Tips for starting a career as a real estate agent in Texas
As one of the largest states, Texas enjoys widespread popularity and a unique appeal as one of the best places to live in the country.
Thanks to the stable economy and strong job outlook, Texas has emerged as a popular destination for migrant workers, homebuyers and real estate investors.
If you aspire to become financially independent and achieve a work-life balance to suit your personal and professional goals, a career in real estate could be a great fit for you.
Working in real estate can unlock a myriad of opportunities for professional growth - whether you want to work with a brokerage firm or start your own business in the long run.
Imagine earning a six figure income in a career where you control your schedule, define your working hours and find your own clients.
Plus, you will get to work with people from all walks of life and be their guiding light for making important financial and emotional decisions.
If this sounds like an ideal profession to you - then working as a real estate agent in Texas is the first step you need to take to get started.
Texas offers a fertile opportunity ground for aspiring and experienced agents and the state is rich with a booming real estate landscape which attracts buyers, sellers and investors alike.
To start working with clients and help them buy and sell properties, all you need is a real estate license in Texas and you will be on your way to close deals and earn commissions.
If you are keen to explore the possibilities of working in TX real estate but are not sure where and how to start, this article will help you.
We have put together this in-depth guide which covers the key aspects of how to become a licensed real estate professional in Texas and what it takes to start your career.
By the end of this article, you will get answers to all the frequently asked questions faced by aspiring professionals and beginners who want to join a dynamic career in real estate.
The appeal of Texas’ real estate market
If you are wondering what makes working in Texas real estate a great professional path, there are many reasons why you need to jump on the opportunity.
Firstly, Texas is the second largest state in the U.S. area-wise which gives it a geographical advantage and makes it a popular residential housing market.
Secondly, Texas has no state income tax which makes it an attractive destination for homebuyers and real estate investors who want to avoid the high taxation pressure.
Thirdly, Texas offers pleasant, comfortable weather due to its geographic location and provides its residents with an attractive climate for living, working and vacationing.
With more than 200K plus homes for sale and a strong demand from migrant workers and professionals, Texas’ real estate market has steadily been growing since the last few years.
Houston, Austin, Dallas-Fort Worth, New Braunfels and San Antonio are some of the fastest growing real estate markets in the country and are enjoying unprecedented demand.
Thanks to the booming job market, growing population, low unemployment rate and a vibrant culture, living here is an idea entertained by many who are migrating to the Lone Star state.
On average, the price for a single family home in a popular market like Austin can go as high as $600K and the value has increased by around 150 percent in the last five years.
Even less popular towns like Amarillo have been witnessing rising value of homes due to a growing demand for migrants who are moving to Texas for the aforementioned reasons.
If you have been wondering how can I get my real estate license in Texas and start my career, we are going to dive deeper into the licensing process in the upcoming sections.
Since getting a license is a commitment and requires time, effort and money, it is important to understand the numerous benefits and advantages you will gain.
Why become a licensed real estate professional in Texas
Like most professions, real estate agents are also required to obtain a minimum level of education, training and skills to assist their clients and customers in an appropriate way.
Since real estate is governed by a pre-established set of laws, rules and regulations, it is important to adhere to the guiding principles and standards of the industry.
To do so, one must fulfill a set of eligibility criteria and fulfill certain qualifying requirements to apply for a real estate license.
If you have been thinking about how do I get a real estate license in Texas and you are on the fence of whether or not to apply for one, here are some key benefits of getting licensed.
- Only licensed professionals are allowed to work with clients and help them buy and sell real estate.
- Licensed real estate agents and brokers do not have to rely on anyone else to earn their commissions. As a licensed professional, you will be more employable and find access to high paying job opportunities.
- Only licensed individuals are allowed to join networking groups, members-only events and professional communities.
- If you are a licensed professional, you can start your own real estate agency or brokerage firm in Texas and hire people to work for you.
- You can market and promote your services anywhere in the state if you have a valid salesperson or a broker’s license.
- Licensed agents are considered as credible and trustworthy by clients which helps you convert more leads into opportunities.
Once you obtain a license from the Texas Real Estate Commission (TREC), you will unlock rewarding opportunities to progress in your career.
Whether you want to work part-time or as a full-time real estate agent in TX, getting licensed is a crucial part of growing your business.
If you are wondering, it can cost anywhere between $400 to $800 to get your real estate license and start your career.
To help you get started with the journey to become licensed, we have outlined the key steps in detail below.
Steps for becoming a licensed real estate agent in Texas
If you are ready to embark on a fulfilling and rewarding professional journey in real estate, here are the steps you must complete to obtain your license.
To enter the industry, you must start by getting a salesperson or a real estate agent license first. Once you gain industry experience, you can apply for a broker’s license in a few years.
Step 1: Meet the eligibility requirements
Like most states, Texas also follows a set of qualifying requirements and eligibility criteria to accept relevant applications for a salesperson license.
As per the TREC, you must meet the following statutory requirements:
- Be at least 18 years of age (or older)
- Be a legal resident of the U.S. or a lawfully admitted alien
- Have a high school diploma or GED equivalent in education
If you fulfill the above requirements, you can register yourself on the TREC website by creating your profile and sharing your basic information.
Step 2: Complete pre license education
As per the TREC licensing requirements, to obtain a Texas real estate license, you must complete minimum education and training first.
In Texas, every applicant is required to complete a minimum 180 hours of pre license education from a state approved real estate college, school or online course.
The course credits will cover six mandatory courses worth 30 hours each and here is a list of the courses you will complete.
- 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 will expand upon the principles of working as a real estate agent and your job duties and responsibilities. You will also learn about managing properties, real estate appraisal, deal closing procedures.
- Law of Agency: This course explains the different types of relationships which govern a legal or a formal relationship. You will learn about ethics, fair and deceptive trade practices and consumer rights.
- Law of Contracts: This course will teach you about the different contract types and their underlying laws and relationships. You will learn about offers, acceptance, mutual agreement and breach of contract.
- Real Estate Finance: The objective of this course is to teach students the fundamental principles of finance in real estate transactions. This involves the different methods of planning, resource allocation and finance management.
- Promulgated Contract Forms: In this course, you will learn about the types of contract forms in real estate and their respective uses and requirements in your career. You will learn about the right way to complete the forms and common mistakes to avoid.
Students are free to complete their course hours either by joining a physical, classroom based real estate college or by enrolling in an online Texas real estate course.
Completing pre license education is not merely a mandatory requirement which needs to be fulfilled - it is an essential step in preparing yourself for what lies ahead in your career.
To build a successful career in a competitive industry like real estate, you must equip yourself with the knowledge of state and federal laws, industry best practices and the fundamental principles of your profession.
Step 3: Pass the Texas licensing exam
The purpose of completing 180 hours of pre license education is to prepare yourself for the Texas real estate licensing exam.
The TREC has made it mandatory for all applicants to take the licensing exam and pass it to obtain a license.
The licensing exam is a closed-book, 125 multiple choice questions which cover both state and national specific topics.
You will get a total of 4 hours to complete the test and you must score at least 75 percent or above to pass the licensing test.
You will be immediately notified about your passing score after the exam is over. If you are unable to clear the test on your first attempt, you can reattempt it again after 24 hours.
Step 4: Find employer sponsorship
After completing your education and passing the Texas licensing exam for agents, you will receive your license within a few days or a week.
However, to activate your license, you must find a sponsoring broker who is licensed in the state of Texas and work under their supervision to gain practical, real-world experience.
Working under the guidance of a supervising broker will help you learn the ropes and understand the workings of the industry.