How to Become a Real Estate Agent: Salary, License Requirements, Career Outlook and Complete Guide

How Do You Become a Real Estate Agent?

To become a real estate agent in the United States, you typically need to be at least 18 years old, have a high school diploma or equivalent, complete state-approved prelicensing education, pass your state's real estate licensing examination, meet any background or application requirements, and obtain or activate your license according to your state's rules.

Every state requires real estate sales agents and brokers to be licensed, but the exact education hours, examinations, fees, background checks, brokerage affiliation requirements and continuing education rules differ by state.

For many people, real estate is attractive because it offers a comparatively low formal educational barrier, significant independence, uncapped income potential, opportunities to build a personal business and the possibility of eventually becoming a broker or opening a real estate firm.

But real estate is not simply a career of touring beautiful homes.

Successful agents spend substantial amounts of time prospecting for clients, marketing properties, answering calls, following up with leads, preparing contracts, researching property values, coordinating inspections and closings, negotiating offers, driving between appointments and building relationships.

Before investing the time and money required to obtain a license, it makes sense to answer an equally important question:

Would you actually enjoy being a real estate agent?

Take the Free MAPP Assessment to better understand your motivations, interests, temperament and preferred work style. Then use your 10 Free Career Matches to see how closely real estate and other careers match who you are, what parts of the career you may enjoy, what you may dislike and what steps you would need to take to enter the profession.

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Real Estate Agent Career Snapshot

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The U.S. Bureau of Labor Statistics reports that real estate sales agents earned a median annual wage of $52,830 in May 2025. Employment of real estate brokers and sales agents is projected to grow approximately 2% between 2025 and 2035, with about 40,400 openings projected each year on average as existing workers change occupations or leave the labor force.

What Does a Real Estate Agent Do?

A real estate sales agent helps clients buy, sell or rent property.

That description sounds simple. The actual job involves sales, marketing, research, negotiation, customer service, project coordination, paperwork and entrepreneurship.

According to O*NET's updated 2026 occupational profile, important responsibilities include:

• presenting purchase offers to sellers;
• negotiating between buyers and sellers;
• advising clients about prices, market conditions, mortgages and legal requirements;
• preparing contracts and transaction documents;
• comparing properties to recent sales to help determine market value;
• identifying properties that meet buyers' requirements;
• coordinating showings;
• working with lenders, escrow companies, inspectors and other professionals;
• gathering and maintaining property and client information; and
• helping transactions progress through closing.

Modern real estate agents also frequently spend significant time generating new business.

That may involve:

• calling prospects;
• responding to internet leads;
• contacting previous clients;
• requesting referrals;
• maintaining a CRM;
• creating social media content;
• preparing email campaigns;
• attending networking events;
• hosting open houses;
• developing neighborhood expertise;
• creating listing presentations; and
• building a personal brand.

For many agents, getting clients is at least as important as knowing how to show and sell property.

A Day in the Life of a Real Estate Agent

There is no single standard schedule for a real estate agent.

An agent's day changes depending on whether they represent buyers, sellers, renters, investors or commercial clients and whether they currently have active transactions.

O*NET reports that real estate agents have considerable autonomy. About 91% of respondents indicated they have a lot of freedom to determine their tasks and priorities, while 82% reported constant contact with other people and 74% described the competitive environment as extremely competitive. More than half reported working more than 40 hours per week.

A typical busy weekday might look something like this:

7:30 AM: Review the Market

The agent starts by reviewing:

• newly listed properties;
• price reductions;
• properties that went under contract;
• recently closed transactions;
• mortgage-rate or financing developments;
• client messages; and
• appointments for the day.

Agents specializing in a particular geographic area may monitor virtually every new listing and sale in that market.

8:30 AM: Lead Follow-Up

The agent responds to prospective clients and follows up with previous inquiries.

This can involve:

• phone calls;
• text messages;
• email;
• CRM follow-ups;
• social media messages;
• website inquiries; and
• referral conversations.

For agents building their business, prospecting can occupy several hours every day.

