Step-by-Step Guide to Becoming a Real Estate Agent

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A real estate agent in the U.S. needs a state license. To get one, you meet your state’s basic eligibility rules, complete a state-approved pre-licensing course, pass the state licensing exam, apply for and activate your license, and then work under a licensed brokerage. Joining the National Association of Realtors (NAR) to call yourself a Realtor is optional and comes after licensing. The order of steps is similar everywhere, but the details (hours, fees, passing scores, background checks) are set by each state.

Requirements to Start Your Real Estate Career

Before you sign up for a course, confirm that you meet your state’s baseline requirements. These tend to look similar across the country:

• Minimum age: 18 in most states, 19 in Alabama, Alaska and Nebraska.
• Legal status: You must be a U.S. citizen or a lawful resident.
• Education: A high school diploma or equivalent is the usual minimum before you take the pre-licensing course or the exam. A college degree is generally not required.

Many states also require fingerprinting and a background check with the license application. Since that step comes near the end, read your state’s rules on prior convictions first, so you don’t pay for a course before learning whether something in your history needs disclosure or review.

Licensing is state by state. A license from one state does not let you sell property in another. If you live near a state line or plan to move, you would need to meet the requirements and become licensed in each state where you intend to practice. Some states have agreements that shorten the process for agents licensed elsewhere, so check the rules of the second state directly.

Step 1: Take a Real Estate Pre-Licensing Course

The pre-licensing course is the required education that qualifies you to sit for the exam. It covers the knowledge you’ll be tested on and the basics you’ll use with clients. Typical subjects include:

• Fundamental real estate principles
• Financing and ethics
• Real estate contracts
• Property law

The course must be approved by your state. Your state’s real estate commission or licensing department usually lists approved schools on its website. Courses are offered in classrooms and online, and online programs suit people who are working or switching careers. Not every school covers every state, so confirm the provider is approved where you’ll be licensed.

Hours and cost vary. Required course length depends entirely on the state. New Jersey requires 75 hours, for example, while Wyoming requires 45. Course costs also depend on the state and the school, with an average range of roughly $300 to $600.

Step 2: Pass the Real Estate Licensing Exam

After you complete the course, you can register for the state exam. Each state charges its own exam fee. New York charges $15 and Texas charges $43, for example. Optional exam prep, such as practice question banks or review courses, typically costs $50 to $125 depending on where you live. Free practice tests are also available and can show you which topics need more review.

The exam is multiple-choice and usually has about 100 to 150 questions split into two parts:

• National section: general real estate topics such as ownership, property descriptions, liens and how brokerages operate.
• State section: the laws, rules and regulations of the state where you are testing.

Across both sections you can expect questions on appraisals, property management, property titles and contract law. Depending on the state, you need a score of 70% or 75% to pass. If you fail, you can usually retake the exam after a few days, though each attempt generally means paying the exam fee again.

Step 3: Finalize and Activate Your Real Estate License

Passing the exam doesn’t give you a license on its own. You still have to apply to the licensing department of the state where you tested. That usually means:

1. Submitting the license application and any required documents, such as proof of course completion and exam results.
2. Getting fingerprinted and completing a background check, if your state requires it.
3. Paying the initial license fee, which varies by state. North Dakota charges $20 and Idaho charges $160, for example.

Once the state approves your application, you receive your license and can begin working as an agent, typically once a sponsoring broker is in place (see Step 4). The license has to stay active. States require continuing education (CE) to renew, and the number of hours and the renewal cycle differ, so look up your state’s CE requirement as soon as you’re licensed and plan for it.

What the upfront costs can add up to

These figures come from different states, so they can’t be added up as one state’s real cost. A hypothetical example shows how the pieces combine:

Your actual total depends on your state’s fees, your school, whether you buy prep materials, and whether you need to retake the exam. Fingerprinting, brokerage fees and association dues can add to it.

Step 4: Join a Real Estate Brokerage

A newly licensed agent (often called a salesperson) generally works under a licensed broker who supervises transactions and holds the agent’s license. Choosing that brokerage is one of the biggest decisions in your first year, because it shapes how you’re trained, how you’re paid and what support you get.

A good brokerage gives you mentorship, a team to learn from, and guidance on how transactions work in practice, including the legal and ethical rules you must follow. When comparing firms, look at:

• The firm’s reputation in your local market
• How long it has been in operation
• Who is on the team and who would be mentoring you
• The size and reach of its network
• The specializations it offers (residential, commercial, rentals and so on)

Once you’ve narrowed the list, talk with team leaders about the terms: how you’ll be compensated, what costs you’re expected to cover, what training is included, and what room there is to grow.

You’ll be paid on commission, not salary. Agents earn a share of the commission on each closed sale, split with the brokerage under the terms of your agreement. One industry estimate put the average total commission at 5.32% of the sale price, with an average of 2.74% to the listing agent and 2.58% to the buyer’s agent. Rates are negotiable and vary by market and deal, so treat them as a reference point rather than a guaranteed figure. Commission income means you may go weeks or months without pay while you build a client base, so an emergency fund and a basic budget help before you leave other work.

Step 5: Consider Becoming a Realtor

“Realtor” is not another word for agent. It is a trademarked term for members of the National Association of Realtors, the largest real estate trade association in the U.S. All Realtors are real estate professionals, but not every licensed agent is a Realtor.

Membership is voluntary. It gives you access to NAR resources, tools, marketing support and professional development. In exchange, you must follow NAR’s Code of Ethics and standards of practice. Many brokerages expect their agents to join, so ask about this when you interview. For a fuller comparison of the titles, see Realtor vs. real estate agent vs. broker.

Moving up to broker

A broker license is a separate, higher credential that lets you run your own brokerage and supervise other agents. States typically require several years of experience as a licensed agent, additional coursework and a separate exam, so if owning a firm is your goal, check your state’s broker requirements early.

How Hard Is It to Become a Real Estate Agent?

The licensing process itself is manageable for most people who meet the eligibility rules. There’s no degree requirement, the course is measured in dozens of hours rather than years, and the exam can be retaken. The harder part tends to come after licensing: finding clients, managing irregular income and learning to handle negotiations and contracts in real deals.

The career’s main attractions follow directly from how it works:

• Flexible schedule: You can often arrange your hours around other commitments, though client showings frequently fall on evenings and weekends.
• Uncapped earnings: Because pay is commission-based, income rises with the number and value of deals you close. The same structure means income can be low or zero for stretches.
• Independence: You can work largely on your own or as part of a team within a brokerage.
• Networking: Each transaction introduces you to buyers, sellers, lenders and other professionals who can become future referrals.

Other Career Paths in Real Estate

A license, or real estate knowledge more broadly, can lead to roles beyond selling homes:

• Agricultural, commercial, industrial or residential brokerage
• Home inspector
• Developer
• Leasing consultant
• Mortgage broker
• Property manager
• Real estate appraiser
• Real estate counselor
• Real estate researcher
• Urban planner

Many of these need extra education, experience or a separate license. Appraisal work can call for accounting knowledge, for example, and industrial brokerage requires a working understanding of zoning laws.

The Bottom Line

Anyone considering a move into real estate sales can expect a short, affordable licensing path with no degree requirement. Check your state's rules on hours, fees and prior convictions before paying for a course. Because agents earn commission instead of salary, choose a brokerage with strong mentorship and build an emergency fund to cover the months it can take to close your first deals.