Your Guide To Starting A Texas Real Estate Career Is Here
Texas is one of the fastest-growing real estate markets in the country and has emerged as a popular land haven for homebuyers and real estate investors.
People are moving to Texas from across the country - be it skilled workers migrating for better job prospects to retirees looking for a diverse culture and rich cultural experiences.
Texas’ real estate is witnessing strong numbers due to the massive population boom leading to an unprecedented demand for housing.
On top of it, the Lone Star state is currently boasting a robust economic and employment outlook for the foreseeable future.
Home to many multinational corporations and organizations, Texas’ growing job market is also leading to a sustained interest in residential and commercial real estate.
Population growth, strong job outlook, and a business-friendly environment are some of the many factors contributing to Texas’ flourishing real estate landscape.
If you are an aspiring real estate interested in reaping the benefits of Texas’ booming real estate, now is a great time to start your professional journey.
Did you know that the average annual income prospects for an experienced agent in Texas are around $100K and above?
Plus, you will get additional perks and benefits that come standard as part of this profession.
The major reason why aspiring agents and brokers are attracted to a career in Texas real estate is the ability to be their own boss and define their own working hours.
If you are interested in building a thriving career where you can decide how much you can earn, then working as a real estate agent in TX can be the first step towards your goal.
However, to work with clients and take part in a real estate deal, you must first obtain your state-approved real estate license in Texas.
Having a license is a must to be legally able to help clients in buying or selling real estate and if you want to become a successful agent or broker, a license is essential.
To help you start a career in Texas real estate, we have put together this in-depth guide.
What is a Texas Real Estate License?
Just like a doctor’s license or an attorney’s license, a real estate license is a state-issued legal document proof that enables anyone to engage in a real estate transaction.
With a license, real estate professionals can legally partake in the sale, purchase, rent, lease, or appraisal of commercial or personal properties.
Like most states, Texas requires all aspiring and active real estate professionals, be they agents, brokers, or realtors to have an active Texas real estate license to work with clients.
Having a real estate license allows you to work with clients as a buyer or a seller’s agent anywhere in the state.
As per state law, only licensed professionals can partake in a real estate transaction directly or indirectly.
In Texas, it is the duty and responsibility of the Texas Real Estate Commission (TREC) to issue, renew or revoke licenses to professionals.
Your license works as proof that you have acquired the required education and training and have completed the state licensing exam.
Let us understand why getting a real estate license is a must if you want to build a thriving career in real estate and what opportunities you can grab with a license.
Benefits of having a Real Estate License in Texas
Here are four major benefits why you should invest time and resources in getting a salesperson license in Texas:
- Licensed professionals are highly sought after by clients and companies, and are more likely to grab high-paying jobs easily. Having a license means you will be more employable and can attract opportunities from employers across Texas.
- Getting your license and working in real estate will enable you to build the perfect side hustle. Becoming a licensed real estate agent means you don’t always have to work for someone, you can choose to be your own boss.
- Only licensed agents in Texas get access to the coveted Multiple Listing Service (MLS) which is a database of the local property listings in an area or zip code. It will help you get access to property listings faster and grab opportunities quickly.
- Having a state-issued license ensures you are fully compliant with state and federal laws and are allowed to work freely without restrictions. Staying on the right side of the regulations is important to ensure you and your clients are safeguarded.
In addition to the above, a license will open up new avenues for growth and profitability and kickstart your career.
Next, let us give you a deep dive into the steps required to obtain a TX salesperson license.
Steps to Obtain a Real Estate License in Texas
Ready to start an exciting and rewarding career journey in Texas’ real estate market?
Firstly, you must start by meeting the general fitness and eligibility requirements. These are:
- Be at least 18 years of age (or older)
- Be a legal resident of the state of Texas or a lawfully residing alien
- Have a high school diploma in education or its GED equivalent
- Have no record of any crime or felony in your name
You can also determine your eligibility by completing a background check via a fitness determination.
Secondly, you must complete the required education and training to earn your salesperson license.
The total duration of the pre-licensing training is 180 hours, divided into 6 courses worth 30 hours each.
