Here’s How To Get Your Real Estate License in Texas in Easy Steps
Thanks to the strong demand for residential and commercial real estate, Texas is currently amongst the hottest real estate markets in the country.
Being one of the largest states area wise, Texas is amongst the fastest growing real estate markets with attractive future prospects.
As per industry reports, the valuation of the Texas real estate market has grown by a whopping 200 percent since the last decade.
According to data from property listing sites, the average price for a mid-size property in Texas state grew by an impressive 160 percent in value over the last five years.
The market is filled with diverse opportunities for homebuyers, vacationers, sellers and real estate investors.
Since the last few years, housing prices in TX have increased significantly as more buyers are showing up the opportunity to own a piece of real estate in the Lone Star state.
Whether you are looking to start a side-income stream or embark on a full-time, long-term career, real estate can help you achieve your goals.
Working in Texas real estate is a professional dream come true for thousands of individuals who seek to achieve financial independence with career flexibility.
Did you know that the licensed real estate agents in Texas can easily make around $100K to $120K by working in the top markets like Dallas, Houston, Austin and Fort-Worth.
Add a couple of years of experience to your resume and you can easily achieve all your financial goals and become a senior broker and realtor in TX.
The best part? There is virtually no upper cap on how much you can earn as a real estate professional in Texas as the more deals you close, the more commissions you can earn.
The more deals you close, the more income you can generate and that too while having flexibility to work at your own pace.
A career in Texas real estate is a lucrative and fulfilling professional choice, especially if you want to strike a balance between financial prosperity and emotional fulfillment.
The best part about starting a career in Texas real estate is that you do not need to invest years getting an advanced college education or proving yourself.
As long as you meet the Texas license requirements, you will be on your way to working with clients and representing them in real estate deals.
The present and future prospects indicate that now is a good time to enter Texas’ real estate market and take benefit of the numerous opportunities available for both buyers and sellers.
However, to make the most of the exciting and rewarding career opportunities, you must obtain a Texas salesperson license first.
Getting your license is the first step towards building a thriving career path where you can work with clients and earn commissions through real estate deals.
If you are ready to embark on the journey to becoming a licensed real estate agent but are not sure how to get your Texas real estate license, this step-by-step guide will help you.
Keep on reading to find out everything you need to know about starting a career in TX real estate and become a successful professional.
The appeal of Texas real estate landscape
Before embarking on a career journey, it is important to understand why Texas is one of the most promising and alluring real estate landmarks.
Being one of the largest states in the country area wise, Texas’ real estate market is diverse and has something for everyone.
On one hand, San Antonio, Houston and Austin have emerged as popular metropolitan regions and emerging tech hubs in TX for skilled migrants and working professionals.
Whereas, less busy towns like Amarillo, El Paso and Frisco are known for their quieter, more quaint lifestyle.
Dallas-Fort Worth, Houston and Austin have consistently emerged amongst the hottest real estate markets in Texas whereas cities like San Antonio, Frisco, Georgetown, New Braunfels and Leander are growing the fastest.
To plan your career, it is important to understand what gives Texas’ real estate a unique edge and drives its popularity amongst buyers and investors.
Here are some key factors driving the real estate boom in the Lone Star state:
- Demographic diversity: Texas has emerged as one of the most popular states for homebuyers seeking diversity due to a healthy mix of age, culture, race and demographics. It has emerged as an attractive destination for homebuyers, retirees and skilled professionals.
- Strong economy: GDP is often considered as an indicator of the economy’s strength and stability. Texas is currently rated as the country’s 9th highest state in terms of GDP and its economic outlook is strong and resilient. As a result of this, the growth is reflecting in Texas’ housing market as well.
- Favorable policies: Texas has no state tax and on top of it, the state government offers numerous subsidies and deductions for residents. Due to the favorable government policies, Texas is attracting homebuyers from across the country.
In the last few years, more people are moving to Texas than ever before which has led to an increase in real estate prices across the state.
Even Texas’ luxury real estate market has seen a 60% growth in the past five years, indicating that more buyers are willing to shell out luxury prices for ordinary homes.
Despite the impressive growth, experts believe that Texas’ real estate still has huge potential for the future.
Does this excite you to embark on the journey to work as a real estate agent in TX and you want to know how to become a real estate agent Texas?
Let us walk you through the steps required to become a licensed agent and make an informed decision.
Basics eligibility requirements for a Texas real estate license
The first step towards starting a career is getting licensed and to apply for the same, you must meet the eligibility requirements established by the state authority.
Without a valid TX license, you will not be legally allowed to participate in a real estate deal or assist clients in buying and selling properties in the state. .
As per the Texas Real Estate Commission (TREC), every applicant must meet the basic statutory requirements:
- You must be at least 18 years of age (or older)
- You must be a legal resident of the U.S. or a lawfully residing alien
- You must have a high school diploma or GED equivalent
Before you start preparing for your real estate licensing journey, it is recommended that you meet the above listed basic qualifying requirements.
Since getting a license requires paying for your education, examination and bearing other costs, it is advisable to ensure your eligibility by completing and submitting a fitness determination application to the TREC.
Completing Texas pre license education
Like any other profession, real estate is also governed by a set of laws, principles and industry standards.
To work as a professional and obtain your license, it is important to complete minimum education and training.
As per the TREC, aspiring real estate agents must complete 180 hours of pre license education to qualify for a salesperson license.
Pre license education refers to a collection of mandatory and elective courses which will equip you with the knowledge of real estate principles, state and federal laws, consumer rights and other fundamental topics.
