The difficulty depends on your state's test and how much time you have to study
Becoming a realtor is not physically hard—the work itself is straightforward—but it does require passing a licensing exam, and that exam is harder in some states than others. Most people pass on their first or second attempt if they study the material for four to eight weeks. The real difficulty is not the test; it is the business side: finding clients, managing your own money, and staying licensed year after year while you build a client base.
The path is the same everywhere: take a pre-licensing course (usually 60 to 120 hours of classroom time), pass your state's licensing exam, join a brokerage firm, and then start working. The exam itself covers real estate law, contracts, ethics, and local regulations specific to your state. It is not a trick test, but it is not trivial either. You are expected to know the difference between a deed and a mortgage, how escrow works, fair housing law, and what happens when a contract falls through.
Key Takeaways
- Your state's licensing exam is the main hurdle, and passing rates range from 50 to 75 percent depending on the state and how well you prepare.
- Pre-licensing courses are required in every state and usually take four to twelve weeks of part-time study or two to four weeks full-time.
- The exam itself is not the hardest part of becoming a realtor—staying in business is, because you must generate your own income and clients from day one.
- You must join a brokerage firm to work as a realtor, and brokerages take a percentage of your commissions, usually 50 to 80 percent in your first year.
What the pre-licensing course covers and how long it takes
Every state requires you to complete a pre-licensing course before you can sit for the exam. These courses are offered by real estate schools, community colleges, and online providers. The course covers the same broad topics in every state—contracts, property law, agency relationships, financing—but each state adds its own specific rules and regulations, so you must take the course in the state where you plan to work.
The course length varies by state. Some states require 60 hours, others 120 hours or more. A 60-hour course taught in a classroom usually takes four to six weeks if you attend two or three evenings a week. Online courses let you move faster if you have the time; many people finish a 120-hour course in two to three weeks by studying full-time. The course itself is not difficult—it is mostly reading and listening—but it is dense and you have to retain the information because the exam will test it.
Most pre-licensing courses cost between $200 and $600, depending on the provider and whether you choose in-person or online. Some brokerages offer the course free or at a discount to their agents, so if you already know someone in the business, that is worth asking about.
How hard the licensing exam actually is
The exam is a multiple-choice test administered by your state's real estate commission or a testing company they contract with. The number of questions ranges from 80 to 200 depending on your state, and you usually have two to four hours to complete it. You need to score somewhere between 70 and 80 percent to pass, depending on the state.
The exam tests whether you understand real estate law and can explore it to real situations. For example, you might be asked what a realtor must do if a buyer asks them to hide information about a property defect, or what happens to earnest money if a deal falls apart. These are not trick questions, but they require you to know the rules and think through the scenario. Most people who study the material for four to eight weeks pass on their first attempt. Pass rates vary by state—some states report 70 to 75 percent first-time pass rates, others closer to 50 percent—but that usually reflects how well people prepare, not how hard the test is.
If you fail, you can retake the exam. Most states let you retake it within a few weeks, and you pay the exam fee again (usually $100 to $300). Failing once does not hurt your chances of passing the second time if you study the material you missed.
The real difficulty: building a business from scratch
The licensing exam is a gate you pass through once. The actual difficulty of being a realtor is what comes after: you have to find clients, close deals, and earn enough commission to live on. This is where most people struggle, and it is why many people who pass the exam never actually work as realtors, or quit within a year.
When you join a brokerage, you are not hired as an employee. You are an independent contractor. That means the brokerage does not pay you a salary. You earn a commission on every sale you make, and the brokerage takes a large cut—often 50 to 80 percent of your commission in your first year or two. A typical home sale might earn you a 2.5 to 3 percent commission, split between the buyer's agent and the seller's agent. If you sell a $300,000 house as the seller's agent, you might earn $4,500 before the brokerage takes their cut. After the brokerage takes 70 percent, you have $1,350. If you sell two houses a month, that is $2,700 a month before taxes and expenses.
Most new realtors do not sell two houses a month. Many sell zero in their first few months. You have to build a client base by networking, advertising, cold-calling, or working with your brokerage's leads. This takes time and often costs money out of your own pocket. Many people run out of savings before they build enough business to earn a living.
Licensing fees and ongoing costs
Beyond the pre-licensing course, you will pay exam fees, licensing fees, and brokerage fees. The exam itself costs $100 to $300 depending on your state. Your state license costs $100 to $500 per year, depending on the state. Your brokerage will charge you monthly fees—usually $100 to $500 a month—to cover desk space, technology, and support. You may also pay for your own advertising, business cards, and a website.
Your license must be renewed every one to two years, depending on your state, and renewal usually requires continuing education courses (typically 6 to 12 hours per year) and a renewal fee. If you stop working as a realtor and let your license lapse, you have to retake the full pre-licensing course and exam to get back in.
How your state's specific rules affect the difficulty
Some states have harder exams than others, and some have stricter rules about what you can and cannot do. States with high real estate activity—California, Texas, Florida, New York—tend to have more competitive markets and stricter regulations. States with less activity may have easier exams but fewer opportunities to make sales.
A few states require you to have a sponsor or broker lined up before you can take the exam. Most states let you take the exam first and then find a brokerage. Some states require a certain number of hours of continuing education each year; others require fewer. Check your state's real estate commission website to see what the specific requirements are where you plan to work.
Whether you should expect to pass on your first try
If you study the pre-licensing material thoroughly and take practice exams before the real test, you should expect to pass on your first attempt. Most people who fail did not study enough or did not understand the material well. The course is designed to teach you what you need to know; the exam tests whether you learned it.
That said, some people are not good test-takers, or they have limited time to study because of work or family. If that is your situation, budget extra time and consider hiring a tutor or taking a test-prep course. These cost $100 to $300 but can make the difference between passing and failing.
Frequently Asked Questions
Do I need a college degree to become a realtor?
No. Most states require only a high school diploma or GED, plus completion of the pre-licensing course and passing the exam. Some brokerages prefer agents with college degrees, but it is not required by law.
How long does it take from start to finish to become a realtor?
If you study full-time, you can complete the pre-licensing course in two to four weeks, pass the exam, and join a brokerage within a month or two. Most people take longer because they study part-time while working another job. A realistic timeline is two to four months from the first day of class to your first day working as a licensed realtor.
What if I fail the licensing exam?
You can retake it. Most states let you retake the exam within a few weeks, and you pay the exam fee again. There is no limit on how many times you can retake it, though some states require you to wait a certain number of days between attempts or retake the pre-licensing course if you fail multiple times.
Can I work part-time as a realtor while keeping my current job?
Yes. Many realtors start part-time and transition to full-time once they build enough business. However, real estate is commission-based, so your income depends on how many hours you work and how many clients you find. Part-time realtors typically earn less than full-time ones.
What happens if I do not renew my license?
Your license expires and you can no longer work as a realtor. If you want to return to real estate later, you will need to retake the pre-licensing course and exam, not just renew. Some states have a grace period where you can renew without retaking the course if you renew within a certain time after expiration, but this varies by state.