How to become a real estate agent

1. 1Check your state's license rules

   Time: A few daysSources 1, 4, 11

   Each state's real estate commission sets its own requirements, so start there. Most states require you to be at least 18, have a high school diploma or equivalent, complete approved prelicensing courses and pass an exam; many add a background check with fingerprints. California's Department of Real Estate requires age 18, for example. Licenses generally do not transfer between states, though some have reciprocity agreements, so get licensed where you plan to sell.

2. 2Complete the prelicensing courses

   Time: About 1-4 monthsCost: Varies by school and stateSources 3, 4

   Hours vary widely. Texas requires 180 classroom hours across six 30-hour courses, including principles, agency law, contracts, promulgated contract forms and finance. California requires three college-level courses of at least 45 hours each: Real Estate Principles, Real Estate Practice and one elective, and the practice course must now cover implicit bias and fair housing. Courses are offered by real estate schools, community colleges and many brokerages.

3. 3Pass the state licensing exam and background check

   Time: A few weeksCost: $100 exam fee in CaliforniaSources 3, 5

   Once the commission approves your education, you schedule the exam, which in most states has a national section on real estate principles and a state section on local law. Texas has applicants take both the state and national portions and requires extra education after three failed attempts at either. Fingerprints for a criminal background check are required in states such as Texas and California, where Live Scan processing costs $49.

4. 4Join a sponsoring brokerage and activate your license

   Time: 1-4 weeksCost: $350 license fee in CaliforniaSources 3, 5, 7

   Agents cannot practice on their own; a licensed broker has to sponsor you. In Texas, a new license is issued inactive until a broker sponsors it. Compare brokerages on commission split, monthly or desk fees, training, mentoring and whether they provide leads. Many agents also join their local REALTOR association, which requires ethics training of at least 2.5 hours, and pay for MLS access.

5. 5Build your business and renew your license

   Time: Ongoing; renewals every 2-4 yearsCost: Continuing education and renewal feesSources 1

   The first year is mostly prospecting: contacting people you know, holding open houses for other agents and working with a mentor on your first deals. BLS reports that licenses typically renew every 2 to 4 years and most states require continuing education to renew. After about 2 years of active work, most states let you take additional courses and an exam to become a broker.

Programs, tuition and graduates’ earnings

U.S. Department of Education, College Scorecard (most recent cohorts, released 2026-10-15). Scorecard groups programs by 4-digit field, so a row can include related programs. Tuition is the median published undergraduate tuition and fees of the colleges offering the program (shown only for undergraduate credentials); debt is the median of programs’ median federal loan debt at completion; earnings are the national median for the field and credential four years after completion.

Requirements differ by state. Check your state’s rules in the CareerOneStop License Finder (U.S. Department of Labor) before you enroll.

Prospecting

Clients rarely come to new agents on their own, so steady outreach to past contacts and new leads is what produces closings.

Negotiation

You argue price, repair credits and deadlines on your client's behalf while keeping the other side willing to close.

Pricing judgment

Picking the right comparable sales decides whether a listing sells or sits for months.

Contract accuracy

A missed date or blank field on a purchase agreement can cost a client their earnest money or the house.

Self-management

With no boss setting hours, you have to plan your week, track leads and budget for months without commissions.

O*NET 31.0 rates these skills as most important for the occupation: active listening, speaking, critical thinking, reading comprehension, writing.

Training cost

$2.9K–$3.1K

Before financial aid

Time

3-6 months

Typical path

Median pay

$52,830

All US jobs: $50,980

Payback once qualified

1.5–1.7 yrs

Pay above the all-jobs median vs. cost

Example built from cited California figures: 1 year x College Scorecard median public in-state tuition for real estate certificates, $2,358, as a stand-in for prelicensing coursework, plus California DRE exam fee $100, salesperson license fee $350 and fingerprint processing $49 = $2,857. High adds NAR's 2026 national membership dues of $156 plus its $45 special assessment = $3,058. Not included: local and state association dues, MLS fees, brokerage desk fees, errors-and-omissions insurance and marketing costs, which vary by market. Fees differ by state.

Rough guide only: ignores taxes, aid, interest and earnings given up during training. How we calculate it.

• Real estate broker

  After about 2 years as a licensed agent in most states, take the broker courses and exam to supervise agents or open your own firm.

• Loan officer$76,690 median

  Agents who enjoy the financing side can move into mortgage lending, which has its own licensing and training rules.

• Insurance agent$62,280 median

  Homeowners insurance is a natural add-on to real estate work, but selling it requires a separate state insurance license.

• Financial advisor$105,070 median

  Some agents who work with investors move into advising, which usually takes a bachelor's degree and securities licenses.