How to Become a Real Estate Agent
Helping people buy, sell or rent property under a sponsoring brokerage.
Who it suits
People who like people, can manage an irregular schedule and are willing to build a business with steady outreach.
How people get started
New agents complete state pre-licensing education, pass the state exam and join a sponsoring brokerage.
Step-by-step plan
- Find your state real estate commission through ARELLO.
- Complete pre-licensing education.
- Pass the state exam.
- Interview and choose a sponsoring brokerage.
- Activate your license and join any required associations.
- Learn contracts, agency and fair housing law.
- Set a simple budget for your own costs as an agent, such as dues, education and marketing.
- Build a lead generation plan you can sustain.
Skills to learn first
Contracts and agency basics, fair housing law, lead generation and running your business on a budget.
- Contracts and agency
- Fair housing law (hud.gov)
- Local market knowledge
- Lead generation and follow-up
- Budgeting
Licensing pointers
Each state's real estate commission sets its own education and exam rules. Find yours through ARELLO (arello.org). Fair housing guidance is at hud.gov.
Each state's commission sets education and exam rules (arello.org). Fair housing guidance is at hud.gov. Marketing texts and calls follow the consent rules in Part one.
Rules vary by state, county and city. Confirm with your state board or agency before you start. This isn't legal advice.
Insurance to ask about
- Errors and omissions (ask your brokerage)
- Ask what your brokerage covers
Equipment and tools to research
- CRM
- Professional photos
- Reliable vehicle
Week-by-week getting-started plan
Week 1
- Find commission
- Choose course
Week 2
- Study
- Research brokerages
Week 3
- Practice exams
- Interview brokerages
Week 4
- Exam
- Plan your first outreach
How people find their first customers
- Your personal network
- Open houses through your brokerage
- Past clients and referrals
- Community involvement
Common beginner mistakes
- No budget for business expenses
- Inconsistent follow-up
- Fair housing mistakes in ads
- Choosing a brokerage without asking about training
Quality red flags
- Missed deadlines
- Unclear communication
- Non-compliant ads
Questions to ask yourself before you commit
- Can I handle irregular income timing?
- What do I need from a brokerage?
- How will I find my first clients?
Questions to ask a licensing board
- Which license or registration do I need for exactly the work I plan to offer?
- What education, hours or exams are required, and in what order?
- What can I legally do while my application is pending?
Questions for an insurer
- Which coverages are required by law for my work in this state, and which are just recommended?
- What isn't covered by the policy you're quoting?
- Do I need different coverage when I hire my first employee or subcontractor?
Questions for a mentor
- What do you wish you'd known in your first year?
- What mistakes cost beginners the most time or customers?
- How did you find your first customers?
My worksheet
Use only your own numbers and research.
- My state commission: ________
- Course chosen: ________
- Exam date: ________
- Brokerages to interview: ________
- My agent cost budget: ________
- Lead plan: ________
- Mentor: ________
- Questions for brokerages: ________
My startup checklist
- State real estate commission rules read (find yours through arello.org)
- Pre-licensing education completed
- Background check or fingerprints completed if my state requires them
- State exam passed
- Sponsoring broker or brokerage chosen
- License application filed and activated under my broker
- Errors and omissions coverage asked about with my brokerage
- Continuing education and renewal rules noted
- Budget set for my own costs as an agent (dues, education, marketing)
If you later go independent: business setup (structure, registration, EIN, bank account, bookkeeping and your own insurance) comes then. See Part one.
Your next step
Back to the free starter guide
General education only. Not legal, tax, financial or licensing advice. Rules vary by state, county and city, so confirm with the official sources named here and a qualified professional. No income, earnings or business results are promised or implied. Published by Ryan Via, doing business as The Collective.