What you need to do to become a real estate agent
To become a real estate agent, you need a high school diploma or GED, a passing score on your state's real estate licensing exam, and sponsorship from a licensed brokerage firm. The timeline is usually three to six months from start to your first listing, though the exact steps and exam content vary by state. Most states require you to complete pre-licensing coursework (typically 40 to 180 hours depending on where you live), pass the state exam, then join a brokerage before you can show or sell property.
The path is straightforward but not automatic. You cannot take the licensing exam without first completing your state's required coursework, and you cannot legally work as an agent without a broker sponsoring you. This article walks you through each step in the order you will actually take them.
Key Takeaways
- Your state's real estate commission sets the coursework hours and exam content, so requirements differ significantly between states.
- Pre-licensing courses are offered by real estate schools, community colleges, and online providers, and you must complete them before sitting for the state exam.
- The state licensing exam tests your knowledge of real estate law, contracts, and ethics, and you typically have multiple attempts if you do not pass on the first try.
- A licensed brokerage must sponsor you before you can legally conduct any real estate business, and brokers usually require you to pass the exam before they will bring you on.
- After you are licensed and sponsored, you may need to complete additional training required by your brokerage before handling your first transaction.
Find your state's real estate commission and its requirements
Each state's real estate commission sets the rules for licensing in that state. Start by searching "[your state] real estate commission" or "[your state] real estate licensing requirements" to find the official agency. The commission's website lists the exact coursework hours you need, the exam format, the exam fee, and which schools are approved to teach the pre-licensing course.
Requirements vary widely. Some states require 40 hours of pre-licensing study; others require 120 or more. Some states have separate exams for residential and commercial agents; others have one exam that covers both. The exam fee ranges from roughly $100 to $300 depending on your state. Knowing your state's specific rules before you spend money on a course is essential.
Complete your state's pre-licensing coursework
Pre-licensing courses cover real estate law, contract law, ethics, property types, financing, and fair housing rules. You take these courses through an approved real estate school, a community college, or an online provider. Most courses are self-paced and can be completed in a few weeks if you work through them steadily. Some schools offer classroom instruction; others are entirely online.
When you finish the course, the school will issue you a completion certificate. You will need this certificate to register for the state exam. The course itself does not make you an agent—it prepares you for the exam that does. Costs typically range from $150 to $500 depending on the provider and your state.
Register for and pass your state's licensing exam
Once you have your course completion certificate, you register for the state exam through your state's real estate commission or through the testing company that administers it (often Pearson VUE or PSI). You will pay the exam fee, choose a test date and location, and show up with a valid ID.
The exam is usually multiple choice and covers state real estate law, contract interpretation, ethics, and practical scenarios. You typically have two to four hours to complete it. If you do not pass, you can retake the exam after a waiting period (usually 5 to 14 days, depending on your state). Most people pass on the second attempt if they study the material they missed the first time.
After you pass, your state will issue you a real estate license. This license is valid for a set period—usually two to four years—and you must renew it periodically by completing continuing education hours.
Find a licensed brokerage to sponsor you
A real estate agent cannot work independently. You must be sponsored by a licensed brokerage firm. The brokerage holds the trust account for client money, handles compliance with state and federal law, and supervises your transactions. Without a broker, you cannot legally list property, show property, or accept a commission.
Start looking for a brokerage while you are studying for the exam or when ready after you pass. You can search online for brokerages in your area, ask agents you know where they work, or check your state's real estate commission website for a list of licensed brokers. When you contact a brokerage, ask about their commission split, training program, technology costs, and whether they require you to pass the exam before they will sponsor you (most do).
Brokerages vary widely in size, commission structure, and support. A large national firm may take a bigger cut of your commission but offer more training and leads. A smaller local firm may let you keep more of what you earn but offer less support. Interview several before you decide.
Complete your brokerage's onboarding and training
Once a brokerage agrees to sponsor you, you will sign an independent contractor agreement and complete their onboarding process. This usually includes training on their systems, their policies, their compliance procedures, and their transaction process. Some brokerages require you to shadow experienced agents or complete additional coursework before you handle your first deal.
Your brokerage will also file paperwork with your state's real estate commission to register you as an agent under their sponsorship. This is when your license becomes active and you can legally conduct business. The timeline for this step varies, but it usually takes one to two weeks.
Understand the costs and ongoing requirements
Becoming a real estate agent involves several costs. Pre-licensing coursework typically costs $150 to $500. The state exam fee is $100 to $300. Your brokerage may charge desk fees, technology fees, or transaction fees—these vary widely and can range from nothing to several hundred dollars per month. You will also need to budget for continuing education (usually 4 to 36 hours per renewal period, depending on your state), which costs $50 to $300 per renewal cycle.
Beyond the initial licensing, you will need to renew your license every two to four years by paying a renewal fee (typically $100 to $400) and completing continuing education hours. Your brokerage may also require you to maintain errors and omissions insurance, which costs $300 to $1,000 per year depending on your coverage.
Frequently Asked Questions
Do I need a college degree to become a real estate agent?
No. You need a high school diploma or GED, but a college degree is not required. Real estate licensing is based on passing the state exam and completing pre-licensing coursework, not on formal education beyond high school.
How long does it take to become a real estate agent?
Most people complete the process in three to six months. This includes time for pre-licensing coursework (typically two to eight weeks), studying for the exam, waiting for the exam date, taking the exam, and then joining a brokerage. The exact timeline depends on how quickly you complete the coursework and how soon you can schedule your exam.
Can I take the licensing exam without completing pre-licensing coursework?
No. Your state requires you to complete approved pre-licensing coursework before you can register for the exam. The coursework is a prerequisite, not optional.
What happens if I fail the state exam?
You can retake it after a waiting period set by your state (usually 5 to 14 days). Most states allow unlimited retakes, though some cap the number of attempts in a certain timeframe. If you fail, review the material you missed and study more thoroughly before your next attempt.
Can I work as a real estate agent without a brokerage?
No. State law requires every real estate agent to be sponsored by a licensed brokerage. You cannot legally conduct real estate business on your own, even with a valid license.