Is Getting a Real Estate License Worth It? A Comprehensive Guide to Costs, Benefits, and Career Impact

By Olivia ParkerLast Updated April 21, 2025

Introduction: Understanding the Value of a Real Estate License

Pursuing a real estate license is a significant decision that can open the door to a new career, side income, or expanded investment opportunities. However, before making the commitment, it’s essential to weigh the costs, benefits, career flexibility, and ongoing obligations associated with licensure. This guide presents a detailed, factual overview to help you determine if getting a real estate license is worth it for your goals and situation.

Costs and Time Commitment: What to Expect

One of the most frequently asked questions is: how much does it cost to get a real estate license? Start-up costs typically include pre-licensing education, application and exam fees, and initial brokerage dues. For example, in Texas, the average expenses break down as follows:

Real Estate Education: $450
Application Fees: $224
Exam Fees: $43
Brokerage Dues: Variable depending on your sponsoring brokerage
Total Typical Cost: Under $1,000 (not including ongoing costs)

These numbers are representative of many U.S. states, where startup costs generally range from $500 to $1,000, with some variation depending on location and chosen education provider [1] . Additionally, the process requires a time investment-most states mandate between 60 and 180 hours of pre-licensing coursework. Many candidates complete these requirements in two to six months, studying part-time [5] .

It’s important to recognize that there are ongoing costs as well. After licensing, you may be responsible for annual association dues (National Association of REALTORSÂ®, state, and local), MLS access fees, brokerage desk fees, and continuing education requirements. For example, MLS fees are commonly about $80 per quarter, and association dues can vary by region [1] , [4] .

Key Benefits of Holding a Real Estate License

Investing in a real estate license can yield a range of professional and financial rewards:

1. Income Potential and Commission Earnings

Real estate agents earn income primarily through commissions. When you facilitate a transaction-either as a buyer’s or seller’s agent-you receive a share of the commission, typically split with your brokerage and any co-brokers involved. For investors and aspiring agents, this can substantially increase overall earnings. For example, purchasing a $150,000 property with a 6% commission could net you $4,500-income that could offset closing costs or other expenses [2] .

2. Professional Credibility and Legal Compliance

Operating as an agent or broker without a license is illegal in every U.S. state. Holding a license demonstrates that you have met state educational and ethical standards, which can inspire trust among clients and colleagues. This credibility is critical for building long-term professional relationships and advancing your career [3] .

3. Direct Access to the Multiple Listing Service (MLS)

Licensed agents can access the MLS, a comprehensive database of property listings. This access allows you to spot opportunities quickly, analyze market trends, and offer clients the most current information. For investors, access to the MLS can give you a significant edge in sourcing deals and understanding market dynamics [3] .

4. Flexible Earning Structure

Unlike salaried positions, real estate agents control their earning potential. Your income is directly tied to your effort, skill, and the number of transactions you close. If you are willing to devote time to prospecting and networking, your earnings can grow rapidly. This flexibility appeals to many who prefer independence and self-directed income [5] .

5. Career Advancement and Networking

A real estate license is a stepping stone to additional opportunities-such as becoming a broker, starting your own agency, or specializing in commercial, luxury, or investment real estate. Membership in local, state, and national REALTORÂ® associations also opens doors to mentorship, advanced training, and professional communities [3] .

Challenges and Potential Downsides

Despite its many benefits, earning and maintaining a real estate license comes with specific challenges. It is important to consider these before enrolling in a pre-licensing course:

1. Ongoing Costs and Fees

Beyond initial licensing, agents face recurring expenses including brokerage desk fees, insurance, MLS dues, association membership, and continuing education courses. These can easily total several hundred to over a thousand dollars annually. Failure to account for these costs can impact your net income [1] , [4] .

2. Commission-Based Income and Competition

Real estate agents are typically paid only when a transaction closes. This structure creates income uncertainty, especially for new agents building their client base. The field is highly competitive, and success depends on marketing, networking, and persistence. Many new agents supplement their income with part-time work or other ventures in the early years [5] .

3. Regulatory and Ethical Obligations

Maintaining a real estate license requires ongoing compliance with state regulations, continuing education, and adherence to ethical standards. Failure to comply can result in fines, license suspension, or revocation. Agents must stay informed about local market changes, legal updates, and best practices [3] .

Step-by-Step Guide: How to Get Your Real Estate License

If you decide a real estate license aligns with your goals, follow these practical steps:

Research your state’s licensing requirements. Each state sets its own educational hours, exam content, and application process. You can find this information on your state’s official real estate commission or regulatory board website.
Enroll in a state-approved pre-licensing course. Many providers offer online, in-person, or hybrid formats. Compare costs, reviews, and course formats to find the best fit.
Complete required coursework and pass the licensing exam. Take advantage of exam prep resources-many education providers include practice tests as part of their package.
Apply for your license by submitting your application and documentation through your state’s real estate regulatory agency. Application fees are typically paid online.
Find a sponsoring brokerage. Most states require new licensees to be affiliated with a licensed broker before practicing. Interview several brokerages to find one that matches your professional goals and offers support for new agents.
Join relevant associations, if desired, such as your local, state, and national REALTORÂ® associations. Membership offers access to the MLS, networking opportunities, and additional resources.

For specific contact information, search for your state’s real estate commission by entering “[Your State] real estate commission” in your preferred search engine. Many official commission websites offer step-by-step application portals, downloadable forms, and contact phone numbers or email addresses for additional assistance.

Alternative Pathways and Considerations

If you are primarily interested in investing or sourcing deals, you may not need a license. Many successful investors partner with licensed agents or brokers to access the MLS and facilitate transactions. However, holding a license can provide additional flexibility and income opportunities-such as earning commissions on your own deals and representing yourself in transactions [2] . For those who prefer not to undergo the licensing process, consider networking with agents, joining real estate investment groups, or leveraging online platforms for deal discovery.

Conclusion: Is a Real Estate License Worth It?

The decision depends on your career goals, financial situation, and willingness to invest time and resources. For those seeking professional credibility, expanded earning potential, and a foothold in the real estate industry, the license can be a worthwhile investment. However, it requires an ongoing commitment to education, compliance, and entrepreneurial effort.

If you are ready to take the next step, begin by researching your state’s real estate commission and exploring accredited pre-licensing course providers. Consider speaking with current agents or brokers in your area to gain firsthand insights before enrolling.