How to Become a Real Estate Agent in Tennessee

The Tennessee Real Estate Commission is in charge of licensing a real estate agent in Tennessee. There are various requirements that must be met prior to applying for a real estate license including completing the required education at an approved real estate school.

The State of Tennessee currently has reciprocity agreements with the following states: Alabama, Arkansas, Colorado, Connecticut, Florida, Georgia, Idaho, Iowa, Kentucky, Louisiana, Massachusetts, Mississippi, Missouri, Montana, Nebraska, New Hampshire, North Carolina, North Dakota, Oklahoma, South Dakota, Virginia, West Virginia and Wyoming.

This allows a resident living in a reciprocal state to apply for a Tennessee non-resident real estate license.

Here's what you need to know to become a real estate agent in Tennessee:
1) Licensing Requirements
2) License Renewal and Continuing Education Requirements
3) What is a REALTOR®?
4) Income Potential
5) Real Estate Schools

How to Become a Real Estate Agent in Tennessee

1) Real Estate Agent Licensing Requirements in Tennessee
You MUST be licensed by the Tennessee Real Estate Commission in order to be a real estate agent in Tennessee.

While most states call it a "salesperson license", in Tennessee it is referred to as an "affiliate broker's license".

To obtain your Tennessee real estate affiliate broker's license so that you can practice as a real estate agent in Tennessee, you must:

i) Satisfy the minimum requirements requirements to apply for the real estate license:

be 18 years or older.
have a high school diploma or its equivalent
successfully completed the following required education:

60 hours of Real Estate Principles and Fundamentals
30 hours of Course for New Affiliates

ii) Receive completed "Pre-license Education Verification form" from real estate school.

iii) Register, Take and pass the Tennessee salesperson exam. The exam is 4 hours long, with 80 questions on the national portion and 40 questions on the state portion. There is a $55 exam fee. To pass, you'll need to answer at least 70% correctly for the national portion and 70% correctly for the state.

iv) Complete and submit application for real estate license to the Tennessee Real Estate Commission along with:

completed Tennessee Real Estate Salesperson License Application.
proof of successful completion of the pre-licensing course
proof of Errors and Omissions Insurance
application fee of $100 and fee for Education and Recovery Fund of $30

2) License Renewal and Continuing Education Requirements

All Tennessee real estate licenses expire on December 31 of every even numbered year (2006, 28008, etc.).

To continue practicing as a real estate agent in Tennessee, license renewal fees and continuing education must be completed by November 01 every even numbered year.

The continuing education requirement is 16 hours including 4 hours of core course. There is a renewal fee of $80.

3) What is a REALTOR®?

A real estate agent is a REALTOR® when he or she pays an annual fee to be a member of the National Association of REALTORS® and subscribe to its Code of Ethics.

The agent generally join through the local board or association.

For example, in Nashville, TN once you have obtain your real estate license, you may pay a fee to join the GREATER NASHVILLE ASSOCIATION OF REALTORS®.

Joining these local boards makes you a member of the Tennessee Association of REALTORS® and the National Association of REALTORS®.

All REALTORS® are real estate agents but not all real estate agents are REALTORS®.

4) Income Potential
Real estate agents are generally paid based on a percentage of the sales price.

The seller may pay 4 to 7% of the sales price as the fee and that will usually be split 50/50 between the seller and buyer's broker.

In Nashville TN, the March 2005 median home price is approximately $152,000. Assume that the fee is 6%, the buyer's and seller's broker is each paid 3% or $4560.

This fee is then split further between the broker and agent. Generally, for starting agents, the split is 50/50.

So in this case, the agent will end up receiving $2280 for the transaction.

There is no limit as to how much an agent can make in a year - the sky's the limit.

Based on Nashville's median home price and the above example, a real estate agent in Tennessee can make about $22,800/year by selling 10 houses a year.

By selling one house per week, the real estate agent in Tennessee will have a salary of $118,560.

5) Real Estate Schools

The first step to becoming a real estate agent in Tennessee is to take the required classes at an approved real estate school.

School status may change so it is best to call the Tennessee Real Estate Commission at 615.741.2273 prior to signing up for a class.

Below are real estate schools in Tennessee that are currently approved by the Tennessee Real Estate Commission.

Real Estate Schools in Nashville, TN:

NASHVILLE SCHOOL OF REAL ESTATE

1719 WEST END AVENUE, SUITE 304 EAST

NASHVILLE, TN 37203

615-329-1366

CONTINUAL LEARNING INSTITUTE

2002 RICHARD JONES R

SUITE C-305

NASHVILLE, TN 37215

615-297-1800

GREATER NASHVILLE ASSOC. OF REALTORS, IN

4540 TROUSDALE DRIVE

NASHVILLE, TN 37204

615-254-7516

Real Estate Schools in Memphis, TN:

BOUDER, RAY SCHOOLS OF REAL ESTATE

3119 S. MENDENHALL, SUITE B

MEMPHIS, TN 38115

901-362-3222

SOUTHWEST TN COMM COLLEGE

5983 MACON COVE

CONTINUING EDUCATION

MEMPHIS, TN 38134

901-333-4563

SUCCESS REAL ESTATE SCHOOL(MEMPHIS)

5681 MT. MORIAH ROAD

MEMPHIS, TN 38115

901-360-0854

MEMPHIS/WEST TENN. PROFESSIONAL SCHOOL

6041 MT. MORIAH RD., EXTENDED

MEMPHIS, TN 38115

901-366-1536

Real Estate Schools in Knoxville, TN:

PROFESSIONAL SCHOOL OF REAL ESTATE

3105 ALCOA HIGHWAY "A"

KNOXVILLE, TN 37920

865-609-1222

TENNESSEE REAL ESTATE & COMPUTER SCHOOL

7565 S NORTHSHORE DR

KNOXVILLE, TN 37919-8002

865-693-4992

Also check out information on how to become a real estate appraiser in Tennessee