How to Become a Real Estate Agent

Real estate is one of the few careers where your income is limited only by your effort and skill. Agents help people buy, sell, and rent properties — and earn a commission on every transaction they close. It's a career with low barriers to entry, genuine flexibility, and the potential for six-figure earnings once you build a client base.

According to the BLS, real estate agents earn a median wage of $54,300, but this number doesn't tell the full story — experienced agents in active markets routinely earn $100,000–$300,000+ per year. The bottom line: your income reflects your hustle.

What Does a Real Estate Agent Do?

Real estate agents guide clients through one of the biggest financial decisions of their lives. On any given day, an agent might:

• Show homes to buyers and help them evaluate options
• List properties for sellers, coordinate professional photography, and market listings
• Negotiate purchase contracts between buyers and sellers
• Coordinate inspections, appraisals, and title work
• Attend closings and walk clients through final paperwork
• Prospect for new clients through networking, open houses, and social media

Step 1 — Complete Your Pre-Licensing Education

Every state requires aspiring real estate agents to complete a pre-licensing course before taking the state exam. Course requirements vary significantly — from 40 hours in some states to 180 hours in others. These courses cover:

• Real estate law and contracts
• Property ownership types and rights
• Financing and mortgages
• Agency relationships and ethics
• Fair Housing laws
• State-specific regulations

Courses are available online through providers like Real Estate Express, Colibri, or Kaplan, or in-person at local real estate schools. Cost: $150–$500 depending on state and format.

Step 2 — Pass the State Licensing Exam

State real estate exams are two-part tests: a national section covering general real estate principles, and a state section covering local laws. Exams are typically 100–150 questions and administered at Pearson VUE or PSI testing centers. Passing scores are usually 70–75%.

Use practice exams extensively — they're the best way to identify weak areas and build test-taking confidence. Most candidates who fail do so on the state-specific portion.

Step 3 — Join a Brokerage

New real estate agents cannot work independently — you must be sponsored by a licensed real estate broker. Your broker provides legal oversight, office support, and often training and leads in exchange for a commission split.

Common brokerage structures:

• Traditional split (50/50 or 60/40): Broker takes a large cut but may provide leads, training, and office resources
• High-split brokerages (80/20 or 90/10): You keep more, but you're mostly on your own for leads and marketing
• 100% commission brokerages: You keep everything but pay a flat monthly desk fee

For new agents, starting at a brokerage with strong training (Keller Williams and RE/MAX are known for this) can be more valuable than chasing the highest commission split.

Step 4 — Build Your Client Base

This is where real estate agents either thrive or struggle. Your first year should be spent aggressively building your sphere of influence:

• Tell everyone you know — former coworkers, family, friends, neighbors — that you're in real estate
• Create a professional presence on social media and Google My Business
• Host open houses to meet active buyers
• Ask every satisfied client for referrals and online reviews
• Consider farming a specific neighborhood — become the area expert

Real Estate Agent Income Reality

Real estate income is commission-based, with no salary floor. Here's what the income curve typically looks like:

• Year 1: $20,000–$45,000 (building pipeline, learning the business)
• Year 2–3: $50,000–$90,000 (repeats and referrals building)
• Year 4+: $90,000–$200,000+ (established brand and referral network)

Top agents in high-cost markets like New York, LA, and Miami can earn millions annually. The ceiling is genuinely unlimited.

Ready to explore a real estate career in your market? See our Real Estate Agent career profile for state licensing requirements and salary data.