What you do as a real estate agent and how you get there
A real estate agent represents buyers or sellers in property transactions. You show homes, negotiate offers, handle paperwork, and guide clients through closing. To work as an agent, you must pass a state licensing exam after completing required coursework — the path takes weeks to a few months depending on your state and how fast you move through the steps.
The job itself is commission-based: you earn a percentage of the sale price when a transaction closes, usually split between your brokerage and you. You do not earn a salary, and you have no may provide income. Most agents work for a brokerage firm that provides office space, training, and access to the Multiple Listing Service (MLS) — the database where homes for sale are listed.
The licensing requirement exists in all 50 states. Each state sets its own exam content, course hours, and renewal schedules. Some states require 60 hours of classroom instruction; others require 120. Some renew licenses every two years; others every four. Before you enroll in any course, check your state's real estate commission website to confirm the exact requirements where you plan to work.
Key Takeaways
- You must pass a state licensing exam and complete pre-licensing coursework specific to your state before you can legally represent clients in real estate transactions.
- Real estate agents earn commission on closed sales, not a salary, so your income depends entirely on how many transactions you complete and their sale prices.
- You work for a brokerage firm that holds your license and provides access to the MLS and other tools; you cannot work independently without a brokerage.
- The timeline from starting coursework to holding a license typically ranges from four weeks to four months, depending on your state's requirements and your pace.
- Continuing education is required to renew your license, with hours and frequency varying by state.
State licensing requirements and the exam process
Every state requires you to complete pre-licensing education before you sit for the exam. This coursework covers state real estate law, contract basics, ethics, fair housing rules, and property valuation. You take the course through an approved provider — often a real estate school, community college, or online platform. The course itself does not make you an agent; it prepares you to pass the exam that does.
After you finish the coursework, you register with your state's real estate commission to sit for the licensing exam. The exam is written and administered by a testing company contracted by your state — usually Pearson VUE or PSI. You schedule a test date, pay the exam fee (typically $100 to $300), and take the exam at a testing center. Most states require you to pass with a score of 70 to 75 percent.
Once you pass, your state issues you a license. You cannot use that license to represent clients until you join a brokerage. The brokerage sponsors your license — they hold it on file and are responsible for your conduct. If you leave a brokerage, your license goes inactive until you join another one. You cannot hold a license independently.
Finding and joining a brokerage
A brokerage is a company licensed to conduct real estate business. It employs or contracts with agents and provides the infrastructure they need: office space, MLS access, transaction management software, and legal support. Some brokerages are large national firms like RE/MAX or Keller Williams; others are small local operations. Your choice of brokerage affects your commission split, training, and day-to-day support.
You can begin looking at brokerages before you pass your exam. Many brokerages hire agents who are in the licensing process and will sponsor them once they pass. When you interview with a brokerage, ask about the commission split (what percentage you keep versus what the brokerage keeps), desk fees or monthly charges, training programs, and whether they provide leads or you find your own clients.
After you join a brokerage and your license is active under their sponsorship, you can legally represent buyers and sellers. Your brokerage will likely require you to complete additional training on their systems and policies. Some brokerages also require you to take a broker-sponsored course before you can list your first property or show homes to clients.
How agents earn money and what affects your income
Real estate agents earn commission, not salary. When a sale closes, the seller's agent and the buyer's agent each receive a portion of the commission — typically 2.5 to 3 percent of the sale price each, though this varies by market and negotiation. Your brokerage takes a cut of your commission, leaving you with the remainder. If a home sells for $300,000 and the total commission is 6 percent ($18,000), and your brokerage takes 50 percent, you receive $4,500 from that transaction.
Your income depends on three things: how many transactions you close, the sale price of those properties, and your commission split with your brokerage. A new agent with no clients and no reputation will close fewer transactions than an established agent with a large network. You may go weeks or months without a closed sale while you build your client base, meaning no income during that time.
