How to Get a real estate license

Getting your real estate license might seem daunting, but with the right guidance, it’s a straightforward process. This comprehensive list of guides will walk you through each step, ensuring you’re well-prepared to start your real estate career in your state. Let’s get started on your journey to becoming a licensed real estate agent.

We'll walk you through 6 easy steps

Take a Real Estate Pre-Licensing Course

Submit Your California Real Estate License Application

Pass the California Real Estate Exam

Complete the Fingerprinting Requirement

Submit the Salesperson License Application

Find a Real Estate Broker to Sponsor You

How to get a Real Estate License by State

California

Colorado

Florida

Georgia

Illinois

Indiana

Michigan

Missouri

Ohio

Oklahoma

Texas

The 6 Steps Explained Simply

Step 1: Take a Real Estate Pre-Licensing Course

In most states, you need to complete pre-licensing education covering essential topics like real estate principles, practices, and legal aspects.

Choosing the Right Real Estate School

Research and Reviews: Look for schools with high pass rates and positive feedback.
Online vs. In-Person: Choose based on your schedule and learning preferences.
Course Materials and Support: Ensure the school provides high-quality resources and instructor access.

Study Tips

Daily Study Schedule: Create a schedule for regular review sessions. (Asana provides a great FREE task manager)
Flashcards: Use flashcards for key terms and concepts.
Practice Tests: Regularly take practice tests to familiarize yourself with the exam format.

Top Real Estate Schools

Step 2: Submit Your Real Estate License Application

Complete the Application Form: Fill out the required form on your state’s real estate regulatory website.
Application Processing Time: Processing can take several weeks. Ensure your application is complete to avoid delays.
Tracking Your Application: Track your application status online and contact the regulatory body if there are delays.

Step 3: Pass the Real Estate Exam

The exam is typically a 3-hour test with multiple-choice questions. A minimum score of 70% is usually required to pass.

Preparation Tips

Review Course Materials: Revisit textbooks and notes from pre-license courses.
Practice Exams: Take practice exams to familiarize yourself with the format.
Study Groups: Join or form study groups for discussion and shared learning.
Exam Prep Courses: Enroll in prep courses for structured study and practice.

Exam Day Tips

Arrive Early: Avoid last-minute stress by arriving early.
Bring Required Identification: Ensure you have a valid photo ID.
Stay Calm and Focused: Manage your time wisely and stay composed.
Exam Room Etiquette: Follow all instructions and ask for help if needed.

Step 4: Complete the Fingerprinting Requirement (most states)

After passing the exam, complete fingerprinting for a background check to meet honesty and integrity standards.

Steps to Get Fingerprinted

Live Scan Service: Use an approved provider and schedule an appointment.
Submit the Form: Follow service instructions.
Pay Fees: Typically $15 to $80, varying by state.

Addressing Issues

Provide additional documentation if needed. Demonstrate honesty and responsibility.

Note

Most states require fingerprinting, but some do not. Check your state’s specific requirements.

Step 5: Submit the Salesperson License Application

Submit your application after passing the exam and completing fingerprinting, as required by your state.

Application Checklist

Complete the Application Form: Fill out the necessary form from your state’s real estate regulatory website.
Attach Exam Results: Include proof of passing the exam.
Include Fingerprinting Proof: Submit your fingerprinting completion form, if required by your state.
Pay the License Fee: Submit the required fee (amount varies by state).

After submission, track your application status online and address any additional requirements promptly.

Note

While the basic steps are similar, specific requirements and fees vary by state. Always refer to your state’s real estate regulatory body for precise instructions.

Step 6: Find a Real Estate Broker to Sponsor You

Next, you need a sponsoring broker to activate your license. Look for a brokerage that aligns with your goals and offers the support you need.

Considerations

Brokerage Culture: Find a supportive and collaborative environment.
Commission Splits: Understand how commission splits work and any additional fees.
Training and Mentorship: Ensure there are programs for new agents and ongoing support.

Questions to Ask Potential Brokers

Financial Planning

These are ballparked numbers for you to generalize how much everything may cost. Hint: it’s not cheap to start out in real estate.

