What Education is Required to Be a Real Estate Agent?

Are you interested in becoming a real estate agent but not sure where to start? One of the first things to consider is the education and training needed to get your real estate license. Understanding the steps to meet the educational requirements is key to launching a successful real estate career.

In this guide, we’ll walk through the education needed to be a real estate agent and outline the licensing process. From pre-licensing courses to activating your license, we cover everything you need to get started.

Why become a real estate agent?

Being a real estate agent offers a unique combination of independence, flexibility, and potential for financial success. Here are a few reasons why so many people pursue a career in real estate:

• Flexible Hours: You control your schedule. Agents often work evenings or weekends, depending on their availability and clients’ needs.
• Earnings Potential: Real estate agents earn a commission on sales, and high-performing agents can earn a substantial income. The median salary for real estate agents was $69,610. per year in 2023, with the top 10% earning over $113,000.
• Ease of Entry: Becoming a real estate agent is more affordable and faster than many other careers with similar earnings potential. It’s a great option for individuals looking to start a career or change professions.

Do real estate agents need a degree?

The short answer is no—In most cases, you don’t need a college degree to become a real estate agent, but it does help potential career job seekers stay competitive and relevant. An associate or bachelor’s degree is more than sufficient—perhaps in business, finance, or any other related field. Unlike many other professions, the education required to be a real estate agent focuses on state-specific pre-licensing courses rather than formal higher education.

While a degree in real estate, business, or finance can be beneficial, especially in understanding real estate finance and marketing, most agents start their careers after completing their state’s pre-licensing education. This route makes real estate an accessible profession, even for those without a college background.

With that said it is important to clarify that holding a degree often makes potential agents more attractive to real estate brokerage firms. 

Since working with a brokerage company or licensed broker is a requirement to practice real estate, potential agents will need to fulfill the educational requirements of top brokerage firms. While some provide the necessary training, others require agents to have the knowledge and completed training before they hire any agents.

How to become a real estate agent

If you’re wondering how to become a real estate agent, follow these six essential steps to meet the education requirements and get your real estate license.

1. Research your state’s requirements

Real estate licensing requirements vary from state to state. Since no national real estate license exists, your first step is to check your state’s specific rules. These include the minimum age, education, and examination requirements.

You can find detailed information on your state’s real estate regulatory office website or consult the Association of Real Estate License Law Officials for a list of requirements by state.

Some states also have reciprocal licensing agreements, especially neighboring states, meaning that holding a license in one state can allow you to practice in another without retaking the licensing exam. 

Illinois, for example, has reciprocity with many states, including Colorado, Connecticut, Florida, Georgia, Indiana (broker only), Iowa, Kentucky, Nebraska, and Wisconsin.

2. Enroll in a real estate pre-licensing course

Before you can sit for the real estate licensing exam, you must complete a state-approved pre-licensing course. These courses cover key topics such as real estate law, property ownership, contracts, and finance.

Pre-licensing education requirements vary by state, ranging from 60 to 135 hours of coursework. For instance:

• California requires 135 hours
• Florida requires 63 hours
• New York requires 77 hours

In most states, you can choose to take these courses online, in-person, or through community colleges, depending on your schedule and learning preferences.

3. Take the real estate licensing exam

After completing the pre-licensing course, you’ll need to pass the real estate licensing exam. This exam consists of two sections:

1. A national section covering general real estate principles and practices.
2. A state-specific section focusing on laws and regulations in your state.

Each section is scored separately, and you must receive a passing grade on both sections to pass. 

If you fail one or both sections, you’ll have the opportunity to retake the exam. Each state has its own rules regarding the number of times you may retake an exam, how long you must wait between exams, and the deadline for completing any retakes. 

Pro Tip: Many aspiring agents find it helpful to take practice tests or enroll in exam prep courses to improve their chances of passing the exam on the first try.

4. Activate your real estate agent license

Once you pass the licensing exam, you must submit your application to your state’s real estate regulatory office. This application usually requires documents such as proof of your completed coursework and a licensing fee.

Once your application is approved, you’ll receive your state real estate license via mail and be eligible to start working. 

Keep in mind that you’re not allowed to work as a real estate agent before your license is issued by the state’s real estate authority.

5. Join a real estate brokerage

New agents are required to work under the supervision of a licensed real estate broker. A broker is responsible for overseeing real estate transactions and ensuring legal compliance. Finding the right brokerage is a crucial step in launching your career. You’ll want to work for a broker who offers training, mentorship, and support, especially in your first year. Remember that some brokerages may charge additional fees for office space, marketing tools, and tech support.

6. Consider becoming a realtor

After obtaining your real estate license, you can choose to join the National Association of Realtors (NAR) and become a Realtor. Realtors adhere to a strict Code of Ethics and have access to valuable resources such as the Realtors Property Resource, the largest real estate database in the US.

Though becoming a Realtor is optional for every real estate professional, the designation can add credibility and provide access to business tools and networking opportunities that can help boost your career.

How does education level affect success as a real estate agent?

While you don’t need a college degree to become a real estate agent, your education can still play a significant role in your success. The more you know about topics like finance, marketing, and property law, the better prepared you’ll be to handle complex transactions and work with a diverse range of clients.

In addition to pre-licensing courses, many states also require continuing education (CE) to maintain your license. This ongoing education keeps agents informed about changes in laws, market trends, and ethical guidelines.

There are alternative paths to becoming a real estate agent without a degree. Aspiring agents can fulfill educational requirements through pre-licensing courses, gain experience through internships or entry-level positions in real estate firms, and obtain mentorship from seasoned professionals in the industry. There are also numerous specialized, niche certifications one can obtain.

How long does it take to become a real estate agent?

You can become a real estate agent in as little as four to six months, depending on how quickly you complete your pre-licensing course and pass the licensing exam. States with higher hour requirements may take a little longer, but for most aspiring agents, the process is relatively short.

How hard is it to get your real estate license?

Getting a real estate license requires dedication and studying, but it’s achievable for most people with the proper preparation. The pre-licensing courses and the exam are designed to ensure you understand real estate fundamentals and state laws, so make sure to give yourself time to study and absorb the material.

Careers in real estate

Once you’ve become a licensed real estate agent, you’ll have many opportunities in the real estate industry. Some agents focus on residential properties, helping people buy and sell homes. Others specialize in commercial real estate, working with businesses to lease office spaces or purchase buildings.

Here are a few career paths in real estate:

• Buyer’s Agent: Represent buyers during property transactions.
• Listing Agent: Help homeowners list and sell their properties.
• Real Estate Broker: Manage a team of agents or start your own firm.
• Property Manager: Oversee rental properties for owners and investors.

Salary information for real estate agents

Real estate agents’ earnings vary widely depending on experience, location, and market conditions. The median annual salary for real estate agents in the U.S. is around $69,610, according to the US Department of Labour, but top agents in competitive markets can earn significantly more.

Ready to start your real estate journey?

Just after you finish your state mandatory courses, Lexawise is here for you! If you’re ready to take the next step in your real estate career, now’s the time to start preparing for your licensing exam. Lexawise offers comprehensive real estate exam prep resources, including practice tests, flashcards, and real-time tutoring. 

Our platform is designed to help you pass the exam on your first try and jumpstart your real estate career. Whether you’re just beginning or looking to improve your skills, Lexawise has everything you need to succeed.