Bookmark this guide to learn how to start a career in Texas real estate
A gigantic state filled with opportunity, Texas is a goldmine for aspiring and upcoming real estate agents and brokers who want to make it big in this profession.
Texas’s diverse real estate landscape is home to a dozen fastest-growing markets in the country such as Orlando, Dallas, Georgetown, San Antonio, and Houston among others.
Since the last few years, Texas has witnessed a steady increase in the number of homes sold and is currently placed as the third highest most populous state in the country.
Thanks to the booming economy and strong job outlook, it has become a favorite amongst homebuyers and real estate investors.
Industry data estimates that Texas is among the top 10 states in the country with a growing net migration rate indicating its popularity.
With a growing population and increasing migration from other states, Texas is likely to retain its popularity and appeal leading to high value for residential homes and commercial real estate.
If you like working with people and dream of having a flexible, financially stable career path, then working in Texas real estate can be incredibly lucrative and rewarding.
The general outlook for Texas real estate is positive and is expected to be stable in the upcoming years.
This is why now could be a good time to enter the market and obtain your real estate license in Texas to open avenues for success.
Did you know that the average annual income for a Texas agent is around $100K along with other job perks and benefits?
Imagine earning a six-figure salary within a few years of working in the industry while enjoying a flexible schedule where you can be your own boss.
Sounds like a professional dream come true? If yes, then we have put together this detailed guide to help you become a licensed real estate agent in Texas.
If you plan to become a successful and valuable real estate agent, then it will require completing a step-by-step process and fulfilling the various state and federal requirements.
We understand starting a new career might be daunting, especially if you do not have an understanding of how the industry works.
This beginner-friendly guide is compiled to give you the answers to all your doubts and questions and make you feel more confident in approaching this career path.
The need for a real estate license
Many aspiring real estate agents often wonder why getting a license is such a big deal and whether or not having a license offers any practical, real-world benefits.
Maybe you are feeling overwhelmed by all the licensing requirements and want to think twice before taking a leap of faith.
The fact is - having a Texas real estate license can open up opportunities for networking, growth, and profitability in your career.
A real estate license is a mandatory career requirement and like most states, Texas also requires you to obtain your license to be able to work with clients.
Real estate is a highly regulated and stringent industry and it is governed by a pre-established set of state and federal regulations.
For aspiring and active real estate agents, brokers, and realtors, getting a state-approved license is a must in order to legally partake in a real estate transaction.
Without a valid license, you will not be allowed to meet clients, discuss their requirements, or assist them in buying or selling properties.
Moreover, only licensed agents, brokers, and realtors get access to exclusive communities, listing portals, and community events.
Most importantly, clients and consumers prefer working with licensed agents only, as they entrust only skilled and knowledgeable professionals to help them make property-related investment decisions.
The benefits of getting your real estate salesperson license are immense and they far outweigh the time and cost you will invest.
With that said, let us move on to discuss what exactly are the steps you need to complete to become a licensed agent in Texas.
Steps to Obtain a Real Estate License in Texas
Are you already wondering how can i get my real estate license in Texas easily and start working with clients?
When it comes to the total time required for the licensing process, many factors are at play that can influence how quickly you can become a licensed agent.
Step 1: Check and meet the basic eligibility requirements
In the state of Texas, all applicants are required to meet the basic statutory requirements which are as follows:
- You must be at least 18 years of age (or older),
- You must have proof of residency in the state of Texas.
- You must be a U.S. citizen or a lawfully admitted alien.
- You must have a high school diploma in education or a GED equivalent.
Most importantly, you must not have any history of felony or any criminal activity against you.
As an applicant, you can also determine whether you meet the eligibility requirements by completing a fitness determination test.
You will be required to submit your fingerprints as part of the background verification to the
Texas Department of Public Safety.
Step 2: Complete the pre-licensing coursework
All aspiring real estate agents and brokers in Texas are required to complete qualifying pre-licensing education to qualify for a real estate salesperson license.