10:00 AM: Prepare a Comparative Market Analysis

A homeowner is considering selling.

The agent researches:

• recent comparable sales;
• active competing listings;
• pending sales;
• property condition;
• location;
• lot size;
• square footage;
• renovations; and
• local market trends.

The goal is to recommend a defensible listing strategy.

11:30 AM: Listing Presentation

The agent meets with the homeowner.

Topics might include:

• expected market value;
• pricing strategy;
• marketing;
• photography;
• staging;
• showings;
• transaction process;
• offers;
• negotiation; and
• representation terms.

Winning the listing may require competing against several other agents.

1:00 PM: Property Showings

The agent meets buyer clients and tours several homes.

During the tour, the agent may discuss:

• neighborhood characteristics;
• comparable values;
• property condition;
• taxes;
• homeowners association issues;
• potential repairs;
• resale considerations; and
• offer strategy.

Agents need to be careful about matters outside their professional expertise and know when clients should consult inspectors, attorneys, lenders, accountants or other specialists.

3:30 PM: Write an Offer

The buyers want to make an offer.

The agent discusses:

• offer price;
• contingencies;
• financing;
• closing timetable;
• inspection terms;
• deposits; and
• negotiation strategy.

The agent prepares the appropriate documents and presents the offer.

5:00 PM: Transaction Coordination

An existing deal has an inspection issue.

The agent may communicate with:

• the client;
• the other agent;
• inspector;
• lender;
• title or escrow company;
• attorneys where applicable; and
• contractors.

A significant part of real estate involves keeping transactions moving when problems arise.

6:30 PM: Evening Showing

A buyer cannot see homes during normal business hours, so the agent conducts another showing.

8:00 PM: Follow-Up and Tomorrow's Schedule

The agent answers remaining messages, updates the CRM, confirms tomorrow's appointments and follows up on pending negotiations.

And during the weekend?

There may be open houses, showings and client meetings.

That flexibility is one of the attractions of the profession, but it can also mean that your schedule is determined partly by your clients.

Step by Step: How to Become a Real Estate Agent

Because licensing is controlled at the state level, you should always confirm the current requirements with your state's real estate commission or licensing authority.

ARELLO maintains a directory of real estate regulatory agencies throughout the United States and other jurisdictions.

Step 1: Confirm You Meet Your State's Basic Requirements

Requirements vary, but according to BLS they commonly include:

• being at least 18;
• having a high school diploma or equivalent;
• completing approved prelicensing education; and
• passing a licensing examination.

Some jurisdictions also require a background check.

Do not assume another state's requirements apply to you.

Step 2: Complete State-Approved Prelicensing Education

Most states require applicants to complete approved real estate courses before taking the licensing exam.

Subjects commonly include areas such as:

• property ownership;
• contracts;
• real estate law;
• agency relationships;
• financing;
• fair housing;
• valuation principles;
• disclosures;
• property management;
• closing procedures; and
• state-specific regulations.

The number of required classroom or online education hours varies substantially by state.

BLS notes that some states may waive certain prelicensing requirements for candidates who have completed qualifying college-level real estate coursework.

Step 3: Apply for the State Licensing Examination

After completing the required coursework, you generally apply to take your state's licensing examination.

There may be:

• application fees;
• examination fees;
• fingerprinting;
• background checks;
• education verification; and
• identity requirements.

The exam usually tests both general real estate principles and state-specific laws and regulations.

Step 4: Pass the Real Estate Licensing Exam

You must achieve your state's required passing score.

If you do not pass on the first attempt, most jurisdictions provide procedures for retaking the examination.

Passing the exam demonstrates that you understand basic real estate concepts and regulations.

It does not mean you are fully prepared to build a successful real estate business.

Sales, prospecting, negotiation, marketing, client management and transaction experience usually develop after entering the profession.

Step 5: Complete Your License Application

Passing the examination generally does not automatically activate your license.

