How to get a real estate license in Texas

Currently, there are about 154,113 Realtors^® in Texas, according to the National Association of Realtors. In fact, Florida and California are the only states with more real estate agents. When it comes to real estate, the old adage that “Everything’s bigger in Texas” holds true.

As of July 3, 2023, there were 42,857 sales agent exams taken in Texas. Of those, 24,881 people passed the real estate licensing exam on the first try, according to TREC. That’s an average pass rate of 58% for exam takers.

When it comes time to take the Texas real estate exam, be sure to arrive 30 minutes before the exam and check in with the test center administrator. To be admitted, you will be photographed for the score report.

Before you enter the exam room, you will be asked to pat yourself down to demonstrate that there is nothing hidden on your body, and empty your pockets so that the test administrators (TAs) can verify that there is nothing in them.

On exam day, you’ll be asked present two forms of current signature identification.

The following are the only forms of primary photo identification accepted:

• A current government-issued driver’s license
• U.S. Department of State driver’s license
• U.S. learner’s permit (plastic card only with photo and signature)
• National, state, or country identification card
• Passport card
• Military identification card, or military ID for spouses and dependents
• Alien registration card (green card, permanent resident Visa)

For your second form of identification with a valid signature, you can bring any form of ID on the primary ID list above or a current debit (ATM) card, credit card, or U.S. Social Security Card.

There will be a locker or secure area for you to store your personal items. Don’t forget to turn off any electronic devices before storing them in.

The following items are strictly prohibited during the exam:

• Studying in the testing center
• Having visitors, friends, or family members in the testing center
• Possessing dictionaries, books, papers, scratch paper, or other reference materials
• Eating, drinking, chewing gum, smoking, or making noise that disturbs others
• Using books, notes, or other aids
• Giving or receiving help during the exam

Violation of any of these policies will not be permitted, and will result in being dismissed from the test center and forfeiting the exam.

The TA will give you materials to take notes during the exam and any other items specified by the exam sponsor. You will NOT be given a calculator, so it’s recommended that you bring your own. Acceptable calculators include battery, hand-held, or solar-powered financial calculators with no alpha characters (ABC, DEF). Calculators with mathematical symbols (Cos or Sin) are acceptable.

If you consider that the education requirement alone is 180 hours of coursework, that could take you four to five weeks should you choose to treat it like a 40-hour work week. The Texas real estate licensing exam is known for being challenging, so the more time you spend studying for the exam, the greater your chances of scoring 70% or higher the first time around.

Once you factor in the time it takes for fulfilling your education requirement, filling out the application, taking the exam, and finding a sponsoring broker, you’re looking at between three to six months to become a licensed real estate sales agent in Texas.

When it comes to attaining your Texas real estate license, you’ll need to invest in your education up front. Considering the doors this could open for you down the road, it’s worth the cost. How much exactly? Here’s what you need to budget for:

• Sales agent application fee = $185
• Fingerprinting at a MorphoTrust location = $38.25
• Pre-licensing exam coursework = $500 to $1,600
• Sales agent examination fee = $43
• License renewal fee after 2 years = $110
• Other miscellaneous fees = about $100

Estimated total =  Between $800 and $2,000

Miscellaneous fees may include courses you take as a supplement to the required coursework, such as an exam prep class. Another investment that is optional but very beneficial is a Fitness Determination that is used to determine if you satisfy the requirements for honesty, trustworthiness, and integrity necessary to be a Texas real estate agent.

No, Texas does not have reciprocity with any other states. While residency is no longer a requirement for becoming a licensed real estate agent in Texas, you will need to satisfy all current state licensing requirements to legally practice real estate here.

To save time and money, you can and should apply for your Texas sales agent license online. Not only will an online application process faster than the paper application, but it’s more secure than snail mail and is less expensive (incidentally, TREC charges a $20 processing fee if you submit a paper document for a transaction that is also available online). To apply online, submit your sales agent application and fee using TREC’s online licensing service.

In Texas, you must renew your real estate license every two years. Don’t worry, you will be sent a renewal notice about 90 days before your expiration date. Until you receive this notice of renewal, you cannot renew your license. You can, however, renew your license up to six months after the expiration date. As part of the renewal process, be ready to complete certain continuing education courses.

