Quick Answer

Becoming a real estate agent does not require a college degree. You complete a state-approved pre-licensing course, pass your state's licensing exam, and activate your license under a brokerage, which can take a few months. The catch is income: pay is commission-only and highly variable. The median for sales agents is $56,320, but new agents earn far less while they build a client base, and many leave within a couple of years.

The appeal of real estate is the low barrier to entry. No degree, a few months of coursework, and uncapped income potential. So the honest question behind "how to become a real estate agent" is rarely about the steps, which are genuinely simple. It is whether you can actually make a living, because the income reality early on is brutal and the field has heavy turnover.

This guide covers the licensing path plainly, then does something most agent-recruiting content avoids: it shows you the real income data, including the part about first-year earnings that brokerages tend to leave out. Real estate can be a strong career. It is also a commission-only small business you are starting, and knowing that upfront changes how you prepare.

The Bureau of Labor Statistics reports a median wage of $56,320 for real estate sales agents and $72,280 for brokers, with overall employment projected to grow 3% from 2024 to 2034 and about 46,300 openings each year1. Every state requires a license, and none require a college degree.

If you are drawn to a people-and-money career but want more income stability early, it is worth comparing this against becoming a financial advisor.

Expert Tip

Treat your first year like launching a startup, because that is what it is. Have six to twelve months of living expenses saved before you begin, since you will earn little while building a pipeline of clients. Budget separately for the costs the license does not cover: pre-licensing courses, exam and license fees, local board and MLS dues, errors-and-omissions insurance, and marketing. Agents who run out of runway quit before their referrals compound.

What Does a Real Estate Agent Actually Do?

The license lets you represent buyers and sellers, but the daily job is sales, client service, and constant lead generation. Deals are the visible part. Finding the people who will eventually do those deals is most of the work.

Working with buyers. You help clients find homes, arrange showings, advise on offers, and guide them through inspections, financing, and closing.

Working with sellers. You price and list homes, market them, coordinate showings, negotiate offers, and manage the path to closing.

Prospecting. This is the part that separates agents who last from agents who leave. You continuously generate leads through your network, referrals, open houses, online marketing, and follow-up. No prospecting, no pipeline, no income.

Important

This is a commission-only, self-employed business, not a salaried job. You pay for your own licensing, dues, insurance, and marketing, and you receive nothing until a deal closes. NAR's own data shows most new agents earn very little in their first year, and a large share leave the field within a couple of years. Enter with savings and a concrete plan to generate leads, not just a license and optimism.

Education and Licensing Requirements

No college degree is required, which is a genuine advantage of the path. The licensing steps are straightforward.

A pre-licensing course. Each state sets the required hours, commonly in the range of 60 to 180, covering real estate law, contracts, and practice.

The licensing exam. You pass a state exam that usually has a national portion and a state-specific portion.

A sponsoring brokerage. A new agent cannot work independently. You activate your license under a licensed broker, who provides oversight, tools, and a commission split.

Continuing education. States require ongoing coursework to renew your license.

A degree is not required, but a marketing, business, or communications background helps with the self-promotion and negotiation the job runs on.

$56,320

Median annual wage for real estate sales agents, May 2024

[1]

The Step-by-Step Path

  1. Meet your state's basic requirements. Usually a minimum age and a high school diploma or equivalent.
  2. Complete the pre-licensing course. Hours vary by state.
  3. Pass the state licensing exam. Both the national and state portions.
  4. Activate your license under a brokerage. You need a sponsoring broker to begin.
  5. Join the local MLS and board. Membership is often required to use the Realtor trademark and access listings.
  6. Build a pipeline. This is the real job, and the first year is mostly this.
  7. Consider a broker license later. With experience, it lets you work independently or open your own firm.

The Income Reality, Honestly

The median of $56,320 hides an enormous spread, and averages hide the hardest part of the story. According to the National Association of Realtors, agents with two years or less of experience had a median gross income of just $8,100 in 2024, and roughly 62% of new agents earned under $10,000 in their first year2. Experienced agents with 16 or more years had a median gross income of $78,9002. The typical Realtor closed 10 transactions on about $2.5 million in sales volume for $58,100 in gross income in 2024, before commission splits, brokerage fees, self-employment taxes, and business expenses come out3.

The pattern is clear. Real estate rewards persistence and a built-up client base, and it punishes anyone who runs out of money before that base exists. The people who succeed almost always had a financial cushion and a lead-generation plan from day one.

Is Real Estate Right for You?

