How Hard is it to Become a Real Estate Agent?

Becoming a real estate agent isn’t necessarily difficult, but it requires dedication, discipline, and the right mindset. The process involves completing the necessary real estate education, passing a real estate exam, and applying for a real estate license through your state’s licensing process. The difficulty depends largely on your time commitment and ability to grasp real estate principles, laws, and contracts. Most people complete the education requirements within a few months, but building a successful real estate career takes persistence, networking, and continuous learning.

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Understanding What a Real Estate Agent Does

Before asking how hard is it to become a real estate agent, it helps to understand what the job entails. A real estate agent is a licensed real estate professional who helps clients buy, sell, or rent properties. They serve as intermediaries between buyers and sellers, guiding both sides through every stage of a real estate transaction.

Core Responsibilities

A real estate agent performs several key duties, including:

• Listing and marketing properties for sellers.

• Helping buyers find suitable homes within their budget.

• Negotiating contracts and offers between both parties.

• Conducting property appraisals, showings, and open houses.

• Ensuring compliance with real estate law and local market regulations.

In many cases, real estate agents work under a principal broker or brokerage who supervises all real estate transactions. This broker relationship ensures compliance with the state’s rules and professional standards.

Real Estate Specializations

There are different types of real estate professionals, including:

• Buyer’s agents, who represent the interests of the homebuyer.

• Listing agents, who represent sellers and handle marketing and negotiations.

• Dual agents or single agents, who represent both or one side exclusively, depending on state law.

Some agents also specialize in property management, commercial real estate, or specific markets such as luxury or rental properties.

Independent Contractors vs. Employees

Most real estate agents are independent contractors, not employees. This means they’re responsible for their own business expenses, including marketing, board dues, website maintenance, and continuing education. The benefit? You get to be your own boss, set your schedule, and determine how much effort to invest in your success.

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Real Estate Education Requirements

The path to becoming a licensed real estate agent begins with the right real estate education. Every state has different college-level courses and hour requirements, but most require anywhere between 60 to 180 hours of pre-licensing education.

What You’ll Learn in Real Estate School

Real estate schools—both online and in person—cover essential topics that prepare you for the real estate exam and your day-to-day career. These include:

• Real estate principles and law

• Contracts, financing, and property management

• Ethics and fair housing laws

• Marketing, negotiations, and client relations

The real estate principles portion often focuses on ownership types, property rights, land use regulations, and the fundamentals of transferring title. You’ll also study real estate law, which is crucial for handling contracts and understanding brokerage responsibilities.

Education Options

You can take your courses through:

• Accredited real estate schools (online or in-person)

• Community colleges offering college-level courses

• Some universities that provide real estate-focused programs

Many aspiring agents prefer online courses because of their flexibility—they can complete modules at their own pace while working full-time.

Additional Education for Brokers

After gaining experience, some agents go on to become brokers. This requires additional coursework in real estate law, appraisal, and advanced management. Brokers can manage other agents, operate their own brokerage, and earn a larger share of commission from sales.

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The Licensing Process: Steps to Becoming a Real Estate Agent

Once your education is complete, the next phase is to get your real estate license. Each state’s licensing process varies, but the general steps are similar across the U.S.

Step 1: Complete Your Education

Make sure you finish the required courses at an approved real estate school. Upon completion, you’ll receive a certificate that allows you to apply for the state exam.

Step 2: Pass the Real Estate Exam

The real estate exam is designed to test your knowledge of real estate principles, contracts, and state-specific laws. It typically has two sections:

• National Portion – covers federal real estate law, property valuation, and agency relationships.

• State Portion – covers your state’s specific regulations and licensing rules.

Most states require a passing score of at least 70–75%. If you fail, you can retake it, though you’ll pay an additional exam fee.

Step 3: Background Check and Application

After passing, you’ll undergo a background check and submit your license application with supporting documents. This includes your fingerprints, education certificate, and payment for the state licensing fee.

Step 4: Affiliate with a Broker

To sell real estate, new licensees must work under a brokerage. The broker provides training, mentorship, and access to the Multiple Listing Service (MLS)—a vital tool for listing and searching properties.

You’ll typically share commission with your broker, but the experience you gain is invaluable. Some agents later move on to start their own business or become a principal broker after meeting the experience requirements.

Step 5: Join Professional Organizations

Becoming a member of the National Association of Realtors (NAR) or your local real estate board provides access to resources, networking, and additional credibility. Members can use the title REALTOR®, which distinguishes them from non-member agents.

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How Hard Is the Real Estate Exam?

