How to Become a Real Estate Agent: A 7-Step Guide for Beginners

Starting a new career can feel overwhelming, but understanding the process of how to become a real estate agent is the first step toward a rewarding and flexible profession. This path offers the chance to be your own boss, set your own hours, and have an income directly tied to your effort. It’s a career built on relationships, market knowledge, and negotiation skills, attracting people from all professional backgrounds.

This comprehensive real estate agent guide will walk you through every stage of the journey. We'll cover everything from the initial state requirements and pre-licensing education to passing your exam and launching your business. By the end, you'll have a clear roadmap for navigating the real estate career steps and positioning yourself for success from day one.

What to Know

• State Requirements are Key: Every state has unique requirements for age, education hours, and background checks. Your first step is always to check your specific state's real estate commission website.
• Licensing is a Multi-Step Process: Becoming a licensed agent involves completing pre-licensing courses, passing a state-administered exam, undergoing a background check, and securing a sponsoring broker.
• Initial Costs are an Investment: Expect to invest between $500 and $2,000 upfront for courses, exam fees, licensing applications, and initial association dues before you earn your first commission check.
• A Brokerage is Non-Negotiable: As a new agent, you must work under a licensed broker. Choosing the right brokerage is critical for mentorship, training, and access to resources.
• Success Requires More Than a License: Long-term success depends on lead generation, marketing, client management, and continuous learning. Utilizing tools like a CRM from the start is essential for organizing your business.

What Does a Real Estate Agent Actually Do?

A real estate agent is a licensed professional who helps clients buy, sell, or rent properties, including homes, land, and commercial buildings. Their role is far more dynamic than just showing houses. A typical day involves a wide range of tasks that require a mix of market expertise, communication skills, and business management.

Agents spend a significant amount of time on lead generation—finding new clients through networking, marketing, and prospecting. They conduct market analyses to determine a property's value, create listing presentations for sellers, and stage homes to attract buyers. For buyers, they scour listings, schedule showings, and provide guidance through the complex purchasing process.

Beyond the client-facing work, agents are constantly managing paperwork. This includes drafting offers, negotiating contracts, and coordinating with lenders, inspectors, and attorneys to ensure a smooth closing. This is where transaction management software like Dotloop becomes invaluable, helping to keep documents organized and compliant. Ultimately, an agent acts as a guide, advocate, and project manager for their clients' largest financial transactions.

Is a Real Estate Career Right for You? Weighing the Pros and Cons

Before diving into the real estate career steps, it's important to assess if this profession aligns with your personality, work style, and financial goals. Like any career, becoming a realtor has significant advantages and challenges that you should consider carefully.

The Pros of a Real Estate Career

• Unlimited Income Potential: Your earnings are directly tied to your efforts. There's no salary cap, and successful agents can build substantial wealth through commissions and personal investments.
• Flexibility and Autonomy: You are essentially your own boss. You can set your own schedule, decide which clients to work with, and build a business that fits your lifestyle. This freedom is a major draw for many professionals.
• Rewarding Work: Helping people navigate one of the biggest decisions of their lives—buying or selling a home—is incredibly fulfilling. You build lasting relationships and become a trusted advisor in your community.
• Low Barrier to Entry: Compared to many other professions with high income potential, becoming a real estate agent doesn't require a four-year degree. You can get licensed and start working in just a few months.

The Cons of a Real Estate Career

• Irregular and Unpredictable Income: Especially in the beginning, your income will be commission-based and inconsistent. It can take several months to close your first deal, so having savings to cover living expenses is crucial.
• Long and Irregular Hours: While you have flexibility, you're not always in control. You must be available to work evenings and weekends to accommodate clients' schedules. The idea of a 9-to-5 workday doesn't apply here.
• High Initial and Ongoing Costs: From licensing fees to marketing expenses and brokerage dues, you are running a business. These costs can add up quickly, and you have to pay them whether you're closing deals or not.
• High-Stress Environment: You're dealing with large financial transactions and emotional clients. The pressure to perform, handle negotiations, and solve problems that arise during a transaction can be intense. As one user on a Reddit discussion noted, "The first year is a grind. You have to be prepared for rejection and have the self-discipline to keep prospecting even when you're not seeing immediate results."

