Real Estate Career: Is a College Degree Necessary?
With the rising cost of college tuition, many individuals explore alternative education opportunities. Fortunately, a real estate career is one of the few professions that doesn’t necessarily require a college degree. This article explores the educational requirements, benefits, and skills needed for a successful real estate career, without a four-year college degree.
Education Requirements for a Real Estate License
In nearly every state, a college degree is not a requirement for getting your real estate license. Instead, the focus is on completing targeted real estate training. You don’t need a college degree to get your real estate license, but you do need a high school diploma or equivalent education (such as a GED). Most of the United States require applicants to be 18 years of age to get a license.
Before you can get your real estate license, you’ll need to complete a set of approved courses. These classes cover the basics you’ll need to know to pass your exam and get started in the industry. Every state has its own rules about what’s required, so make sure you check your state’s specific education and licensing steps. This is called Pre-Licensing. According to the California Department of Real Estate, the courses must be three semester units or four quarter units. The courses must have a minimum total length of 135 hours. Please note these are not college hours but instead classroom hours.
Exceptions to Educational Requirements
Some states allow for exceptions to certain requirements. For instance, if you are already licensed in another state, some states have license reciprocity, which streamlines the application process for licensees. As of January 1, 2026, Illinois no longer accepts reciprocity applications. The state has transitioned to a Licensure by Endorsement process. If you hold an active real estate license in another state and want to get licensed in Illinois, you'll now need to complete a 30-hour Illinois Broker Endorsement Course and pass the Illinois-specific portion of the state exam. Additionally, some states allow applicants with college-level education in real estate or related fields to bypass the pre-licensing course requirement. At this time, the Washington Department of Real Estate Licensing allows applicants with a college degree to bypass the pre-licensing education requirement on a case-by-case basis.
In Illinois, the state requires a high school diploma or GED, completion of a 75-hour pre-license course approved by the Illinois Department of Financial and Professional Regulation (IDFPR), and a passing score on the state licensing exam. Illinois only requires two education credentials before you can sit for the broker exam: a high school diploma or GED, and completion of the state-approved 75-hour pre-license course. The pre-license curriculum is divided into 60 hours of general real estate topics and 15 hours of Applied Real Estate Principles, which is delivered through situational and case-study instruction. Make sure any course you enroll in carries IDFPR approval. If it isn't approved, it won't count toward your licensing requirements.
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If you graduated from law school and are currently licensed to practice law in Illinois, you may be eligible to sit for the real estate broker exam without completing the 75-hour pre-license course. This exemption applies specifically to active Illinois-licensed attorneys. For everyone else, a college degree in business, finance, or a related field can be a helpful professional foundation, but Illinois doesn't treat it as a substitute for the pre-license education requirement. As stated before, becoming an agent is an easy step-by-step process.
Benefits of a College Degree in Real Estate
Even though a college degree is not required in real estate, there are benefits to having one. If you want to advance your real estate career beyond that of a real estate broker, having a college degree could be useful. Many people go to college to broaden their knowledge and skills. For instance, taking a college-level finance course may help you with the finance section of the pre-licensing course and real estate exam. One of the benefits of having a college degree is having access to a network of alums. Networking is a large part of real estate, making access to an extensive college network very valuable. A college degree may help you become more marketable to potential clients.
According to the National Association of REALTORS® (NAR), here are the percentages of the higher education levels of REALTORS®:
- Some college: 27%
- Bachelor's degree: 34%
- Graduate degree and above: 13%
- Associate degree: 13%
- Some graduate school: 5%
While a degree can definitely help if you want to branch out into other areas, like property management, real estate development, or investment analysis, it’s not a must if your goal is to start selling homes. Some firms may prefer agents with a college education, especially for specialized or higher-end markets. A degree can give you a broader understanding of business, finance, marketing, or communications, all skills that can boost your effectiveness as an agent. With a degree, you could explore other paths in the real estate industry, such as property development, investment analysis, or urban planning.
Potential Downsides of Pursuing a Degree
Having a degree doesn’t automatically mean you’ll land better clients, close more deals, or earn a higher income. Tuition and related expenses can be steep, often requiring significant financial investment without a guaranteed return. Earning a degree typically takes years, time you could otherwise spend building real-world experience and growing your career.
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Alternative Educational Paths
If you don’t have a college degree, don’t worry. Real estate schools are a great option for those looking to launch a career in real estate. These schools specialize in real estate education and training and employ instructors who often have decades of industry experience. This specialization allows students to better understand the ins and outs of real estate that they may not get at a college or university. In today’s digital age, online courses present an excellent opportunity to advance your career from the comfort of your home.
