How to Get a Real Estate License 2025: Complete State-by-State Guide

A real estate license can be your ticket to a career with virtually unlimited earning potential and significant schedule flexibility. Top producing real estate agents earn $100,000–$500,000+ per year. Even part-time agents can earn a meaningful supplement to their income. The licensing process varies by state but is generally achievable in 2–6 months with dedicated study and a modest investment of $500–$2,000.

The 5-Step Real Estate Licensing Process

1. Meet basic eligibility requirements — Most states require: age 18+, high school diploma or GED, U.S. citizenship or legal residency, no felony convictions (background check varies by state)
2. Complete required pre-licensing education — Hours required vary by state (see below); must be from a state-approved provider
3. Pass the state licensing exam — Two parts: national portion (general real estate concepts) and state-specific portion (state laws and regulations)
4. Find a sponsoring broker — New licensees must work under a licensed real estate broker; salesperson licenses cannot be held independently
5. Apply for your license — Submit application, exam results, broker sponsorship, and fees to your state real estate commission

Pre-Licensing Hour Requirements by State

States with Shorter Requirements (40–75 hours)

• Arkansas: 60 hours
• Michigan: 40 hours
• Mississippi: 60 hours
• Montana: 70 hours

States with Moderate Requirements (75–120 hours)

• Florida: 63 hours
• Georgia: 75 hours
• New York: 75 hours
• Ohio: 120 hours
• Illinois: 75 hours
• Arizona: 90 hours

States with Longer Requirements (120–180+ hours)

• Texas: 180 hours — one of the longest
• California: 135 hours
• Colorado: 168 hours
• North Carolina: 75 hours (but broker-only licensing requires more)
• Pennsylvania: 75 hours (salesperson)

Best Online Real Estate Pre-Licensing Programs

The Real Estate Licensing Exam

Real estate licensing exams are administered by PSI Exams or Pearson VUE depending on the state. Key details:

• National portion: ~80 questions covering contracts, financing, agency law, federal fair housing, property rights, appraisal, and math
• State portion: 30–40 questions on state-specific laws and regulations
• Passing score: Typically 70–75%; you must pass each portion separately
• Exam fee: $35–$100 per attempt depending on state
• Retakes: You can retake either portion independently; wait period between retakes varies by state

Real Estate Agent vs. Broker: What's the Difference?

• Salesperson/Agent: Entry-level license; must work under a licensed broker; earns commissions split with the broker
• Broker: Advanced license requiring additional education and experience (typically 1–3 years as an agent); can operate independently, hire agents, own a brokerage
• Broker-associate: Holds a broker's license but works under another broker (common in states like California and Florida)

Real Estate Agent Earnings Potential

• First-year agent: $25,000–$55,000 (building client base takes time)
• Established agent (3–5 years): $60,000–$120,000/year
• Top producers: $200,000–$1,000,000+/year in high-cost markets

Real estate commissions are typically 5–6% of the sale price, split between buyer's and seller's agents, then split again between agent and broker. On a $400,000 home, a 50/50 split buyer's agent commission after broker split might be $5,000–$6,000. Closing 10–15 deals per year gets you to $60,000–$90,000 in most markets.