Selling real estate has become one of the most attractive careers for many people, mostly due to the autonomy, flexibility, and potential pay. Over 1.5 million realtors were in the United States as of October 2023.
Becoming a real estate agent takes time to happen. There are some requirements that real estate agents need to complete before they can begin appraising, brokering, and selling properties-the most important of which is getting a real estate license.
Types of Real Estate Licenses
The types of real estate licenses offered vary from state to state. Most places offer two types: broker and sales. Some states, such as North Carolina, have a "broker only" licensing system.
Getting a Real Estate License
If you're ready to become a real estate agent, the key to unlocking this lucrative career is to complete a real estate licensure exam and get your license. Once that's done, the sky is the limit.
There are several steps hopefuls need to take before they can get their license:
1. Research the education and licensing requirements in your state
Real estate licensing requirements vary from state to state. Each state has specific requirements for:
Age
Application process and fees
Background checks and fingerprinting
Continuing education
Completion of an ethics course
Education
Examination eligibility
Examinations
Pre-licensing courses
Process for achieving the next level of licensing
Reporting of any criminal history
We recommend checking your real estate commission to understand the requirements for obtaining a real estate license.
2. Complete education requirements
Each state requires a certain number of hours of prerequisite education before you can apply for a real estate license. Once you've determined how many prerequisite education hours you must complete, you can enroll in a pre-licensing school. Some schools meet for a set number of classes over several weeks, but others allow you to move through the course at your own pace.
3. Apply for and pass a real estate licensure exam
After completing your pre-requisite education and feeling comfortable taking the test, it's time to apply for the exam. In most cases, you would need to register for the test through a third party.
Real estate licensure exams often include 100 multiple-choice questions covering national and state principles and laws. Many states require a minimum score of 70% to pass the exam and earn your license, but this differs per state.
4. Apply for a real estate license
Once you've successfully passed the exam, it's time to apply for your real estate license. To do so, submit your test results and license application. You will also be required to pay for the application fees, which range between $50 and $250. Some may require a background check, which will cost between $40 and $100, but this is not always true.
Licenses take about one to eight weeks to process. When you've received your license, you can now find a real estate brokerage to work under to earn experience and income.
Careers in the Real Estate Industry
With a real estate license, your path in the industry expands to include other work opportunities. There are plenty of career options in real estate, including:
Appraiser - responsible for verifying the value of a real estate property
House Stager - dresses up a property to ensure it looks appealing to potential buyers
Mortgage Loan Officer - works with financial institutions to originate property loans
Property Manager - oversees and maintains real estate property
Real Estate Attorney - drafts or examines closing documents needed in a real estate transaction
Real Estate Broker - manages a team of real estate agents
Real Estate Investor - buys and sells real estate properties for financial gain