Your state may require additional steps such as:

• submitting a license application;
• paying licensing fees;
• completing fingerprints;
• passing a background review;
• providing identification;
• obtaining errors and omissions insurance; or
• affiliating with a supervising broker.

Requirements differ by state.

Step 6: Choose a Real Estate Brokerage

In many jurisdictions, new sales agents work under a licensed real estate broker.

Your choice of brokerage can have a major impact on your first few years.

Do not evaluate a brokerage solely based on commission split.

Ask about:

• training;
• mentoring;
• lead generation;
• technology;
• CRM systems;
• marketing support;
• administrative support;
• transaction coordination;
• office fees;
• franchise fees;
• commission splits;
• caps;
• team structure;
• errors and omissions insurance;
• local reputation; and
• opportunities to work alongside successful agents.

BLS notes that training differs considerably between companies. Some organizations provide formal instruction and mentoring, while others expect new agents to enter the market immediately after licensing.

Step 7: Activate Your License

Follow your state's requirements for activating the license through your brokerage or regulatory agency.

Once active, you can begin performing the activities permitted under your state's real estate laws and your brokerage relationship.

Step 8: Consider MLS and Professional Association Memberships

Depending on your brokerage and market, you may need or want access to a Multiple Listing Service.

You may also choose to become a REALTOR®.

A REALTOR® is not simply another name for a real estate agent.

The National Association of REALTORS states that REALTOR® is a federally registered collective membership mark identifying real estate professionals who are members of NAR and subscribe to its Code of Ethics. All REALTORS® are real estate professionals, but not all real estate agents are REALTORS®.

Step 9: Complete Required Continuing Education

Getting licensed is not the end of the education process.

BLS reports that real estate licenses typically must be renewed every two to four years and that most states require continuing education. Exact rules differ by jurisdiction.

Step 10: Build Your Business

This is where becoming licensed and becoming successful separate.

A new agent needs clients.

That usually means building systems for:

• lead generation;
• referrals;
• networking;
• prospect follow-up;
• database management;
• local-market expertise;
• social media;
• digital marketing;
• open houses;
• community involvement;
• previous-client follow-up; and
• reputation building.

A real estate license gives you permission to practice.

It does not give you customers.

How Long Does It Take to Become a Real Estate Agent?

The answer depends almost entirely on your state.

The process may include:

1. completing required prelicensing education;
2. applying for the exam;
3. scheduling the exam;
4. passing the examination;
5. completing a background check;
6. applying for the license; and
7. affiliating with a brokerage where required.

Some candidates may complete the process within a few months, while others take longer because of course scheduling, examination availability, background processing or personal scheduling.

Always use your state licensing authority for the exact timeline.

Do You Need a College Degree to Become a Real Estate Agent?

Usually, no.

BLS identifies a high school diploma or equivalent as the typical entry-level educational requirement.

Candidates generally must also complete the real estate coursework required by their state.

College programs in subjects such as:

• business;
• finance;
• economics;
• marketing;
• accounting;
• law; and
• real estate

can be useful, particularly for agents interested in commercial real estate, investment property, management or eventually owning a brokerage, but a bachelor's degree is generally not required for entry into the occupation.

Real Estate Agent Salary

The latest BLS Occupational Outlook Handbook reports a 2025 median annual wage of $52,830 for real estate sales agents.

The earnings distribution was wide:

These figures require an important qualification.

More than half of real estate sales agents are self-employed, and BLS Occupational Employment and Wage Statistics do not include self-employed workers in their wage estimates. BLS reported approximately 54% of real estate sales agents as self-employed in 2025.

The National Association of REALTORS provides another perspective.

Its 2026 Member Profile reported that the median gross income earned from real estate activities by REALTORS® was $59,200 in 2025. Experience made an enormous difference: members with two years or less of experience reported median gross income of about $8,000, while those with 16 or more years of experience reported a median of $88,500.

Gross income is not necessarily the same as salary or take-home pay. Independent agents may pay expenses for marketing, licensing, association dues, MLS access, technology, insurance, transportation and other business costs.

How Do Real Estate Agents Get Paid?

