Have you been thinking about a career in Real Estate? One of the concerns you may have is whether or not you need to earn a real estate license, and is the process to obtain a real estate license difficult? You are not the only one. Many potential real estate agents question how hard it is getting a real estate license.
How Hard is Getting a Real Estate License Investing in your career within a real estate sphere can be very beneficial long term. However, in order to fully invest in your career, you need to understand the requirements and challenges you may face on the pathway to becoming a real estate agent.
The purpose of this guide is to prepare you for the obstacles you may face in order to obtain a real estate license.
The first takeaway is to understand the specific requirements necessary to earn a real estate license in your state.
The second takeaway is the challenges you may face in obtaining your license.
The third takeaway is the practical steps you can take to circumvent real estate licensing challenges.
The last takeaway is the rewards and advantages you will experience in a career within real estate.
The Real Estate License Process
The very first step you need to complete is basic qualifications. To understand what these basic qualifications involve you will need to learn the laws in your state.
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Basic Eligibility Requirements
Real estate licensing applicants must meet specific criteria.
Age and education prerequisite
Applicants must be at least 18 years old and hold a high school diploma or equivalent. Some states have other education requirements.
Background check requirements
Some applicants must submit background checks as a prerequisite to ensure applicants have a clean record. This step is important to uphold the integrity of the profession.
State differences
Real estate licensing requirements are not the same in all the United States; they differ considerably from one state to another. For example, some have more than the others in the number of required hours of pre-licensing education.
Typical timeline from start to license
This process can take anywhere from a few weeks to a few months, depending on the state, and on the individual’s pace. On average, it can take about 3 to 6 months after completing all the necessary education and passing the licensing exam to obtain the license.
Educational requirements for real estate licensing
Educational requirements are at the foundation of the process of obtaining a real estate license. Aspiring agents are supposed to acquire a certain number of hours in pre-licensing education to be eligible for the licensing exam.
Pre-Licensing Education Hours by State
Surveyed states require different amounts of pre-licensing education. Some states require significant hours of education and others require considerably less. Let’s see state wise data to know how hard is getting a real estate license.
The Following States Have the Most Education Hours Required
- Texas = 180 hours (some of which may be waived for credit in prior education)
- New York = 77 hours for license as a salesperson (hours increase further for broker license)
- California = 135 hours (this combined for salesperson and broker pre-licensing education)
The Following States Have The Least Education Hours Required
- Delaware = 99 hours
- South Carolina = 90 hours
| State | Pre-Licensing Hours Required |
| Texas | 180 |
| New York | 77 |
| California | 135 |
| Delaware | 99 |
| South Carolina | 90 |
Course Content and Study Options
Pre-licensing courses offered contain information on various subjects, for example legal, ethical and other aspects of real estate. The study of the course material may be done in person as well as on the internet.
Online vs. In Person Real Estate Schools
Students enrolled in online real estate schools can study whenever and wherever they wish. In person schools require the student to attend a classroom and may provide other benefits like real time questions, etc. While both options can be good they differ and the student may prefer one over the other.
The Difficulties and Success Rates In Getting a Real Estate License
As with any career path, many challenges will come with the journey of being a licensed real estate agent. However, overcoming challenges on the way will lead you straight to the success you seek. As an aspiring agent, there is a complex and tedious licensing process you must go through to obtain your real estate license. The licensing process includes completing some hours of specific real estate education and passing an exam, along with other requirements specific to your state.
Statistics/Exam Pass Rates
How hard is getting a real estate license? As an aspiring agent, one of the greatest challenges one must overcome is passing the real estate licensing examination. This exam has an overall pass rate of 50-60%. However, there are some states with a pass rate as low as 40%. On the other hand, some states even have a pass rate as high as 70%. These statistics are helpful for candidates to better prepare themselves for the exam.
