Before we get into the basics of becoming a real estate agent in Texas, let us analyze whether it is worth the effort for an individual to do so. Is the Texas real estate housing market growing at a fast clip? Is there a demand for housing in Texas? Are new housing units being built and sold in Texas?
The answer to all these questions is a yes as Texas offers enough opportunities for large numbers of new real estate agents to make a rewarding career in the state.
What then is the basis for this answer and what are the statistics to back up the claim of a booming Texas real estate market?
From the buyers’ perspective, there is good news on the mortgage interest rate front. Rates that had been 7.79% in October 2023, a 23-year high, are expected to fall and level off at around 6% by mid-2024. Hence, potential buyers who have held off real estate investments for so long are expected to enter the market now.
With this demand pushing up prices, sellers too are expected to make a move and dispose of their properties and downsize. This single move might bring about 30 million units into the Texas real estate market and open a lot of choices for buyers.
Additionally, about 200,000 permits for new construction units have already been issued in 2023 which should be available by mid-2024.
With the Texas real estate market on a high, now is the time to make a move if you are an aspiring real estate agent in the state. To do so, you must first acquire a real estate license in Texas. This is mandated by the Texas Real Estate Commission (TREC), the statutory body that governs the real estate sector in the state including the issuing of licenses.
How Do You Get A Real Estate License In Texas
Here are the five steps for getting a license in Texas to become a real estate agent.
#1 Meet the basic requirements
You must be at least 18 years old to be eligible to get a real estate license in Texas. Additionally, you must be an American citizen and a resident of the state. Those who have migrated legally into the country and have a work permit can also apply for a license.
#2 Go through the online Texas real estate course
TREC mandates that you must go through 180 hours of pre-licensing coursework to be eligible to appear for the licensing exam. This education can either be taken in a real estate school or online. The second mode of learning is preferred by candidates as it offers the flexibility to study at any time while on the go.
Read more to learn about online Texas real estate courses.
The 180-hour coursework is divided into 6 modules of 30 hours each.
- Principles of Real Estate – I: Has information on the national part of the licensing exam as well as parts of the Texas-specific section.
- Principles of Real Estate – II: Has more advanced information on topics in Part I.
- Law of Agency: Details the several types of agency relationships that can exist when drawing up a contract between a buyer and a seller in a real estate deal.
- Law of Contracts: This goes into the aspects of contract law, especially regarding Texas, and how the laws impact the transfer and ownership of property.
- Promulgated Contract Forms: Any real estate transaction is formalized through a set of forms. This module teaches how these forms make for a legally binding conclusion that applies to all interested parties in a real estate deal.
- Real Estate Finance: Goes into the intricacies of financing a real estate transaction, various mortgage types, and the complete loan process.
While many schools are offering pre-licensing coursework, one of the best in this niche offering an online Texas real estate course is RealEstateU. This course is accredited by TREC and is designed by top real estate professionals.
The full coursework is affordable and can be accessed on any Internet-enabled device such as a laptop, desktop, tablet, or mobile. Most importantly, the visuals and graphics of the RealEstateU online Texas real estate course are downloadable so that the students can get a better understanding of the concepts.
#3 Submit fingerprints for a background check
You must meet the standards of honesty and integrity expected of real estate agents in Texas as established by TREC. For this, you must submit your fingerprints to check whether you have any past criminal records to the Texas Department of Public Safety. You have to request and get a “Fitness Determination” certificate to pass this stage.
#4 Apply for a license and schedule the licensing exam
Apply online to TREC for a real estate agent license by paying the required application fee. Attach proof of having gone through the 180 hours of an online Texas real estate course and receiving a Fitness Determination certificate.
At this stage, schedule the licensing exam after paying the test fee.
#5 Pass the licensing exam
The real estate licensing exam is 4 hours duration with 150 minutes earmarked for the national section and 90 minutes for the state-specific section. You must score at least 70% to get a passing grade.
You will be awarded a real estate license after you pass the licensing exam.
However, you must now find a broker to mentor and support you during the starting stages of your career. Once you do so, you are ready to launch a very rewarding and lucrative career in the real estate industry.