You can complete the Texas real estate course either in person by joining a real estate school or enrolling in an online, self-paced course which you can complete from anywhere.
The purpose of completing pre-licensing education is to give you a solid grasp of fundamental topics and state and federal laws. Some of the mandatory courses include:
- Principles of Real Estate 1: 30 credit hours
- Principles of Real Estate 2: 30 credit hours
- Law of Agency: 30 credit hours
- Law of Contracts: 30 credit hours
- Contact Forms: 30 credit hours
- Real Estate Finance: 30 credit hours
As per the TREC, every applicant must fulfill the mandatory pre-licensing education requirements from a state-approved education provider.
You have an entire year to complete your mandatory pre-licensing coursework. However, you can join an online real estate course and complete it faster at your desired pace.
Once you have obtained a certificate of completion of your pre-licensing education, the third step is to submit your salesperson licensing application to the TREC for approval.
Along with your license application, you must also submit a copy of your fingerprint scan to complete the mandatory background verification and criminal history check.
To get your fingerprint scan, you can visit any of the state-approved Pearson VUE centers by scheduling an appointment online or via phone.
The state of Texas requires all aspiring professionals to meet the minimum standards of good moral conduct, honesty, and integrity.
The purpose of background checks is to ensure that only trusted, honest, and qualified individuals can join the industry.
In case you have a history of felony or any other criminal activity, do not worry as you still have a chance of getting a license. However, it depends entirely on the severity and nature of the crime and the decision of the TREC.
Now that you have completed the mandatory education and completed the background verification process, the next step is to take the Texas salesperson licensing exam.
Consider it as the final test to prove your eligibility and obtain your salesperson license in TX and you can schedule the exam online or via phone.
Note that you should have a few important documents handy including your TREC identification number, physical address, mailing information, contact details, and the name of the examination you want to apply for.
You can take the salesperson licensing exam at any of the Pearson VUE exam centers based on your preferred date and time.
Coming to the exam itself - is a closed-book test that consists of 85 national and 50 state-specific multiple-choice questions.
The questions will be based on your pre-licensing course curriculum and will test your knowledge of the industry and state-specific laws, topics, and regulations.
You will get a total of 4 hours to tackle all the questions and to pass the salesperson licensing exam, you must score at least 75 percent or above.
If you pass the exam successfully, your next step should be to submit your licensing application to the TREC for review and approval.
It takes around two to three weeks for review and if your application is approved, you will receive your TX salesperson license in the mail.
Congratulations on getting your salesperson license - you have rightfully earned it by fulfilling all the necessary licensing requirements.
Now the next step is to activate your newly earned license by submitting proof of employer sponsorships to the TREC.
In Texas, it is mandatory for all newly licensed salespersons to work under the supervision of a senior broker or brokerage firm and gain practical experience.
Tips to clear the real estate licensing exam in Texas
The most crucial step in becoming a licensed agent in TX real estate is passing the state licensing exam.
Many aspiring students often wonder about the difficulty of the exam and whether it is possible to pass the test on your first attempt.
The fact is - your chances of passing the test depend on your level of exam preparation.
The more confident and knowledgeable you are, the easier it will be for you to tackle the questions.
To help you prepare better for the exam and ace the test on your first attempt, here are some practical advice and preparation tips.
- Study using updated, accurate, and state-approved curriculum only. Since the estate industry is continually evolving, the curriculum changes quickly to reflect the latest guidelines, developments, and regulations.
- Practice using mock tests and sample questions to get a feel of the exam. Many real estate courses and colleges provide additional exam prep resources for students. You should practice using previous years’ questions to understand the questions.
- Set a study schedule: Learning a bunch of courses and topics is important to score well in the test. To boost your preparation, you must dedicate time to learning each topic and establish a set schedule to cover all the key courses.
Remember that passing an exam is possible only if you are confident about your preparation and understanding of the subjects.
Another important tip is to find a study buddy with whom you can exchange knowledge and share your doubts. This will help you learn the key concepts and work on your weak areas.