A real estate agent is a licensed professional who helps buyers, sellers, and renters navigate property transactions. Agents work under a licensed broker, earning income through commissions on completed sales. Day-to-day responsibilities include meeting with clients, scheduling and hosting property showings, marketing listings, negotiating offers, preparing contracts, and guiding transactions through to closing.
Real estate is one of the most accessible professional careers in the United States. You don’t need a college degree, and in most states you can go from zero experience to a licensed agent in under six months. The trade-off is that income is entirely commission-based — you eat what you kill — and the first year is often the hardest financially.
This guide covers exactly what it takes to get licensed, what it costs, how long it takes, and what you can realistically expect to earn.
How to Become a Real Estate Agent: Step by Step
Step 1: Confirm You Meet Your State’s Basic Eligibility Requirements
Every state sets its own licensing requirements, but the baseline is similar across the country. You must be at least 18 years old (19 in some states like Alabama and Alaska), a legal U.S. resident, and in most states you’ll need a high school diploma or GED. Many states also require a background check and fingerprinting as part of the application process. A criminal record doesn’t automatically disqualify you, but convictions related to fraud, theft, or dishonesty may affect your eligibility depending on the state.
Step 2: Complete Your State’s Pre-Licensing Education
Before you can sit for the licensing exam, you must complete a state-approved pre-licensing course. The number of required hours varies dramatically by state — from as few as 40 hours in Massachusetts and Michigan to 180 hours in Texas. Most states fall in the 60–90 hour range.
These courses cover real estate law, property ownership, contracts, financing, ethics, and state-specific regulations. You can complete them online (self-paced), via live-stream classes, or in person at an accredited real estate school. Online programs tend to be more affordable and flexible.
Pre-licensing hours for the 10 largest states:
| State | Pre-Licensing Hours | Minimum Age |
|---|---|---|
| California | 135 hours | 18 |
| Texas | 180 hours | 18 |
| Florida | 63 hours | 18 |
| New York | 77 hours | 18 |
| Pennsylvania | 75 hours | 18 |
| Illinois | 90 hours | 18 |
| Ohio | 100 hours | 18 |
| Georgia | 75 hours | 18 |
| North Carolina | 75 hours | 18 |
| Michigan | 40 hours | 18 |
Step 3: Pass the State Licensing Exam
After completing your coursework, you’ll register for and take your state’s real estate licensing exam. The exam is typically administered by a third-party testing provider like PSI or Pearson VUE and consists of two sections: a national portion covering general real estate principles and a state-specific portion covering local laws and regulations.
The exam is multiple choice and takes between 90 minutes and three hours depending on your state. Pass rates hover around 50–60% on the first attempt nationally, so dedicated exam prep is important. Many pre-licensing course providers offer exam prep packages that include practice tests and study guides.
If you don’t pass on your first attempt, most states allow retakes, though you’ll pay the exam fee again each time.
Step 4: Submit Your License Application
After passing the exam, submit your application to your state’s real estate commission or licensing authority. This includes your exam results, proof of education, background check results (if not already submitted), and the application fee. Processing times vary but typically take two to four weeks.
Step 5: Find a Sponsoring Broker
In every state, newly licensed agents must work under a licensed real estate broker. You cannot operate independently as a new agent. Choosing the right brokerage is one of the most important early career decisions you’ll make — consider the commission split structure, training and mentorship programs, brand recognition, and the office culture. Some brokerages charge desk fees or monthly fees; others operate on a pure commission split model.
Step 6: Launch Your Business
Once you’re licensed and affiliated with a broker, you can legally represent buyers and sellers. Most new agents spend their first months building their client base through prospecting, networking, open houses, and marketing. Plan to invest in business cards, a professional headshot, a personal website, and marketing materials. Many agents also join the National Association of Realtors (NAR) to gain access to the MLS and earn the “Realtor” designation.
Education Requirements
A college degree is not required to become a real estate agent in any U.S. state. The only mandatory education is the pre-licensing coursework, which ranges from 40 to 180 hours depending on your state.
That said, many successful agents hold degrees in business, marketing, finance, or communications, and these backgrounds can provide a competitive edge in client relations, negotiation, and market analysis. If you have completed law school or passed the bar exam, some states allow you to bypass part or all of the pre-licensing education requirement.
After getting your initial license, you’ll also face ongoing education requirements. Most states require continuing education (CE) credits for license renewal, typically 10–30 hours every one to four years depending on the state. Some states also require a post-licensing course within your first year.
Certification & Licensing Overview
Real estate is a state-licensed profession — there is no national real estate license. Each state has its own real estate commission that sets licensing requirements, administers exams, and regulates the profession.
The licensing process follows the same general structure in every state: pre-licensing education → state exam → application → broker sponsorship. The specifics (hours, fees, exam format) differ.
Some agents pursue additional voluntary certifications to specialize or boost credibility:
- Realtor designation — Membership in the National Association of Realtors (NAR), which requires adhering to a code of ethics. NAR dues are approximately $200 per year.
- Accredited Buyer’s Representative (ABR) — For agents specializing in buyer representation.
- Seller Representative Specialist (SRS) — For agents focusing on listings and seller clients.
- Certified Residential Specialist (CRS) — An advanced designation for experienced agents with high transaction volume.
For state-specific licensing details, see our state guides below.
How Long Does It Take?
Most people can go from starting their pre-licensing course to holding an active real estate license in two to six months. The primary variable is your state’s education requirement and the pace at which you study.
