Getting a real estate license is harder than many people expect, but not because of the test itself

The written exam is the smallest hurdle. Most states require you to pass a multiple-choice test covering contract law, fair housing rules, and local real estate practices — and the pass rate is usually 50 to 70 percent on the first try. The real difficulty is the months of preparation before you sit for it, the cost of courses and fees, and then the harder part: finding a brokerage willing to sponsor you and actually making money once you're licensed.

The path looks straightforward on paper: take a pre-licensing course, pass the state exam, find a broker, and start selling. In practice, you're competing against thousands of other agents in most markets, many of whom already have clients and years of experience. You'll spend money upfront with no may provide of income, and most new agents quit within two years because they can't generate enough sales to cover their costs.

Key Takeaways

  • Pre-licensing courses take 40 to 180 hours depending on your state, cost $200 to $500, and must be completed before you can sit for the exam.
  • The state exam itself has a 50 to 70 percent pass rate, but you can retake it if you fail, usually within 30 days.
  • Finding a sponsoring broker is often harder than passing the test — brokers want to see that you have clients or a plan to get them.
  • New agents typically earn little or nothing in their first year because real estate income is commission-based and takes months to materialize.
  • Your state's real estate commission sets the rules, but the actual difficulty varies widely by state and by local market.

How long the pre-licensing course takes and what it covers

Every state requires you to complete a pre-licensing course before you can sit for the exam. The length varies: some states require as few as 40 hours, while others demand 180 hours or more. Florida, for example, requires 63 hours; California requires 135 hours; New York requires 75 hours. You can take these courses online, in person, or a mix of both, and most take anywhere from two weeks to three months to finish if you're working full-time.

The course covers the same topics everywhere: property law, contracts, fair housing law (federal and state), financing, appraisal, and local real estate practices. You'll learn about earnest money deposits, title insurance, disclosure requirements, and what you can and cannot say to a buyer or seller. The material is not conceptually difficult — it's mostly rules and definitions — but there's a lot of it, and you have to memorize enough to pass a test that typically requires 70 to 75 percent correct answers.

Course providers range from community colleges to online platforms like Kaplan and Real Estate Express. Costs run $200 to $500 depending on the provider and your state. Some brokerages offer free or discounted courses to people they're considering hiring, so it's worth asking before you pay out of pocket.

The state exam: what it tests and why people fail

The state exam is a multiple-choice test lasting two to three hours. The number of questions varies by state — typically 80 to 200 — and you need to score around 70 to 75 percent to pass. The test covers the material from your pre-licensing course, plus state-specific laws and local practices. Some states also require a separate exam on your local area's rules and market conditions.

People fail for two main reasons: they didn't study the material thoroughly enough, or they misunderstood how the process works the rules to real-world scenarios. The test is not just memorization — it asks you to read a situation and pick the correct action. For example, you might be asked what you must do if a buyer wants to make an offer below asking price, or what disclosures you're required to provide before showing a property. These require understanding, not just recall.

If you fail, you can retake the exam. Most states let you retake it within 30 days, and you can take it as many times as you need. There's usually a fee each time — $50 to $150 per attempt — but no limit on the number of tries. The real cost is the time spent studying and the delay in getting licensed.

Finding a broker who will sponsor you

Once you pass the exam, you cannot legally work as a real estate agent without a sponsoring broker. A broker is a licensed real estate professional who supervises agents, handles client trust accounts, and takes responsibility for the agents' conduct. You cannot hang your own shingle — you must work under a broker's license.

This is where many new agents hit a wall. Brokers want agents who can generate business. Some will hire anyone with a license and a pulse, but the better brokerages — the ones with strong reputations and good support — are selective. They may ask you about your sales experience, your network, whether you have any clients lined up, or what your plan is to build a client base. If you're coming from outside sales or have no real estate connections, you may end up at a smaller or less established brokerage.

The sponsoring broker takes a percentage of your commission — typically 50 to 80 percent of what you earn, depending on the brokerage and your experience level. Some brokerages charge desk fees or transaction fees on top of the commission split. You'll also pay for your own marketing, business cards, website, and continuing education. These costs add up quickly, and if you're not closing deals, you're losing money.

