What you need to do to become a realtor
A real estate license is a credential issued by your state that allows you to represent buyers or sellers in property transactions. You cannot legally earn commission on a real estate sale without one. The path takes roughly three to six months from start to finish, though the exact timeline depends on your state's requirements and how quickly you complete each step.
The basic sequence is the same everywhere: take a pre-licensing course, pass your state exam, join a brokerage firm, and then take a final affiliation exam. Each state sets its own rules about course hours, exam content, and what a brokerage must do before you can work. There is no federal real estate license — you are licensed by your state, and if you move to another state, you will need to get licensed there too.
Key Takeaways
- You must complete a state-approved pre-licensing course (usually 60 to 180 hours depending on your state) before you can sit for the state exam.
- After passing your state exam, you cannot work independently — you must join a brokerage firm within a set timeframe, usually 30 to 90 days.
- Your brokerage will require you to pass a sponsoring broker exam before you can list or show properties.
- Renewal happens every one to two years depending on your state, and requires continuing education hours that vary by state.
- The total cost ranges widely by state but typically falls between $500 and $2,000 for courses, exams, and initial licensing fees combined.
Step 1: Complete your pre-licensing course
Before you can take your state exam, you must finish a pre-licensing course approved by your state's real estate commission. These courses cover property law, contract basics, ethics, fair housing rules, and how transactions work. The number of hours required varies: some states require 60 hours, others 120 or more. You can find the requirement for your state by searching "[your state] real estate commission" and looking for the licensing section.
You can take these courses online, in person, or sometimes as a hybrid. Online courses let you work at your own pace and are often cheaper. In-person classes have set schedules and may cost more. Some real estate schools bundle the course with exam prep and the state exam fee. Before you enroll, confirm the school is actually approved by your state — taking a course from an unapproved provider means you will have to take it again.
Completion usually takes a few weeks to a few months depending on how many hours you need and how much time you can spend each week. You will receive a certificate of completion when you finish, and you will need this certificate to register for your state exam.
Step 2: Pass your state real estate exam
Your state exam tests your knowledge of real estate law, contracts, ethics, and fair housing. The exam is usually multiple choice and takes two to four hours. You schedule it through your state's testing vendor — not directly with the state. Your pre-licensing course provider can tell you which vendor your state uses and how to register.
You will need to bring a government-issued photo ID and your certificate of completion. The exam costs between $50 and $300 depending on your state. If you do not pass on your first attempt, you can retake it, though you may have to wait a set number of days (often 7 to 14 days) before you can try again. Some states let you retake it when ready; check your state's rules.
Once you pass, you receive a passing notice or score report. This is not yet your license — it is proof that you passed the state exam. You need this document to join a brokerage.
Step 3: Join a brokerage firm
You cannot work as a realtor on your own. You must work under a sponsoring broker — a licensed real estate firm that supervises your transactions and holds your license. The broker is responsible for your conduct and compliance with real estate law. Finding a broker usually means explore to local real estate offices, much like explore for a job. Some brokers actively recruit new agents; others wait for you to approach them.
When you explore, bring your state exam passing notice and your pre-licensing certificate. The broker will ask about your background, experience, and goals. They may also run a background check. Once a broker agrees to sponsor you, they will submit your sponsorship paperwork to your state's real estate commission. This is when your state license is officially issued — not before.
Most states require you to join a brokerage within 30 to 90 days of passing your state exam. If you do not, your passing score may expire and you will have to retake the exam. Check your state's important date when you pass.
Step 4: Pass your sponsoring broker exam
Before you can list properties or show homes to clients, your broker will require you to pass their firm's sponsoring broker exam. This is different from your state exam. It covers your broker's specific policies, procedures, and systems. The broker provides study materials, and the exam is usually shorter and easier than the state exam — often 50 to 100 questions. You typically take it at the broker's office.
This step usually happens within your first week or two at the brokerage. You cannot legally represent clients until you pass it. Once you do, you are fully licensed and can begin working.
Costs and timeline overview
The total cost to get licensed varies by state but typically ranges from $500 to $2,000. Pre-licensing courses cost $100 to $800 depending on whether you choose online or in-person and whether the school bundles other services. State exam fees run $50 to $300. Your state licensing fee (paid when your broker submits your sponsorship) ranges from $100 to $500. Some brokers charge a desk fee or technology fee once you start working, but that is separate from licensing.
The timeline from start to finish is usually three to six months. If you take a course that runs four weeks, study for two weeks, pass your exam on the first try, and find a broker quickly, you could be licensed in two months. If you need to retake the exam or take longer to find a broker, it could stretch to six months or longer. The broker sponsorship step itself typically takes one to two weeks once you have submitted all your documents.
Renewing your real estate license
Real estate licenses expire and must be renewed. Renewal periods vary by state — some require renewal every one year, others every two years. Your state will send you a renewal notice before your license expires. You cannot work as a realtor after your license expires, even for a single day.
To renew, you must complete continuing education hours set by your state. These hours vary widely: some states require 12 hours per year, others 30 or more. The courses cover updates to real estate law, ethics, fair housing, and other topics. You can take these courses online or in person, and your broker often helps coordinate them. Renewal fees also vary by state, typically ranging from $100 to $400.
You must renew before your expiration date. If your license lapses, you will have to retake your state exam and rejoin a brokerage to get licensed again — you cannot straightforward renew a lapsed license in most states.
Frequently Asked Questions
Do I need a college degree to get a real estate license?
No. Most states require only that you be at least 18 years old, a state resident (or able to work in the state), and have no disqualifying criminal convictions. A high school diploma or GED is not required by most states, though some brokers may prefer it. Your pre-licensing course is your main education requirement.
What happens if I fail the state exam?
You can retake it. Most states let you retake the exam after a waiting period of 7 to 14 days, though some allow when ready retakes. You will pay the exam fee again. You can retake it as many times as you need, though some states cap the number of retakes within a certain period. Check your state's rules when you fail.
Can I get a real estate license in two states at once?
Yes, but you must be licensed separately in each state. You take each state's pre-licensing course and exam. Some states have reciprocity agreements that waive certain requirements if you are already licensed in another state, but you still must explore and pay fees in the second state. Your broker in one state cannot sponsor you in another — you need a broker in each state where you want to work.
What if I get licensed but decide not to work as a realtor?
Your license will expire at the end of your renewal period if you do not renew it. You do not have to renew it if you are not working. If you want to return to real estate later, you will need to renew your license (if it has not been expired too long) or retake the state exam and rejoin a brokerage.
Do I need errors and omissions insurance before I start working?
Your broker typically requires it, though some brokers cover new agents under their firm policy for a period. Errors and omissions insurance protects you if a client sues you for mistakes in a transaction. Costs vary but typically run $300 to $800 per year. Ask your broker what insurance they require before you join.