If it’s been between six months to two years since your license expired, you can always apply for reinstatement of your license. Don’t let too much time pass, though. If it’s been over two years since the expiration date, you will have to reapply for your license … and retake the exam!

To help you provide outstanding real estate services to your clients, the state requires that you complete a total of 270 hours of qualifying real estate courses within the first two years of obtaining your Texas real estate license.

If you already submitted 180 hours of qualifying courses to get your real estate license, you must still complete the following continuing education (CE) courses to renew your Texas salespersons license the first time:

• 90 hours of Salesperson Apprentice Education (SAE) courses
  • This includes 30 hours of Real Estate Brokerages
• 4 hours of TREC Legal Update 1 course
• 4 hours of TREC Legal Update 2 course

The two Legal Update and Brokerage courses are mandatory. After that, you will need to pick two additional SAE courses to complete the hours needed for your first Texas real estate license renewal.

You can find the list of qualifying real estate courses here: Qualifying Real Estate Course List

You’ll want to complete your continuing education at least 10 days before your license expiration date, and your post-license CE courses must be through a TREC-approved provider. Fortunately, there is a long list of approved CE providers and the courses they offer, which you can find here: Approved Real Estate CE Courses

TREC-approved real estate schools and education course providers typically offer various Texas SAE courses and packages to fulfill your required 98 hours of qualifying (SAE) post-licensing education. Depending on the CE provider, there are several delivery methods available, from in-person classroom learning to online learning and virtual classes.

Once you complete your CE requirements, you need to:

• Submit proof of completion 10 days before renewing your license. Email proof to TREC at documents@trec.texas.gov
• Submit your license renewal application through the TREC online portal. Be sure to keep copies of your renewal confirmation for your records.

If TREC’s records do not reflect completion of CE requirements at the time you submit your renewal application, you will have to pay a $200 CE deferral fee or renew on inactive status. By paying the CE deferral fee before the expiration date, you can remain active for an additional 60 days from your expiration date while you complete your CE requirements.

To renew your license and pay the renewal fee online, you can visit TREC’s Online Services page. You may need to register if this is your first time renewing online.

To renew your license by mail, print out the Renewal Form for Real Estate Sales Agents and Brokers and mail it to the address on the form, along with $110 for the renewal fee. All fees should be in the form of a single cashiers check, personal check, or money order payable to TREC.

According to ZipRecruiter, a real estate agent working in Texas earns $78,719 per year on average (as of this writing). This is the equivalent of $37.85 per hour, $1,513 per week, or $6,559 per month.

With the potential to earn $6,559 per month as a real estate agent in Texas, the Lone Star State has ample financial opportunities for anyone pursuing a real estate career.

While ZipRecruiter is seeing agents’ salaries as low as $25,684, they can be as high as $132,089. And the majority of real estate agents’ salaries is currently between $59,600 and $91,700, with top earners making $114,661 annually in Texas. Keep in mind that this salary average can vary based on your employment setting, level of education, years of experience, and the property market.

ZipRecruiter scanned a database of millions of active jobs published locally across the nation to determine that Texas is ranked number 25 out of 50 states for real estate agent salaries. ZipRecruiter also reports that the top 5 area/cities where the typical salary for a real estate agent is above average in Texas are:

• #5 Wichita Falls, $82,180 annual salary
• #4 Amarillo, $82,614 annual salary
• #3 McKinney, $86,888 annual salary
• #2 Beaumont, $87,258 annual salary
• #1 Corpus Christi, $89,264 annual salary

Real estate agents in TX: By the numbers
There are 154,113 licensed and active real estate agents in Texas, according to NAR’s monthly membership report from December 2023.

Based on several recent surveys, the average real estate agent commission rate in Texas is between 5.59% and 6%. This average reflects the total for both the listing agent and the buyer’s agent, and is usually split between the listing agent (2.71% and up) and buyer’s agent (2.88% and up).

Texas housing prices: By the numbers (according to Zillow):

$300,090: the value of the average Texas home

22 days: the average time it takes for a Texas home to become pending