Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.
Key Takeaways
- Thinking about becoming a real estate agent? Whether you’re considering a job change or just getting started, the real estate industry is rife with opportunities for self-motivated individuals searching for a financially rewarding career.
- Real estate agents play a vital role in facilitating property transactions, whether helping clients buy their dream home, sell a property, or navigate the complexities of renting. As a result, you’ll have the opportunity to meaningfully impact your clients’ lives.
- Here’s what you need to know to become a real estate agent, including the steps involved, the job outlook, specialties you can consider, common certifications and professional organizations you may want to join.
Why You Can Trust Forbes Advisor Education
Forbes Advisor’s education editors are committed to producing unbiased rankings and informative articles covering online colleges, tech bootcamps and career paths. Our ranking methodologies use data from the National Center for Education Statistics, education providers, and reputable educational and professional organizations. An advisory board of educators and other subject matter experts reviews and verifies our content to bring you trustworthy, up-to-date information. Advertisers do not influence our rankings or editorial content.
- 6,290 accredited, nonprofit colleges and universities analyzed nationwide
- 52 reputable tech bootcamp providers evaluated for our rankings
- All content is fact-checked and updated on an annual basis
- Rankings undergo five rounds of fact-checking
- Only 7.12% of all colleges, universities and bootcamp providers we consider are awarded
What Is a Real Estate Agent?
Real estate agents are licensed professionals who help clients buy, sell or rent properties, including homes, commercial buildings and land. Sales agents must work with a broker, while brokers are licensed to manage their own businesses.
Agents are responsible for finding clients and advising them on prices and market conditions, taking them to see properties, advertising and promoting properties for sale, managing negotiations between the buyer and seller, ensuring purchase terms are met and preparing the documents necessary to close the sale.
Most real estate agents are self-employed and design their schedules around when clients are available, which can mean working nights and weekends. They’re also responsible for keeping up with local zoning and tax laws and maintaining relationships with stakeholders such as mortgage officers, attorneys and home inspectors.
How To Become a Real Estate Agent
Helping clients buy, sell and rent properties can be highly rewarding personally and financially. Most real estate agents work at least 40 hours per week and often have to accommodate clients during evenings and weekends when they’re available.
According to the U.S. Bureau of Labor and Statistics (BLS), the most essential qualities you’ll need are good business skills since many are self-employed, the ability to work with all types of people, excellent organizational skills to manage your time and a knack for mediating negotiations and solving problems.
Degree Finder
If this sounds like a good fit, here are the steps to becoming a real estate agent.
Understand the Requirements
Research your state’s requirements for becoming a real estate agent. While every state requires you to pass an exam to earn your license, they vary according to how many hours of classes you must take, the minimum age to sit for the exam, whether you need a high school diploma and if you have to pass a background check.
The money you’ll need to invest in obtaining your license will also vary according to your state’s application fees, test fees and background check costs.
Complete Pre-Licensing Education
Complete your state’s required real estate courses through an accredited real estate school. The number of hours you’ll need depends on where you live. For example, New York requires 77 hours of qualifying real estate classes, while Colorado requires 168 hours.
Many real estate schools and community colleges offer online courses, which are convenient if you need flexibility and are busy with work or family obligations. If learning online is challenging or you prefer the structure of a face-to-face environment, look for in-person classes or a school that offers a mixture of online and in-person.
Pass the Licensing Exam
Once you’ve completed your pre-licensing courses, you must pass your state’s licensing exam. These exams are divided into two parts: federal real estate laws and general real estate principles and state-specific laws. If you don’t pass your first try, you can retake the exam as often as necessary.
Activate Your License
Obtain your real estate license through your state’s real estate commission. While the requirements vary, most states will ask you to submit a fingerprint and background check. Once your license is active, you can consider joining a professional real estate organization or becoming a certified REALTOR® by joining the National Association of REALTORS® (NAR).
Join a Brokerage
Most states require real estate agents to work under the supervision of a licensed real estate broker. Brokers are more experienced agents with additional training and are responsible for ensuring their agents comply with real estate laws and regulations. Finding a suitable broker can help you learn the ropes and gain valuable experience in the field.
Real Estate Agent Salary and Job Outlook
Real estate agents typically don’t earn a salary. Instead, you’ll make your living on real estate commissions, which can be a percentage of the selling price or a flat fee. In 2023, the median annual wage for real estate sales agents was $54,300, according to the BLS.