Most real estate agents earn much of their income from commissions associated with completed transactions.

BLS notes that commissions may be divided among agents, brokers and firms involved in the transaction.

Agent compensation arrangements can vary by:

• brokerage;
• transaction;
• market;
• client agreement;
• property type;
• agent experience;
• team structure; and
• services provided.

Because compensation is transaction driven, income can be irregular.

An agent may close several transactions in one month and none the next.

That makes financial planning particularly important for new agents.

Why Real Estate Agent Income Varies So Much

Two agents with identical licenses can earn dramatically different amounts.

Major factors include:

Experience

Experienced agents frequently benefit from repeat customers, referrals and stronger professional networks.

Lead Generation

Agents who consistently generate new prospects have more potential transactions entering their pipeline.

Local Property Values

Higher-value transactions can generate greater gross compensation, although competition and expenses may also be higher.

Market Conditions

Mortgage rates, housing inventory, prices, transaction volume and consumer confidence all affect real estate activity.

Specialty

Residential, luxury, commercial, land, investment properties, leasing and new construction can have different compensation structures and sales cycles.

Reputation

A successful track record can produce listings and referrals that compound over time.

Business Skills

A real estate agent is often effectively operating a small business.

Marketing, budgeting, customer service and time management matter.

Real Estate Agent Job Outlook

There were approximately 427,000 real estate sales agent jobs in the United States in 2025, according to BLS.

Employment is projected to increase to about 434,500 by 2035, representing roughly 2% growth.

When real estate brokers are included, BLS projects approximately 40,400 job openings each year over the decade, primarily because workers retire, change careers or otherwise leave the occupation.

Growth may be slower than the average occupation, but that does not mean there will be few opportunities.

Real estate is an unusually entrepreneurial occupation. Many opportunities are not traditional salaried job openings. Agents may affiliate with brokerages as independent contractors or self-employed professionals rather than conventional employees.

What Real Estate Jobs Are Available?

A real estate license can lead to several career directions.

Residential Buyer's Agent

Represents homebuyers and helps them identify, evaluate and purchase homes.

Listing Agent

Works primarily with property owners who want to sell.

New Construction Sales

Works with homebuilders or developers selling newly constructed homes.

Luxury Real Estate Agent

Specializes in high-value properties and affluent buyers or sellers.

Commercial Real Estate Agent

Works with offices, retail buildings, industrial properties, multifamily properties, investment properties or development sites.

Leasing Agent

Helps landlords and tenants with rental transactions.

Land Specialist

Focuses on undeveloped land, agricultural property or development parcels.

Real Estate Investment Specialist

Works with clients purchasing income-producing or investment properties.

Relocation Specialist

Assists clients moving between markets.

Real Estate Broker

With additional licensing and experience, an agent may become a broker, manage agents or establish a brokerage.

BLS reports a median annual wage of $73,220 for real estate brokers in May 2025.

Want to see real opportunities?

Use Assessment.com's Matching Jobs to find current jobs connected to your career matches and location.

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What Skills Do Successful Real Estate Agents Need?

Real estate requires much more than enjoying houses.

O*NET identifies a mix of sales, social and organizational characteristics.

Its occupational interest profile for real estate sales agents is strongly Enterprising, followed by Conventional and Social interests. O*NET also identifies work styles such as social orientation, dependability, achievement orientation, integrity, perseverance, self-confidence and attention to detail as important.

Important capabilities include:

Communication

You must explain complicated information clearly to people who may be making one of the largest financial decisions of their lives.

Listening

Understanding what buyers and sellers actually need is critical.

Sales Ability

Real estate involves attracting customers, winning business and persuading people.

Negotiation

Agents frequently negotiate price, terms, repairs, timing and other transaction issues.

Self-Motivation

No supervisor may be telling you exactly whom to call or what to do each morning.

Persistence

Prospects may say no.

Deals may fall apart.

Listings may expire.

Clients may change their minds.

Successful agents continue building their pipeline.