Time Involved
The next greatest challenge is the significant commitment of time needed to finish the pre-licensing education prior to taking the exam. In most states, the aspiring candidate is required to complete a certain amount of real estate educational hours. The number of hours required varies per state and can be anywhere from 60 to 150 hours. For this reason, the candidate must have good time management skills to balance their personal life with their study schedule. This is a great challenge, as real estate is a very time-sensitive and demanding career.
Common Challenges and Methods to Address Them
Prospective agents face obstacles including difficulties with studying and anxiety around exam taking. These concerns can be addressed using various methods.
Difficulty with Studying
Prospective agents face difficulties around studying for the real estate exam. This may be due to the breadth of material. To resolve study difficulties, candidates can:
- Design a study schedule
- Utilize different study resources such as books, digital courses, and mock exams
- Collaborate with a candidate peer on studying
Anxiety Around Test Taking
Anxiety around test taking can be more problematic than the test itself. Steps candidates can take to mitigate test anxiety include the following:
- Employ relaxation practices, such as breathing exercises, and forms of meditation
- Use study resources to become familiar with test structure and content
- Complete mock exams to practice for test day under real time constraints
By employing the strategies and knowledge to address the obstacles listed above, candidates for the profession of real estate agent will have a greater likelihood of becoming agents with a real estate license.
The Procedures for the Licensing Examination
Real estate agents may not be aware, but familiarization with the procedures for sitting the licensing examination is important for practice within the field of real estate. The examination for a real estate license is the pivotal starting point of practice as a real estate agent. The examination seeks to evaluate the candidate on knowledge and competencies pertaining to real estate law, equivalent legal frameworks, and real estate practice ethics.
Structure and Format of Licensing Exams
The format and structure of an individual state’s exam varies from others across the country, and from state to state. However, most state exams have two sections. Those two sections are the National section, and the state section, making it clear how hard is getting a real estate license. The National section of the exam is a compilation of core and general principles of real estate, while the state section focuses on the particular state’s real estate laws.
Some of the major sections of the exam include, but are not limited to:
- Real estate law and regulations
- Real estate contracts and practices
- Ethics and professional standards
- Real estate finance and appraisal
Preparation Strategies and Study Tips
Candidates must adopt effective preparation strategies, as numerous questions will need to be comprehensively answered within a limited amount of time. Smart preparation strategies include:
- Creating a study plan and adhering to the plan
- Incorporating a multitude of study resources, including print and digital books, online courses, and practice exams
- Determining the parts of the exam that a candidate is weaker in, and the sections of the exam that the candidate is strongest in, and reinforcing the weaker sections
- Participating in a study peer group
- Practice exams
Practice exams prior to the exam date are especially helpful as they expose candidates to the exam layout. Furthermore, they are highly effective in identifying the parts of the exam that a candidate needs to further study or review before the exam.
What to Do If You Fail the Exam
While failing the licensing exam can be disheartening, it is not the end of the journey. Candidates who do not pass the exam should:
- Reflect on their performance to determine what they can do differently
- Modify their study strategy to incorporate the topics they struggled with
- Practice for the exam to make a meaningful effort with the learnings they acquired from the previous attempt
Being able to retake the exam is an opportunity. Persistence in this process is what is ultimately going to be the determining factor that will lead to successfully overcoming this hurdle and legal eligibility to fully practice as a real estate agent in the United States.
Financial Investment and Post-Licensing Requirements
It is the nature of aspiring real estate professionals to be prepared for the monetary investment of the career they are pursuing, inclusive of the costs associated with education, acquiring a license, and other various expenses. Having an idea of these numbers is instrumental for effective financial planning and seamless entry into the practice.
Total Costs Breakdown
Getting a real estate license can be associated with a wide range of costs. These costs can be summarized under three categories, which are educational costs, exam and license fees, and other costs that are often business-related.
Educational Costs
The education required to pass the pre-licensing exam costs a significant amount of money. Depending on the institution and the state, the costs may be different, but in most cases they will be in the range of two hundred to five hundred dollars.
