How to Get a Texas Real Estate License

How to Get your Texas Realtor License: A Step-By-Step Guide

Are you interested in becoming a real estate agent in the great state of Texas? Of course you are, real estate is booming here! Well, hold on tight  cause we’re gonna fire off the five steps you need to get your hands on a Texas real estate license.

You ready? Let’s break it down, step by step.

Step 1: Start by Taking a Course to Become a Realtor in Texas

School’s Back in Session

You’re required to take a “pre-licensing” education class where you’ll study the principles of real estate, contracts, and finance. These are “core” classes, but there isn’t a single class that has all these emergents. Each one is distinct and unique. Not a fan of school? Well, these classes just might change how you feel about school. You have so many options! Some of them are even entirely online which has huge advantages! Online classes means you can do them at your own pace and work them in around your own schedule even if you have a full-time job. Also, the classes are only a total of 180 hours! That may seem like a big number, but to get started in a new career, that number is just a speck in time.

But what’s included in those 180 hours? Take a look at the curriculum and see for yourself:

• Principles of Real Estate I
• Principles of Real Estate II
• Law of Agency
• Law of Contracts
• Promulgated Contract Forms
• Real Estate Finance

“But what the heck’s a ‘Promulgated Contract’? That sounds scary and hard!” 

Don’t be scared off by the vocabulary. This is what the classes are designed for. They’ll defang any confusing topics by breaking them down. Still scared? Trust me, you can do this. The pass rates after taking these classes are sky-high, typically over a 95% pass rate and the support these classes offer is amazing. 

Students are always surprised how affordable these classes are. Take a look at the best real estate schools in Texas and see for yourself. If you’re still looking for a way to save some dough, Agent Advice offers a way to get yours for free.

Step 2: Apply for a Real Estate License with the Texas Real Estate Commission

Apply Yourself!

You flew through the pre-licensing class and you’re building momentum! Well, now it’s time to apply for your TREC license. Yes, there’s a few annoying forms and pesky fees but the process is relatively painless because it’s all online through the TREC website. Within a few days you’ll get a letter of eligibility back. This letter doesn’t mean you’re finished, but it does allow you to complete Step 4 and Step 5 ( submitting your fingerprints and taking the final exam). Once you get this letter the clock starts ticking and you have one year to pass that exam. Don’t panic, you’ve got this. With the pre-licensing course under your belt you’ll be well prepared.

Remember to keep that eligibility letter handy because it’ll have info on how to submit your fingerprints and schedule your exam.

Step 3: Submit your fingerprints

Once you get your eligibility letter you can submit your fingerprints. My fingerprints?  Yes, they need your fingerprints so that TREC can perform a background check. Remember it’s their job to make sure all agents in Texas are on the up-and-up. The eligibility letter will give you detailed information on exactly how to submit but we’ll give you a little sneak peek so it’s not a surprise. 

To get your real estate license in Texas, you’ll have to submit your fingerprints through everybody’s favorite agency, the Texas Department of Public Safety (DPS) 🙄. They’ll also take your photo and there will be a small fee attached. This task is a little tedious but still an easy one to knock out.

Step 4: Pass the Texas Real Estate Exam

You got this!

The step you’ve all been waiting for … passing the exam. Don’t freak out, you got this! Don’t know what you need to study? Your exam eligibility letter will have a Candidate Handbook which has study material that will help you prep for the exam. There’s also plenty of cram courses that will help you brush up right before the exam. Rest assured that you don’t have to pass this on the first try. Remember that you have a full year from when you get your exam eligibility to pass this exam. We think you’ll pass it on your first go because we know you, you’re motivated.

Step 5: Find a Real Estate Broker in Texas to Sponsor You

Now a word from our sponsor

Finally, you’ll need to find a sponsoring broker. 🙋 Uhhh … should I know what a  ‘sponsoring broker’ is? Nope, we’ll tell you! So you’ve passed the exam but it doesn’t mean you’re ready just yet. When you first start out you’ll want an experienced organization to show you the ropes. Sponsoring brokers have been-there-done-that and they’re ready to show you how. Not only will they give you all the tools you need to start making sales but they’ll help you market yourself as an agent. 