Organization

One agent may simultaneously manage multiple clients, offers, inspections, deadlines and closings.

Attention to Detail

Contracts, deadlines and transaction documents matter.

Marketing

Agents increasingly need competency in photography, digital advertising, content, social media, email and personal branding.

Local Market Knowledge

Clients expect agents to understand neighborhoods, inventory, pricing and market trends.

Would You Like Being a Real Estate Agent?

This is one of the most important questions to answer before pursuing the career.

You may enjoy real estate if you like:

• meeting new people;
• selling and persuading;
• negotiating;
• working independently;
• controlling much of your own schedule;
• setting personal goals;
• entrepreneurship;
• competing;
• helping people make important decisions;
• working outside a traditional office;
• building relationships;
• marketing yourself;
• solving problems; and
• having income tied partly to your performance.

You may dislike real estate if you dislike:

• unpredictable income;
• sales prospecting;
• rejection;
• frequent phone calls;
• evenings and weekends;
• competitive environments;
• difficult negotiations;
• paperwork;
• deadline pressure;
• driving between appointments;
• self-promotion;
• working without close supervision; or
• having transactions fail after significant work.

O*NET's 2026 work-context data reinforces both sides of this tradeoff. Real estate agents report considerable autonomy, but also extremely high competition and constant interpersonal contact.

Is Real Estate a Good Career for You?

Salary and job growth tell you what the market may offer.

They do not tell you whether you will enjoy doing the work.

Two people could have identical education and licenses and have completely different reactions to the career.

One might love:

• negotiating;
• meeting strangers;
• competing;
• building a business; and
• working independently.

Another might find those same characteristics exhausting.

That is why career fit should be considered before career training.

Discover how well real estate matches you.

Take the Free MAPP Assessment and receive 10 Free Career Matches based on your motivations and career-related preferences.

You can explore:

• how closely Real Estate Agent matches you;
• why it matches or does not match;
• aspects of the work you may enjoy;
• aspects you may find frustrating;
• education and licensing requirements;
• salary and employment information;
• related careers;
• educational pathways; and
• available jobs.

Take the Free MAPP Assessment

Real Estate Agent vs. Real Estate Broker

These terms are not interchangeable.

A real estate sales agent is licensed to perform real estate activities under the rules of the applicable state.

A broker generally has additional experience, education and licensing authority.

BLS reports that states typically require broker candidates to have a specified amount of experience as licensed sales agents and additional training. Most states require at least two years of sales-agent experience, although requirements vary.

Brokers may:

• manage agents;
• supervise transactions;
• operate brokerage offices;
• hire sales agents;
• establish independent firms; and
• continue representing clients themselves.

Real Estate Agent vs. REALTOR®

A real estate agent is a licensed professional.

A REALTOR® is a real estate professional who is a member of the National Association of REALTORS® and is subject to its Code of Ethics.

Therefore:

Every REALTOR® practicing as an agent is a licensed real estate professional, but not every licensed real estate agent is a REALTOR®.

Advantages of Becoming a Real Estate Agent

Potential advantages include:

• no four-year college degree generally required;
• relatively accessible path to entry;
• high degree of independence;
• ability to build your own client base;
• flexible scheduling;
• potential for high earnings;
• opportunities for self-employment;
• ability to specialize;
• opportunity to become a broker;
• opportunity to build a real estate company;
• relationship-driven business; and
• work that changes from day to day.

Challenges of Becoming a Real Estate Agent

Potential disadvantages include:

• irregular income;
• substantial competition;
• commission-based compensation;
• prospecting and rejection;
• business expenses;
• evening and weekend appointments;
• unstable transaction volume;
• sensitivity to interest rates and economic cycles;
• complicated transactions;
• emotional clients;
• deals that can collapse before closing; and
• ongoing licensing and continuing education requirements.

BLS specifically notes that beginning agents may experience weeks or months without a sale and that earnings often increase as agents gain experience.

Frequently Asked Questions About Becoming a Real Estate Agent

How do I become a real estate agent?

