How to Kickstart a Prosperous Career in Texas Real Estate
Real estate offers multiple opportunities for growth and profitability, especially if you are someone who wants to work in a dynamic, fast-moving career.
Working in real estate, whether as a part-time side hustle or a full-time career path, can be financially rewarding and emotionally fulfilling.
Choosing real estate as a career can unlock the potential for a six figure income along with a flexible work-life balance, especially in Texas where the demand for real estate is booming.
Due to the strong and stable economy, low mortgage rates and relatively affordable housing compared to other states, Texas continues to attract homebuyers, skilled workers and migrants looking for better opportunities.
One of the fastest growing real estate markets in the country, Texas is also home to many multinational companies and organizations leading the growth in economic and employment prospects for the future.
Dallas, Austin, Fort-Worth, and Houston are some of the most popular real estate markets where you can easily make a six figure income within a few years of working in the industry.
The Bureau of Labor Statistics in the U.S. has reported that a licensed real estate agent in TX can earn around $100K in average annual income. Plus, you will enjoy additional job perks and benefits.
The best part is that you do not even need to spend years getting any specialized degree or advanced education to achieve your goal of becoming financially independent. All you need is a Texas salesperson license to get started.
Having your license is mandatory if you want to work with clients and earn commissions by participating in real estate details and transactions.
If you are an aspiring professional who wants to be a part of an exciting and booming career with abundant growth, now is a great time to prepare for getting your license.
Are you already wondering how can I get my real estate license in Texas? This article will cover all the key aspects of completing your license journey including the basic qualifying and education requirements that you must fulfill.
The need for a Texas real estate License
Getting a license might seem like a trivial requirement but it is in fact a mandatory step in building a thriving career.
Like most states, Texas requires all aspiring and active professionals to hold a valid state-approved license to work legally.
The Texas Real Estate Commission (TREC) has made it a mandatory requirement for aspiring real estate professionals to obtain their license from the commission.
TREC has established the regulatory laws and guidelines for professionals who want to work in real estate and one of the mandatory requirements is having a valid, active license.
The purpose of issuing a license is to enforce a set of laws, regulations and industry standards to govern the working of real estate professionals and firms in the state of Texas.
Without a valid salesperson or a broker’s license, you will not be eligible to earn commissions or work with clients in real estate transactions.
Having a license will allow you to work with clients anywhere in Texas and assist them in making key decisions related to buying or selling real estate. It will make you compliant with the state and federal laws and regulations.
Another important need for a license is establishing trust and credibility in Texas’ real estate. Since clients prefer working with professionals, your salesperson license will work as a proof of your knowledge, skills and commitment to your profession.
In the coming sections of this article, we will dive deep into the specific Texas real estate license requirements and how you can fulfill them to embark on a successful career.
However, before we discuss the requirements, let us walk you through some of the key benefits of becoming a licensed agent in Texas.
Why you must invest in getting a real estate license
Having a license will unlock opportunities for growth and profitability in your career and here are some key benefits of getting a salesperson license in Texas:
- With a Texas salesperson license, you can build the ideal side gig and start earning more money. As a licensed professional, you can work independently, find your own clients, and not rely on anyone else to close deals and earn commissions.
- Getting a license will enable you to operate and offer your services without any restrictions or limitations anywhere in the state. This means you can choose to work as a part-time or a full-time agent and work as much as you want.
- Only licensed professionals in Texas get access to the useful Multiple Listing Service (MLS) which is a treasure trove of databases of the local property listings in an area or zip code. It will help you get access to listings faster and grab opportunities.
- Becoming a licensed real estate agent will open up more job opportunities for you. Since most real estate brokers and brokerage firms prefer working with licensed agents only, if you have a license you can easily apply for the job you always desired.
- With a valid salesperson license, you will be compliant with the Texas state and federal laws and regulations for professionals. Staying on the right side of the law is important to ensure you can build a thriving career in real estate.
Are you eager to start your real estate journey? Let us walk you through the step by step process which you must fulfill to get licensed.
