business cards, signs, website, social media |
| Technology (CRM) | $240-$2,160 | Contact management, transaction tools |
| Vehicle/gas | $3,000-$6,000 | Showings, open houses, client meetings |
| Total first-year operations | $5,000-$15,000+ | On top of licensing costs |
This is why choosing the right brokerage matters. Some brokerages absorb many of these costs while others pass them directly to you.
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Step 5: Join a Brokerage
New agents cannot work independently — you must "hang" your license with a licensed real estate brokerage. Choosing the right brokerage is one of the most important decisions you'll make in your first year.
What to Look for in a Brokerage
| Factor | Questions to Ask |
|---|---|
| Training program | Do they offer mentorship and structured training for new agents? |
| Commission split | What's the starting split? How does it improve over time? |
| Fees | Are there monthly desk fees, technology fees, or franchise fees? |
| Lead generation | Do they provide leads, or are you fully responsible? |
| Brand recognition | Will the brokerage name help you win listings? |
| Culture | Do they support collaboration or is it competitive? |
| Technology | What CRM, website, and marketing tools do they provide? |
Common Brokerage Types
| Brokerage | Commission Split | Cap | Monthly Fees | Best For |
|---|---|---|---|---|
| Keller Williams | 70/30 (agent/broker) | $15K-$36K + $3K franchise | $75-$175/mo | New agents: excellent Ignite training program |
| Coldwell Banker | 50/50 → up to 90/10 | No cap (stay on split) | ~$110/mo + 6% royalty | New agents wanting brand recognition |
| RE/MAX | 95/5 (or RAPP: 60/40 → 95/5) | ~$23K | $300-$2,500/mo (high) | High-volume agents who can cover steep desk fees |
| eXp Realty | 80/20 (everyone) | $16K/yr | $85/mo cloud fee | Tech-savvy agents comfortable with virtual model |
| Century 21 | 50/50 → 70/30 | Varies | Varies + 6% franchise | Agents seeking balance of support and splits |
| Compass | 70/30 → 90/10+ (negotiable) | Varies | Varies by market | Experienced agents; luxury market |
| Redfin | Salary + bonuses (not traditional) | N/A | No fees | New agents wanting guaranteed income + benefits |
Step 6: Launch Your Career
Once you've joined a brokerage, here's what your first 90 days should look like:
First 30 Days
- Complete any brokerage onboarding and training
- Set up your CRM and contact database
- Announce your new career on social media and to your personal network
- Start attending open houses (even other agents' listings) to learn
- Join your local MLS and Realtor association
Days 30-60
- Begin prospecting: call your sphere of influence, door knock, attend community events
- Shadow experienced agents on listings and showings
- Start building your online presence (website, social media, Google Business Profile)
- Consider specializing in a niche (first-time buyers, condos, luxury, etc.)
Days 60-90
- Aim to have your first client under contract
- Develop a consistent daily prospecting routine
- Start tracking your leads and conversion rates
- Invest in professional headshots and marketing materials
License Reciprocity: Working in Multiple States
If you plan to work in more than one state, understanding license reciprocity is important. Some states have agreements that allow licensed agents to obtain a license in another state with reduced requirements:
- Full reciprocity states — Waive the national exam portion; you may only need to pass the state-specific portion. Examples: states with cooperative agreements like Pennsylvania, Colorado, and others
- Partial reciprocity — May reduce education or exam requirements but not eliminate them
- No reciprocity — You must complete all requirements from scratch (e.g., California does not offer reciprocity)
Tip: If you live near a state border, check both states' reciprocity agreements before choosing where to get licensed first. Some agents hold licenses in 2-3 states to maximize their market.
Real Estate Agent vs. Real Estate Broker: What's the Difference?
Many people confuse agents and brokers. Here's how they differ:
| Factor | Real Estate Agent | Real Estate Broker |
|---|---|---|
| License level | Salesperson license | Broker license (higher level) |
| Experience required | None | 2-3+ years as an agent (varies by state) |
| Additional education | Pre-licensing hours only | Additional broker-level coursework (60-200+ hours) |
| Can work independently? | No — must work under a broker | Yes — can own a brokerage |
| Can hire agents? | No | Yes |
| Median salary | $56,320 | $72,280 |
| Typical path | Entry-level position | Career advancement after experience |
Many successful agents eventually pursue their broker license to open their own firm or earn higher splits.