How to Become a Real Estate Agent: The 7 Core Steps

Navigating the path to becoming a licensed real estate agent involves a clear, structured process. While specifics vary by state, the core journey is consistent across the country. Following this step-by-step guide will ensure you cover all your bases and set yourself up for a successful launch.

Step 1: Research Your State's Licensing Requirements

This is the foundational step. Every state has a real estate commission or regulatory board that sets the rules for licensure. You must visit their official website to find the specific requirements for your location. Key details to look for include:

• Age Requirement: Most states require you to be at least 18 or 19 years old.
• Education Requirement: You'll typically need a high school diploma or GED.
• Pre-Licensing Course Hours: Each state mandates a specific number of hours of approved real estate education. This can range from as low as 40 hours to over 150 hours.
• Residency Status: You usually need to be a legal US resident.
• Criminal History: States have different rules regarding criminal records. Be sure to understand if any past offenses could disqualify you.

Step 2: Complete Your Pre-Licensing Education

Once you know your state's required hours, you must enroll in an approved pre-licensing course. These courses cover fundamental real estate principles, laws, and practices. You'll learn about property ownership, contracts, financing, and agency law. You have several options for completing this education:

• Online Real Estate Schools: Offer flexibility to study at your own pace. They are often the most affordable option.
• In-Person Classroom Courses: Provide a structured learning environment with direct access to instructors.
• Community Colleges: Some offer real estate licensing programs as part of their curriculum.

Choose the format that best fits your learning style and schedule. The goal is not just to pass the final course exam but to truly absorb the material, as it will be the foundation of your career and is critical for passing the state exam.

Step 3: Pass the Real Estate Licensing Exam

The real estate exam is the biggest hurdle for many aspiring agents. It's typically divided into two parts: a national section covering general real estate principles and a state-specific section covering your state's unique laws and regulations. You must pass both sections to be eligible for a license.

To prepare, use practice exams, study guides, and flashcards. Many pre-licensing course providers offer exam prep packages with simulated tests that mimic the real thing. On exam day, manage your time wisely and read each question carefully. If you don't pass on the first try, don't be discouraged.

Most states allow you to retake the exam, though there may be a waiting period and additional fees.

Step 4: Complete a Background Check and Get Fingerprinted

Public trust is paramount in real estate, so all states require applicants to undergo a criminal background check. This process typically involves getting your fingerprints taken at an approved location. The state's real estate commission will review your record to ensure you meet their qualifications for honesty and trustworthiness.

It's important to be completely transparent during this process. Disclose any past convictions as required on your application. Hiding information is often viewed more negatively than the offense itself. The process can take several weeks, so it's wise to initiate it as soon as you've passed your exam.

Step 5: Find a Sponsoring Real Estate Broker

You cannot practice real estate independently as a new agent. You must work under the supervision of a licensed managing broker. This broker's firm, or brokerage, will sponsor your license and provide the necessary oversight, training, and resources to get your business off the ground.

Start interviewing brokerages before you even pass your exam. Look for a brokerage with a strong reputation, a supportive culture, and a robust training program for new agents. Consider factors like their commission split structure, technology offerings, and the level of mentorship you'll receive. Your choice of broker will have a massive impact on your early success.

Step 6: Submit Your License Application

With your course completion certificate, exam pass slip, background check clearance, and proof of a sponsoring broker, you are ready to formally apply for your license. You'll submit a completed application form along with the required fees to your state's real estate commission.

Double-check that all information is accurate and all required documents are included to avoid delays. Once your application is approved, the state will issue your real estate license. Congratulations, you are now officially a licensed real estate agent! However, the journey is just beginning.

Step 7: Consider Becoming a Realtor® by Joining the NAR

While often used interchangeably, "real estate agent" and "Realtor®" are not the same. A real estate agent is anyone who holds a state license. A Realtor® is a licensed agent who is also a member of the National Association of Realtors (NAR). Membership requires you to adhere to the NAR's strict Code of Ethics.

