From the home of the blues in Memphis to the Appalachian Mountains near Pigeon Forge, there are plenty of reasons to consider a real estate career in Tennessee. The Volunteer State is renowned for its beautiful landscapes, temperate weather, and one of the country’s lowest living costs, making Tennessee an attractive place to get your license as an agent. If you’re curious about how to become a real estate agent in Tennessee, I’m here to help! Follow these six steps, and you’ll launch your real estate career in Tennessee quickly.
Important Note: Real estate agents are referred to as affiliate brokers in Tennessee. These terms are used interchangeably to describe those who help clients buy, sell, or rent property.
Quick Facts & Costs for Tennessee Licensees
Types of Licensees in Tennessee & How Much They Earn
- Affiliate broker (salary range: $65,000 to $95,000): After receiving their first real estate license, an entry-level real estate agent in Tennessee is called an affiliate broker. An affiliate broker works under the supervision of a broker and helps clients buy, sell, or rent properties.
- Broker or principal broker (salary range: $95,000 to $120,000): In Tennessee, real estate brokers operate independently through a brokerage. Brokers can also start their firms.
Step-by-Step Breakdown: How to Become a Real Estate Agent in Tennessee
Ready to learn more about how to become a real estate agent in Tennessee? Here are the steps you’ll need to follow:
Step 1: Meet Tennessee Eligibility Requirements
To start the process of how to get a Tennessee real estate license, you must:
- Be at least 18 years old
- Be a US citizen or have legal working status in the US
- Possess a high school diploma or equivalent
Step 2: Choose a Tennessee Real Estate School
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Cost:
Starting at $339+
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Time commitment:
1-3 months
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Helpful resource:
5 Best Tennessee Online Real Estate Schools
In Tennessee, you must complete 90 hours of prelicensing education. The state breaks the required 90 hours of class time into the 60-hour Basic Principles of Real Estate and the 30-hour New Affiliates course. Some real estate schools may offer a 90-hour course or split the requirements into two classes of 60 and 30 hours each. That’s because you only need to complete the first 60 hours of your education before taking the licensing test.
Once you’ve passed your exam, you must complete the remaining 30 hours of coursework to obtain your license. Remember, your school choice will depend on your learning style and what suits your schedule best.
The CE Shop offers state-approved courses tailored for future Tennessee real estate brokers. With flexible self-paced course packages and exam prep tools, The CE Shop helps you efficiently fulfill your 90-hour prelicensing education requirements while preparing you for the licensing exam.
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Step 3: Pass the Tennessee Real Estate License Exam
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Cost:
$63
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Time commitment:
4 hours
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Helpful resource:
7 Hacks to Help You Ace Your Real Estate Exam and Tennessee PSI Candidate Information Bulletin
| Test Format and Number of Questions | Multiple choice format and 120 total questions |
| Where to Register for Exam | |
| Items to Bring to Testing Center | One form of valid identification with your photo and signature |
| Passing Grade | 70% |
As soon as you’re done with the multiple-choice exam, you’ll learn whether you passed or failed. If you don’t pass, you’ll be given a detailed score report to help you prepare for the retake. Again, you can take the exam as often as you’d like within six months following the date you sent in your original exam application, but you will have to pay $63 each time.
Step 4: Get Fingerprints & Background Check
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Cost:
$39.15
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Time commitment:
3-6 weeks
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Helpful resource:
Tennessee fingerprinting instruction
All applicants must submit fingerprints for eligibility for a Tennessee real estate license as part of a background check. I recommend scheduling your fingerprinting appointment as soon as you start the affiliate broker course, as the fingerprinting and background check can take three to six weeks. Get yourself fingerprinted at an IndentoGO location. After your appointment, IndentoGO will send your fingerprints to the Tennessee Bureau of Investigation and Federal Bureau of Investigation for processing.
Step 5: Obtain Errors & Omissions (E&O) Insurance
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Cost:
Starts at $61 per month
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Time commitment:
1 hour
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Helpful resource:
Sample E&O policy
All active licensees in Tennessee must carry E&O insurance. This insurance protects brokerages and individual agents from being sued by clients if they make a mistake related to real estate transactions. It covers a claim’s legal, defense, and court costs.
You can use any insurance agency to find the E&O policy that works for you, so it’s best to take some time and research your options. However, your brokerage may offer this coverage, so you may not want to seek it out until you’ve chosen a firm to associate with. Expect to pay more if buying in at the start of a policy term. If you’re toward the end, your initial payment could be less than $100.
Step 6: Join a Real Estate Brokerage
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Cost:
Free
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Time commitment:
2-4 weeks
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Helpful resource:
How to Choose a Real Estate Broker as a New Agent
After passing the real estate salesperson exam, Tennessee requires that affiliate brokers work under a principal broker. A principal broker has received additional training, worked in the industry for at least two years, and passed the broker’s license exam. Once you’ve landed some broker interviews, you’ll want to ask each broker about commission splits, what tools and resources they offer, the office’s culture, and their short- and long-term goals. Make sure everything aligns with your business before jumping on board.
Start looking for brokerages in the areas you’d like to work in to jump-start your new career, and check out our Best Real Estate Company to Work For guide to learn about some of the larger firms.
Step 7: Apply for a Tennessee Real Estate License
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Cost:
$91
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Time commitment:
1-2 weeks
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Helpful resource:
Tennessee Department of Commerce & Insurance website
With all the above tasks completed, apply for that hard-earned affiliate broker’s license. This can be done on the Tennessee’s Department of Commerce website. Creating an account is relatively simple. In addition to the $91 licensing fee, applicants will need to submit proof of their eligibility with:
- Photo ID
- Proof of high school graduation
- Proof of completion of prelicensing education
- PSI examination application
- Proof of E&O insurance policy
- Eligibility verification
- Electronic fingerprinting
You will receive a license certificate in the mail within a few weeks.
Step 8: Start a Successful Career in Tennessee
With your license, you’re ready to build a successful career as a real estate agent in Tennessee. Here’s how to get your career off to a great start:
- Master social media: Learn how to create engaging posts and set up a website as polished as your property listings.
- Build a referral network: Keep in touch with all your clients, and don’t be afraid to ask for reviews, testimonials, and referrals!
- Invest in your learning: Enroll in continuing education classes, join webinars, and always stay informed to bring your clients fresh ideas.
Frequently Asked Questions (FAQs)
How long does it take to become a real estate agent in Tennessee?
Usually, it takes prospective affiliate brokers six months to complete their prelicensing hours and get their license. If the online real estate school you choose offers self-paced classes, you usually get access to educational materials for six months. Plus, students can use the flexibility of self-paced courses to work around their current schedules.
How much do real estate agents make in Tennessee?
According to ZipRecruiter, affiliate brokers in Tennessee make an average of $65,962 per year. Salary ranges can vary widely depending on the area and other important factors, including education, certifications, additional skills, and the years you have spent in your profession.
What if I have a real estate license from another state?
As of writing, Tennessee has no reciprocal agreements with any state. This means that even if you are licensed in another state, you’ll still need to complete Tennessee’s required prelicensing hours, pass the licensing exam, and apply for your license before you can practice. For more information, read our Real Estate License Reciprocity & Portability Guide.
Back to You
Now that you know how to become a real estate agent in Tennessee, it’s time to be proactive in getting more leads and clients. At The Close, we’ll guide you through every step of your real estate journey. Have any questions? Let us know in the comments!
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