To start off your career, you should complete the Texas salesperson license requirements and after gaining a few years of industry experience, you can apply for a broker’s license.
Steps for getting a real estate license in Texas
As a complete beginner, you might find it overwhelming or daunting to complete the licensing process, but if you follow a structured approach, it is pretty straightforward and simple.
Step 1: Meet the minimum eligibility criteria
The first step towards starting a career is to meet the minimum eligibility requirements established by the Texas Real Estate Commission (TREC)
To obtain your real estate license you must meet the basic eligibility criteria requirements established by the TREC which are as follows:
- Your age must be 18 years or above
- You must be a legal resident of the US or a lawfully residing alien
- You must have a high school diploma in education or a GED equivalent
If you fulfill the statutory requirements, you can move to the next stages of the process.
Step 2: Complete pre-license education
Becoming a licensed professional requires you to complete a minimum level of qualifying education.
To obtain a license, it is mandatory to complete a Texas real estate license course from a TREC approved education provider.
Specifically, you must complete a minimum of 180 hours of pre-licensing course credits to complete the training required to work with clients. The purpose of education is to gain a knowledge of fundamental topics and courses such as:
- Principles of Real Estate 1 and 2 (60 hours)
- Law of Agency (30 hours)
- Law of Contracts (30 hours)
- Promulgated Contract Forms (30 hours)
- Real Estate Finance (30 hours)
As a student, you have the flexibility to choose an education provider and decide whether you want to join a classroom-based, physical environment or enroll in an online course.
The cost of completing pre-licensing education in Texas depends on your preferred learning medium, course package, features, benefits, etc. It can range anywhere between $200 to $800 for a good pre-license college or course.
Generally, online courses are more affordable and flexible as they can be completed from anywhere and using any device.
Students and aspirants often wonder whether completing pre-licensing education is worth it or not. The answer is yes, it is certainly worth it.
These courses are crucial for obtaining the knowledge and training you need to work with clients, earn their trust, and build a successful career path.
Step 3: Clear federal background verification
Clearing federal background and criminal history checks is an essential step in getting your salesperson license in Texas.
Each state has its own set of licensing laws and guidelines for criminal history and background verification. Like other states, Texas also has a specific set of requirements.
If you have a history of criminal activity or misdemeanors, or frauds, the TREC reserves the right to reject your license application.
The TREC ensures that only individuals without any history of felony or unlawful activity can join the industry to work with clients. In Texas, it is mandatory for every aspiring professional to meet the minimum standards of integrity, honesty and good moral conduct.
To complete this step, you must get an electronic scan of your fingerprints taken at any of the TREC-approved live scan vendors in Texas. Once you have a digital copy of your fingerprints, you can submit them for review.
Step 4: Pass the Texas salesperson license exam
You might have completed the best real estate courses online in Texas but you still have to prove your knowledge and understanding by taking the real estate license exam in TX.
As per the TREC licensing laws, it is mandatory to take the salesperson license exam and pass it by scoring at least 75 percent or above in the test.
The licensing exam is a closed-book test which consists of 85 national and 50 state-specific multiple-choice questions. To attempt the test, you will get a total of 150 minutes.
The exam consists of questions based on the topics and courses from your pre licensing curriculum. The test will assess your preparation and knowledge of the fundamental principles of real estate, along with various state specific laws and regulations.
Students often wonder about the difficulty of the state license exam and whether it is possible to pass the test on the first attempt itself.
The key to boosting your chances of success is choosing the right course provider and making use of study materials, learning resources, and exam preparation tools.
One of the effective exam preparation tips is to practice with mock tests and attempt sample questions to get familiar with the exam and the type of questions.
The more confident you are in your knowledge and understanding of the exam, its format and its contents, the better will be your preparation for the test.
Step 5: Find employer sponsorship
After completing all the above steps successfully, you will obtain your Texas salesperson license.
However, you must activate your license to work with the clients, and to do so, you must find employer sponsorship and work with a state licensed brokerage or broker firm.