Last updated: October 2026 | Data sources: Bureau of Labor Statistics (BLS), state real estate commissions, exam vendors and the IRS
How to Become a Real Estate Agent: Overview
You can become a real estate agent without a college degree: the BLS says agents typically need a high school diploma or equivalent plus a state license. According to the Bureau of Labor Statistics (BLS), the median annual wage for real estate sales agents was $52,830 in May 2025, with the top 10% earning more than $123,590 per year. The BLS projects 2% job growth for real estate brokers and sales agents from 2025 to 2035, with approximately 40,400 openings projected each year.
Whether you're looking for a career change, a side hustle, or a long-term entrepreneurial path, how long licensing takes depends mostly on your state's education requirement. Here's everything you need to know.
Quick Facts: Becoming a Real Estate Agent
| Detail | Info |
|---|---|
| Education Required | State pre-licensing courses; some states, such as Ohio, also require a high school diploma or equivalent |
| Pre-Licensing Hours | Varies by state (for example, 40 in Michigan and 180 in Texas) |
| Startup Cost Example | Texas: $301 in TREC and exam fees before tuition |
| National Exam | Usually 80 scored questions (Pearson VUE; PSI in states such as Ohio) |
| Median Salary | $52,830 (BLS, May 2025) |
| Top 10% Salary | $123,590+ |
| 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 (some, such as 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: Some states, such as Ohio, require a high school diploma or equivalent; California lists no diploma requirement but requires three college-level real estate courses. Every state also requires pre-licensing education (Step 2)
The good news: You do not need a college degree; the BLS says agents typically need a high school diploma or equivalent.
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 | Key Notes |
|---|---|---|
| California | 135 hours | 3 courses x 45 hours each |
| Texas | 180 hours | 60 hours of Principles plus four 30-hour courses (TREC Rule 535.55) |
| Florida | 63 hours | Course I (Sales Associate Pre-License) |
| New York | 77 hours | Salesperson qualifying education |
| Illinois | 75 hours | Includes 15 hours of applied topics |
| Ohio | 100 hours | 40 principles and practices, 40 Ohio law, 10 appraisal, 10 finance |
| Pennsylvania | 75 hours | Salesperson pre-licensing courses |
| Georgia | 75 hours | Plus a separate 25-hour post-license course due within one year of licensing |
| Arizona | 90 hours | Pre-licensing course |
| Michigan | 40 hours | One of the lowest requirements |
| Colorado | 168 hours | Includes contracts and closings |
| Virginia | 60 hours | Principles and practices |
Course format options:
- Online self-paced: Most flexible; complete on your schedule
- Online live/virtual: Instructor-led via Zoom or similar
- In-person classroom: Traditional format at approved schools
- Hybrid: Combination of online and classroom
Course prices are set by each school, so compare a few state-approved providers.
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.
Step 3: Pass the Real Estate Licensing Exam
Pass rates are reported by individual states rather than nationally, and proper preparation is essential.
Exam Format
In most states the real estate exam has two parts (California's DRE exam is a single test):
| Component | Details |
|---|---|
| National Portion | Usually 80 scored multiple-choice questions covering property ownership, land use, valuation, contracts, financing, agency, and fair housing |
| State Portion | State-specific questions on local laws, regulations, and practices (for example, 30 in Maryland and 40 in Ohio) |
| Passing Score | Typically 70-75% on each section (varies by state) |
| Time Limit | Varies by state (for example, 120 minutes for both portions in Maryland and 240 minutes in Texas) |
| Format | Multiple choice; most states test at a Pearson VUE or PSI center, while California's DRE and New York's Department of State run their own exams |
| Cost | Varies by state (for example, $44 in Maryland) |
Pass Rates
Pass rates are reported by individual states, so check your state real estate commission for current figures.
What's on the Exam
National section topics (PSI salesperson outline):
- Property ownership (10%)
- Land use controls (5%)
- Agency (13%)
- Contracts (19%)
- Financing (10%)
- Valuation (8%)
- Transfer of title (6%)
- Practice of real estate, including fair housing (12%)
- Property disclosures (7%)
- Property management (3%)
- Real estate calculations (7%)
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
Candidates who pass put in the practice with exam-style questions. Our FREE practice tests cover the national exam topics. Start Practicing Now --> — AI explains every wrong answer so you learn from mistakes.
