How Do You Start a Career in Real Estate?

Diving into a career in real estate is often sparked by a desire for independence, high earning potential, and the satisfaction of helping people achieve major life goals. It’s an industry built on human connection and market knowledge, but making the leap from interested observer to active agent requires more than just a good personality. Before you sign up for pre-licensing courses, it is wise to take a measured look at what the day-to-day reality demands, as success hinges not just on sales skills, but on preparation and persistence. ^[2]^[7]

# Self Assessment

Before anything else, you need an honest appraisal of whether the structure of a real estate career aligns with your temperament and lifestyle expectations. This isn't a typical nine-to-five job with a guaranteed paycheck; it is entrepreneurial, meaning you are essentially starting your own business from day one. ^[2]^[7] You must possess a high degree of self-motivation to prospect for clients and manage your time effectively when no supervisor is looking over your shoulder. ^[8]

Consider the required skill set. Top producers often exhibit strong organizational abilities, excellent communication, and the capacity to handle rejection without losing momentum. ^[9] Real estate requires significant people skills, as you will be navigating complex emotional situations—helping buyers through stress or guiding sellers through tough decisions about pricing their biggest asset. ^[4]^[8] If you thrive on variety and can handle the occasional chaos of closing deadlines, this field might suit you. If you prefer predictable routines and consistent hourly wages, you may find the commission-only structure difficult to manage initially. ^[7]

# Licensing Steps

The formal path to becoming a licensed real estate professional is standardized across the country but involves state-specific hurdles. Generally, the first step involves understanding your state's specific prerequisites, which often include age requirements (usually 18 or 19) and sometimes a high school diploma or equivalent. ^[5]

The core of the entry process involves education, testing, and background checks:

Pre-Licensing Education: You must complete a required number of pre-licensing education hours, which vary significantly by state. ^[5] These courses cover real estate principles, laws, contracts, and ethics. ^[6] Some people opt for in-person classes, while others prefer the flexibility of online programs. ^[6]
Passing the Exam: After completing the required coursework, you must pass a state licensing exam, which typically covers national real estate principles and state-specific laws. ^[5] Preparation is key here; many find that dedicated study materials beyond the basic course are necessary to ensure success on the first attempt. ^[9]
Background and Paperwork: Expect to undergo a criminal background check and submit an application to your state’s real estate commission. ^[5]

A common point of confusion is the difference between a Real Estate Agent and a REALTOR®. While all REALTORS® are agents, not all agents are REALTORS®. The latter designation signifies membership in the National Association of Realtors (NAR) and adherence to its strict Code of Ethics. ^[3]^[4] While membership isn't legally required to practice real estate, many professionals find value in the resources, networking, and ethical standards associated with NAR membership, especially when joining a local board or association. ^[3]^[10]

How Do You Switch Into Real Estate Careers?

# Brokerage Selection

Once licensed, you cannot legally work independently; you must "hang your license" with a principal or managing broker. ^[2] This decision is one of the most consequential you will make early on, as the brokerage provides the legal umbrella under which you operate and often serves as your initial training ground. ^[1]

When interviewing potential brokerages, look beyond just commission splits. While a higher split might seem appealing, it often comes at the cost of support. New agents should prioritize training, mentorship, and office culture over the highest possible split in the beginning. ^[1]^[6]

Key elements to compare among brokerages:

Training Programs: Does the brokerage offer structured onboarding for new agents, including classes on lead generation, contract writing, and local market nuances?
Mentorship: Is there a formal program pairing you with an experienced agent, or is the support informal? Direct guidance on your first few transactions is invaluable. ^[1]
Fees and Desk Costs: Understand all associated costs. Beyond the initial licensing fees, brokerages may charge desk fees, transaction fees, MLS access fees, and technology fees. ^[7]
Lead Flow: Some brokerages provide company-generated leads; others operate on a 100% commission model where you generate everything yourself. ^[1]

Remember that your brokerage is your first professional reference point. If you find yourself in a high-pressure environment where experienced agents are unwilling to share information, it can stall your growth significantly. ^[1]