Generally, you must meet your state's eligibility requirements, complete approved prelicensing education, pass the state licensing examination, complete the license application process and satisfy any brokerage affiliation requirements. Exact requirements vary by state.

Do I need a college degree to become a real estate agent?

Usually not. The typical entry-level education reported by BLS is a high school diploma or equivalent, although state-approved real estate education is also required.

How much does a real estate agent make?

The median annual wage for real estate sales agents was $52,830 in May 2025, according to BLS. The highest 10% earned more than $123,590. Earnings vary substantially because many agents are compensated primarily through commissions.

Can real estate agents make six figures?

Yes. BLS reports that the highest 10% of employed real estate sales agents earned more than $123,590 in 2025. However, new agents may earn substantially less, and income can be irregular.

How much do beginning real estate agents make?

There is no fixed starting salary. NAR's 2026 Member Profile reported median gross real estate income of approximately $8,000 for REALTORS® with two years or less of experience in 2025. This illustrates how financially difficult the early years can be.

Do real estate agents receive a salary?

Some do, but many agents work on commission or as independent contractors. Compensation structures vary among brokerages and real estate specialties.

How long does it take to get a real estate license?

It depends on the state, required coursework, exam scheduling, application processing and background requirements. Candidates should check their state real estate commission for current requirements.

Do all states require a real estate license?

Yes. BLS states that every state requires real estate brokers and sales agents to be licensed.

Can I get licensed in more than one state?

Potentially. States have their own licensing requirements, and licenses are generally not automatically transferable. Some states have reciprocity arrangements that can simplify licensing for professionals already licensed elsewhere.

Is being a real estate agent stressful?

It can be. Agents manage negotiations, deadlines, client expectations and transactions involving significant amounts of money. O*NET also characterizes the occupation as highly competitive. On the other hand, many people value its autonomy and variety.

Do real estate agents work weekends?

Many do. BLS notes that schedules frequently vary and may include evenings and weekends to accommodate clients.

Is real estate a good career for someone who likes people?

Potentially. O*NET identifies Social Orientation as one of the occupation's strongest work-style characteristics and reports very high levels of contact with others.

Is real estate a good career for introverts?

It can be, depending on the individual. Real estate involves extensive client contact, networking, telephone conversations and sales activity. Introversion by itself does not determine success, but someone who strongly dislikes frequent interaction or prospecting may find the work less satisfying.

What personality is best for a real estate agent?

There is no single ideal personality. O*NET highlights initiative, self-confidence, perseverance, social orientation, achievement orientation, integrity, dependability and attention to detail as important work styles.

Is real estate a growing career?

BLS projects employment of real estate brokers and sales agents to grow about 2% from 2025 through 2035, somewhat slower than the projected average for all occupations. However, approximately 40,400 openings are expected each year because of replacement needs.

What is the difference between a real estate agent and a REALTOR®?

A real estate agent is a licensed professional. REALTOR® is a membership mark for qualifying members of the National Association of REALTORS®.

What can I do after becoming a real estate agent?

Possible paths include residential sales, luxury real estate, commercial real estate, new construction, leasing, land, investment property, relocation and eventually becoming a licensed broker.

The Bottom Line: Should You Become a Real Estate Agent?

Real estate offers something relatively unusual in the career market.

You can enter without necessarily earning a four-year degree, obtain a professional license, develop your own customer base and potentially build a business whose income is connected to your ability to sell, market, negotiate and develop relationships.

But that opportunity comes with uncertainty.

There is no guarantee that getting a license will produce clients or income.

The people most likely to enjoy real estate tend to be comfortable taking initiative, communicating frequently, competing, marketing themselves, handling rejection and solving problems without someone constantly directing them.

The first step should therefore come before licensing school.

Find out whether the work actually fits you.

Take the Free MAPP Assessment and explore your 10 Free Career Matches.

See how your motivations, temperament and interests compare with Real Estate Agent and thousands of other career possibilities. Then explore what you might enjoy, what you might dislike, how to enter the career, salary information, educational pathways and available jobs.

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