How to Become a Real Estate Agent in TENNESSEE (5 Simple Steps) (2024)

Ready to get your Tennessee real estate license?

If you want to become a real estate agent in Tennessee, the process is very simple, compared to many other states in the US. Your legal title will be “affiliate broker” and you’ll just have to complete 90 hours of pre-licensing courses, pass the state exam, and select a brokerage to work with. We’re going to walk you through the entire process and help you get your Tennesee real estate license quickly so you can start your new career.

We’ll cover:

5 Steps to Get a Real Estate License in Tennessee

Timing: How Long Does It Take to Get a Real Estate License?

Costs: How Much Does It Cost to Get a Real Estate License in Tennessee?

Pre-License Course: Find the Top Real Estate Schools

Sponsoring Broker: How to Select the Best Broker for New Agents

Frequently Asked Questions

How to Become a Real Estate Agent in TENNESSEE (5 Simple Steps) (1)

5 Steps to Get a Real Estate License in Tennessee

The Tennessee Real Estate Commission (TREC) has a few requirements to become a real estate agent. You must be at least 18 years old, have a high school diploma (or equivalent), and pass a background check. If you meet the prerequisites, you can complete the following steps:

STEP 1 | Complete the 90-hour Affiliate Broker Real Estate Pre-License Course

Your 90-hour real estate course will include 60 hours of the basic principles of real estate and another 30 hours for New Affiliate Brokers. Topics include real estate contracts, understanding agency, land use, mortgage financing, real estate formulas (math) as well as a variety of other subjects.

STEP 2 | Get a Background Check

We recommend scheduling your fingerprinting appointment as soon as you start the affiliate broker course, as the fingerprinting and background check can often take 3 to 6 weeks. Once you have your appointment with IndentoGO®, they will send your fingerprints to the Tennessee Bureau of Investigation (TBI) and Federal Bureau of Investigation (FBI) for processing.

STEP 3 | Schedule + Pass the Tennessee Real Estate Exam

Once you’ve completed the 90-hour course, the school will send a certificate of completion to PSI. the approved testing center. Once they’ve confirmed that you are eligible to sit for the exam, you can schedule your state examination with PSI The cost is $39 and you can schedule your examonline at candidate.psiexams.comor by calling PSI’s dedicated Tennessee Candidate Service Center at 1-855-340-3710.
There are 120 questions on the exam and you’ll need a minimum score of 70% to pass. See our FAQs section to learn more.

STEP 4 | Find a Sponsoring Brokerage

In order to activate your license after passing the exam, you’ll need to select a broker. Keep reading below for tips on what to look for when picking a brokerage.

STEP 5 | Submit Your Tennessee Real Estate License Application

Once you have the results of your exam, the next step is simple. Just complete the license application on the Comprehensive Online Regulatory & Enforcement System (CORE) website. You’ll have to pay the $91 licensing fee and submit several documents including ID, pre-license certificate of completion, background check/electronic fingerprinting, and proof of your Errors & Omissions Insurance policy.

How Long Does It Take to Get a Real Estate License?

Once you decide to become a real estate agent in Tennessee, you’re probably excited and want to get started immediately. Before you leave your current position, it’s important to understand how long the process can take. Here is what an average timeline looks like:

Cost to Get a Real Estate License in Tennessee

There are several fees involved when working to become a real estate agent in Tennessee…

Pre-License Real Estate Course – $200 to $550
Application Fee – $91
State Exam Fee – $39 ($49 to retake all or part of the exam))
State exam prep courses or materials – $25 to $150 (optional)

** Total Cost to Get Licensed = $340 to $630

More Costs to Expect as a Brand New Realtor

Getting a license is just the beginning! What many aspiring agents don’t always realize is that there are several other expenses to consider when you become a real estate agent in Tennessee. Whether you’re building a new business and opening a gift shop, restaurant, or your real estate empire, please keep in mind there are always start-up costs involved.

