What does a real estate agent do?
Real estate sales agents help clients buy, sell and rent property. Brokers do the same work but are licensed to run their own businesses, and BLS notes that sales agents must work with a broker.
Expect a flexible but demanding schedule. BLS says work schedules often include evenings and weekends to fit clients’ availability, and most brokers and agents are self-employed.
How to become a real estate agent in 7 steps
- Check your state’s eligibility rules. BLS lists being at least 18, holding a high school diploma or equivalent, completing pre-licensing courses and passing an exam as typical minimums. Some states add a background check.
- Take an approved pre-licensing course. Use a school your state commission approves. Hours range from 63 in Florida to 180 in Texas in the table below.
- Apply for your license and submit fingerprints. Texas, Florida, California and Colorado all require fingerprints or a fingerprint background check.
- Pass the state exam. Some states split the test into national and state portions, and you must pass both.
- Choose a sponsoring broker. Your license is not usable for deals until a broker sponsors or activates it in states such as Texas and Florida.
- Complete any post-licensing education. Florida requires a 45-hour post-licensing course before your first renewal, and Texas requires Sales Agent Apprentice Education courses plus Legal Update I and II.
- Renew on time. BLS says licenses typically must be renewed every 2 to 4 years, and most states require continuing education. A New York salesperson license, for example, is good for 2 years.
Real estate pre-licensing hours by state
Each state sets its own education, exam and fee rules. These five show the range.
| State | Agency | Pre-licensing education | Exam | State fees |
|---|---|---|---|---|
| Texas | Texas Real Estate Commission (TREC) | 180 classroom hours: six 30-hour courses | National and state portions, at least 70% on each, given by Pearson | $206 application, $43 exam |
| Florida | Florida Real Estate Commission (DBPR) | 63-hour sales associate course (Course I), valid for 2 years after you finish | 100 multiple-choice questions in 3.5 hours; 75 to pass | Check DBPR for current fees |
| California | Department of Real Estate (DRE) | Three college-level courses: Real Estate Principles, Real Estate Practice and one elective. DRE-approved courses run at least 45 hours each. | State salesperson exam | $100 exam and $350 license ($450 combined), plus $49 fingerprints |
| New York | Department of State | 77 hours of approved qualifying education, valid for 8 years | Multiple choice, 1.5 hours | $65 application, $15 exam |
| Colorado | Division of Real Estate | 168 hours across six required subjects | National and Colorado portions; a passing score on either part is valid for 1 year | Check the Division for current fees |
A few details matter when you compare:
- Texas courses are Principles of Real Estate I and II, Law of Agency, Law of Contracts, Promulgated Contract Forms and Real Estate Finance. A general college transcript usually will not count unless it covers those specific courses.
- California requires each course to equal three semester units or four quarter units. Since January 1, 2024, the Real Estate Practice course must include implicit bias and fair housing components.
- Colorado calls its entry license a broker license rather than a salesperson license. Its 168 hours include 48 hours of Real Estate Law and Practice and 48 hours of Colorado Contracts and Regulations.
- Florida and California exempt some attorneys from the pre-licensing course, and Colorado sets a shorter path for licensed attorneys.
What is on the real estate license exam?
The exam is built around your state’s pre-licensing curriculum, so the course is your main study tool. New York’s exam, for example, is based on its 77-hour course, and Texas tests national and state material in separate portions.
Plan for these rules:
- Texas: you must score at least 70% on each portion. Fail either portion three times, and you need additional education before you can test again. A passed section stays valid for 1 year.
- Florida: the sales associate exam has 100 multiple-choice questions, a 3.5-hour limit and a passing score of 75.
- New York: the exam is multiple choice, and you get 1.5 hours.
- Colorado: you can retake only the part you failed, and a passing score on either part is valid for 1 year.
Take timed practice exams and read your state’s candidate handbook so you know the format, ID rules and retake policy before test day.
How long does it take to get a real estate license?
Most of the time goes into coursework, but state deadlines matter too:
| Stage | What to expect | Deadlines to know |
|---|---|---|
| Pre-licensing course | 63 hours in Florida up to 180 hours in Texas | Florida’s course is valid for 2 years; New York’s for 8 years |
| Application and fingerprints | File with your state and complete the background check | A Texas application expires 1 year after filing; California gives you 2 years from the date DRE receives it |
| License exam | Schedule after your education is approved | Texas and Colorado count a passed portion for 1 year |
| Broker sponsorship | Join a brokerage to activate your license | Texas and Florida issue the license as inactive until a broker sponsors or activates it |
| Post-licensing | Extra courses before your first renewal in some states | Florida: 45 hours before the first renewal |
Plan the steps in order and leave time for fingerprints, exam scheduling and broker interviews, so your course credit or application does not expire before you finish.
