Does it just mean that you can have a license in your home state, and a temporary license in another state? Or does it mean that you don't have to re-test or go to school if you move to a reciprocal state (that will license you)?

If one state has a reciprocity agreement with another state then all it means for instance is that if you have a license in Virginia and want to list or sell property in Maryland and Maryland has a reciprocity agreement in Virginia, then you often only need to send Maryland a fee for the license. You don't usually have to take a test in the other state. Not all states have such agreements.

I'm looking into this myself. I'm licensed in CA and am thinking of moving to GA in a year or two. It sounds like I just have to pay a fee, take a test, and then I'll have a license to practice in GA rather than go through hours of classes first.

The reciprocity works within states that have a mutual agreement as to state licensing and have similar real estate laws. I'm in FL. Their are approximately 17 states that have reciprocity with FL, mainly in the south, south east of the US. For example, California and GA. do not have reciprocity with each other. The laws in CA. are very different to GA's. The requirement for obtaining a license from a reciprocal state to FL is passing 40 question exam, the fees and you are legally licensed to practice real estate in that state. You didn't mention which state you are in so I don't know what the exact requirements might be for you. But, that's it in a nut shell for the south east.Good luck!