Step by step guide to becoming a licensed real estate agent in Texas

Texas’ real estate landscape is unlike any other state in the country – it’s diverse, welcoming, exciting, and catering to different budgets and consumer preferences.  

Dallas/Fort Worth, Houston, Austin, Beaumont, and San Antonio are some of the many promising real estate markets in the Lone Star state. 

In fact, TX is home to some of the fastest-growing regions as well as many undiscovered real estate gems that are poised to grow at a good pace in the future. 

With rising median home prices and a growing demand for housing, residential real estate in Texas is witnessing strong growth numbers, especially due to its affordability. 

Likewise, Texas’ strong economic outlook and an influx of skilled migrants are also boosting the prospects for the commercial real estate landscape. 

Working in Texas real estate is a professional opportunity of a lifetime, especially as the market offers a healthy balance of affordability and luxury with varied choices for buyers. 

If you are considering joining real estate for the lucrative earning potential and the flexibility to escape from the nine-to-five grind, now is a good time to plan your career. 

Texas is home to thousands of real estate agents and brokers and despite that, there is a need for skilled professionals who can help clients buy and sell properties. 

Did you know that you can make as much as $150K annually in Texas real estate only after a few years of industry experience? 

If you dream of achieving financial independence and want to work on your own terms, it’s time to embark on a journey to earn your real estate license in Texas. 

With a license, you can work anywhere in the Lone Star state to find your own clients and earn your commission without any restrictions or limitations. 

This means a real estate license is the key to unlocking a prosperous, successful career where you can earn as much as you want, whether you work part-time or full-time. 

To help you get started, we have put together everything you need to know about getting licensed and starting your career as a real estate agent in TX. 

Why become a real estate agent in Texas

According to industry reports and market statistics, the Texas real estate market has been flourishing and has grown by around 200 percent since the last decade. 

Thanks to the large land area, strong economic outlook, and relatively affordable housing options, the Texas real estate market is attracting interest and investment from buyers. 

As a mature market that has been showing resilience in a volatile industry, working in TX real estate can be an incredibly rewarding and fulfilling career experience for you.

Salary data and employer sites point out that the top 10 percent of real estate agents in Texas can earn anywhere between $120K to $150K or beyond. 

It is no surprise then that a high-income potential with virtually no limit to how much one can make in commissions is a huge factor in why individuals choose real estate as a career.

On top of it, real estate offers a high degree of autonomy and independence which is a great advantage for anyone who wants to achieve a better work-life balance. 

Whether you plan to start your own real estate business, brokerage firm, or agency or simply earn good money on the side, Texas real estate offers numerous opportunities. 

With a Texas real estate license, you can be on your way to working with clients anywhere in the state and helping them buy and sell properties. 

We understand that for many aspiring professionals, earning a real estate license may seem overwhelming at first, especially if it is going to be your first professional career. 

However, if you follow all the steps and fulfill all the licensing requirements established by the Texas Real Estate Commission (TERC), it is easy and straightforward. 

There are two types of real estate licenses you can apply for - a salesperson’s license and a broker’s license and both allow you to work with clients. 

To enter the industry, you must obtain a salesperson license in TX, and after gaining real-world experience and relevant skills, you can apply for a broker’s license in a few years. 

Before we give you the steps for obtaining a salesperson license in Texas, it is important to familiarize yourself with the job profile and responsibilities of a real estate agent. 

What does a real estate agent do

The job title of a real estate agent requires you to execute and manage multiple tasks, duties, and responsibilities. 

As a real estate agent, you will be the go-to person for clients who want your advice, expertise, and assistance in achieving their goals successfully. 

Although your job duties might vary depending on your employer, you can expect to perform a mix of administrative, operational, marketing, and customer service-oriented tasks. 

• Responding to inquiries from potential clients via text, email, or phone
• Meeting prospective clients and understanding their needs
• Working with home buyers to scout properties for sale 
• Helping homeowners list their property for sale or rent
• Complete documentation and paperwork required for deals and contracts
• Guide clients in making property-related decisions 
• Researching about the emerging trends and developments in real estate
• Collaborating with brokers, loan officers, appraisers, attorneys, and home inspectors
• Ensure compliance with the state and federal regulations and laws
• Maintain proper records of all real estate deals and financial transactions

Now that you know what to expect as an aspiring real estate agent, let us walk you through what it takes to become a licensed professional. 