The lowest 10% of agents earned a median salary of less than $31,000, while the highest 10% made more than $119,000. The BLS data also indicates that real estate agents working in construction and the “real estate and rental and leasing” industries earned the highest median annual wages.
The job outlook is strong for aspiring agents. The BLS predicts the demand for real estate agents and brokers to grow 3% from 2022 to 2032, about as fast as the average for all occupations.
Real Estate Agent Specializations
As a real estate agent, you can specialize in a segment of the industry by taking courses related to that field. Specialization allows you to develop a niche and stand out from other agents in the market. You can specialize according to the type of property, client or location. The following are a few of the most common specialties.
Property
Property specializations distinguish between residential, commercial and agricultural sales. Residential agents focus on buying and selling homes, while commercial agents are experts in properties such as office buildings, retail spaces, industrial units and planned developments.
Agricultural agents know the ins and outs of buying and selling farm and ranch properties. You can also specialize in property management, which involves maintaining and leasing properties on behalf of the owner.
Clients
Client-based real estate agents choose to work with a specific type of customer. These customers could include first-time home buyers, people who are relocating, senior citizens, veterans or disabled buyers with special needs.
Location
Many agents opt to specialize in a particular area, focus or geography their customers desire. Examples include senior living facilities, golf courses, vacation communities and rural properties.
Certifications for Real Estate Agents
Real estate agents can earn designations and certifications through various real estate associations. Earning a certification demonstrates additional knowledge associated with a sector of the industry. Here are a few of the most popular certifications.
- Accredited Buyer’s Representative: This designation indicates you’ve received additional education and training on issues facing home buyers. The course is free through the end of 2024, and membership is $110 per year after the first year.
- Seller Representative Specialist: Agents with this certification demonstrate additional knowledge and skills essential to advocating for sellers in the buying process. No exam is required, but you must complete the seller representative course and one elective. Annual dues are $99 after the first year.
- Seniors Real Estate Specialist®: This certification is designed for realtors who specialize in helping seniors ages 50-plus and their families navigate the complexities of buying and selling their homes. The online course costs $295, and annual dues are $99 after the first year.
- Certified Commercial Investment Member: This globally recognized designation is for professionals specializing in commercial real estate. It signifies expertise in financial, market and investment analysis and negotiation. The designation involves completing coursework and demonstrating a portfolio of successful commercial real estate transactions. The cost varies from $6,000 to $10,000, depending on the courses, membership fees and exam fees.
Professional Organizations for Real Estate Agents
Professional real estate organizations can help accelerate your career by connecting you with industry leaders, offering educational opportunities to boost your market knowledge and providing resources and advocacy for the profession.
These groups exist at the local, state, national and international levels. Here are a few of the most popular national organizations for real estate agents.
The National Association of REALTORS is the largest association of real estate agents in the country, with 1.5 million members. Whether you’re just starting or an experienced professional, the association provides content, tools, professional development opportunities and support for your career. Members are the only professionals allowed to use the tag REALTOR. They are also bound to abide by the association’s Code of Ethics.
The Real Estate Roundtable represents more than 3 million realtors, lenders, developers, managers and representatives from leading real estate professional groups to address national policies affecting real estate and the economy.
The National Multifamily Housing Council bills itself as the public policy advocate for the commercial real estate industry. Its members are dedicated to the apartment industry and work to ensure equality, diversity and inclusion in multifamily housing communities.
Featured Online Schools
Learn about start dates, transferring credits, availability of financial credit and much more by clicking 'Visit Site'
Frequently Asked Questions (FAQs) About How To Become a Real Estate Agent
How much does it cost to get a real estate license?
The total cost to get a real estate license varies by state, but you can expect to pay around $1,000 to $2,000. At a minimum, you’ll need to pay for a state-approved real estate course, the state licensing exam, fingerprinting and background checks and the state license application fee. You may also want to pay for broker fees, insurance and a membership to NAR.
Is it hard to make money as a real estate agent?
How much money you make depends on your ability to gain clients and close sales, along with the value of the real estate market where you live. The median annual salary for real estate agents in 2023 was $54,300, according to the BLS. The lowest 10% of agents earned a median wage of less than $31,000, while the highest 10% made more than $119,000.
What do I need to become a real estate agent?
You need a state-approved real estate license to become a real estate agent. Earning your license requires taking an approved real estate course, passing the state licensing exam and passing a fingerprinting and background check.
What does a real estate agent do?
Real estate agents oversee real estate transactions, which may include buying, selling, leasing and renting properties. These professionals are usually paid on commission and can work either on their own or for a brokerage.
