Your One-Stop Guide to How to Get a Real Estate License in Texas
Becoming a real estate agent in Texas is currently a very rewarding career option. The Texas real estate market is on a high with increased inventory and a possible dip in mortgage rates. These indicators will push people who have long put off their home purchase decision to finally become proud homeowners. A rise in the real estate market is beneficial for real estate agents as their earnings spike too.
This post will go through the various steps to become a real estate agent in Texas and offer tips on how to get a Texas real estate license online. We will also explore how long to get a real estate license in Texas and the expenses involved in the process.
The Income Source Of A Real Estate Agent in Texas
The earnings of a real estate agent are not fixed like typical salaries in 9 - 6 jobs. Instead, real estate agents earn commissions on the sale price of a property in real estate deals. This works out to 6% of the sale price, an amount that is divided equally between a seller’s agent and a buyer’s agent.
For instance, the median home price in the Lone Star State is projected to be $350,000 in 2025. At this price, a completed sale will fetch $10,500 for each agent. Even if one transaction is closed per month, agents can touch the magic six-figure mark in annual earnings. This is more than the income offered by most sectors in the state.
The Highpoints of a Real Estate Career
Let us now understand why you should take the trouble to go through the steps to get a real estate license in Texas.
High earnings, as we have seen, are one critical reason. However, not getting a fixed monthly income can appear initially daunting, but it is not so if you consider the long-term situation. One deal a month is not too difficult to achieve, given the current buoyant real estate market trends in the state.
Further, in the top cities of the state, like Dallas, prices are higher and hover around the $500,000 mark. Here, a single closed deal will fetch you around $15,000. Hence, you have a buffer for a month where no transactions take place.
Further, lifestyle benefits are the most attractive facets of going through the procedure of how to get a real estate license in Texas. You are your own boss and do not have to report to anybody, unlike traditional careers. Hence, being able to decide your work schedules enables you to spend more quality time with your friends and family than regular professionals.
The one downside here is that you might be required to work on a holiday or a weekend, though not frequently. A client might request a showing or a meeting according to their convenience, and considering the payback if a deal is closed, this should not upset you.
Texas Real Estate Commission (TREC)
Before getting down to how to get a real estate license in Texas, an understanding of the functioning of the Texas Real Estate Commission (TREC) is important. Their role will repeatedly crop up when you go through the steps to become a real estate agent in Texas.
The Texas Real Estate Commission (TREC) is the state agency that supervises the real estate sector in Texas. Its primary role is to issue and renew real estate licenses and set the curriculum of the pre-licensing coursework. The body also decides on disciplinary action against real estate agents for any deviation from set rules and regulations.
The importance of getting a real estate license in Texas is also laid down by TREC. The agency mandates that any person wanting to deal in any form of real estate transactions on behalf of third parties for a commission must have a real estate license to do so.
How To Get A Real Estate License In Texas
We will now go through the steps to get a real estate license in Texas
Step 1: Completing Basic Requirements
Before getting down to the main steps to become a real estate agent in Texas, a few preliminary conditions must be met.
First, you must be at least 18 years old on the date you apply for a real estate license in Texas. You are permitted to go through the pre-licensing course and appear for the licensing test before you turn 18 years old to reduce the period of how long to get a real estate license in Texas.
Next, you must have a Social Security Number. A legally-admitted migrant in the USA can also apply for a real estate license, provided they have been granted working rights in the country.
The third qualifying mark to initiate the process of how to get a real estate license in Texas is a minimum high school diploma or its equivalent, such as a GED.
Once these three norms are met, you can get down to the main steps to become a real estate agent in Texas.
Step 2: Completing the pre-licensing coursework
This aspect is among the critical components of getting a real estate license in Texas because it prepares you for a successful career ahead. The real estate sector is guided by complex rules and regulations, which you should thoroughly know to offer excellent services to your clients in the future.
Additionally, any real estate deal involves huge sums of money. Not having a firm grip on the fundamentals can result in errors that might have severe financial and legal implications that will ruin your career.
Course curriculum
The Texas real estate course is 180 hours in duration, divided into 6 modules of 30 hours each. They are as follows.
- Principles of Real Estate 1 (30 hours)
- Principles of Real Estate 2 (30hours)
- Law of Contracts (30 hours)
- Promulgated Contract Forms (30 hours)
- Law of Agency (30 hours)
- Real Estate Finance (30 hours)
You can go through the coursework in any order of preference.
The subjects have national and state-specific portions. In the first case, the topics are general to all the states in the USA. In the second case, the topics are exclusively related to the rules and regulations valid in Texas only.
