What does a real estate agent do?

Real estate agents help people buy, sell, and rent properties. They guide clients through one of the biggest financial decisions of their lives, from the first showing to closing day. Your daily tasks might include meeting with clients, scheduling property tours, negotiating offers, coordinating with lenders and inspectors, and marketing listings.

Beyond transactions, you'll build relationships, stay current on market trends, and become an expert in your local area. The role requires excellent communication skills, market knowledge, and the ability to juggle multiple clients and properties simultaneously.

Realtor vs. real estate agent

All Realtors are real estate agents, but not all real estate agents are Realtors.

A real estate agent is anyone who has completed their real estate agent education requirements, passed their state licensing exam, and holds an active license. They can legally help clients buy, sell, or rent properties.

A Realtor® is a real estate agent who has joined the National Association of Realtors (NAR) and agreed to follow their strict Code of Ethics. NAR membership comes with additional benefits like access to exclusive training, networking opportunities, and the trusted Realtor trademark.

Many agents choose to become Realtors shortly after getting licensed, though it's not required to practice real estate.

Step 1: Meet the basic requirements

Most states require you to be at least 18 or 19 years old and have a high school diploma or GED. You'll also need to be a legal U.S. resident or have valid work authorization.

Some states conduct background checks and may deny licenses to applicants with certain criminal convictions, particularly those involving fraud or financial crimes. If you have concerns about your background, check with your state's real estate commission early in the process.

Step 2: Complete your pre-licensing education

Every state requires aspiring real estate agents to complete pre-licensing education from an approved provider. The number of hours varies significantly by state, ranging from 60 hours in states like Virginia to 180 hours in Texas. You'll study topics like:

• Real estate principles

• Property law

• Contracts

• Finance

• Ethics

You can complete these courses online, in person, or through a hybrid format. Choose an accredited school that's approved by your state real estate commission. Many schools offer exam prep materials, practice tests, and instructor support to help you succeed. Expect to pay anywhere from $250 to $800 for your pre-licensing education.

Step 3: Pass the state licensing exam

After completing your coursework, you'll need to pass your state's real estate licensing exam. This test typically has two portions: a national section covering general real estate principles and a state-specific section on local laws and regulations. Most exams include 100 to 150 multiple-choice questions.

The exam tests your knowledge of contracts, property ownership, financing, property valuation, and fair housing laws. On most state exams, you'll need to score at least 70% to 75%, though some require higher passing scores.

Schedule your exam through your state's testing provider, typically Pearson VUE or PSI. Real estate exam fees usually range from $75 to $200 per attempt. Study diligently, take practice tests, and give yourself the best chance to pass on your first try.

Step 4: Apply for your real estate license

Once you pass your exam, you can apply for your license through your state's real estate commission or regulatory body. You'll submit your application, exam results, fingerprints for a background check, and the application fee, which typically ranges from $175 to $400.

The approval process usually takes two to six weeks, though it can be faster or slower depending on your state. Some states issue licenses immediately after you pass the exam, while others require additional steps like finding a sponsoring broker first.

Step 5: Find a sponsoring brokerage

New real estate agents cannot practice independently. You must hang your license with a Sponsoring Broker who oversees your work and provides guidance as you learn the ropes. This requirement protects both you and your clients as you gain experience.

Start researching brokerages before you even take your licensing exam. Ask about:

• Commission splits: How the commission is shared between you and the firm

• Mentorship: Whether they provide a "shadowing" program for your first few deals

• Desk Fees: Monthly costs for office space or tech tools

Some popular brokerage models include traditional firms like Keller Williams and RE/MAX, discount brokerages, and newer tech-focused companies. Interview with several brokerages to find the best fit for your goals and working style. Remember, you can always switch brokerages later as your career evolves.

Step 6: Join the NAR and your local MLS

Once you're licensed and affiliated with a brokerage, you can join the National Association of Realtors (NAR) to become a Realtor. While this step is optional, most agents choose to join NAR for the credibility, networking opportunities, access to the Multiple Listing Service (MLS), and professional resources it provides.

Membership and MLS costs vary widely by state and local boards but often range from $1,000 to $2,000 for the first year, which includes NAR dues, state board dues, and MLS access fees (through a brokerage or local MLS organization).

Step 7: Complete continuing education requirements

Most states require agents to complete continuing education (CE) courses to renew their licenses every one to four years. CE requirements typically range from 8 to 24 hours per renewal period.

These courses keep you updated on changing laws, market trends, and best practices. Topics often include ethics, fair housing, contract law, and emerging real estate technologies. Your brokerage may offer some CE courses, or you can take them through approved online providers.

Real estate agent salary and job outlook

Real estate offers one of the most flexible and potentially lucrative career paths available. The median annual wage for Realtors is roughly $56,000, but top earners make well into six figures. Your income depends entirely on how many deals you close and your average commission per transaction.

Most agents work on commission, typically earning 2.5% to 3% of the sale price on each transaction, though this varies by market and brokerage. In your first year, you might close 8 to 12 transactions. As you gain experience and build your network, your transaction volume can grow significantly.

The real estate market continues to evolve, with steady demand for skilled agents who can navigate complex transactions and provide genuine value to clients.

Essential skills for real estate success

Having your license is just the beginning. The most successful agents develop a strong skill set that goes beyond what you learn in pre-licensing courses.

Essential skills for real estate agents include:

• Communication: Clear listening, explaining, and negotiating help close deals and build strong client relationships.

• Self-discipline & time management: Staying organized and meeting deadlines is key when you work independently.

• Marketing savvy: Building your brand and generating leads takes consistent effort and creativity.

• Technology adoption: Using tools like MLS systems, digital signatures, and virtual tours gives you a competitive edge.

FAQs about becoming a real estate agent

How hard is it to become a real estate agent?

Becoming a real estate agent is achievable for most people willing to put in the effort. The pre-licensing coursework requires dedication but covers material that anyone can learn with proper study habits. Pass rates for the licensing exam typically range from 50% to 75% on the first attempt, but thorough preparation significantly improves your odds.

The bigger challenge often comes after licensing when you're building your business and learning to generate leads and close transactions.

How long does it take to become a Realtor?

Becoming a licensed real estate agent takes 3 to 6 months, depending on your state's education requirements and how quickly you complete coursework. Some people finish faster by studying full-time, while others take longer while working another job. After getting your license, you'll need to join the NAR to become a Realtor.

How much does it cost to become a Realtor?

Becoming a Realtor costs $1,500 to $3,000 on average for your first year. Initial real estate license costs include pre-licensing education, licensing exam, state application, and background check fees. You'll also pay NAR membership dues for the official Realtor® designation. Additional startup and marketing costs vary based on your approach and budget.

Can I become a real estate agent with no experience?

Yes, you don't need prior real estate experience to become an agent. The pre-licensing education and exam are designed for beginners and cover everything you need to know to get started. What matters most is your willingness to learn, work hard, and develop the skills needed to succeed. Many successful agents come from completely different career backgrounds.

Do I need a college degree to become a real estate agent?

No, a real estate agent does not need a college degree. Most states only require a high school diploma or GED along with completion of state-approved pre-licensing courses. However, some college coursework in business, marketing, finance, or communications can certainly help you succeed in the field.

What's the difference between a real estate agent and a broker?

A real estate broker has completed additional education and licensing requirements beyond what agents need. Brokers have the freedom to work alone, start their own businesses, and manage other agents. Most agents work under a broker for several years before pursuing their broker's license, if they choose to at all.

The path to becoming a real estate broker typically requires one to three years of experience as an agent plus additional coursework and exams.