Learning how to become a real estate agent opens doors to a flexible, rewarding career. Real estate agents help people buy, sell, and rent properties. They earn commissions based on successful transactions. The U.S. Bureau of Labor Statistics reports that real estate agents earned a median annual wage of $56,620 in 2023, with top earners making well over $100,000.
This guide breaks down the exact steps to become a real estate agent. It covers education requirements, licensing exams, brokerage selection, and career-building strategies. Whether someone wants a full-time career or a side income stream, real estate offers both options.
Key Takeaways
- Becoming a real estate agent requires completing 40–180 hours of pre-licensing coursework and passing your state’s licensing exam.
- Real estate agents earned a median annual wage of $56,620 in 2023, with top earners making over $100,000 through commission-based income.
- New agents must work under a licensed broker and should carefully evaluate commission splits, training programs, and support before choosing a brokerage.
- Building a successful real estate career depends on networking, establishing a strong online presence, and specializing in a specific market niche.
- Most states require 20–45 hours of continuing education every 2–4 years to maintain your real estate license.
Understanding The Role Of A Real Estate Agent
A real estate agent acts as a middleman between buyers and sellers. They guide clients through property transactions from start to finish. This includes listing homes, showing properties, negotiating offers, and handling paperwork.
Real estate agents wear many hats. One day, they might host an open house. The next, they could be drafting purchase agreements or meeting with mortgage lenders. The job demands strong communication skills, market knowledge, and a thick skin for rejection.
Agents typically work on commission. Most earn between 2.5% and 3% of a property’s sale price. On a $400,000 home, that’s $10,000 to $12,000 per transaction. But, agents split commissions with their brokerage. New agents often take home 50% to 70% of their commission until they build experience.
The work schedule varies. Real estate agents don’t punch a clock. They work evenings, weekends, and holidays, whenever clients need them. This flexibility attracts many people to the profession. But it also means income can be unpredictable, especially during the first year.
Education And Licensing Requirements
Every state requires real estate agents to hold a valid license. The licensing process includes education, exams, and background checks. Requirements differ by state, so aspiring agents should check their state’s real estate commission website for specific rules.
Pre-Licensing Courses
Pre-licensing courses teach the basics of real estate law, contracts, ethics, and practice. Most states require 40 to 180 hours of coursework. California mandates 135 hours. Texas requires 180 hours. New York asks for 77 hours.
Students can complete these courses in person or online. Online programs offer flexibility for people with full-time jobs. Costs range from $200 to $1,000 depending on the provider and state requirements.
Accredited real estate schools must approve all pre-licensing courses. Popular online providers include Kaplan, The CE Shop, and Colibri Real Estate. These programs include practice exams to help students prepare for the state test.
Passing The Real Estate Exam
The real estate exam tests knowledge of federal and state-specific laws. Most exams contain 100 to 150 multiple-choice questions. Candidates must score 70% to 75% to pass, depending on the state.
The exam covers property ownership, land use controls, valuation, financing, contracts, and agency relationships. Study guides and practice tests improve pass rates significantly. First-time pass rates hover around 50% to 60% nationally.
Test-takers receive results immediately after completing the computer-based exam. Those who fail can retake the test after a waiting period, usually two to four weeks. Most states allow unlimited retakes within a specific timeframe.
Choosing A Brokerage To Work With
New real estate agents must work under a licensed broker. They cannot operate independently until they gain experience and upgrade their license. Selecting the right brokerage shapes an agent’s early career.
Large national brokerages like Keller Williams, RE/MAX, and Coldwell Banker offer brand recognition and training programs. They provide marketing tools, lead generation systems, and mentorship. But, commission splits at big brokerages tend to favor the company, especially for new agents.
Smaller local brokerages may offer higher commission splits and more personal attention. Agents get to know the broker directly. But these firms might lack the marketing budgets and technology platforms of larger competitors.
Questions to ask potential brokerages:
- What commission split do new agents receive?
- Does the brokerage provide leads or training?
- What are the monthly desk fees or franchise fees?
- How many agents work at this office?
- What marketing support does the brokerage offer?
Some brokerages charge monthly fees regardless of production. Others operate on a 100% commission model where agents keep everything but pay higher fees. The best choice depends on individual goals, financial situation, and learning style.
Building Your Real Estate Career
Getting licensed is just the beginning. Successful real estate agents invest heavily in marketing, networking, and skill development. The first two years separate those who thrive from those who quit.
Networking drives real estate success. Agents should tell everyone they know about their new career. Friends, family, former coworkers, and neighbors all represent potential clients or referral sources. Joining local business groups and community organizations expands an agent’s sphere of influence.
Online presence matters more than ever. Real estate agents need professional websites, active social media accounts, and positive reviews. Platforms like Zillow, Realtor.com, and local MLS systems help agents reach buyers and sellers actively searching for properties.
Specialization can accelerate growth. Some agents focus on first-time homebuyers. Others concentrate on luxury properties, commercial real estate, or specific neighborhoods. Becoming the go-to expert in a niche builds reputation and referrals.
Continuing education keeps agents current. Markets shift. Laws change. Technology evolves. Most states require 20 to 45 hours of continuing education every two to four years to maintain licensure. Smart agents exceed these minimums.