Basic eligibility requirements for a Texas salesperson license

Like most states, Texas requires aspiring professionals to meet the minimum qualifying education and licensing requirements to earn their license. 

As per the Texas Real Estate Commission (TREC), all individuals must meet the state and federal licensing guidelines and prove their competency to work with clients. 

The TREC has established a minimum set of eligibility requirements which are as follows: 

• You must be at least 18 years of age or older
• You must be a legal resident of the state of Texas or a lawfully residing alien
• You must have a high school diploma or GED in education

If you have met the basic statutory requirements, you can proceed to complete the next important licensing requirement which is completing your pre-licensing education. 

Pre-licensing education for a Texas salesperson license

The TREC requires all applicants to complete minimum qualifying education to acquire the required knowledge and training for working with clients. 

In Texas, you must complete 180 hours of pre-licensing education to obtain a salesperson license in the state. 

Here are the courses you will cover as part of your 180 hours of Texas real estate course. 

• Principles of Real Estate (1 and 2): 60 course hours (mandatory)
• Real Estate Finance: 30 course hours (mandatory)
• Law of Agency: 30 course hours (mandatory)
• Law of Contracts: 30 course hours (mandatory)
• Contract Forms: 30 course hours (mandatory)

Note that it is mandatory to choose a TREC-approved education provider for completing your course credits. 

However, you are free to choose whether you want to join an in-person, classroom or enroll in a self-paced, online real estate prep course in Texas. 

Most students prefer the flexibility offered by online pre-licensing courses as they can be completed at your own schedule from anywhere.

The purpose of pre-licensing education is to understand the various state and federal laws and get acquainted with the principles and core fundamentals of the real estate landscape.

Completing 180 hours of pre-licensing education is not merely a must for getting your license, but a solid foundation upon which you can build a thriving career. 

Passing the Texas sales associate licensing exam

After you have successfully completed your pre-licensing sales associate training, the next step in getting licensed is passing the salesperson licensing test in Texas. 

The TREC requires all students to take the test to prove their knowledge and skills and to pass the exam, you need to score at least 75 percent or above. 

There are 125 multiple-choice questions covering both state and national specific portions and you will get a total of 240 minutes to complete them. 

Passing the licensing exam is mandatory if you want to obtain your license. However, if you are unable to clear the test on your first attempt, you can give another attempt. 

How much does it cost to obtain your Texas real estate license 

Many individuals often wonder whether investing the time and cost to get a license is worth it and how much it costs to become a licensed real estate agent in Texas.

A career in real estate can be considered as an investment - it might require budgeting and finances in the beginning but you will gain more than you had invested within a few years. 

When it comes to the total cost of obtaining a salesperson license, there are multiple factors and components involved in the licensing journey. Let us go through them in detail next. 

• Course fees

Completing pre-licensing education is a mandatory requirement by the TREC guidelines for aspiring professionals. 

Since education is going to be one of the most important aspects of getting licensed, it is also a factor that you should not budget on. 

The cost of a pre-licensing education varies on the basis of the type of learning medium, the experience of the course provider, and the learning package you opt for among other factors. 

Generally, you can expect to spend between $200 to $700 to get your course completed from a TREC-approved education provider. 

If you are interested in saving money without compromising on quality, here’s a tip - go for an online Texas real estate course provider as it can be cheaper than in-person classes. 

Remember that your education will determine how well-prepared you are, hence it is recommended to opt for an experienced education provider to boost your preparation. 

• Exam fees

After your education comes the licensing exam which is another mandatory and essential requirement in getting licensed. 

If you are applying for a salesperson license in Texas, it will cost you $43 for every attempt. 

• Application fees

To become a licensed professional, you need to submit your salesperson license application to the TREC for review and approval. 

You will be charged a one-time fee for issuing your license and for a salesperson license, you will have to spend $185. 

• Background verification fee

The TREC requires all applicants to complete a federal background and criminal history to prove a clean record with no history of felony or unlawful activity. 

To get your real estate license, you must complete your background verification by submitting an electronic scan of your fingerprints. It will cost you around $38.