Starting a career in real estate across the U.S. involves several initial expenses and requires careful financial planning. Here’s a breakdown of typical costs and planning tips:

Starting Costs

1. Initial Expenses: Includes licensing fees, marketing expenses, office supplies, and technology tools. Typical costs might be:

- Pre-Licensing Course: $99-$700
- Exam Fee: $60 per attempt
- Application Fee: $245
- Fingerprinting Fee: Approximately $60
- Marketing Materials: Costs for business cards, signage, and online advertising

2. Professional Memberships:

- National Association of Realtors (NAR): Annual dues approximately $156, plus a $45 special assessment for the Consumer Advertising Campaign, totaling around $201.
- State and Local Associations: Membership fees can vary. Typically, local Realtor association fees range from $200 to $300 annually.Multiple Listing Service (MLS): Fees can vary significantly by region. Generally, expect to pay anywhere from $300 to $500 annually.Supra Key Fees: Include an initial setup fee and a monthly or annual service fee, generally around $50 for setup and $20 to $25 per month for service.

Budgeting Tips

Create a Budget: Track expenses and forecast income, planning for slower months to maintain financial stability.
Emergency Fund: Set aside funds to cover unexpected costs or slow periods.

Income Management

Commission Structure: Real estate agents earn through sales commissions. Commission splits vary widely, typically from 50/50 to 80/20 or higher, depending on the brokerage.
Tax Planning: As an independent contractor, keep track of deductible expenses, make estimated tax payments, and maintain good records. Consult a tax professional to ensure compliance and optimize tax strategy.

These estimates are subject to change and can vary by location and specific circumstances. Always check local regulations and consult with local Realtor associations for the most accurate and up-to-date information.

Real estate brokerage comparison tool

How to Get a Real Estate License Frequently Asked Questions

What are the basic requirements to obtain a real estate license?

Generally, all states require a high school diploma or equivalent, U.S. citizenship, proof of state residency, and completion of state-approved pre-licensing courses. Additionally, many states mandate a background check and may require proof of errors and omissions insurance.

Age: Most states require applicants to be at least 18 years old. Some states, like New York, require applicants to be at least 20 years old to become a broker.
Education: A high school diploma or equivalent is typically required. Additionally, applicants must complete state-approved pre-licensing courses, which cover real estate principles, laws, and practices. The number of required hours varies by state, ranging from 40 to 180 hours.
Residency: Applicants must be permanent residents of the state in which they are applying for the license.
Background Check: Most states require a criminal background check to ensure the applicant has no disqualifying criminal history.
Pre-Licensing Education: Completion of pre-licensing education is mandatory. The specific number of hours and the content of these courses depend on state regulations. For example, New York requires 77 hours of coursework for agents and 152 hours for brokers.
Examination: Applicants must pass a state licensing exam that tests their knowledge of real estate laws, practices, and principles. The exam typically includes both national and state-specific sections.
Sponsorship: In some states, like New York, applicants must be sponsored by a licensed real estate broker to activate their license.

Additional Considerations

License Reciprocity: Some states have reciprocity agreements with other states, which can simplify the licensing process for those already licensed elsewhere. This may allow applicants to skip certain pre-licensing requirements but still necessitates passing state-specific portions of the exam.
Continuing Education: After obtaining a license, most states require real estate professionals to complete continuing education courses to maintain their license and stay updated on industry changes.

How long does it take to get a real estate license?

On average, it takes about 4-6 months to get a real estate license through traditional classroom courses. However, if you take online real estate pre-licensing courses, you can potentially complete the process more quickly:

Online courses can be completed in as little as 8 weeks, depending on how quickly you pace yourself.
In California specifically, the quickest you can get your real estate license is approximately 14.5 weeks (about 3.5 months).
Some online schools report that students can complete the process in 2-5 months on average.

Key Factors Affecting the Timeline:

State requirements for pre-licensing education hours: For example, California requires 135 hours.
Whether you take online or classroom courses: Online is generally faster.
How much time you can dedicate to studying: Self-paced online courses allow for flexibility.
The exam application and scheduling process: This can take 6-8 weeks in some states.
Time needed to study for and pass the licensing exam: Preparation time varies by individual.

Fastest Possible Timeline Breakdown:

Pre-licensing education: 7.5 weeks minimum (for online courses in California).
Exam application processing: 6-8 weeks.
Exam scheduling and taking: 1-2 weeks.

Keep in mind that while it’s possible to complete the process quickly, taking more time to thoroughly learn the material can be beneficial for passing the exam and starting your career.

How hard is the real estate exam?

The exam is considered challenging and requires thorough preparation. It tests knowledge of real estate principles, laws, and practices, and a significant portion of the exam focuses on vocabulary and key concepts.