Joining the NAR (and its state and local chapters) grants you access to valuable resources, including market data, educational opportunities, and the Multiple Listing Service (MLS), a critical tool for finding and listing properties. While not legally required, most agents find that NAR membership is essential for a successful career. According to the National Association of Realtors, membership provides a standard of practice and a network that is vital for professional growth.

The Financial Investment: A Breakdown of Costs

One of the most common questions from aspiring agents is about the cost of getting started. While it's more affordable than many other business ventures, becoming a real estate agent requires a significant upfront financial investment before you earn your first dollar. It's crucial to budget for these expenses.

Here is a general breakdown of the typical costs. Keep in mind that these figures can vary widely by state and the specific providers you choose.

Expense Category	Estimated Cost Range (USD)	Description
Pre-Licensing Education	$200 – $900	Cost of required courses, varying by online vs. in-person and state requirements.
Exam Application Fee	$50 – $100	Fee paid to the state's testing provider to sit for the licensing exam.
License Application Fee	$100 – $300	One-time fee paid to the state real estate commission to issue your license.
Background Check & Fingerprinting	$50 – $100	Cost for the required criminal history check.
Association Dues (NAR/Local)	$400 – $700+ (Annual)	Dues for the National, State, and Local Realtor® associations. Often prorated.
MLS Fees	$200 – $500+ (Quarterly/Annual)	Fees to access the Multiple Listing Service, essential for property data.
Initial Business Expenses	$500 – $1,500+	Includes business cards, signs, lockboxes, marketing materials, and CRM software.
Total Estimated Initial Cost	$1,500 – $4,100+	This is a general range before earning any commission.

It's also vital to have a personal financial buffer. Most experts recommend having at least 3-6 months of living expenses saved. It can take that long to close your first deal and receive a commission check, and you need to be able to support yourself and fund your business during that initial period.

Choosing the Right Brokerage: A Critical First Step

Your choice of a sponsoring brokerage is one of the most important decisions you'll make in your early career. The right brokerage provides the foundation for your growth, offering training, mentorship, and support. The wrong one can leave you feeling lost and unsupported, increasing the chances of failure.

When interviewing potential brokerages, don't just focus on the commission split. While important, the support system is far more valuable for a new agent. Consider these key factors:

• Training and Mentorship: Does the brokerage have a structured training program specifically for new agents? Will you be assigned a mentor or have access to experienced agents for guidance? This is non-negotiable for success.
• Company Culture: Spend time in the office if possible. Is the environment collaborative and supportive, or is it highly competitive and cutthroat? Find a culture that matches your personality and work style.
• Technology and Resources: What tools does the brokerage provide? Do they offer a CRM, a website, marketing materials, and transaction management software? These tools can represent a significant cost saving and a major productivity boost.
• Lead Generation Support: Ask how the brokerage helps new agents get clients. Do they provide leads, offer floor time, or teach you effective prospecting strategies? While you are ultimately responsible for your own business, a brokerage that supports your lead generation efforts is a huge plus.
• Brand Recognition and Reputation: A well-known and respected brand can lend you credibility as a new agent. However, smaller boutique brokerages can often provide more personalized, hands-on training.

Pro Tip: Create a checklist of what's most important to you before you start interviewing. Ask every brokerage the same set of questions about training, costs (desk fees, E&O insurance), and support. This allows you to compare them objectively and make an informed decision rather than an emotional one.

Setting Up for Success: Essential Tools for New Agents

Once you have your license and have joined a brokerage, you are officially in business. To operate efficiently and compete effectively, you need the right set of tools. Investing in technology from day one will help you stay organized, manage relationships, and build a scalable business. Here are a few key categories of software every new agent should consider.

Customer Relationship Management (CRM) Software

A CRM is the central hub for your business. It's where you'll manage all your contacts, track interactions with leads and clients, and automate follow-up. Trying to run a real estate business from a spreadsheet or your phone's contact list is a recipe for disaster. Leads will fall through the cracks, and opportunities will be missed.

Platforms like Follow Up Boss and LionDesk are designed specifically for real estate agents. They help you organize your pipeline, set reminders for follow-ups, and implement automated email and text campaigns to nurture leads over time. A good CRM is the single most important technology investment you can make.