Why do you need a sponsoring broker?
A sponsoring broker is the licensed broker you work under. BLS says sales agents must work with a real estate broker, and states build that into the license:
- Texas issues an inactive license after you meet the requirements. An inactive sales agent may not practice until sponsored by an active Texas broker, and you may work only for your sponsoring broker.
- Florida issues the license as inactive unless you activate it with form RE 11 or your broker activates it through the broker’s online account.
- New York requires sponsorship by a New York licensed broker, and you need a sponsoring broker to renew.
Interview more than one brokerage. Ask about the commission split, training and mentoring for new agents, desk or technology fees, lead sources, and who pays for marketing.
How much does it cost to become a real estate agent?
Your total is state fees plus course tuition, plus business costs once you start working.
| State | State fees |
|---|---|
| California | $100 exam plus $350 license, or $450 combined, plus a $49 fingerprint fee paid to the live scan provider |
| Texas | $206 application fee plus a $43 exam fee paid to the exam provider |
| New York | $65 application fee plus a $15 exam fee; renewal is also $65 |
Course tuition varies by school and format, so compare several approved providers. Application fees are nonrefundable in these three states. In Florida, missing a scheduled exam without notice means paying the exam fee again, so book a date you can keep.
How do real estate agents get paid?
BLS says brokers and agents earn most of their income from commissions on sales. The rate varies by property type and value, and commissions are often divided among the buying agent, the selling agent, their brokers and their firms. The terms are set in the agreements with your clients and your brokerage.
Here is a simplified example with made-up numbers. Suppose a buyer’s agreement pays the buyer’s brokerage 2.5% of a $400,000 price, or $10,000. If your agreement with your brokerage gives you 70% and the brokerage 30%, you receive $7,000 before taxes and business expenses. You earn nothing on a deal that does not close.
Two NAR practice changes that took effect August 17, 2024 affect how buyer agents are paid. MLS participants working with buyers must have a written agreement with the buyer before touring a home, and that agreement must state the agent’s compensation as a set amount or rate. Offers of compensation to buyer agents can no longer be communicated on an MLS, although sellers and listing brokers may still pay buyer agents off the MLS, and sellers can still offer buyer concessions.
If you are paid as an independent contractor, your brokerage generally does not withhold income tax from commissions, so set money aside and consider talking with a tax professional.
How much do real estate agents make?
BLS reported a median annual wage of $52,830 for real estate sales agents in May 2025. The lowest 10% earned less than $32,970 and the highest 10% earned more than $123,590. Real estate brokers had a higher median of $73,220.
| Group (May 2025) | Median annual wage |
|---|---|
| Real estate brokers | $73,220 |
| Sales agents in construction | $56,310 |
| All real estate sales agents | $52,830 |
| Sales agents in real estate and rental and leasing | $49,850 |
BLS counted 427,000 sales agent jobs and 103,500 broker jobs in 2025. It projects 2% growth for the occupation from 2025 to 2035, slower than average, but still about 40,400 openings a year, mostly from people leaving the field. New agents often need time to build income, because pay depends on completed sales.
Is real estate a good career for you?
Real estate rewards people who like selling, negotiating and running their own schedule. Our guide to the Enterprising personality type lists real estate agents among careers that fit persuaders and deal-makers. If you are unsure, take the free Holland Code career test first.
If you want steadier pay, compare salaried roles on our list of high paying jobs without a degree, which includes property and real estate managers. If you would rather be paid while you train, becoming an electrician through an apprenticeship is a very different path.
How to land your first brokerage
- Show sales and service results. Describe client service, sales goals or local networks from past jobs.
- List your license status clearly. Write “Licensed Real Estate Salesperson, New York Department of State” or “License exam scheduled for March” if you are still in progress.
- Bring a simple plan. Be ready to explain which neighborhoods or client types you want to serve and how you will find your first clients.
- Polish your resume. Our real estate agent resume example shows how new and experienced agents present sales volume and client service.
License rules, fees and broker requirements change. Check your state’s real estate commission for current rules, and talk with a qualified professional if your situation, such as a past criminal record or an out-of-state license, could affect eligibility.