Whatever way you choose to look at it, getting a real estate license in Texas and practicing in the state is a rewarding, fulfilling, and lucrative career option.
So, what does the housing market in Texas have in store for you?
The Texas real estate scenario
Despite some setbacks like rising interest rates, the Texas housing market has shown a significant rise this year. When compared to the previous year, there has been a 9.5% month-on-month increase this year. What is noteworthy is that this increase has not been skewed but uniform across all the cities in the state. This is reflected in the number of days in the market of residential real estate falling to a mere 55 days, good news for sellers.
Further, it is not only existing homes that have witnessed a rise in demand. Newly constructed houses are not far behind at 21.7% of all houses up for sale in the state. This has been possible because of a rise of 20% in new construction sales.
Earnings of a real estate agent in Texas
Let us now evaluate whether it is worth your time and effort to get a real estate license in Texas and set up practice in the state. Will your earnings be high enough to justify going through the process of getting a license?
Typically, on any real estate deal, sellers’ agents earn a commission of 6% of the sale price of a property which is shared equally with the buyers’ agents. Hence, on a sale price of $250,000, your minimum commission will be $7500, a considerable amount if you consider that it is only from one transaction only.
Thus, it is not uncommon for real estate professionals to bring home a cool six-figure income in any given year even if they are happy with a deal a month. The more you work, the higher your earnings will be. As you gain more experience and referrals, your business will grow exponentially.
With this level of earning and the opportunity to set individual working schedules, it is a rewarding option to obtain a real estate license in Texas and kickstart a career in this field.
Click here to learn more about how to get a real estate license in Texas
How to get a real estate license in Texas
Let us go through the steps to obtain a real estate license in Texas.
# You must be 18 years or older and a U.S. citizen to apply for a license. Legally admitted migrants can also get a license provided they have working rights in the country.
# The Texas Real Estate Commission (TREC), the controlling body for real estate in the state has mandated that aspiring real estate professionals must complete 180 hours of pre-licensing education. The subjects are as follows.
- Principles of Real Estate I (30 hours)
- Principles of Real Estate II (30 hours)
- Law of Agency (30 hours)
- Law of Contracts (30 hours)
- Promulgated Contracts (30 hours)
- Real Estate Finance (30 hours)
Going through this pre-licensing coursework will help you garner knowledge about the real estate industry, its fundamental rules, regulations, and practices. This will help you to offer optimized service to buyers and sellers of properties in the future.
This pre-licensing coursework to get a real estate license in Texas offers two options. You can study either online or in a physical classroom according to your preferred learning style. Online courses though have the flexibility of any time study according to your convenience. The only stipulation is that any course must be approved by TREC to be counted for the licensing exam.
Among the top online real estate courses to get a real estate license in Texas are the ones offered by RealEstateU. You can also buy their study guides and test prep which will boost your chances of passing the licensing exam.
# Visit the Texas Department of Public Safety (DPS) to submit your fingerprints. This is required to verify whether you have any record of past criminal activity. Real estate agents must maintain high moral standards and ethics and any adverse fingerprint record might make you ineligible for a real estate license in Texas. The fee for this verification is $38.25.
# Visit the website of TREC to schedule the licensing exam along with the requisite fees. Though the exam is online, you have to visit a center at a designated location physically to appear for the test. Pay the exam application fee of $185.
# Appear for and pass the real estate licensing exam in Texas. There are two parts to this test. One is the generic national section that is common to all states in the USA. The other is the state section that tests your knowledge about the rules and regulations of the real estate sector in Texas.
The questions are in a multiple-choice format and you must get at least 75% to crack the exam. Since the exam is held online, you will know your result in a pass/fail grade soon after the test is over.
# Once you pass the exam, you become eligible to apply for a real estate license in Texas. Visit the portal of TREC to do so, attaching your fingerprint fitness certificate and proof of having completed the 180 hours of coursework. You will now be issued a license but that will be activated after you complete the next and final step.
# Join a brokerage firm to set up your practice. You will be provided office space and referrals if required to set up your practice.
You will now be issued an active real estate license in Texas to start your career in Texas.
