How Long Does It Take to Become a Real Estate Agent and What Does It Cost?
How long does it take to become a real estate agent? Most people complete the process in 3 to 6 months from starting pre-license education to holding an active license. How much is a real estate license depends heavily on your state, but most people spend between $500 and $1,500 total before they receive their first commission check. Understanding the full cost of real estate license helps you budget accurately and avoid surprises.
This guide breaks down the timeline, the cost for real estate license by category, and what to expect at each stage from pre-license coursework through your first active listing.
Timeline: From Application to Active License
Pre-License Education
Most states require 60 to 180 hours of pre-license coursework. Online schools let you work at your own pace and typically take 4 to 12 weeks depending on how many hours you put in per week. If you commit 10 to 15 hours per week, you can finish the required coursework in 6 to 10 weeks.
How long does it take to become a real estate agent also depends on exam scheduling. In high-demand states, the licensing exam may have a 2 to 4 week wait. Factor this into your timeline so you’re not surprised by a month-long gap between finishing coursework and sitting for the test.
Licensing Exam and Background Check
The state licensing exam typically takes 3 to 4 hours and consists of 100 to 150 questions split between national and state-specific content. Pass rates for first-time takers range from 50% to 65% depending on the state. Budget time for a retake if needed. Most states allow retakes within 30 days with a modest re-examination fee.
How Much Does a Real Estate License Cost?
How much does a real estate license cost broken down by category:
- Pre-license education: $200 to $800 depending on state hour requirements and school choice
- Exam application fee: $50 to $100
- Background check: $25 to $75
- State license fee: $100 to $250
- MLS membership and association dues: $400 to $1,000 first year
The total cost of real estate license before you earn your first commission is typically $800 to $2,200 when you include the first year of required membership dues and E&O insurance.
Ongoing Costs After You’re Licensed
How much is a real estate license on an annual ongoing basis? After the first year, renewal fees, continuing education, and association dues typically run $500 to $1,500 per year depending on your state and market. Marketing costs are separate and vary enormously based on your strategy.
The cost for real estate license is a one-time investment that unlocks unlimited earning potential, but the real financial test is sustaining yourself through the first 6 to 12 months while building your client base. Budget 6 months of living expenses as a cushion before you go full-time. Most new agents earn their first commission 3 to 5 months after becoming licensed.