You’ll get to choose a brokerage you like, that focuses on a niche you love, that has a company culture you love, and most importantly … has a good commission rate, so your paycheck is XL. Worried about finding a brokerage yourself? Agent Advice helps with warm introductions to hiring brokerages if you sign-up for a class through us. Phew!

You have total freedom to choose your sponsoring broker. Here’s some things agents look at when choosing a brokerage:

• Commission Rate
  • Look at each brokerage’s commission rate when you’re shopping around. If they’ve got a good rate, your commission checks will be larger than life. 💸
• Niche
  • Maybe you want a brokerage that focuses on a niche on a location or a specific category of real estate like commercial retail, single family homes, or fixer-uppers. So if you have a specific interest you can find a broker who shares that interest.
• Culture
  • Maybe the company’s culture is important to you. If so, get to know what they’re all about, how they work, and what’s important to them.

That’s all just to say that you have the freedom to choose a brokerage that fits you.

Mission Complete

Now you know how to get your real estate license in Texas! Yes, you might have to trudge through paperwork, check boxes, file forms, burn the midnight oil, chug coffee … but after all that … you’ll have your license. We recommend printing it out on super-gloss and framing it. Leave some room next to it for your first commission check; A LOT of room!  

That’s all folks! Once you make it through these steps you’ll have a brand new career ahead of you. If there’s anything we can do to help you make it through these steps please let us know. We’ve got pre-licensing classes, cram courses, and all sorts of resources to help.

What are the qualifications needed to become a realtor in Texas?

First, you must meet the TREC criteria.

Let’s answer the most obvious question straight out of the gate. “What the heck is TREC and why do I need to impress them?!” Well, TREC is short for the Texas Real Estate Commission and it’s their job to make sure all agents in Texas are capable, qualified, and can lawfully work in the state. To do so, they have some basic criteria you must meet. Luckily, most of the requirements are pretty straightforward.

Let’s meet the criteria:

1. You must be at least 18 years old.
2. You must be a U.S. citizen or a lawfully admitted alien.
3. You must meet TREC’s integrity, trustworthiness, and honesty standards. 🙋 ( Yes, we’ll answer your questions about this one in a moment. )

The first two are pretty cut and dry but the last one, not so much. The good news is that most of our visitors/users don’t need to worry about it. The only time you’d need to be concerned is if you have any criminal offenses, unpaid judgments, disciplinary actions taken against a professional or occupational license, or have performed unlicensed real estate activity.

How much does it cost to get a real estate agent license in Texas?

Below is a schedule of costs associated with getting your Texas real estate license:

Pre-licensing education and training costs:

The estimated cost for this is around $400-$1000 or more depending on the school or online program you select. This involves finding an accredited and qualified real estate school to clock your hours. As stated earlier, the state of Texas requires you to finish 180 hours of education.

Real estate licensing and exam fees

This fee schedule is estimated to cost about $400. The breakdown of this schedule is as follows: applying for your license will incur a charge of about $50. You will also need to pay for your background check and mandatory fingerprinting. This typically costs around $100. TREC currently charges $54 per exam attempt. The license costs about $150.

Real estate broker fees

These fees are estimated to cost anything from $30 to $450 per month. The real estate broker fees are the fees that you have to incur when you want to become associated with a recognized and accredited broker. As it is your first year, there are some things that your sponsor broker will provide. These things, such as office supplies, photocopies, internet, and any other business expenses, are usually associated with the daily operation of your business. It is also likely that you will have to pay a desk fee every month to help reimburse some of these costs.

Real estate membership dues

Membership dues and feels usually cost around $200 or more each year. And while they can qualify as a tax break in the state of Texas, they are still a significant expense for many Realtors. This fee typically depends on how many associations you want to join. For instance, you can become part of your local and state real estate boards.