Pass rates vary by state, typically ranging from 50% to 70% for first-time test takers.
The exam covers a wide range of topics, including property ownership, land use regulations, financing, and real estate calculations.
Most states have a time limit of 2-4 hours for the exam, which can add pressure.
The exam usually consists of 100-150 multiple-choice questions, testing both national and state-specific real estate knowledge.
Many test-takers find the math questions and state-specific laws to be the most challenging aspects.
Successful candidates typically dedicate 2-4 weeks of focused study time before the exam.

While the exam is designed to be comprehensive and challenging, it’s important to remember that with thorough preparation and study, most candidates can pass successfully.

What topics are covered on the real estate exam?

The real estate exam typically covers a variety of topics essential for understanding real estate practices and laws. Key areas of focus include:

Real Estate Principles: Fundamental concepts and terminology related to real estate transactions, ownership, and property rights.
Real Estate Practices: Practical applications of real estate principles, including the processes involved in buying, selling, and leasing properties.
Property Ownership: Different types of property ownership, including freehold and leasehold estates, and the rights associated with each.
Land Use Regulations: Understanding zoning laws, land use planning, and environmental regulations that affect property development and use.
Financing: Knowledge of various financing options available for real estate transactions, including mortgages, loans, and the role of financial institutions.
Real Estate Calculations: Mathematical concepts related to property valuation, commissions, and financing, which are often tested in the exam.
State-Specific Laws: Each state has its own set of laws and regulations governing real estate transactions, which candidates must understand to pass the exam.
Ethics and Professional Conduct: Understanding the ethical responsibilities of real estate professionals and the importance of maintaining integrity in transactions.

Candidates are advised to review both national and state-specific materials to ensure comprehensive preparation for the exam.

How long is the real estate exam?

The duration of the real estate exam varies by state, but generally falls within the following parameters:

Most real estate licensing exams last between 1.5 to 3.5 hours.
The exam is typically divided into two parts: a national portion and a state-specific portion.
In California, for example, the salesperson exam consists of 150 multiple-choice questions with a time limit of 3 hours and 15 minutes.
The broker exam in California is more extensive, with 200 questions and a time limit of 5 hours.
Some states, like New York, allow up to 1.5 hours for the salesperson exam and 2.5 hours for the broker exam.
The number of questions can range from 100 to 150 for most states, influencing the overall exam duration.

It’s important to note that the exact length can vary, and candidates should check with their state’s real estate commission or licensing board for the most accurate and up-to-date information.

How many questions can I miss and still pass the real estate exam?

The number of questions you can miss and still pass the real estate exam varies by state, but generally:

Most states require a passing score of 70-75%, meaning you can miss 25-30% of the questions and still pass.
In California, for example, the salesperson exam consists of 150 multiple-choice questions, and you need to answer at least 105 questions correctly (70%) to pass.
For the California broker exam, which has 200 questions, you need to answer at least 150 correctly (75%) to pass.
In New York, the passing score is 70% for both the salesperson and broker exams.
Some states, like Florida, require a higher passing score of 75%, allowing fewer missed questions.
The exact number of questions you can miss depends on the total number of questions on your state’s exam, which can range from 100 to 200.

It’s important to note that while you can afford to miss some questions, aiming for a higher score is always beneficial. This ensures you have a buffer in case you encounter particularly challenging questions.

What happens if I fail the real estate exam?

If you fail the real estate exam, the process for retaking it varies by state, but generally includes the following steps:

Retake Eligibility: Most states allow candidates to retake the exam after failing. However, there may be a waiting period before you can attempt it again, typically ranging from a few days to a few weeks.
Exam Fees: You will likely need to pay a retake fee each time you attempt the exam. This fee can vary depending on the state and the testing provider.
Preparation: It is advisable to review your study materials and identify areas where you struggled before retaking the exam. Many candidates find it helpful to take additional practice exams or enroll in a prep course to improve their chances of passing on the next attempt.
State-Specific Rules: Each state has its own rules regarding how many times you can retake the exam and any additional requirements that may apply. For example, some states may require you to complete additional coursework if you fail multiple times.
Passing Score: Remember that the passing score typically ranges from 70% to 75%, so understanding the exam format and content is crucial for success.
Time Limit: After passing the exam, you usually have a limited time frame (often six months) to apply for your real estate license. Failing to do so may require you to retake the exam again.

Overall, while failing the exam can be discouraging, many candidates successfully pass on their subsequent attempts with proper preparation and study.