To follow are some of the most common expenses in Tennessee:

Post-License Continuing Education Fee – $100 to $250
Annual State License Renewal Fee – $82
National and Local Board of Realtors / Examples:
- Greater Nashville Realtor Association – $551 yearly + $200 application fee
- Knoxville Area Association of Realtors – $953 yearly
- Williamson County Assn of Realtors – $592 yearly
- Middle Tennessee Association of Realtors – $555 yearly
Multiple Listing Service (MLS) – about $150 to $175 quarterly
Sentrilock or Supra eKey to show homes – $100 to $200 annually
Business cards and signage – varies
Marketing materials and advertising – varies
Brokerage joining fee – $0 to $500 (average is about $250)
Monthly Brokerage fee – ranges from $0 to $350 monthly

** Total Cost to Become a Real Estate Agent in Tennessee = $1,550 to $2,050

Find the Top Real Estate Schools

To get your real estate license, you’ll have to attend a school that’s approved by the Tennessee Real Estate Commission. There are at least a dozen approved real estate schools throughout the state. Some are online, others in person, and a few do a combination of the two.

Here are a few of the most popular:

How Select a Tennessee Real Estate Broker

In Tennessee, you must affiliate with a real estate brokerage in order actively help home buyers and sellers. This is often referred to as the “sponsoring broker” or “principal broker.” Picking the right brokerage to work with can be key to your success as a newly licensed agent.

IMPORTANT QUESTIONS TO ASK WHEN CHOOSING A BROKER >>

While many newly licensed agents are looking for the best commission splits when shopping for brokers, we would highly recommend that you make that #2 or #3 on your list. The most important thing you should look for in a brokerage is how they support brand new real estate agents. Do they have a formal training program? Will you have at least 3 people you can reach out to if you have questions? Are they available outside traditional business hours? Do they have mentors – and what exactly will the mentors do to assist you? All important things to consider when you are ready to become a real estate agent in Tennessee!

How to Become a Real Estate Agent in TENNESSEE (5 Simple Steps) (3)

Commonly Asked Questions

How hard is the Tennessee real estate exam?
What if I don’t pass the real estate exam?
How much do real estate agents make in Tennessee?
Can I become a real estate agent in Tennessee if I have a felony or misdemeanor?
Is Getting a Tennessee Real Estate License Worth It?

How difficult is the state real estate exam?

Most Tennessee agents will describe the real estate licensing exam as “not easy.” There are 120 questions on the exam and you’ll need to answer at least 70% of them correctly. You’ll have 160 minutes to complete the state exam.

What if I fail the real estate exam in Tennessee?

It’s not uncommon for people not to pass the exam on the first try. There are two sections on the exam. If you pass one but not the other, you’ll be allowed two more attempts to pass the remaining section within six (6) months. The cost to retake the Tennessee real estate exam is $49.

Please note: If you don’t pass after two attempts, you’ll have to wait 30 days before retaking the exam.

Can I get a Tennessee real estate license if I have a misdemeanor or felony on my record?

Yes, it’s possible. If you have been convicted of a misdemeanor or felony that involves the theft of money, services, or property, you are ineligible unless 2 years have passed from incarceration, probation, parole, or conviction, whichever is later in time. You may have to appear before the TN Real Estate Commission to be considered for licensure. Your new Principal Broker may also need to appear with you. Visit the TREC website to learn more.

How much do real estate agents make in Tennessee?

According to Indeed.com, the average Tennessee agent makes about $85,000. To earn this much, an Affiliate Broker would need to sell at least 15 homes each year. Of course, what you earn can vary greatly based on the home prices in your area, so we looked at the earnings in the top TN cities:

Nashville agents average $105,556
Murfreesboro Realtors average $96,908 per year
Maryville is $91,601 per year
Johnson City is $90,600 per year
Franklin, TN is $90,394 per year
Knoxville, TN agents average $85,807 per year

PRO TIP: To calculate how many homes you’ll need to sell, look up the average home sales price in your city (just google it!). For example. the median sales price in Nashville is $420,000. If you earn 2.75% commission on a sale, your gross commission would be about $11,500 per sale. To earn the Nashville average of $105K annually, you’d have to sell about 10 homes.

Is Getting a Real Estate License Worth It?

Honestly, it depends on what your goals are. If you just want to sell a few homes each year to friends and family, you’ll have to crunch the numbers to see if the cost of getting and maintaining your real estate license is worth it.

If you plan to jump in and make a career in selling homes in Tennessee, then absolutely! The real estate market is booming. It can be a challenge moving from a salaried position to a commission-based business, so it’s important to have at least six months of savings in the bank. If you don’t have that yet, then you may want to keep your current job for a short period of time until you lay the foundation for your new real estate business.