The profession of real estate agent is growing more and more common these days as people look for ways to run their own businesses and build their lives around the things they love. In Texas, the real estate business is growing right now, but there’s lots of room for competition. The cost to be a real estate agent in Texas is fairly cheap with all the opportunities available.
However, as in any industry, there are some costs to starting up a real estate business in Texas. Below, I’ve divided them into one-time costs and recurring costs so you can see exactly what you’ll be getting into if you decide to join in as a Texas Real Estate Agent.
Total Costs To Become a Texas Real Estate Agent
One-Time Costs
There are some basic one-time costs that you can’t escape if you’re looking to join the real estate business in Texas.
1. Real Estate School
There are two options for real estate school: online or in-person. Online school will always be cheaper than in-person because you’re not paying for physical books (as they are digital) and not helping pay for the school’s commercial lease.
In general, online real estate school costs somewhere between $300 and $600. That price will get you the required education, exam prep, and access to instructors. My online real estate school of choice is Real Estate Express, which comes with a low overhead cost and a ‘no pass no pay’ guarantee (if you don’t pass your exam, you don’t pay the program).
The blessing and the curse of online school is the flexible structure. In order to succeed, you must be disciplined and able to work on your own time. That’s why, for some people, taking in-person classes is easier. The cost varies a lot across the board, but it usually rests between $1,000 and $2,000. Plus, you’ll have to pay extra for books and, in some cases, for exam prep. In addition, you’ll need to take into account the travel time and gas money you’ll spend depending on where the school is located. Overall, this will be the more expensive option.
2. Exam
Once you’ve completed your coursework and all the credits you need (180 in Texas), you’ll have to go in and sit for the exam. There are several costs connected with this process:
- Application Fee. You must file an application first to document the completion of all necessary coursework. The initial application is $205.
- Fingerprint Fee. If you have not been fingerprinted with the Texas Real Estate Commission (TREC) in the past, you will have to pay MorphoTrust a $39 fee.
- Background Check Fee. In addition to fingerprints, your background check will cost $27.
- Exam Fee. Finally, you’ll pay $54 (per attempt) to take the real estate exam. Yes, you do have to pay every time if you fail it and decide to try again.
3. Joining a Brokerage
In order to get your official license in Texas, you must find a sponsor. A sponsor is an active licensed broker who will support you as you start out. Usually, that will cost around $149 in signup fees (just know this varies across the board).
In total, these are the one-time fees you’ll need to pay to get your start as a licensed agent.
Recurring Costs
Once you get your feet on the ground, there are a few costs to keeping them moving along.
1. Broker Fees
Broker fees vary a lot depending on the business plan and the services the broker offers you. You’ll usually have to pay some form of desk fees as well as a percentage of your commission.
One of the cheapest options out there is eXp Realty, a brokerage that only costs $85 a month and comes with three huge revenue streams to boost your income. It’s an entirely virtual brokerage, which keeps monthly fees much lower, and the commission split is also a lot higher than in many other brokerages. Check out this video to learn more about eXp and how you can get free lead generation services when you join.
Keep in mind we are ONLY talking about FEES right now…the commission splits are entirely different. Commission splits only occur when you actually sell something and vary across the board. In general, you can expect to keep 50-80% of the sale.
2. Association and MLS Fees
Every year, you’ll have to pay fees to be a part of a real estate association. The association gives you access to a huge network of agents and listings and the continuing education you need to keep your license up to date. One of the most popular in Texas, Metrotex (Dallas Ft. Worth Area), is $464 per year. That covers local dues, Texas realtor dues, legal fund, the National Association of Realtors (NAR) dues, etc. In addition to that basic cost, you’ll have to pay several more. Overall, the cost to be real estate agent in Texas will include:
- Quarterly MLS Fees. If these fees are a typical $109, you’re going to pay a total of $436 per year in MLS fees.
- Annual Keycard Fees. Usually, this will come to about $226.24.
- Monthly Showing Service Fees. In general, these come out somewhere between $10 and $30, so you can average it will be around $20 a month.
- Regular Continuing Education Fees. Texas law requires that agents renew their license every two years. For the first renewal, you’ll be required to take at least 90 credit hours in Sales Apprentice Education (SAE). Online, this will be around $250, but it could be double that in person. You should expect to pay that each year in the first two years of your practice.
- License Renewal Fees. After that first two years, you’ll have to pay $110 to officially renew your license.
3. Marketing Fees
As a real estate agent, you have to keep up with all the paperwork and accounting for your business without help. This isn’t a typical profession–it’s not like you become an attorney or accountant after years of schooling and get hired at a business with networks already built up. Instead, you have to build leads and clients, generate income, and keep records. All the administration duties are yours, and they’re going to cost you time and money. Here’s a rundown of the typical costs:
- Business cards – $80
- Name badges – $35
- Professional presentations and folders – $100
- Website – $100 – $500 per month
- Yard signs – $80 – $250 (depending on the size)
- Lockboxes – $20 – $150
- Facebook ads – $300 (at least)
These are just a few of the musts you’ll have to have to get the leads and business you need as a successful real estate agent. The cost to be a real estate agent in Texas is not huge, but there’s a lot to it.
Becoming a Texas Real Estate Agent
In the end, if you want to make money, you’re going to have to spend money. The cost to be a real estate agent in Texas is not nothing. However, there are ways to save. Join a brokerage that can help you with some of the marketing and provides enough revenue to keep you going. (Here’s a breakdown of the most comprehensive real estate brokerage in the real estate world today if you’re looking for something flexible.) Build strong relationships with clients and other agents to get good reviews and recommendations, Work hard to get the sales you need to make the income you want year by year. If you can do all that, you’re well on your way to becoming a successful and lucrative Texas real estate agent.