Here’s a realistic timeline breakdown:
- Pre-licensing education: 2–12 weeks (depending on hours required and whether you study full-time or part-time)
- Exam preparation: 1–2 weeks
- Exam scheduling and taking: 1–2 weeks
- Application processing and background check: 2–4 weeks
- Finding a broker: 1–2 weeks (can overlap with application processing)
In a state with lower hour requirements (like Michigan at 40 hours), a motivated person studying full-time could be licensed in as little as 6–8 weeks. In Texas, with 180 hours of required coursework, plan for four to six months.
How Much Does It Cost?
The total cost to get licensed typically falls between $500 and $1,500, depending on your state and the education provider you choose. Here’s the breakdown:
| Expense | Typical Range |
|---|---|
| Pre-licensing courses | $200 – $1,000 |
| State exam fee | $40 – $200 per attempt |
| Background check & fingerprinting | $30 – $100 |
| License application fee | $125 – $300 |
| Total licensing cost | $500 – $1,500 |
Beyond the licensing costs, plan for these first-year business expenses:
| Expense | Typical Range |
|---|---|
| Realtor association & MLS dues | $200 – $1,000/year |
| Errors & Omissions (E&O) insurance | $50 – $100/month |
| Marketing & business setup | $1,500 – $3,000/year |
| Continuing education | $50 – $300/year |
Keep in mind that most new agents have minimal income for the first three to six months while they build their pipeline. Having a financial cushion or a part-time income source during this period is strongly recommended.
Real Estate Agent Salary & Job Outlook
According to the U.S. Bureau of Labor Statistics (BLS), the median annual wage for real estate sales agents was $56,320 in May 2024. The lowest 10% earned less than $31,940, while the highest 10% earned more than $125,140.
For real estate brokers (who hold a higher-level license and can operate independently), the median was $72,280.
Income varies enormously based on experience, location, hours worked, and whether you work full- or part-time. According to the National Association of Realtors, agents with two years or less of experience typically earn under $10,000 annually, while those with 16+ years of experience average around $78,900. The first-year income reality is one of the most important things to understand before entering this field.
Top-paying states for real estate sales agents (BLS data):
| State | Average Annual Wage |
|---|---|
| New York | $83,560+ |
| Massachusetts | $79,060+ |
| Colorado | $79,610+ |
| New Jersey | $82,090+ |
| Connecticut | $75,000+ |
Job outlook: The BLS projects employment of real estate brokers and sales agents to grow 3% from 2024 to 2034, roughly matching the average for all occupations. Approximately 46,300 openings are projected each year over the decade, driven primarily by the need to replace agents who leave the profession. About 420,900 real estate sales agents were employed nationwide in 2024.
Related Careers
If you’re interested in real estate but want to explore your options, these related careers share similar skills and interests:
- Real Estate Broker — The next step up from agent, requiring additional experience and education. Brokers can operate independently and manage other agents.
- Property Manager — Manages rental properties on behalf of owners, handling maintenance, tenant relations, and rent collection. Median salary: $66,700 (BLS, 2024).
- Mortgage Loan Officer — Works with borrowers to secure home financing. Requires separate licensing (NMLS).
- Real Estate Appraiser — Assesses property values for sales, lending, and tax purposes.
- Home Inspector — Evaluates property condition for buyers prior to purchase.
Frequently Asked Questions
Do you need a college degree to become a real estate agent? No. No U.S. state requires a college degree to become a licensed real estate agent. You need to complete your state’s pre-licensing education course (typically 40–180 hours depending on the state), pass the licensing exam, and work under a licensed broker. A high school diploma or GED is required in most states.
How much does it cost to become a real estate agent? The total cost to get licensed ranges from about $500 to $1,500 depending on your state. This covers pre-licensing courses ($200–$1,000), the state exam fee ($40–$200), background check and fingerprinting ($30–$100), and the license application fee ($125–$300). Budget an additional $2,000–$4,000 for first-year business expenses like association dues, insurance, and marketing.
How long does it take to get a real estate license? Most people complete the process in two to six months. The biggest variable is your state’s pre-licensing education requirement — 40 hours in Michigan vs. 180 hours in Texas — and whether you study full-time or part-time. After completing coursework, the exam, application, and broker placement typically take an additional three to six weeks.
Can you be a part-time real estate agent? Yes. Many agents work part-time, especially when starting out. There’s no set work schedule, and you can build your business around other commitments. However, part-time agents generally earn significantly less — the NAR reports that agents working fewer than 20 hours per week typically earn under $25,000 annually.
What’s the difference between a real estate agent and a Realtor? All Realtors are real estate agents, but not all agents are Realtors. “Realtor” is a trademarked designation for members of the National Association of Realtors (NAR) who agree to follow its code of ethics. Membership is voluntary and requires annual dues. Many agents choose to become Realtors for access to the MLS, professional development tools, and the credibility the designation provides.
What’s the difference between a real estate agent and a broker? A real estate agent (salesperson) must work under a licensed broker and cannot operate independently. A broker has additional education and experience (requirements vary by state) and has passed a broker-level exam. Brokers can run their own firm, hire agents, and receive a share of their agents’ commissions.
Do real estate agents need to renew their license? Yes. Most states require license renewal every one to four years, with continuing education requirements ranging from 10 to 30 hours per renewal cycle. Some states also require a post-licensing course within the first year of your initial license.
Is real estate a good career in 2026? Real estate offers significant income potential and flexibility, but it comes with real challenges. Income is commission-based and unpredictable, especially in the early years. The BLS projects steady demand with 46,300 openings per year through 2034. Success depends heavily on your local market, your willingness to prospect and build relationships, and your ability to manage the financial uncertainty of a commission-only income structure.