# Financial Reality

New agents often underestimate the initial financial outlay required before earning the first commission check. It's critical to secure a financial buffer because you might operate without significant income for six months or more while building a pipeline. ^[2]^[9]

The costs are diverse: licensing fees, association dues (local, state, national), Multiple Listing Service (MLS) access fees, branding materials, marketing expenses, and errors and omissions (E&O) insurance. ^[5]^[7] A common scenario for a first-year agent involves several thousand dollars in upfront or recurring soft costs before closing a single deal. For example, even with a favorable 70/30 split at a brokerage charging a $500 monthly desk fee and$ 400 per transaction fee, an agent who closes one $300,000 home (earning$ 6,000 commission at 30% after the split) has already spent money on dues and fees that must be recouped first. This demonstrates why understanding the net earnings after brokerage costs is more important than the gross percentage. ^[5]

This initial period is where many new agents falter. They run out of savings before they secure their first client. Therefore, if possible, maintain a source of steady income or substantial savings to cover living expenses until your business generates reliable cash flow. ^[2]

What Careers Are Available in Real Estate?

# Business Launch

Once licensed and affiliated, the focus immediately shifts from regulatory compliance to business development. Real estate is fundamentally a sales and marketing profession that happens to deal with property. ^[9]

# Marketing Strategy

Your success hinges on your ability to generate and nurture leads. You must establish a clear, actionable marketing plan that goes beyond simply announcing you are an agent. ^[3]^[6]

Sphere of Influence (SOI): Start by informing everyone you know—family, friends, former colleagues—that you are now in real estate. This foundational network needs regular, non-intrusive contact. ^[6]
Online Presence: You need professional digital real estate. This means a clean website, professional headshots, and active social media profiles that showcase your local expertise, not just stock photos of luxury homes. ^[4]
Geographic Farming: Many successful agents concentrate their initial efforts in a small, specific geographic area.

This localized focus is powerful. Instead of trying to be the agent for the entire city, consider focusing solely on a single, defined neighborhood or a specific property type, such as townhomes under $$400,000$ in one zip code. By mastering the average sale prices, inventory levels, and community features of that micro-niche, you build authority faster. When residents in that zone need an agent, your focused effort makes you the undeniable local expert, lending credibility that generalist agents often lack. ^[9]

# Client Acquisition

Effective lead conversion requires patience and a disciplined follow-up system. A large percentage of potential clients may not be ready to transact for several months after initial contact. ^[6] Implementing a Customer Relationship Management (CRM) system, even a simple spreadsheet initially, is non-negotiable for tracking follow-up tasks and nurturing long-term relationships. ^[3]

# Sustaining Success

The initial excitement of getting licensed and closing the first few deals will eventually settle into the regular rhythm of the business, which demands consistent action to maintain momentum. Agents who treat their practice as a business—setting weekly activity goals rather than just income goals—tend to achieve greater longevity. ^[2]^[4]

# Expert Mindset

Adopt an expert mentality rather than a novice one. This involves continuous education that goes past the minimum required for license renewal. This might mean studying local zoning laws, learning about new financing options, or understanding environmental regulations in your area. ^[4] The market is always changing, and the best agents become known for their deep, nuanced knowledge. ^[8]

Furthermore, learn to manage transactional paperwork with precision. Mistakes in contracts or disclosures can lead to significant liability, making attention to detail a crucial area of expertise. ^[5] Seeking advice from experienced colleagues or legal counsel when you are uncertain about a clause is a sign of strength, not weakness. ^[1]

# Resilience and Adaptability

The real estate cycle involves highs and lows. Market conditions shift, interest rates fluctuate, and client needs change. Resilience—the ability to bounce back from a failed negotiation or a listing that expires without selling—is perhaps the most important intangible asset an agent can possess. ^[4]^[9] View every unsuccessful pitch or lost bid not as a personal failure, but as data informing your next strategy. The market rewards those who show up consistently, year after year, adapting their service models to prevailing economic winds. ^[8] If you commit to these disciplined practices—financial preparation, hyper-focused marketing, and relentless learning—you establish a solid base for a durable and profitable real estate career. ^[3]