Selecting the best course provider
While various course providers offer different packages ranging from basic to advanced courses, select one that will help you pass the licensing exam on the first try. These are the packages that have mock tests and practice questions that mirror the questions you will face in the licensing exam. By knowing the form and structure of the questions, you have an edge in your preparations for the licensing test.
Among the best online course providers offering mock tests and e-textbooks is RealEstateU. Their online courses are of the highest quality since they are designed by leading real estate professionals. Cost-wise, the courses are the most affordable in this niche.
Online vs. classroom courses
A crucial decision that you must make while selecting a course is whether you are comfortable with a classroom-based physical school course or an online one. Even though you must select one that matches your preferred learning style, online courses have an edge in this niche.
In physical courses, you need to spend time and money commuting to classes. Classroom courses are also more expensive than online study materials. On the other hand, you can download online lessons onto any Internet-enabled device and study from any location, at any time, and without disrupting your normal routines.
TREC-approved courses
Only courses that are approved by TREC will count as having completed the 180-hour benchmark for appearing for the licensing exam. Investing in any other will be a waste, and hence, before putting your money on a provider, check this aspect carefully. Visit the TREC portal to verify the list of approved course providers before selecting a course.
Step 3: Fingerprint verification
Submit your fingerprints for background verification of past criminal records, a step in how to get a real estate license in Texas. Real estate agents must have high financial integrity and moral standards so that clients can trust them with huge monetary transactions. An adverse fingerprint clearance certificate will stop your progress in the steps to get a real estate license in Texas. Once you get a clean chit, the result is valid throughout your career as a real estate agent in Texas.
The fingerprint verification procedure is quite simple. Visit the TREC portal to get your unique ID. Log in to the IndentoGO website and use the ID to schedule a fingerprint scan. On the appointed date, visit an IndentoGO center nearest to you. Submit your fingerprints, which will be forwarded to TREC by the agency for checking by federal agencies.
In case of any past criminal records, TREC reserves the right to refuse issuance of a real estate license in Texas.
Step 4: Schedule a licensing exam
Once the pre-licensing course and fingerprint submission are done, visit the Pearson VUE portal and schedule a licensing exam. Pearson VUE is the third-party proctor designated by TREC to hold the licensing test. Select an exam center that is convenient for you. Even though the test is held online, you must physically visit an exam center for it.
Step 5: Pass the licensing exam
This is the culmination of the process of how to get a real estate license in Texas. On the appointed date, visit the exam center and take the licensing test. It consists of 110 multiple-choice questions to be completed in 240 minutes. Secure at least 75% to pass the exam. Since the test is online, the results are announced soon after completion.
Step 6: Apply for a real estate license
Visit the TREC portal, pay a fee of $150, and apply for a real estate license. Upload all necessary documents, such as completing the pre-licensing course and fingerprint clearance. TREC will now award a provisional real estate license. You cannot start your practice with this provisional license.
Step 7: Find a licensed broker
The last step to get a real estate license in Texas is to find a licensed broker to sponsor you. This is mandated by TREC because, as a freshly licensed real estate broker, you need initial guidance to learn the many intricacies of the real estate industry. Inform TREC of your employment status, and your provisional license will be activated.
These are the steps to become a real estate agent in Texas.
Let us now analyze how to get a Texas real estate license online. The complete process cannot be done online. You can complete the pre-licensing coursework, schedule the licensing test, and apply for a real estate license online. However, submitting fingerprints and appearing for the licensing test requires your physical presence.
How Long To Get A Real Estate License in Texas
How long to get a real estate license in Texas depends entirely on how soon you can complete the 180-hour pre-licensing coursework. It may take a few weeks if you study full-time or a few months if you have other pressing commitments to meet. Another few weeks go into getting the fingerprint result, and scheduling and taking the licensing exam. Hence, it takes about 2 months to 6 months to get a real estate license in Texas.
How Much to Get a Real Estate License In Texas
The cost of getting a real estate license in Texas has fixed and variable aspects.
Fixed cost
- License Application fees: $220
- Exam fees: $40 per attempt
- Fingerprinting: $38.25
Total fixed cost: 298.25
Variable cost
This is the cost of the pre-licensing coursework, which varies according to the learning medium and the type of package selected. Classroom-based courses typically start at $620. Going up to $1200. Online courses are cheaper with the RealEstateU basic package being the cheapest at $249, extending to $377 for advanced bundles with e-textbooks and mock tests.
The answer to how much to get a real estate license in Texas is therefore $600 to $1500.