Why most new agents quit in the first two years

Real estate is a commission-only job. You earn nothing until you close a sale, and even then, you don't see the money for 30 to 60 days after closing. A typical agent might spend three to six months building a client base, showing properties, and negotiating contracts before closing their first deal. During that time, they're paying for licensing, continuing education, marketing, and living expenses out of pocket.

The financial pressure is intense. According to data from the National Association of Realtors, the median gross income for agents is around $40,000 to $50,000 per year, but that's an average that includes experienced agents with established client bases. New agents often earn nothing in their first year, and many earn less than $20,000 in their second year. If you need a steady paycheck, real estate is not a realistic path.

The other challenge is competition. In most markets, there are thousands of licensed agents competing for the same clients. You're competing against agents who have been in the business for 10 or 20 years, who have referral networks, and who have repeat clients. As a new agent, you have none of that. You have to build your business from scratch, usually by cold-calling, door-knocking, or spending money on advertising to reach potential clients.

How difficulty varies by state and local market

Some states make it harder to get licensed than others. States with longer pre-licensing requirements (like California's 135 hours) take more time and money upfront. States with higher exam pass rates suggest easier exams, while states with lower pass rates suggest harder material or stricter grading. Your state's real estate commission publishes pass rate data, so you can see how your state compares.

Local market conditions matter just as much. In a hot real estate market with lots of buyers and sellers, a new agent can close deals faster and build momentum. In a slow market, it might take twice as long to close your first sale. Markets in major cities like New York, Los Angeles, and Miami are highly competitive, with thousands of agents fighting for clients. Markets in smaller towns or rural areas have fewer agents but also fewer transactions, so the opportunity is smaller.

The brokerage you join also affects your difficulty. A large national brokerage like Keller Williams or RE/MAX may have more training and support for new agents, but also more competition within the office. A small independent brokerage might give you more personal attention but fewer resources. Some brokerages specialize in helping new agents; others expect you to be productive when ready.

What you need to decide before you start

Before you invest time and money in a real estate license, be honest about three things: Do you have savings to live on for at least six months while you build your business? Do you have a network of people who might buy or sell property, or are you starting from zero? Can you handle rejection and long hours of work with no paycheck?

If you have savings, a network, and the temperament for sales, getting a license is achievable — the exam itself is not the hard part. If you're counting on real estate income to pay your bills when ready, or if you have no connections in your market, the path will be much harder and may not work out.

Talk to agents in your area before you commit. Ask them how long it took to close their first deal, how much they spent before they made money, and whether they'd do it again. Their answers will tell you more than any article can about whether real estate is right for you.

Frequently Asked Questions

How many times can you fail the real estate exam before you're locked out?

Most states have no limit on the number of times you can retake the exam. You can fail and retake it as many times as you need, though each attempt costs a fee. Some states require you to wait a certain number of days between attempts — often 24 hours to 30 days — but there's no permanent lockout. The barrier is cost and time, not a hard limit on attempts.

Can you get a real estate license without taking a pre-licensing course?

No. Every state requires a pre-licensing course before you can sit for the exam. There is no way around it. Some brokerages offer the course for free or at a discount, so ask before you pay full price, but the course itself is mandatory.

Do you need a college degree to get a real estate license?

No. Most states require only a high school diploma or GED, plus the pre-licensing course. A college degree is not required and does not make the license easier to get. Some brokerages may prefer agents with college degrees, but it's not a legal requirement.

How much does it cost to get a real estate license from start to finish?

Costs vary by state but typically run $500 to $1,500 for the first year. This includes the pre-licensing course ($200 to $500), the state exam fee ($50 to $150), the license process fee ($100 to $300), and continuing education ($100 to $300). Some brokerages charge desk fees or transaction fees on top of this. These are one-time or annual costs; the bigger expense is marketing and living costs while you build your business.

Is it easier to get a real estate license in some states than others?

Yes. States with shorter pre-licensing requirements (like some states' 40-hour courses versus California's 135 hours) are faster to complete. States with higher exam pass rates suggest easier exams. However, the exam difficulty is only one part of the challenge — finding a broker and building a client base is harder in some markets than others, regardless of state.