Some brokerages offer a "split" that favors new agents — for example, 80 percent to you and 20 percent to the brokerage — to help you get your free guide. As you close more transactions, your split may change. A few brokerages offer a salary or draw against future commissions, but this is uncommon and usually requires you to meet sales targets.
Day-to-day work and the skills you need
Your day involves showing properties to buyers, listing homes for sellers, negotiating offers, and managing paperwork. You spend time on the phone, in cars driving between properties, and in offices handling contracts and disclosures. You work evenings and weekends because that is when most buyers and sellers are available. You are on call during negotiations and inspections.
You need strong communication skills to explain contracts and terms to clients who may have no real estate experience. You need negotiation skills to advocate for your client's interests while keeping deals moving. You need attention to detail because a missed important date or unsigned form can delay or kill a sale. You also need persistence: most leads do not turn into sales, and rejection is frequent.
Technology is part of the job. You use the MLS to search and list properties, email and phone to communicate with clients and other agents, and transaction management software to track documents and important date. You may use social media and a website to market yourself and your listings. Comfort with these tools is expected.
Continuing education and license renewal
Your license does not last forever. Most states require you to renew every two or four years. To renew, you must complete continuing education hours — typically 12 to 36 hours per renewal period, depending on your state. These courses cover updates to real estate law, ethics, fair housing, and other topics. You take them through approved providers, usually online.
You pay a renewal fee to your state, typically $100 to $300. You also pay your brokerage any desk fees or monthly charges they charge. If you do not renew before your license expires, you cannot work as an agent until you renew it. Some states allow a grace period to renew; others do not.
Some brokerages require additional training beyond the state minimum. They may require you to take courses on their systems, compliance, or sales techniques. These are separate from state-mandated continuing education and are a cost of working for that brokerage.
Differences between residential and commercial real estate agents
Most new agents start in residential real estate — buying and selling single-family homes, condos, and small multifamily properties. The licensing process is the same, but the work is different. Residential agents work with individual buyers and sellers, show properties frequently, and close transactions faster (typically 30 to 60 days).
Commercial real estate agents sell office buildings, retail spaces, warehouses, and apartment complexes. Deals are larger, take longer to close (often 90 days or more), and involve more complex negotiations. Commercial agents often specialize in a property type or geographic area. The licensing requirements are the same in most states, but commercial agents may pursue additional certifications like the Certified Commercial Investment Member (CCIM) credential.
Some agents work in both residential and commercial real estate. Others choose one and build informed there. Your choice depends on what interests you and what market opportunities exist in your area.
Frequently Asked Questions
How long does it take to become a real estate agent?
The timeline depends on your state's requirements and how quickly you complete them. Pre-licensing coursework ranges from 40 to 120 hours and can be finished in one to four weeks if you study full-time. After coursework, you schedule and take the exam, which takes another one to two weeks. Once you pass, you can join a brokerage when ready. Total time is typically four weeks to four months.
Do I need a college degree to become a real estate agent?
No. Most states require only a high school diploma or GED to sit for the licensing exam. Some brokerages prefer agents with college education, but it is not a legal requirement. Your ability to pass the exam and sell properties matters more than your educational background.
What happens if I fail the licensing exam?
You can retake it. Most states allow unlimited retakes, though you may have to wait a set number of days between attempts (often 24 to 72 hours) and pay the exam fee each time. Some states limit retakes within a certain period. Check your state's rules before your first attempt.
Can I work part-time as a real estate agent?
Yes. You are not required to work full-time. However, real estate is competitive, and part-time agents typically earn less because they have less time to build relationships and close deals. Your brokerage may have no objection to part-time work, but your income will reflect the hours you invest.
What is the difference between a real estate agent and a real estate broker?
An agent represents buyers or sellers in transactions and works for a brokerage. A broker owns or manages a brokerage firm and holds the licenses of the agents who work there. Brokers must pass a broker exam, which is more advanced than the agent exam, and meet additional experience requirements. Most agents do not become brokers unless they want to own or manage a brokerage.