“Thinking about getting your real estate license? Discover what every aspiring agent should know before starting a real estate career—costs, challenges, and how to succeed.”
Thinking about getting your real estate license? Maybe you’ve binge-watched HGTV, love touring homes, or want the freedom to control your income and your time. It’s an exciting career path—and one of the few where you can build a six-figure business without a four-year degree.
But here’s the truth no one tells you in real estate school: getting licensed is the easy part. Building a sustainable, profitable career is where the real work begins when you start working as a real estate agent.
This guide will walk you through everything you need to know before you get licensed—so you’re prepared for the business, financial, and emotional realities of a real estate career.
Before you jump in, let’s talk about what you really need to know.
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You’re Not Getting a Job—You’re Starting a Business
When you get your real estate license, you’re not signing up for a 9-to-5. You’re essentially launching your own startup, and you’re the founder, CEO, and only employee (at least at the start).
That means:
- No salary. Your income is 100% commission.
- No boss. Freedom feels great… until you realize discipline has to come from you.
- No guarantees. Success depends on how well you build and run your business.
For example, many new real estate agents come in expecting leads to be handed to them by their broker, only to discover there’s no “company pipeline.” If you don’t treat real estate like a business from day one, success will be an uphill battle. You’ll realize quickly that unless you hustle to generate business, you won’t have clients—or income.
Think of your real estate license as a “business license.” The sooner you adopt that mindset, the faster you’ll move from struggling salesperson to thriving business owner.
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Budget for More Than Just Licensing Fees
A lot of new agents are shocked when they realize the license exam isn’t their biggest expense. The truth: your first year in real estate can cost several thousand dollars.
Here’s a breakdown of what to expect beyond the pre-licensing course:
- Pre-licensing education & exams: $500–$1,500
- Application & background checks: $100–$500
- Association & MLS dues: $1,000–$2,000 annually
- Marketing & branding: $1,000+ (think signs, business cards, website, photography)
- Technology & tools: CRM, lockboxes, transaction software—another $500–$1,000+
And that’s before you spend a dime on lead generation.
One common story: a brand-new agent will pass their test, join a brokerage, and then panic when they realize they need $3,000+ just to get rolling. Many burn through savings—or worse, put everything on credit cards—without a clear plan for generating income.
*Pro tip: Many first-time real estate agents underestimate these costs and run out of cash before they close a single deal. The smart move? Have at least 6 months of personal expenses saved before you get your real estate license. Real estate checks don’t arrive on Day One. In fact, many new agents don’t see their first commission for 90+ days.
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Choosing the Right Brokerage is a Game-Changer
Where you “hang your license” is one of the most important decisions you’ll make. Not all real estate brokerages are created equal—and the wrong one can stall your growth before you even begin.
Here are four questions to ask before you commit and why they matter:
- What’s the commission split, and do they have a cap?
This tells you how much of your hard-earned commission you keep. Some brokerages offer high splits but bury you in hidden fees. Others might take a bigger percentage up front. While others offer a split plus a cap—meaning once you hit a certain amount, you keep 100% of your commissions. The right answer depends on your goals, but look for transparency. You should know exactly what you’re paying and what you’re getting in return. - Do they provide training, mentorship, or leads?
Real estate school doesn’t prepare you to actually run a business. You need guidance, especially in your first year. If a brokerage offers structured training, mentorship from experienced agents, or even a system for generating leads, that can accelerate your growth dramatically. Without it, you’ll be stuck reinventing the wheel. Look for brokerages that invest in you—not just collect desk fees.
- What technology and systems are included?
This is your toolkit. Things like a CRM to manage your leads, a website, marketing templates, and transaction management software. If a brokerage provides these tools, that’s money and time you don’t have to spend on your own. If they don’t, you’ll need to budget for them yourself. Ask not just what tools they provide, but also how easy they are to use and whether training is included. - How do they support long-term growth—can you build a team, expand, or earn beyond commissions?
This one’s about your future. If you only think about today, you’ll cap your income tomorrow. The best brokerages offer pathways for growth: team building, leadership opportunities, even revenue sharing or ownership models. If you’re ambitious, you want a place where your income potential grows with you—not one that limits you to endless solo transactions.
Plenty of agents join the first brokerage that calls them, dazzled by promises of “support.” A few months later, they realize they’re paying high splits and monthly desk fees but aren’t getting any real training or mentorship. By contrast, others who choose a growth-focused brokerage with solid systems often find themselves closing deals faster—even if the commission split isn’t the “highest.”
The best brokerage will feel like a partner in your business, not just a logo on your business cards.
- What’s the commission split, and do they have a cap?
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Lead Generation is Your Lifeline
Here’s the secret: real estate school teaches you laws, contracts, and ethics. What it doesn’t teach you? How to get clients.
That’s on you. The lifeblood of your real estate business is lead generation.
Your entire business rests on your ability to generate leads and convert them into clients. Some of the most common (and effective) strategies include:
- Sphere of influence: Friends, family, coworkers—your first deals will likely come from people who already know you.
- Social media & video: Building trust online through consistent, authentic content.
- Open houses & networking: Face-to-face conversations still convert.
- Online leads: Zillow, Realtor.com, or paid ads—though these require skill and budget.