Transaction Management Software

The real estate process involves a mountain of paperwork, signatures, and deadlines. Transaction management software streamlines this entire process. It allows you to manage documents digitally, collect electronic signatures, and create checklists to ensure compliance and keep everyone on track.

Many brokerages provide a solution, but tools like Dotloop are industry standards. They create a central loop for each transaction where the agent, client, lender, and other parties can collaborate and access documents. This not only improves efficiency but also provides a better, more transparent experience for your clients.

Lead Generation and Website Platforms

Your business needs a professional online presence. While your brokerage may provide a basic webpage, investing in your own website and lead generation platform gives you more control over your brand and marketing. All-in-one platforms like kvCORE or Real Geeks offer IDX-enabled websites (which display MLS listings), built-in CRMs, and marketing automation tools.

These platforms are designed to capture and nurture online leads from sources like social media, Google ads, and organic search. They provide a powerful engine for building a sustainable pipeline of clients, which is the lifeblood of any real estate business. While a larger investment, they can provide a significant return by helping you consistently generate new opportunities.

Frequently Asked Questions About Becoming a Realtor

Here are answers to some of the most common questions people have when considering a career in real estate.

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

The timeline can vary significantly by state but generally takes between 2 to 6 months. The biggest factor is the pre-licensing education requirement. If your state requires 60 hours of coursework, you could complete it online in a few weeks. If it requires 150+ hours, it will naturally take longer.

Other factors include the time it takes to study for and pass the exam, the background check processing time, and finding a brokerage.

How much do real estate agents make?

Real estate agent income is 100% commission-based and varies dramatically. According to the National Association of Realtors, the median gross income for agents was around $54,330 in 2021. However, this is a misleading figure. Top producers can earn well into the six or even seven figures, while many new agents struggle to make a profit in their first year.

Your income depends on your local market, commission splits with your broker, the number of transactions you close, and your business expenses.

Is it difficult to be a real estate agent?

Yes, being a successful real estate agent is difficult. While getting a license is relatively straightforward, building a sustainable business is challenging. The industry has a high failure rate, with some estimates suggesting that over 80% of new agents quit within the first five years. The difficulty lies in the need for self-discipline, consistent lead generation, handling rejection, managing unpredictable income, and navigating complex, high-stakes transactions.

How do beginner realtors make money?

Beginner realtors make money the same way experienced agents do: by earning a commission when they successfully help a client buy, sell, or rent a property. The challenge for beginners is finding those first clients. They typically rely on their personal sphere of influence (friends, family, past colleagues), brokerage-provided leads, open houses, and prospecting activities like cold calling or door knocking to build their initial client base.

How much does a beginner realtor make in their first year?

First-year income is notoriously unpredictable. Many new agents make very little, sometimes less than $10,000, after accounting for business expenses. A more realistic goal for a hardworking new agent might be to close 4-6 deals in their first year, which could translate to an income of $20,000 to $40,000, depending on the average home price in their market and their commission split. The key is to focus on learning and building a pipeline, not just the immediate income.

What is the hardest part of the real estate exam?

This varies by individual, but many people find the state-specific portion of the exam more difficult than the national portion. The national section covers broad concepts that are taught extensively, while the state section requires memorizing specific laws, regulations, and contract details that can be nuanced and tricky. The math questions related to financing and property calculations can also be a challenge for some test-takers.

Final Thoughts: Your Journey to a Real Estate Career

Embarking on the journey of becoming a real estate agent is an exciting prospect filled with opportunity. By following the structured real estate career steps—from understanding your state's laws and completing your education to choosing the right brokerage—you can build a solid foundation for a successful business. It's a career that rewards hard work, resilience, and a genuine passion for helping people.

Remember that getting your license is not the finish line; it's the starting gate. The real work begins as you build your brand, generate leads, and serve your first clients. Embrace the learning process, seek out mentorship, and invest in the right tools to stay organized and efficient. If you're looking to build a system for managing client relationships from day one, exploring a CRM like Follow Up Boss can make a significant difference in your long-term growth.

Your path in real estate is yours to create. With dedication and a strategic approach, you can build a fulfilling and profitable career that offers both financial freedom and personal satisfaction.