What Do You Need to Become a Real Estate Agent?

Becoming a real estate agent can be one of the most rewarding career paths, offering flexibility, financial opportunity, and the satisfaction of helping others find their dream homes or perfect business locations. But before you can start closing deals and collecting commissions, there’s one big question you need to answer: What do you need to become a real estate agent?

In this comprehensive guide, we’ll walk you through everything you need to know—from educational requirements and licensing procedures to skills, tools, and insider tips that will set you up for success in the competitive world of real estate.

Real estate is more than just selling houses. It’s about building trust, managing transactions, and knowing the ins and outs of property laws, market trends, and negotiation strategies. Whether you’re starting fresh or switching careers, knowing what do you need to become a real estate agent is crucial before diving into this high-potential field.

Why Become a Real Estate Agent?

Before we get into the nitty-gritty, let’s take a look at why so many people choose this career:

Flexibility: Create your own schedule.
Unlimited Income Potential: Your earning depends on how much effort you put in.
Independence: Be your own boss.
Fulfillment: Help people make life-changing decisions.

According to the U.S. Bureau of Labor Statistics, the median pay for real estate agents was $52,030 per year in 2023, with the top 10% earning more than $112,410. With the right approach, it’s a lucrative and personally fulfilling career.

Step-by-Step Guide: What Do You Need to Become a Real Estate Agent

Let’s break it down into actionable steps.

Step 1: Understand the Role

Before committing, you need to understand what the job entails.

Responsibilities include:

Listing and showing properties
Assisting buyers and sellers
Negotiating contracts
Coordinating inspections, appraisals, and closings
Staying updated on market trends and property laws

A real estate agent wears many hats—advisor, marketer, negotiator, and closer.

Step 2: Check Your State Requirements

Real estate licenses are governed at the state level in the U.S., and every country has its own licensing body. So, what do you need to become a real estate agent in your location?

Generally, U.S. states require:

A minimum age (usually 18 or 19)
U.S. residency or citizenship
Background checks
State-approved education
Passing the real estate exam

For example:

California: Requires 135 hours of education and a state exam.
Texas: Requires 180 classroom hours.
New York: Requires 75 hours of coursework.

Check with your state’s real estate commission for the latest updates.

Step 3: Meet the Basic Eligibility Criteria

To begin the journey, most states require:

Age 18+
High school diploma or equivalent (GED)
Legal U.S. residency
Clean criminal record

Background checks are standard. Felonies related to fraud or dishonesty may disqualify you.

Step 4: Complete Pre-Licensing Education

One of the first formal steps in answering what do you need to become a real estate agent is enrolling in a pre-licensing course. These courses cover:

Property ownership
Real estate law
Contracts
Agency relationships
Ethics
Finance and mortgages

Formats available:

Online
In-person classroom
Hybrid

Look for state-approved schools. Popular providers include Kaplan, Real Estate Express, and The CE Shop.

Step 5: Pass the Real Estate Exam

After completing your coursework, it’s time to sit for the state licensing exam.

Exam format:

Multiple-choice questions
National and state sections
Topics: property ownership, contracts, agency law, math

Tips for passing:

Use flashcards and practice exams
Study state-specific rules
Don’t cram—study consistently

Pass rates vary by state but generally range from 50% to 70%.

Step 6: Apply for a License

Once you pass, you’ll apply for your real estate license through your state’s regulatory authority. This process typically includes:

Submitting your exam results
Providing background check info
Paying licensing fees ($50–$200 depending on the state)

Once approved, you are a licensed real estate agent!

Step 7: Join a Brokerage

Even though you’re licensed, you can’t legally work solo. You must work under a licensed real estate broker.

Your broker will:

Oversee your transactions
Provide training and support
Help you learn the ropes

Choose a brokerage based on:

Commission structure
Training programs
Reputation
Company culture

Big names include:

Keller Williams
RE/MAX
Century 21
Compass
Coldwell Banker

Step 8: Build Your Personal Brand and Network

To thrive, you need to market yourself effectively.

Key branding steps:

Create a professional website
Set up social media profiles (LinkedIn, Instagram, Facebook)
Order business cards and yard signs
Start networking: attend local events, join chambers of commerce, connect with mortgage brokers

Your brand is your promise. Make sure it stands out.

Essential Skills for a Real Estate Agent

You’ve learned what do you need to become a real estate agent—but beyond licenses and tests, skills matter.

Must-have Skills:

Communication: Verbal and written
Negotiation: Getting the best deal for your client
Marketing: Online listings, staging, social media
Organization: Managing showings, offers, contracts
Problem-solving: Deals don’t always go smoothly
Tech-savviness: Use CRMs, digital signatures, MLS tools

Developing these will differentiate you in a crowded field.

How Much Does It Cost to Become a Real Estate Agent?

Starting a career in real estate involves some initial investment. Here’s a cost breakdown:

Item	Estimated Cost
Pre-licensing course	$300 – $800
Exam fee	$50 – $100
License application	$50 – $200
Background check	$30 – $100
Fingerprinting	$30 – $70
Board/MLS fees	$200 – $1,000/year
Business cards/marketing	$100 – $500
Total Estimated	$760 – $2,770+

This doesn’t include ongoing expenses like license renewal and continuing education.

Time Commitment: How Long Does It Take?

On average, it takes 3 to 6 months to become a real estate agent.

Timeline Breakdown:

Pre-licensing education: 1–3 months
Exam scheduling & results: 2–4 weeks
License approval: 1–2 weeks
Joining a brokerage: 1–3 weeks

Want to fast-track? Choose online courses and test early.

Common Challenges for New Agents

Real estate is exciting—but it’s not easy.

Common obstacles include:

Inconsistent income
Lack of clients early on
Marketing yourself
Learning legal complexities
Handling rejection

Solutions:

Create a budget and financial cushion
Build a referral network
Stay consistent with marketing
Seek mentorship from experienced agents

Tools and Technology Every Agent Needs

Today’s real estate professionals rely on tech tools to thrive.

Must-have Tools:

CRM Software (e.g., HubSpot, Wise Agent)
MLS Access (Multiple Listing Service)
E-signature tools (e.g., DocuSign)
Social media tools (e.g., Canva, Buffer)
Lead generation platforms (e.g., Zillow Premier Agent)
Virtual tour software (e.g., Matterport)

Investing in the right tools will streamline your workflow and boost your productivity.

Tips to Succeed in Your First Year

So, you’ve answered “what do you need to become a real estate agent” and you’re officially licensed—what next?

Pro Tips:

Set goals: Monthly and yearly
Create a daily routine: Schedule time for prospecting, follow-ups, and learning
Shadow top agents: Learn from their habits
Stay educated: Take continuing education seriously
Track your expenses: Understand where your money is going
Celebrate small wins: Every client matters

Your first year lays the foundation for long-term success.

FAQs

Can I become a part-time real estate agent?

Yes, many agents start part-time while transitioning from other careers.

Is a college degree required?

No, only a high school diploma or GED is required.

How much can I earn?

Income varies widely, from $30K to over $100K+ depending on market and experience.

Do I need to specialize?

It helps. Specializing in areas like luxury homes, commercial properties, or first-time buyers can set you apart.

Can I work independently?

Only brokers can work independently. Agents must work under a broker’s supervision.

Conclusion

So, what do you need to become a real estate agent? You need more than just a license. You need education, commitment, people skills, business acumen, and a passion for helping others.

Whether you’re dreaming of a flexible career, eager to break out of a 9-to-5, or driven by the idea of building wealth through commissions and investments—real estate offers it all.

Take the first step today. Your future clients are waiting!