Every one of these boards comes with a membership fee that has to be paid monthly or yearly for you to be able to enjoy the numerous advantages and networking options they offer. The local MLS or Multiple Listing Service will also have fees associated with them. Depending on where you are in the state, you may have to pay your monthly dues either to your broker or to the association directly.

Continuing Education

Becoming a real estate agent does not mean you stop educating yourself once you have passed your licensing tests.  To stay an active agent, you have to meet SAE and CE requirements. Some CE courses are offered for free through local boards of realty. Additional designations, though optional, may also come with fees.

Here’s a breakdown of what you can expect to pay to become a Texas real estate agent:

• Pre-licensing: $500 – $1000
• License Fee: $185
• Exam Fee: $43 per attempt
• Background Check Fee: $38.25
• Cost of Optional Fees (Realtors’ Fees, etc.): $150-$500
• Renewal Fees: $185
• Continuing Education Fees: These vary according to the type of classes you are taking

How long does the Texas real estate licensing process take?

Assuming you qualify for the requirements, earning a real estate license in Texas means you have to have completed 180 hours of accompanying real estate education. The courses below are required:

• Principles of Real Estate I: 30-hour credit
• Principles of Real Estate II: 30-hour credit
• Law of Agency: 30-hour credit
• Law of Contracts: 30-hour credit
• Promulgated Contract Forms: 30-hour credit
• Real Estate Finance: 30-hour credit

You can finish the courses in as little as 3-5 weeks, but they can be done at your own pace too. Since your real estate education accounts for the majority of time of the entire real estate licensing process in Texas, how long you take will depend very much on your unique circumstances.

What’s the real estate agent salary in Texas?

Texas agents bring in a median salary of $63,780 a year. This breaks down to $30.66 per hour. 

Here are the average salaries agents make in the highest paying Texas cities:

• Austin: $67,323
• Plano: $65,841
• San Antonio: $62,857
• Dallas: $67,303
• Richardson: $64,068
• Arlington: $59,839
• Houston: $65,954
• Fort Worth: $63,577
• El Paso: $57,344

How Much Do Homes Cost in Texas?

The median price for a Texas home is $375,000. Home values have gone up by 14.6% in the past year. Here’s a breakdown of what you can expect to pay in the state’s major cities:

• Austin: $409,079
• Dallas: $387,379
• Houston: $316,904
• San Antonia: $285,073
• Amarillo: $213,905
• San Antonio: $299,745
• El Paso: $206,646
• Fort Worth: $325,626
• Arlington: $331,875
• Lubbock: $211,494

What are Commission Splits Like in Texas?

Commission splits between Texas agents range from 5% – 6%. The average split is around 5.59%.

The commission is further divided with the agent’s brokerage. Here’s an idea of what Texas brokerages take based on some of the state’s top agencies. 

• Berkshire Hathaway- Allie Beth Allman & Associates: 60/40
• Real Agent: 0 commission
• Austin Real Estate Experts: 60/40
• Coldwell Banker: 50/50, 60/40, 70/30 (capping system)
• Ebby Halliday: Offers up to a 90% split based on performance

Perspective from a real estate pro:

Eric P. Hewitt
Texas Realtor
Berkshire Hathaway Home Services

“A lot of agents do real estate part time and do not make a lot because they are not well trained and lack the necessary skills and a feasible business plan to make it in the industry.

If you are going to get your real estate license, create an actual business plan and make sure to have at least six months of reserve savings to hold you through until you start making sales. A real estate agent career is like starting a small business, often a new entrepreneurial venture does not make money for a while, and it actually will probably cost you money for a period of time.

If you plan ahead and can ride out the initial months you will be much better off than most agents who get into it or those who only do it part time. Also, make sure to sign with a brokerage that has an extensive training program.

For a new agent, the training they get is going to be the most important factor in their success. If you can find a senior broker/agent who will bring you onto their team, that can make up for a lack of training opportunities at a firm – you can learn from the senior agent, and they will often give you leads or opportunities to close deals from their network or marketing system.”