The difficulty depends on your state's exam and how much time you can commit
Becoming a real estate agent is not difficult in the sense that you do not need a college degree or years of prior experience. Most people pass the licensing exam on their first or second attempt. The real challenge is not the test itself—it is the business side: finding clients, closing deals, and earning enough to live on while you build a client base.
The path has three main hurdles. First, you must pass your state's real estate licensing exam, which typically requires 40 to 180 hours of classroom study depending on your state. Second, you must join a brokerage firm—you cannot work independently. Third, you must generate your own income from commissions, which means you are competing with other agents and may earn nothing for weeks or months while you are learning the job.
Key Takeaways
- The licensing exam is the easiest part; most states report pass rates between 50 and 70 percent on the first attempt, and you can retake it if you fail.
- Classroom hours vary widely by state—some require 40 hours, others 180—so check your state's real estate commission website to see what applies to you.
- You must work under a brokerage firm, which takes a cut of your commissions (typically 50 to 80 percent of what you earn in your first year).
- Income is commission-only with no salary, so you need savings to cover living expenses for at least three to six months while you build a client base.
- The job requires constant networking, follow-up, and willingness to work evenings and weekends, which is harder than the exam itself for most people.
What the licensing exam actually tests
Your state's real estate commission sets the exam content, but all versions cover the same broad topics: property law, contracts, financing, agency relationships, and fair housing rules. The exam is multiple-choice, usually 80 to 120 questions, and you typically have two to three hours to complete it.
Pass rates vary by state but generally fall between 50 and 70 percent on the first attempt. That sounds low, but it includes people who show up unprepared. If you study the material systematically—using your state's official study guide, a prep course, or practice exams—your odds improve significantly. Most people who fail do so because they did not study enough, not because the material is inherently hard.
The exam costs between $100 and $300 depending on your state, and you can retake it if you fail. Some states let you retake it when ready; others require a waiting period of a few days to a few weeks. Budget for the possibility of a second attempt, but do not assume you will need one if you prepare seriously.
Classroom hours and pre-exam requirements
Before you can sit for the exam, you must complete a certain number of classroom hours. This is where state rules differ most. Some states require as few as 40 hours; others demand 180 hours or more. A few states have no classroom requirement at all and let you study on your own.
You can take these courses online or in person, and they typically cost $200 to $800 total. Online courses let you work at your own pace, which is useful if you have a job while you are studying. In-person classes move faster but require you to be in a classroom on a schedule. Most people can complete the requirement in four to eight weeks if they study part-time.
Check your state's real estate commission website to find the exact requirement for your state and a list of approved course providers. Do not rely on a course provider's website alone—they may not be clear about whether they meet your state's rules.
Finding a brokerage and the commission split
Once you pass the exam, you cannot work as an independent agent. You must join a brokerage firm, which is a company licensed to conduct real estate business. The brokerage holds the license; you work under it. This is not optional—it is a legal requirement in every state.
Brokerages vary widely in size, support, and how much commission they take. A large national firm like Keller Williams or RE/MAX may take 50 to 80 percent of your commission in your first year, then drop to 30 to 50 percent as you build production. A smaller local brokerage might take 40 to 60 percent. Some brokerages charge monthly desk fees or transaction fees on top of the commission split.
The brokerage provides your license, office space, and sometimes training, but they do not pay you a salary. You earn only when you close a deal, and the brokerage takes its cut before you see anything. This is the business model you are entering—it is not a job with a paycheck.
The income reality: commission-only work with a long ramp-up
Real estate agent income is entirely commission-based. When you sell a property, the seller typically pays a commission of 5 to 6 percent of the sale price, split between the buyer's agent and the seller's agent. Your brokerage then takes its cut, leaving you with a portion. On a $300,000 home sale, you might earn $4,500 to $9,000 before the brokerage takes its share—and then you might take home $2,000 to $4,500 depending on your split.
The hard part is that you earn nothing until you close a deal. Most new agents take three to six months to close their first sale, and longer to build a steady pipeline. During that time, you are working—showing properties, meeting clients, following up—but earning zero dollars. You need savings to cover rent, food, and car payments while you are building your business.
After your first year, if you have closed several deals and built some repeat clients or referral sources, your income can grow. But many agents quit within the first year because they cannot afford to wait for commissions to start flowing. This is the biggest barrier to entry, not the exam.
Time commitment and work schedule
Real estate is not a nine-to-five job. You will work evenings and weekends because that is when clients are available to view properties. You will spend time on paperwork, follow-up calls, and marketing yourself. You will attend open houses, client meetings, and continuing education classes.
In your first year, expect to work 50 to 60 hours per week, much of it unpaid while you are learning and building your client base. Experienced agents with an established client base may work fewer hours, but they earned that flexibility by putting in the time early.
The job also requires constant self-promotion. You need to build a network, stay in touch with past clients, attend community events, and market yourself on social media or through advertising. If you are uncomfortable with sales or networking, this part of the job will be harder than the exam.
Continuing education and licensing renewal
After you get your license, you must renew it periodically—usually every one to two years depending on your state. Renewal requires you to complete continuing education hours, typically 12 to 36 hours per renewal period. These courses cover updates to laws, ethics, and industry practices.
Continuing education is usually cheaper than your initial pre-exam courses—often $100 to $300 per renewal—but it is an ongoing cost and time commitment. You must stay current to keep your license active, so factor this into your long-term planning.
Frequently Asked Questions
Do I need a college degree to become a real estate agent?
No. Most states require only a high school diploma or equivalent, plus the classroom hours and exam. A college degree is not required and does not give you an advantage on the licensing exam. Some brokerages may prefer agents with a degree, but it is not a barrier to entry.
How long does it take from start to getting your license?
If you study full-time, you can complete classroom requirements and pass the exam in four to eight weeks. If you study part-time while working another job, expect two to four months. Add another week or two if you fail the exam on your first attempt and need to retake it.
What happens if I fail the licensing exam?
You can retake it. Most states allow you to retake the exam after a waiting period of a few days to a few weeks. You will pay the exam fee again, but you do not need to repeat the classroom hours. Study the material more thoroughly the second time, or consider taking a prep course focused on exam strategy.
Can I work part-time as a real estate agent?
Yes, many agents work part-time, especially early in their career while they are building a client base. However, part-time agents typically earn less because they have less time to show properties and follow up with clients. You still need to join a brokerage and work under their license, and you still earn only commission.
What is the biggest reason new agents quit?
Lack of income in the first few months. Most new agents underestimate how long it takes to close their first deal and how much money they need to survive while they are learning. If you do not have three to six months of living expenses saved, you will struggle to stay in the business long enough to build momentum.