Exam and License Fees
Exam fees are a given expense. Expect to pay between fifty and one hundred dollars. Once you pass the exam you will need to pay an additional amount for your license, which can vary from one hundred dollars to three hundred dollars.
Additional Business Expenses
Once agents are licensed, there are further expenses to consider, including marketing materials and association fees, which can amount to varying degrees.
Finding a Brokerage After Licensing
Once agents obtain a license, they must find a brokerage to work with. This requires differentiating and evaluating potential brokerage candidates to identify one that suits your career ambitions and meets your desired financial circumstances.
Continuing Education and License Renewal
Emerging real estate agents hoping to keep their license must engage with and complete continuing education courses at stipulated timelines. Typically, this means finishing an assigned number of learning hours every set number of years and paying a fee to restore your license.
Conclusion: Is a Real Estate Career Right for You?
Part of considering a career in the real estate sector necessitates tackling questions of pros and cons. Working to obtain a real estate license is a long and tedious process, but well worth it.
You will find that the real estate career offers unique flexibility, and autonomy, and the potential to scale your earnings to any level desired. This means you can work to develop your skills and build a career in any way you find satisfying. Joining the real estate sector is therefore an investment in yourself, one that can shield you from the regulated job market while providing you with good financial returns.
To make a career choice, think about your skills, interests, and goals. If you enjoy working with and negotiating with others, and you feel comfortable with sales, a career in real estate may be a good choice.
In the end, real estate is a career worth pursuing. With an understanding of the licensing process and the requirements for the job, you would be able to make an objective choice about whether or not this is the right career for you.
FAQ
What are the basic eligibility requirements for obtaining a real estate license?
In order to get a real estate license, you have to be at least 18 years old, you need to have a high school diploma or equivalent, and you have to complete a background check. Some states have additional requirements.
What is the minimum number of hours of pre-licensing education you need in order to get a real estate license?
States have different requirements in terms of pre-licensing education. This can be anywhere from around 60 to over 150 hours. For example, in Texas, 180 hours are required, whereas in Alabama, 60 hours are required.
What is the approximate timeline for getting a real estate license?
According to a state’s criteria and one’s ability, receiving a real estate license can take from a few weeks and up to several months. Inevitably, receiving all the needed authorizations and documentation takes 3 to 6 months.
How hard is getting a real estate license?
No doubt, the real estate license examination is a challenge for everyone, but the level of the challenge is based on a person’s views toward the examination. Thorough preparation and studying for the examination is a must, for those who want to succeed on the very first attempt. Conclusively, the results and the passing rates of the examinations differ from one state to another.
What are the expenses involved with acquiring a real estate license?
Several expenses are involved, such as education to take the examination, fees for both the examination and the license, and other business related expenses. Bottom line, these expenses can be anywhere from $500 up to $2000 depending on a state and what the individual decides to do.
Do I have to do any Continuing Education to keep my real estate license?
The answer is yes, all the states that issue real estate agents licenses require them to do Continuing Education courses to keep their license. The amount of time and the frequency taken for these courses differs depending on the state.
Are there online real estate classes available?
Real estate schools schedule courses to be taken online for students. And it helps people with busy lifestyles. If you work in real estate in some states, you may have to take some courses in person.
How to look for a brokerage?
Finding a brokerage also depends in part on how you can contact other brokers and how you can reach and connect with other real estate people. Other brokers can be contacted and your in person people you know can be reached out.
Real estate agent vs realtor, what’s the difference?
A real estate agent is one who is licensed to assist, and to take control of your decisions and sell a property and rent one out. With a licensed realtor, a person can work and has an agent who is associated and part of the National Association of Realtors.
Are you able to obtain a real estate license with a criminal record?
In some states, due to your criminal record, it may be a little harder depending on the state you apply real estate for, and it also depends on some states, whether your minor criminal record is a big issue for you.