How to Get A Real Estate License

How do you get a real estate license? Find out about the real estate licensing process and its benefits.

Real estate is a potentially lucrative business. In 2021, the average annual earnings for real estate brokers or agents was $48.770, according to the U.S. Bureau of Labor Statistics (BLS). The potential in the real estate market attracts many new real estate agents annually. However, selling real estate is a multi-step process that is not for everyone. It takes a level of commitment and time management that requires organization and the drive to make sales happen. One of the first and most important steps in the process is getting a real estate license.

You may wonder if a real estate license is required to sell real estate. How much a license costs and how to get one may also be top concerns. You need to know those facts before you can decide if real estate is the right industry for you. The following information can help you learn more about real estate licensing benefits and steps.

What Real Estate Licenses Are Available? 

The terms “real estate license” and “real estate agent license” are defined the same way in the real estate industry. They both refer to a license acquired to represent property owners and purchasers in property deals in a certain U.S. state. Buying and selling licenses are typically separate, but a single agent is allowed to acquire both, if desired. A real estate agent can also opt to acquire an additional broker license. A real estate broker is licensed to have other agents under his or her supervision.

In some cases, a real estate license is only valid in the state in which it is obtained. However, certain states have reciprocity agreements with others. A reciprocity agreement grants certain agent privileges. For example, it allows a licensed real estate agent from an accepted state to:

  • Not Pay Fees for Extra Licenses in Reciprocating States

  • Avoid the Need to Waste Time Taking Additional Tests in Reciprocating States

  • Legally Buy or Sell Real Estate After Presenting a Copy of His or Her Licensing History to State Officials

Another type of real estate license is a Realtor license. A Realtor is a person who is a member of the National Association of Realtors. However, it is not an actual license. It is solely a designation that allows a real estate agent to refer to himself or herself as a Realtor. That designation is not required to sell real estate, but it is often helpful.

What Are the Benefits of a Real Estate License?

Among the most important and obvious benefits of real estate licensing are legal standing and credibility with clients, as well as other agents. Clients seeking to buy or sell properties know obtaining a real estate license is a prolonged process. Therefore, having one shows commitment on the part of the agent. As a result, licensed agents garner high levels of respect and trust in the industry. Other potential benefits of a real estate license include:

  • Gaining Access to the All Listings in the Multiple Listing Service (MLS)

  • Collecting Commissions on Property Sales

  • Working for Reputable Agencies and Learning from Other Licensed Agents

  • Attending Industry Events and Seminars Only Open to Licensed Agents

  • Accessing Additional Real Estate Tools and Networking Opportunities

What is the Procedure for Getting a Real Estate License?

The exact procedures for getting real estate licenses may vary slightly by state. Each perspective agent must begin by checking the requirements in the state or states in which he or she wishes to become licensed. Those requirements may include:

  • Minimum Age Limit (Typically 18 Years of Age)

  • High School Diploma or Equivalent

  • Fingerprinting and a Background Check

  • Passing Certain Exams

  • Paying Necessary Application, Exam, and License Fees

  • Meeting Post-Licensing Requirements

After meeting minimum initial requirements, the first licensing step is to sign up for an accredited real estate class. That class must meet the standards required for its graduates to take real estate license exams. In certain states, multiple courses or particular amounts of study hours are required. For example, Florida has one of the easiest course requirements, which is only 63 hours of study. Texas is at the opposite end of the spectrum, requiring 180 hours. 

Passing the real estate exam does not automatically provide the student with a real estate license. A license activation fee is required. Then the licensed agent can begin his or her career in real estate legally. He or she also has the options to pursue a Realtor designation by joining the National Association or Realtors or pursue a broker license.

How Much Does a Real Estate License Cost?

Getting a real estate license is a somewhat expensive undertaking initially. There are many fees associated with the process. The fees range from approximately $850 to $1,000 or more, depending on the state and the types of licensing desired. Factors that affect real estate license costs include:

  • State-Specific Educational and Licensing Requirements

  • Course Lengths

  • Course Types (In Person or Online)

  • License or Licenses Desired (Agent or Broker)

  • Optional Memberships and Accreditation (Becoming a Realtor, Joining a Real Estate Brokerage Etc.)

Where Can You Get a Real Estate License?

Every U.S. state has a Real Estate Commission. Although, names vary by state. For example, some states refer to their commissions as Real Estate Departments. Real estate licenses are provided by those commissions. When you complete a pre licensing course and exam, you must take your state's real estate licensing test. To do so, you must submit a copy of your certificate of completion or transcripts to the Real Estate Commission in your state. 

What Do You Do Once You Have a Real Estate License?

After obtaining your real estate license, prepare for the difficulties of being a real estate agent by surrounding yourself with experienced mentors and agents. Join a real estate brokerage to reap the benefits of experienced agents' expertise and advice. Be prepared for a slow start. Real estate is an industry that requires patience and planning. You can build a network of trusted mentors, clients, and industry professionals over time. Those individuals can eventually help you expand your industry reach and client base.

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