The total duration of the pre-licensing education is 180 hours which includes 6 courses worth 30 hours each which are:
- Principles of Real Estate 1
- Principles of Real Estate 2
- Law of Agency
- Law of Contracts
- Promulgated Contract Forms
- Finance in Real Estate
These courses are formulated to give you a solid understanding of the fundamentals of the real estate industry and its underlying laws, policies, terms, and regulations.
Note that you are free to choose between joining an in-person, real estate school or an online real estate school.
However, it is important that your preferred education provider must be approved by the Texas Real Estate Commission (TREC).
Although there are numerous colleges, courses, and classes for real estate students, not all of them are approved or accredited by the TREC.
Irrespective of where you learn from, completing 180 hours of state-approved pre-licensing course credits is mandatory to move forward with your licensing process.
However, you can choose to speed up the process by enrolling in an online real estate course and completing the coursework in a self-paced way.
Many students often overlook the importance of pre licensing education and simply consider it as another mandatory requirement in a checklist to get their license.
We recommend that you take your education seriously and choose the right education provider to boost your preparation.
Since you will be required to take the salesperson licensing exam, it is important that you invest in one of the best Texas real estate exam prep courses to learn from experienced instructors and get access to quality study resources.
Step 3: Submit your licensing application
After completing the pre-licensing education, the next step is to move forward and complete your licensing application.
To do so, you can go to the official website of the Texas Real Estate Commission (TREC) and start the application process.
Firstly, you need to register on the TREC website and create an account with the TREC online services.
Along with your salesperson licensing application, you will need to pay the corresponding one-time fee of $200. You can pay the fee online using Texas’ MyLicense system along with your application.
Along with the application, you must also submit an electronic scan of your fingerprints as part of the background verification and criminal history check.
In the state of Texas, all applicants are required to undergo a mandatory background identity check to prove that they meet the minimum standards for honesty, integrity, and good moral character.
Step 4: Pass the Texas salesperson licensing exam
If you are thinking about how do I get a real estate license in Texas - then it’s time to prepare yourself for the final and most crucial step of your licensing journey.
Like most states, Texas requires aspiring real estate salespersons and brokers to take the licensing exam and pass by scoring more than 75 percent or above on the test.
The test consists of both state and national-specific portions and you will get a total of 2.5 hours to tackle 110 multiple-choice questions.
The salesperson licensing exam can be taken at any Pearson Vue center in Texas and you can schedule the test as per your preferred day and date.
Note that you have to pay $43 for each attempt at the test. If you are unable to clear the test, you can retake it by paying the examination fee again.
Since passing the test is crucial to getting your license, it is recommended that you take your pre-licensing education curriculum seriously and invest in learning from an experienced and proven real estate course or school.
Step 5: Find a sponsoring broker
If you have made it this far, congratulations as the difficult part of your salesperson licensing journey is completed.
After you have successfully passed the exam and submitted all the required documents with your licensing application to the TREC, it is just a matter of waiting for a few weeks and you will receive your license.
However, there’s one last step you must complete to activate your salesperson license and start working in the industry.
The state of Texas requires newly licensed professionals to find employer sponsorship and learn under the guidance of a senior, more experienced broker.
Finding a sponsoring broker is a must for every licensed individual and you can easily find one in your local real estate community or agency.
It is important to choose the right brokerage as it is going to be your first and formative experience of working in the real world.
Working under the supervision of a skilled, experienced, and professional broker is a must to establish a strong foundation for a successful career in Texas real estate.
To make an informed decision about choosing a brokerage, it is important to consider multiple factors such as - brokerage fees, mentorship, and training resources, commission splits, and tools, and technology support.
You should always choose a brokerage firm that has a good reputation and considerable experience in the industry.
What might work for someone else might not work for you as different agents have their own goals and needs.
Remember that it’s going to be your first step towards learning the ropes and gaining industry experience and you should make a conscious decision based on finding a suitable fit and aligning your expectations in advance.