One new agent thought simply posting their “I’m licensed!” announcement on social media would flood them with business. They got a few “congrats” comments but no buyers or sellers. Another agent, however, treated every conversation as an opportunity to remind people they were in real estate—and within six months had a steady stream of referrals.
If you’re uncomfortable putting yourself out there, you’ll struggle. Real estate isn’t about selling homes—it’s about connecting with people.
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Time Freedom is a Double-Edged Sword
Yes, real estate offers flexibility, and flexibility is one of the biggest draws of a real estate career. You can set your own schedule, avoid the 9-to-5 grind, and even work from home.
But here’s the reality check: your clients’ schedules become your schedule. Buyers want showings after work. Sellers want updates on weekends. Negotiations happen at odd hours.
This means:
- Evenings and weekends are often your busiest times.
- Vacations can get interrupted by urgent calls.
- You’ll need strong boundaries—or you’ll burn out.
Many first-year and new real estate agents fall into the trap of “always being available” and burn out by trying to be available 24/7. At first, it feels like great customer service. But after months of 10 p.m. calls and canceled family dinners, they realize they’re exhausted. The ones who succeed long-term learn how to set expectations with clients early on—balancing accessibility with boundaries.
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The Emotional Rollercoaster is Real
You’re not just helping people buy and sell houses—you’re guiding them through one of the most emotional financial decisions of their lives. In fact, real estate isn’t just about contracts and closings—it’s about people, emotions, and major life decisions.
That means you’ll be part coach, therapist, negotiator, and problem-solver. You’ll experience:
- Buyers crying at closings (happy tears and sad ones).
- Sellers furious over low offers.
- Deals falling apart at the 11th hour.
- Friends who swear they’ll use you—and then list with someone else.
Some real estate agents crumble after losing their first deal—especially if they were counting on that paycheck. Others learn to see setbacks as part of the game and push forward, knowing every “no” gets them closer to a “yes.”
You need resilience, empathy, and the ability to bounce back quickly. If you can handle the highs and lows without taking everything personally, you’ll last.
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The Upside is Massive—If You Stick It Out
Here’s the good news: if you make it past the first year or two, the opportunities are endless.
Real estate agents who survive the first 12–24 months go on to:
- Build a six- or even seven-figure business.
- Create a flexible lifestyle where they are in control of their time.
- Invest in real estate and grow long-term wealth.
- Build teams and scale their real estate businesses
- Expand into coaching, speaking, or other leadership roles.
One realtor struggled through their first year, closing only two deals. But by year three, they had doubled their business annually, built a small team, and started investing in rental properties. The difference? They stayed consistent with lead generation, leaned into mentorship, and treated every failure as a learning opportunity.
The first 12–24 months are the toughest. Most new agents quit during this period because they don’t treat it like a business or underestimate the work involved. But those who stay consistent, plug into training, and build their brand often find themselves in the top tier of earners within just a few years. Persistence is the difference between those who dabble and those who dominate.
Final Thought – Should you get your real estate license?
Yes—if you’re ready to treat it like a business. Getting your real estate license opens the door, but success depends on mindset, systems, and support.
If you start with realistic expectations, financial preparation, and the right real estate brokerage, you’ll not only survive but thrive in real estate.
Want to Go Deeper?
I built a SMART Agent Starter Guide to help agents grow smarter, faster, and stronger businesses. If you’re serious about starting your real estate career the right way—and want mentorship, community, and tools to get there—you’ll find resources and opportunities to connect with me.
And if you’re exploring brokerages, let’s talk about how eXp Realty can align with your goals. It’s a brokerage designed for agents who want more than just a license—it’s for agents ready to build a business and a legacy. Check out RewardYourHustle.com to learn more!
FAQs About Getting a Real Estate License
- How long does it take to get a real estate license?
On average, it takes 2–6 months to complete pre-licensing courses, pass the exam, and activate your license. The timeline varies by state requirements and how quickly you complete the coursework. - How much does it cost to get a real estate license?
The cost of a real estate license typically ranges from $1,000 to $2,500, depending on your state. This includes pre-licensing courses, exam fees, application fees, background checks, and startup costs with your brokerage. - Is real estate a good career in 2025?
Yes—real estate can be a great career if you’re self-motivated, entrepreneurial, and resilient. The earning potential is high, but success depends on your ability to generate leads, manage your business, and stay consistent. - Do I need a college degree to become a real estate agent?
No, you do not need a college degree. Most states only require you to complete pre-licensing courses, pass the state exam, and affiliate with a licensed brokerage. - What do new real estate agents struggle with most?
The biggest challenges for new agents are:- Learning lead generation strategies
- Managing inconsistent income
- Choosing the right real estate brokerage
- Staying motivated when deals fall through
- How do I choose the best real estate brokerage?
Look for a brokerage that offers:- A fair commission split with a cap
- Solid training and mentorship
- Access to technology and tools
- Opportunities for growth and expansion
- What should I know before becoming a real estate agent?
Before you start your real estate career, understand that:- You’re building a business, not just getting a job
- Startup costs can be higher than expected
- Success requires consistent lead generation
- Time freedom often means working when clients need you
- Emotional resilience is key to long-term success