How Much Do Real Estate Agents Make?
Real estate income varies enormously based on effort, market, and experience:
| Experience Level | Typical Annual Income | Transactions/Year |
|---|---|---|
| Year 1 | $10,000-$35,000 | 2-5 |
| Years 2-3 | $35,000-$65,000 | 5-10 |
| Years 4-5 | $65,000-$100,000 | 10-18 |
| Years 6-10 | $100,000-$175,000 | 18-30 |
| 10+ years | $175,000-$500,000+ | 30-60+ |
BLS salary data (May 2024):
- Median salary: $56,320
- Top 10%: $125,140+
- Bottom 10%: Under $31,940
- Job growth: 3% (2024-2034) — about as fast as average
- Annual openings: ~46,300
The Honest First-Year Reality
Before you quit your day job, know this:
- 75% of new agents quit within their first year (NAR). Only ~13% survive past 5 years
- Average time to first closing: 2-6 months — that's 2-6 months with zero income
- Commission delays: Even after a sale closes, you may wait 1-2 days for payment. The timeline from finding a client → accepted offer → closing → your paycheck is typically 3-5 months
- Average first-year income: $10,000-$35,000 — well below the median, because it takes time to build a client base
- You are a 1099 independent contractor — meaning you pay self-employment tax (~15.3%) on top of income tax, and no benefits are provided
This isn't meant to discourage you — it's meant to prepare you. The agents who succeed are those who have 3-6 months of living expenses saved, treat real estate as a full-time business from day one, and don't expect overnight success.
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State-Specific Exam Prep
Every state has different exam content. We offer free practice tests tailored to each state:
| State | Exam Prep Link |
|---|---|
| California | FREE CA Real Estate Exam Prep --> |
| Texas | FREE TX Real Estate Exam Prep --> |
| Florida | FREE FL Real Estate Exam Prep --> |
| New York | FREE NY Real Estate Exam Prep --> |
| All 50 States | Browse All State Exams --> |
Tips for Passing the Real Estate Exam on Your First Try
Based on thousands of successful students, here are the top strategies:
- Start practicing early — Begin practice questions while you're still in your pre-licensing course, not after
- Focus on your weak areas — Use AI-powered practice to identify and target topics where you struggle
- Learn real estate math — Math questions trip up many test-takers. Practice calculations for commissions, property tax, loan-to-value ratios, and prorations
- Study state-specific laws — The state portion often has the lowest pass rate. Don't neglect it
- Take full-length practice exams — Simulate test conditions with timed practice tests
- Understand concepts, don't memorize — The exam tests application, not rote memorization
- Review wrong answers — Every wrong answer is a learning opportunity. Use AI to understand the reasoning
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Frequently Asked Questions
Is it hard to become a real estate agent?
The process itself is straightforward — complete education, pass the exam, join a brokerage. The hardest part is passing the licensing exam, which has a ~50-60% first-time pass rate nationally. With proper preparation, most people can pass on their first attempt.
How long does it take to become a real estate agent?
From start to finish, most people can get licensed in 4-12 weeks. States with fewer required hours (like Michigan at 40 hours) can be completed faster, while states like Texas (180 hours) take longer.
How much does it cost to become a real estate agent?
Total startup costs typically range from $500 to $1,650, including pre-licensing education ($100-$900), exam fee ($50-$150), license application ($50-$300), and background check ($30-$100). You can save money by using free exam prep resources.
Do I need a college degree to become a real estate agent?
No. A high school diploma or GED is the only education requirement in all 50 states. Real estate is one of the highest-paying careers that doesn't require a college degree.
Can I be a part-time real estate agent?
Yes, many agents start part-time while maintaining other employment. However, be aware that part-time agents typically earn significantly less. NAR data shows that agents working 60+ hours per week earn roughly three times more than those working under 20 hours.
What's the difference between a Realtor and a real estate agent?
All Realtors are real estate agents, but not all agents are Realtors. A "Realtor" is a member of the National Association of Realtors (NAR) who has agreed to follow the NAR Code of Ethics. Membership is optional but common — about 1.5 million of the approximately 2 million licensed agents in the U.S. are NAR members.
Start Your Real Estate Career Today
The path to becoming a real estate agent is clear: complete your education, pass the exam, and join a brokerage. The only question is when you'll start.
Your FREE exam prep resources:
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