How much does it cost to become a real estate agent in Tennessee

The total cost to get a Tennessee real estate license ranges from approximately $508 to $1,108, depending on your pre-licensing course provider and insurance choices. Fixed state fees include the $91 Tennessee Real Estate Commission (TREC) application fee and the $63 PSI exam fee, while variable costs cover the pre-licensing course, fingerprinting, and errors and omissions (E&O) insurance. For anyone researching how do I become a real estate agent in Tennessee, this guide breaks down every fee, retake cost, and ongoing expense involved in obtaining and maintaining a license.

Total cost to get a Tennessee real estate license

The cost for a real estate license in Tennessee ranges from an estimated $508 to $1,108 across five required expenses. The TREC fee schedule^[1] sets the application fee, the PSI exam information page^[2] sets the exam fee, and TREC-approved schools set their own course prices.

The pre-licensing course is the largest variable. Basic packages from TREC-approved providers cost less, while premium packages with exam prep and coaching cost more. The fixed state fees are the same regardless of provider. Tennessee does not offer reciprocal licenses, so out-of-state agents must complete the full licensing process and pay all associated fees, according to the TREC renewal and reciprocity page^[3].

TREC application and PSI exam fees

The two fixed fees paid to state entities are a $91 application fee to TREC and a $63 exam fee to PSI. The TREC fee schedule^[1] lists the initial affiliate broker application fee at $91. You submit this fee when applying for your license after passing the exam.

PSI administers the licensing exam on behalf of TREC. According to the TREC PSI exam information page^[2], the full affiliate broker exam costs $63, covering both the national and state sections. A passing score on one section remains valid for two retakes of the failed section or one year, whichever comes first. Candidates can reschedule without forfeiting the exam fee if PSI receives cancellation notice at least two days before the scheduled date.

Pre-licensing course cost in Tennessee

Pre-licensing education is the largest variable cost in getting a Tennessee real estate license. The TREC approved courses page^[4] lists all state-approved providers, and course prices vary by package level.

Course packages range from basic coursework-only options to premium bundles with exam prep materials, instructor Q&A, and post-licensing support. All TREC-approved providers electronically report course completion to the state. Pre-licensing courses cannot be used for continuing education credit, per TREC rules.

Additional required costs: fingerprinting and E&O insurance

Two additional required costs round out the upfront licensing expenses: fingerprinting and errors and omissions insurance. Fingerprinting through the state's vendor costs approximately $35 and is paid separately from the TREC application fee.

TREC requires every active licensee to carry E&O insurance. The state group policy through RISC costs approximately $220 for a full 2-year term at the base coverage level, with the premium decreasing on a prorated basis for licensees who enroll mid-term. Higher coverage limits are available at additional cost. Alternative private plans start at approximately $115 for 2 years.

License renewal and continuing education cost

Renewing a Tennessee real estate license costs $75 every two years, plus the cost of 16 hours of continuing education. The TREC fee schedule^[1] lists the licensee renewal fee at $75 per 2-year cycle. The PSI exam page^[5] confirms that licensees must complete 16 hours of CE, including a 6-hour TREC Core course, to renew. CE courses from TREC-approved providers typically cost between $85 and $150 for the full 16 hours.

The TREC courses page^[4] notes that the TREC Core Course is mandatory, and pre-licensing courses cannot count toward CE. The CE Broker page^[6] confirms that all education completed after June 13, 2022 is tracked through CE Broker, though renewal is processed through the state's CORE system.

REALTOR® association dues and MLS fees

Joining a REALTOR® association adds $201 in national dues for 2027, plus state and local association dues that vary by market. The NAR membership dues page^[7] lists national dues at $156 and a $45 special assessment for the consumer advertising campaign, totaling $201 per member. New members pay a prorated portion of the $156 based on join date, but the $45 assessment is not prorated.

Tennessee REALTORS®^[8] lists 20 local associations across the state, and joining one automatically provides state and national membership. Local association dues and MLS access fees vary by market and are set independently of TREC licensing fees. MLS access typically costs approximately $30 to $50 per month, billed by the local association.

Brokerage fees and commission splits

Brokerage affiliation is required to activate a Tennessee real estate license, and fee structures vary widely by firm. New agents typically work under a commission split model, where the brokerage retains a percentage of each commission earned. Common splits range from 50/50 to 90/10 in the agent's favor, with 70/30 being typical for new agents.

Some brokerages also charge monthly desk fees or per-transaction administrative fees, which vary by firm. The TREC fee schedule^[1] lists a $25 fee for transferring to a new firm. New agents should ask about all fee structures before affiliating, as these costs affect net income.

Penalty fees to avoid

TREC imposes several penalty fees that can increase the cost of maintaining a license. The TREC fee schedule^[1] lists the following penalties:

The TREC renewal and reciprocity page^[3] confirms that licensees expired more than one year must retake the exam and reapply, or complete a 30-hour T.R.A.C.E. course to reinstate. Retiring a license costs $25, and reactivating a retired license also costs $25. Retired licensees must still renew every two years but are exempt from CE and E&O requirements while retired.

Real estate agent income in Tennessee

Real estate agent income varies widely by experience, market, and hours worked. The Bureau of Labor Statistics^[9] projects 3% job growth for real estate brokers and sales agents from 2024 to 2034, with 532,200 jobs in the field as of 2024.

The NAR Member Profile^[10] reports that REALTORS® spent a median of $8,010 on business expenses in 2024, covering licensing fees, association dues, marketing, and transportation. New agents should plan for these ongoing costs when evaluating the return on their licensing investment.

Broker license upgrade cost

The broker upgrade requires additional pre-licensing education and prior active licensure. The TREC pre-licensing FAQ^[11] outlines the experience prerequisites, which depend on whether the candidate was first licensed before or after May 12, 1988.

The broker education course cost varies by provider, similar to the affiliate broker pre-licensing course. Broker candidates who fail the exam pay the same per-attempt exam fee.

Next steps

The total investment to become a licensed Tennessee real estate agent includes one-time costs for education, testing, and application, plus ongoing expenses for renewal, continuing education, and association membership.

To get started, compare packages from multiple TREC-approved pre-licensing schools, focusing on whether exam prep is included. After completing the required coursework, schedule your PSI exam, then apply for your license with proof of E&O insurance and active firm affiliation. Budget for ongoing costs from the start to avoid penalty fees that can add up quickly.