How to Become a Realtor for Under $500 (Yes, Really)
In one of our recent articles, we talked about how one woman made $40,000 in a year just by referring clients to other Realtors. She never hosted an open house, chased leads, or sold a single home.
After sharing her story, a lot of readers reached out with the same question: “Okay, but how do I actually get started as a realtor?”
So let’s talk about that.
Because becoming a licensed real estate agent is genuinely one of the more accessible things you can do to open up a new income stream. You don’t need a college degree. You don’t need experience in real estate. You don’t need a full-time schedule. There’s so much flexibility.
In most states, you can get licensed in a matter of weeks, and the whole process usually costs less than $500 from start to finish.
Here’s exactly what it looks like.
Step 1: Take Your Pre-Licensing Course
Every state requires you to complete a pre-licensing course before you can apply for your license. The good news is that almost all of these are available online now, and you can work through them completely at your own pace.
The number of required hours varies quite a bit by state. Virginia, for example, only requires 60 hours, while states like Texas require 180. Most states fall somewhere in the middle. If you’re putting in a few focused hours a week, you can realistically finish in two to six weeks.
Estimated cost: $200 to $350
When choosing a school, make sure it’s approved by your state’s real estate commission. Most reputable online programs will tell you upfront whether they’re approved in your state. A lot of them also include practice exams and test prep materials at no extra charge, so take advantage of those before you move on to Step 2.
Step 2: Take the State Licensing Exam
Once you’ve finished your course, you’ll schedule your licensing exam through an approved testing provider. Most states use either PSI or Pearson VUE, and you can find testing centers near you or in some states take the exam remotely.
The exam is multiple choice and covers two sections: national real estate concepts and your state-specific laws. Most exams run about two to three hours total.
Exam fee: $50 to $100
The pass rate for first-time test takers is somewhere around 50 to 60 percent nationally, which sounds intimidating, but a lot of that comes down to preparation. If you go through the practice tests your pre-licensing school provides and take them seriously, you’re in good shape.
If you don’t pass on the first try, you can retake it. Most states allow multiple attempts, though you may need to wait a short period between attempts.
Step 3: Submit Your License Application
After you pass the exam, you’ll apply for your license through your state’s real estate commission. This is mostly paperwork and a background check.
The background check involves fingerprinting, and you’ll typically schedule that separately through a state-approved vendor. A prior criminal record doesn’t automatically disqualify you, but serious offenses (especially fraud-related ones) can affect your application, so it’s worth looking into your state’s guidelines if that applies to you.
Fees: Usually $75 to $150 Processing time: One to three weeks
Once your application is approved, you’re officially a licensed real estate agent. But there’s one more step before you can start working with clients.
Step 4: Join a Brokerage
Before you can legally do anything with your license, including collecting referral fees, you need to associate with a licensed real estate brokerage. Your license is held under their umbrella, and they take on certain legal responsibilities on your behalf.
This might sound like a big commitment, but it doesn’t have to be. A lot of agents who are primarily interested in referrals choose what’s called a referral-only brokerage. These brokerages are specifically designed for agents who aren’t actively selling homes. There are no desk fees, no quotas, and often no monthly costs at all. You simply park your license there and pay a small split when you make a referral.
Cost: Free to around $100 to get set up
Time to join: Usually immediate once your license is issued
Once you’re affiliated with a brokerage, you can legally refer clients and collect fees. And that’s it! You’re in business!
What It Costs to Get Licensed: A Breakdown
Here’s a quick breakdown so you can plan:
- Pre-licensing course (online, self-paced): $200 to $350
- State licensing exam: $50 to $100
- License application and fingerprinting: $75 to $150
- Brokerage onboarding: $0 to $100
Total estimated cost: $325 to $500
That’s a pretty low bar to open up a completely new income stream. A single referral on a median-priced home could easily cover your licensing costs several times over.
One other thing worth knowing is that in most states, your license needs to be renewed every two years, which usually requires completing a certain number of continuing education hours. These are also available online and typically cost $50 to $150 per renewal cycle. Again, with just one referral per year, this will more than cover that.