It fits people who are self-motivated, comfortable with sales and rejection, energized by prospecting, and able to float financially through a slow start. The upside is real: flexibility, independence, and uncapped income for those who build a strong referral engine.

Reconsider it if you need steady income and benefits now, dislike self-promotion, or cannot fund a lean first year. A related people-and-money career like a financial advisor offers more income stability earlier, and a business degree can open doors to real estate development, brokerage management, or commercial roles with different economics.

The First-Year Survival Math

The single most useful thing you can do before getting licensed is run the real numbers on your first year, because that is where most people who quit get surprised. Treat this like the budget for a small business you are funding yourself.

Start with your fixed costs. Pre-licensing coursework, exam and license fees, local board and multiple listing service dues, errors-and-omissions insurance, and basic marketing tools add up to a low four-figure sum before you earn a dollar. Many of these are recurring, not one-time, so they keep pulling from your account whether or not you close a deal.

Then account for how commissions actually reach you. A commission is split with your brokerage, and new agents usually get the smaller share of that split. Out of what remains, you pay self-employment taxes as a 1099 contractor, covering both the employer and employee halves, plus federal and state income tax. The amount you deposit is a fraction of the headline commission, and it arrives only when a deal closes, which can be months after you start working with a client.

Now layer in the timeline. It is common to work for several months before your first closing, because building a pipeline of buyers and sellers takes time and persistence. This is why the National Association of Realtors data on first-year income is so sobering: new agents earned a median gross of just $8,100 in 20242. That figure is not a sign the career is a scam. It is a sign that the first year is an investment period, and the agents who make it are the ones who could afford to invest.

The practical rule most successful agents land on is simple. Have six to twelve months of living expenses saved before you go full time, or keep another source of income while you build. Combine that runway with a concrete plan for generating leads, from your existing network, referrals, open houses, or online marketing, and you turn the hardest year from a reason people quit into a bridge you can actually cross. Go in without the runway, and even a naturally talented salesperson can run out of money before the referrals start compounding.

Frequently Asked Questions

How long does it take to become a real estate agent?

Usually a few months. The pre-licensing coursework can often be completed in weeks to a few months depending on your state's required hours and your pace, followed by scheduling and passing the exam and joining a brokerage. Building enough of a client base to earn a steady living takes far longer.

Do you need a degree to be a real estate agent?

No. No state requires a college degree to become a licensed real estate agent. You need to complete a state-approved pre-licensing course and pass the licensing exam. A background in marketing, business, or communications helps but is optional.

How much do real estate agents actually make?

The median for sales agents is $56,320, but income is commission-only and varies enormously. New agents earned a median gross of about $8,100 in 2024, while agents with 16 or more years of experience earned a median of $78,900. Most of the difference comes from experience and a built-up client base.

Is real estate a good career?

It can be, for the right person. It offers flexibility and high income potential, but it is a self-employed, commission-only business with a difficult first year and high turnover. Whether it is good for you depends on your financial runway, your comfort with sales, and your willingness to prospect constantly.

What is the difference between a real estate agent, a Realtor, and a broker?

An agent holds a license and works under a broker. A Realtor is an agent or broker who is a member of the National Association of Realtors and follows its code of ethics. A broker has additional licensing that allows them to work independently, supervise agents, and run a brokerage.

How much does it cost to get started in real estate?

Beyond the pre-licensing course and exam fees, plan for local board and MLS dues, errors-and-omissions insurance, and marketing costs, plus a share of your commissions going to your brokerage. Startup and first-year costs commonly run into the low thousands, which is why a savings cushion matters.

Can you sell real estate part time?

Yes, and many new agents do exactly that while they build a pipeline. Working part time or keeping another job protects you through the low-income first year, though it slows how quickly you grow. The main limits are your brokerage's policies and your own capacity to respond to clients quickly, since real estate rewards fast follow-up.

Footnotes

  1. U.S. Bureau of Labor Statistics. (2025). Occupational Outlook Handbook: Real Estate Brokers and Sales Agents. BLS. https://www.bls.gov/ooh/sales/real-estate-brokers-and-sales-agents.htm ↩

  2. National Association of Realtors. (2025). Agent income. NAR. https://www.nar.realtor/agent-income ↩ ↩2 ↩3

  3. National Association of Realtors. (2025). Income steady, even as market slows: 2025 member trends. NAR. https://www.nar.realtor/magazine/real-estate-news/sales-marketing/income-steady-even-as-market-slows-2025-member-trends ↩