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 is required in many states
- Pay the license fee — set by your state (for example, $206 for a Texas sales agent application)
- Receive your license — Processing times vary, so check your commission's current processing times
Total Costs to Get Licensed
| Cost Category | Amount | Notes |
|---|---|---|
| Pre-licensing education | Set by each school | Texas requires the most hours (180) |
| Exam fee | Varies (e.g., $44 in Maryland) | Per attempt; budget for a retake |
| License application | Varies (for example, $206 in Texas) | One-time fee |
| Background check/fingerprinting | Varies (for example, $37 in Texas) | Required in most states |
| Study materials | $0 with OpenExamPrep | Paid courses vary |
| Texas example | $301 + tuition | $206 application + $58 exam + $37 fingerprints (TREC) |
First-Year Operating Expenses (Beyond Licensing)
After you are licensed, expect ongoing costs such as association and MLS dues, E&O insurance where your state requires it, marketing, technology and vehicle costs. Ask your brokerage and local association for current amounts.
This is why choosing the right brokerage matters. Some brokerages absorb many of these costs while others pass them directly to you.
Why pay $200+ for a study course? Everything you need to pass is here — for free. Real exam questions, AI explanations, personalized study plans. Start FREE Real Estate Exam Prep --> — No credit card, no catch.
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? |
Comparing Brokerage Offers
Commission splits, caps, franchise fees and monthly fees differ by brokerage and by office, and they change often. Ask each brokerage you interview for its current split, cap and fee schedule in writing, then compare them side by side with the training each one offers.
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:
- Broad recognition — Some states accept licensees from any state with limited requirements. Colorado, for example, accepts applicants licensed in any U.S. state or territory with limited examination and/or pre-licensing education
- 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 | Usually at least 2 years as an agent (BLS; varies by state) |
| Additional education | Pre-licensing hours only | Additional broker-level coursework (hours vary by state) |
| Can work independently? | No — must work under a broker | Yes — can own a brokerage |
| Can hire agents? | No | Yes |
| Median salary | $52,830 | $73,220 |
| 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 depends on your market, effort and experience, and no official source publishes income by years in the business. The BLS wage data is the best published benchmark.
BLS salary data (May 2025):
- Median salary: $52,830
- Top 10%: $123,590+
- Bottom 10%: Under $32,970
- Job growth: 2% (2025-2035) — slower than average
- Annual openings: ~40,400
The Honest First-Year Reality
Before you quit your day job, know this:
- Irregular income: The BLS notes that earnings may be irregular, especially for beginners, and agents sometimes go weeks or months without a sale
- Commission arrives after closing: You are paid only when a sale closes, so the time from finding a client to your first paycheck can run for months
- You are usually an independent contractor — meaning you pay self-employment tax (15.3% on 92.35% of net earnings, per the IRS) 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.
Your first commission check starts with passing the exam. Every week you delay is a week of lost income. Start FREE Exam Prep Today -->
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
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 — You must pass the state portion separately. 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
Our AI doesn't just quiz you — it coaches you. It learns which topics you struggle with and creates daily practice sets targeting your weakest areas. Think of it as a personal tutor that's available 24/7. Try It FREE -->
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. For many people, the hardest part is passing the licensing exam. With proper preparation, you can pass on your first attempt.
How long does it take to become a real estate agent?
No official source publishes a typical timeline. 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?
Startup costs depend on the state. In Texas, for example, TREC lists a $206 application fee, a $58 exam fee and a $37 fingerprint fee before tuition, and PSI charges $44 for Maryland's exam and $66 for both portions in Ohio. You can save money by using free exam prep resources.
Do I need a college degree to become a real estate agent?
No. The BLS says agents typically need a high school diploma or equivalent. Every state requires pre-licensing education; some states, such as Ohio, also require a high school diploma or equivalent, while California requires three college-level real estate courses and lists no diploma requirement.
Can I be a part-time real estate agent?
Yes, many agents start part-time while maintaining other employment. A part-time schedule limits how many clients you can serve, and you still need a sponsoring broker who accepts part-time agents.
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.
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:
- National Real Estate Exam Prep --> — Practice questions covering all national exam topics
- California Exam Prep --> | Texas Exam Prep --> | Florida Exam Prep --> | New York Exam Prep -->
- All Exam Prep Resources --> — Browse all 150+ free exam prep courses
What you get — 100% free:
- Thousands of practice questions covering every exam topic
- AI-powered explanations for every wrong answer
- Personalized study plans that adapt to your weak areas
- Progress tracking so you know when you're ready
- Mobile-friendly — study anywhere, anytime
The median agent earned $52,830 in May 2025 (BLS) — and the top 10% earned more than $123,590. Your real estate career starts with one exam. Start Your FREE Practice Test Now --> — 100% free, forever.
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