The 180 hours of salesperson pre license education in TX comprises of the following:
- Principles of Real Estate 1: This course gives students an overview into the basic principles of the real estate industry. You will learn about the different property types, real estate practices, titles, deeds, conveyances in real estate, legal descriptions and fair housing laws.
- Principles of Real Estate 2: This course focuses on in-depth knowledge of real estate regulations and principles. You will learn about property management, real estate regulations, appraisal and closing procedures.
- Law of Agency: This course explains the different types of agency relationships and their underlying laws and regulations. You will learn about ethics, fair and deceptive trade practices and consumer rights.
- Law of Contracts: This course will give students an understanding of real estate contracts, disclosure requirements, statute of frauds, offer and acceptance contracts.
- Promulgated Contract Forms: This course covers the usage of TREC promulgated forms and its underlying rules and regulations.
- Real Estate Finance: This course provides knowledge about real estate transactions, loan programs, finance and accounting, credit and other processes and practices.
From the state laws and rules to the federal guidelines and standards, these courses will equip you with the important knowledge and fundamental principles of the industry.
Students have the flexibility to choose their preferred medium of learning to complete the course credits.
This means you can choose to join a physical, classroom based real estate college or enroll in an online pre license course to complete your education.
However, as per the TREC guidelines, it is important to choose a state approved education provider only.
Amongst the many requirements on how to get a Texas real estate license, completing pre license education is a crucial and essential one.
Since your education is going to play a pivotal role in shaping your career, it is recommended to invest in choosing a quality education provider.
Cost of completing education in Texas
Generally, the cost of education can vary depending on your education provider, the medium of content delivery, the type of package and any additional features or value added benefits such as test prep packages and resources.
As not all courses are created equal and some courses focus more on theoretical aspects of the curriculum while others focus on practical training.
Based on the type of course package and its curriculum, its cost will vary from different option to option as in-depth detailed pre license courses cost more than basic ones.
You can expect to pay around $100 to $700 to complete 180 hours of state approved pre license education.
The only important aspect to keep in consideration before deciding on an education provider is that they must be approved and accredited with the TREC.
In addition to paying for pre license courses , you should also factor in the expenses for study essentials such as books, guides, notes and other exam prep materials.
This cost varies from person to person and your individual learning needs, however, you can estimate it around $50 to $200.
Benefits of completing pre license education in Texas
Real estate is a vast, dynamic and specialized industry which requires professionals to achieve a minimum standard in education and skills.
Completing pre license education is more than a regulatory requirement, it is a stepping stone in building a successful career path.
In order to navigate the ever-evolving, dynamic real estate industry, it is important to achieve an understanding of the fundamental principles as well as the industry laws and regulations.
Pre-licensing education incorporates various subjects and courses touching upon a range of topics that affect the industry and its working.
Let’s look at some of the reasons why you must take your education seriously:
- You get to learn about the state and federal laws, rules and regulations
- You gain knowledge about the essential skills and principles of the industry
- You learn about the key aspects which govern the working of the trade
- You can maintain legal compliance with the state and federal law agencies
If you are seeking the answer to the question - how to get the real estate license in texas - the key is to start by completing your education.
As an aspiring professional, education and knowledge will give you the foundation to grow as a skilled agent and offer the best of services to your clients.
With more knowledge and training, your decisions will improve and you will be able to stand out from the crowd easily.
If you are serious about pursuing a long-term career in TX real estate, completing pre license education is going to help you achieve your goals.
Passing the Texas salesperson license test
Like other states, Texas also requires aspiring real estate agents to pass the state license test and prove their knowledge and competence.
It is a mandatory requirement to pass the Texas salesperson test and you can schedule the test as per your desired schedule at any of the Pearson VUE centers in TX.
The salesperson license test consists of 125 questions in total including both state and national specific portions.
You will have to attempt 85 questions for the national portion and 40 questions for the state portion and to pass the exam, you must score at least 75 percent or above.
Note that it will cost you $43 to take the Texas salesperson licensing exam and you can pay this fee online on the TREC website.
If you fail to clear the exam in your first attempt, you can choose to reschedule it again after 24 hours by paying the exam fee again.
Here are some of the common topics and questions you can expect to tackle in the test:
- Texas state and federal laws
- Ethics, code of conduct and standards
- Types of property
- Consumer rights
- Types of Agency
- Property Management
- Real Estate Financing
- Property Valuation
- Deeds and Contracts
- Real estate contracts
- Real estate agency
- Land Use Controls
- Market Analysis
- Real estate Finance
Many students and first time applicants often wonder how hard it is to clear the Texas licensing exam in the first attempt.
While the pass rate of the exam is around 60 percent, it requires practice and preparation to boost your chances of passing the test on your first attempt.
The Texas real estate license test is designed to be challenging on purpose as the TREC wants to eliminate non-deserving candidates from getting a license. . .
The test is rigorous and demanding which requires you to work on your skills and knowledge. It is designed to evaluate the level of preparation of the applicants.
If you wish to clear the exam on your first attempt, you must invest in quality education and exam prep resources which can provide you with the right knowledge and training.
If you are wondering how to obtain real estate license in Texas, the key is to boost your preparation so you can pass the test with confidence.
The real estate exam requires practice and preparation and you must equip yourself with the knowledge of all the important subjects and topics.
Find a sponsoring broker in Texas
If you complete all the steps listed above, you will receive your Texas salesperson license within a few weeks.
However, to work with clients, you need to activate your license first and to do so, you find employer sponsorship.
As per the TREC license guidelines, newly licensed agents must work under the guidance and supervision of a senior broker or brokerage firm licensed in the state of Texas.
Completing this step is a mandatory requirement and one you must carefully plan for if you want to earn commissions through real estate deals.