Apprenticeships and Mentorships
Apprenticeships and mentorships allow you to learn directly from a working professional. Instead of a traditional classroom, your classroom is shadowing a real estate broker or managing broker as they complete their daily tasks and responsibilities.
Essential Real Estate Courses and Certifications
While a college degree is not required to get your broker’s license, there are some essential real estate courses you will need to complete in order to get licensed, as well as some optional advanced certifications to help you differentiate yourself from the competition. Here’s an overview of essential courses. Once you get your broker’s license, you need to keep it active by completing 30 hours of continuing education every two years.
After you get your broker’s license, you may want to consider furthering your education with a certification or designation. The REALTOR® designation denotes membership to the National Association of REALTORS® (or NAR). In order to become a REALTOR®, you must be a licensed broker, join your local REALTOR® association, and pay membership dues ($156 in 2024). The Certified Residential Specialist (CRS) designation, provided by NAR, is for real estate professionals who want to specialize in residential sales as opposed to commercial or industrial real estate sales. The Accredited Buyer’s Representative (ABR) designation, provided by NAR, is for real estate professionals who want to specialize in representing buyers in a real estate transaction.
Essential Skills for a Successful Real Estate Broker
Completing your education requirements is just one step to becoming a successful real estate broker. You need to possess the skills necessary to have a successful career. In addition to acquiring real estate knowledge, you need to possess some essential skills to help you in your day-to-day work as a broker.
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Communication and Negotiation Skills
Communication and negotiation skills are two essential skills that real estate brokers should possess. As a real estate broker, you will be communicating with clients, potential clients, and other brokers, to name a few. Additionally, you will need to be able to negotiate on behalf of your client in order to secure the best deal for them.
Market Knowledge
Knowing your market is a large part of running a successful real estate business. What is the median sale price? Is it a seller’s or a buyer’s market? How long are homes staying on the market? These are just some questions real estate brokers should know or at least be able to find out quickly.
Time Management and Organization
One of the great things about real estate is the flexible schedule. However, this makes having good time management and organizational skills essential.
Personal Qualities of Successful Real Estate Brokers
Real estate brokers are a diverse group of people, but they tend to have some similar personal qualities that make them well-suited for a career in real estate. Real estate is not for the faint of heart. There will be times when business is scarce, but those who can weather the storm reap the benefits once the tide turns. Also, since most real estate professionals get their clients from previous client referrals, acquiring your first few clients may be difficult. Real estate professionals have a strong ethical code that puts their clients’ interests before their own. For instance, if you are representing a buyer, you want to help them get a good deal on their new house, even if it means a smaller commission for you. Additionally, you will need to have a strong sense of professionalism.
Steps to Obtaining a Real Estate License
There are four easy steps to the licensing process:
- License Application: Online application at NCREC.gov that pairs with PRE course info and background report.
- License Examination: Schedule a testing appointment with Pearson VUE.
Alternative Degree Options for Real Estate Professionals
Even though having a college degree to practice real estate is not required, if you want to pursue a degree, here are some options that can give you an advantage over the competition:
- Business: A business degree is one of the most versatile options for aspiring real estate agents. It gives you a strong foundation in management, operations, negotiation, and entrepreneurship, skills that are critical whether you're working for a brokerage or running your own real estate business. Courses in leadership, strategic planning, and business law can also help you better navigate contracts, client relationships, and growth opportunities.
- Marketing: Real estate success is closely tied to your ability to market properties, and yourself. Learning how to market yourself and your brand is one of the essential things in real estate, so having a marketing degree will only help you deliver the proper ways to market real estate and utilize social media channels and other skills.
- Finance: You'll gain skills in investment analysis, mortgage lending, financial planning, and risk management. These insights can be especially valuable if you plan to work with investors, help clients with financing options, or even build your own real estate investment portfolio. Understanding finance is a great way to get an extraordinary brokerage.
- Psychology: A background in psychology can help you better understand your clients’ motivations, build trust, and negotiate more effectively. It can also strengthen your interpersonal skills, making you a better communicator and problem-solver when tensions rise during a transaction. Knowing how to communicate is a powerful skill for an agent.
- Accounting: A degree in accounting can be extremely valuable for real estate agents who want to stay on top of their business finances or help clients navigate financial paperwork. You’ll develop skills in budgeting, tax planning, bookkeeping, and financial reporting, all of which are important whether you’re managing your commissions or advising clients on the financial implications of buying or selling property. Learning how finances work in a business on a day-to-day basis is not very easy, so having an accounting background can teach you all the things you need to know regarding the financial part of the business.
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