The real estate exam is often considered the most challenging part of the licensing process, but it’s completely manageable with the right preparation. It’s designed to ensure that every real estate agent understands contracts, laws, and industry ethics before working with clients.

Exam Format and Difficulty

The exam is typically multiple-choice, lasting 2–4 hours depending on your state. Expect questions that test your ability to apply real estate principles rather than just memorize facts.

For example:

“If a buyer gives earnest money but withdraws their offer, what happens to the deposit?”

These types of scenario-based questions test your understanding of real estate law, contracts, and client relationships.

Common Struggles for Test-Takers

Some people struggle because they underestimate the depth of the material or try to rush through the online courses. Key problem areas often include:

• Understanding property valuation and appraisal basics

• Memorizing legal terms and real estate law definitions

• Grasping complex financing and contract scenarios

To overcome this, many students use real estate exam prep courses or take practice tests that mimic real exam questions.

Study Tips for Success

To increase your odds of passing the exam on the first try:

• Study consistently—don’t cram the night before.

• Review all real estate principles and laws carefully.

• Use flashcards or apps to test your knowledge of key terms.

• Take online quizzes to simulate real testing conditions.

Passing the exam isn’t about luck—it’s about preparation. Once you pass, you’re officially one step closer to becoming a licensed real estate agent ready to build your career.

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Starting Your Real Estate Career

Once you’ve earned your real estate license, the real challenge begins—building a thriving real estate career. This stage demands persistence, organization, and people skills. Many new real estate agents underestimate the amount of effort it takes to gain momentum in the first year, especially since income is usually commission-based.

Finding the Right Brokerage

Your choice of brokerage can make or break your early success. The principal broker you work under will help you navigate your first real estate transactions, train you in contracts, and introduce you to local clients. Some brokerages offer structured mentorship programs, while others give you more independence but expect you to generate your own leads.

When choosing a broker, consider:

• Commission splits (e.g., 70/30 or 80/20)

• Training and marketing support

• Office culture and team structure

• Technology tools and lead generation platforms

The right broker can help you get more listings, learn how to negotiate better deals, and refine your client communication.

Building a Client Base

A new real estate agent must actively seek out clients through networking, social media, and referrals. Many agents start by reaching out to friends, family, and community contacts to announce their new career. Consistency is key—most agents who succeed are those who build relationships and stay visible in their local market.

Effective ways to grow your client base:

• Attend local networking events and open houses.

• Create a professional real estate website with listings and testimonials.

• Use social media to share market updates and home buying tips.

• Offer free home evaluations or resources to attract new buyers and sellers.

Time Management and Scheduling

Being your own boss means you control your time, but without structure, it’s easy to lose focus. Successful agents treat their work like a business. They schedule daily prospecting time, organize follow-ups, and plan marketing activities each week.

Because there’s no fixed salary, every listing, deal, or sale depends on your effort. It’s common to spend months nurturing leads before closing your first property transaction—but the rewards can be substantial once momentum builds.

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How Much Do Real Estate Agents Earn?

Income in real estate varies widely. Some agents struggle early on, while others close six or seven figures annually once they establish themselves. Factors that affect earnings include your market, experience level, and number of completed transactions.

Commission-Based Income

Most real estate professionals earn commissions based on the final sale price of a property. A standard commission rate is around 5–6% of the sale, which is then split between the buyer’s agent and listing agent (and again with their brokerages).

Example:
If you sell a $400,000 home with a 5% commission:

• The total commission is $20,000.

• Half ($10,000) goes to the buyer’s agent.

• The remaining $10,000 is split between you and your broker based on your agreement (e.g., 70/30).

Average Earnings

According to recent industry data, the median income for real estate agents in the U.S. is around $55,000–$65,000 annually. However, top agents in competitive cities like New York or Los Angeles can earn well above six figures.

New agents typically make less in their first year as they build experience and networks. By the second or third year, with a steady stream of clients and referrals, earnings can grow significantly.

Expenses to Consider

As an independent contractor, you’ll be responsible for:

• Board dues and association memberships

• Marketing costs (photos, signs, online ads)

• Business cards, website maintenance, and open house materials

• Continuing education and renewal of your real estate license

Balancing income and expenses is crucial. Planning for slow months—especially early on—helps you maintain financial stability in a commission-only field.

If you’re planning to move to Western New York, or if you’re already a local resident thinking about working with a real estate professional, understanding how real estate agents build their business and earn commission is only one part of the picture. For more helpful tips on buying and selling homes, local market timing, and what to look for in an agent, visit Carol Klein WNY Homes, where you can explore guidance built around real clients and real neighborhoods.