Becoming a licensed California real estate professional is easier than you think!
California is the land of dreams and aspirations and it attracts thousands of skilled professionals and migrants seeking a better quality of life and stable jobs.
The Golden Gate state is home to a myriad of successful and world-class industries such as - technology, agriculture, entertainment, tourism among many others.
Real estate in California is amongst the most popular, stable, and flourishing industries which has attracted numerous professionals and individuals over the years.
The demand for housing and residential real estate has been growing steadily over the years which is depicted by the growing demand for homes and rising home prices.
If you are seeking a career where you can make a six-figure income while enjoying a flexible work-life balance and working independently, then working in real estate might be for you.
California’s real estate continues to attract homebuyers, skilled migrants, and real estate investors from across the country.
Boasting one of the largest housing markets in the country, California has managed to sustain the demand and thrive despite external factors and slowdowns.
With close to 40 million residents living in the state, there is always a need for expert professionals who can help Californians navigate through a real estate deal.
Due to the strong demand, the need for licensed real estate agents in CA is always high and this is why becoming one now can earn you higher commissions.
If you start now, it will take you a couple of months to get your California real estate license post and you will be ready to work with clients and help them buy and sell real estate.
Did you know that the top real estate companies make around $150K to $180K annually working in California’s flourishing real estate market?
If you are keen to explore the path of working as a part-time or a full-time real estate agent, this article will help you get started.
This article will walk you through all the key aspects of getting licensed - from the basic qualifications to state-specific educational requirements, you will learn about them all.
Benefits of becoming a licensed real estate agent in California
Before we dive deep into the process of how to get a California real estate license, it is important to discuss the numerous advantages and potential perks of this profession.
Since you are planning to embark on a new career journey, it will help to have a clear motivation on some of the notable benefits of working in the industry such as:
1. Higher-income potential:
California is home to some of the wealthiest and richest individuals and even the average population earns higher wages compared to many states.
Due to the soaring demand for real estate and sky-high property valuation, real estate agents in CA easily make a six-figure income and commissions.
Generally, highly attractive, and sought-after real estate markets like California are known for offering lucrative earnings and handsome commissions to agents.
Imagine helping a client sell a Californian home worth $2 million and you can walk away with making around $50K in commission on just one deal!
The best part about working as a real estate agent is that there is no limit to how much you can earn - the more deals you close, the more money you make.
Since state and federal law allow only licensed professionals to participate in a real estate transaction, getting a license is literally your way to financial freedom.
2. Opportunities for professional growth:
If you are someone with an entrepreneurial spirit and want to be your own boss, then starting a career as a real estate agent can open many possibilities for you.
Real estate is a dynamic, well-connected industry which consists of many different professionals, roles, career paths, businesses, and job functions.
As a licensed real estate agent, you can get access to networking events, exclusive communities, members-only groups and so much more.
You will meet numerous professionals, industry experts, buyers, sellers, peers, and business owners and you can leverage your network to expand your business, grow your clientele, and even enhance your skills.
3. Emotional satisfaction and fulfillment:
For most people, buying and selling a property is one of the most important and emotional decisions that will shape their lives.
Be it a single-family home or a luxurious villa, a high value purchase like a home or an apartment requires careful planning, consideration, and investment.
As a real estate agent, you will be the go-to-person for helping people make important decisions and choices throughout the journey of a real estate deal.
If you are someone who likes to help people and wants to guide them in making important financial and personal decisions, you can do that as a real estate agent. \
To sum it up, working in CA real estate is like having access to a golden ticket for your career which will allow you to make the most of your professional life.
With enough hard work, sincerity, and experience, you can create diverse opportunities for earnings and commissions whilst gaining emotional satisfaction and professional fulfillment.
To start with, you should apply for a salesperson license in California which is the first step towards working in the industry as a licensed professional.
As you gain experience and build a clientele, you can complete additional requirements to obtain a California broker license.
Next, let us walk you through the step-by-step process of how to get a California real estate license easily and smoothly.
Pre-requisites for obtaining a real estate license in California
The California Department of Real Estate (DRE) requires every individual to meet minimum criteria to become eligible for a career in real estate.
To qualify for a real estate license, you must meet the basic statutory requirements:
- You must be at least 18 years of age or older
- You must have legal residency proof in the state of California
- You must have a high school diploma in education or a GED equivalent
If you meet the basic eligibility criteria, you can proceed to complete the next steps to obtain a license and start your career.
Note that the DRE in California also requires that every applicant must have a clean background to pass the minimum standards of honesty, integrity, and truthfulness.
Next comes the pre-license education and training requirements according to which you must complete a minimum of 135 hours of state-approved course credits.
Like most states, California also requires applicants to obtain a minimum level of qualifying education to become eligible for working in the real estate industry.
Pre license education is a term which covers all the essential and crucial courses and topics which you must complete to gain an understanding of the fundamental principles of your profession.
Along with the key principles of your industry, you will cover some fundamental courses that will equip you with the knowledge of various state and federal laws as well.
Additionally, your coursework will also cover key topics such as - property types, real estate finance, property appraisal, laws of agency, fair practices, consumer rights among others.
To work with clients and help them in the best way possible, it is important that you take pre licensing education seriously and invest the required time and effort in completing it.
Students are free to choose between joining a classroom-based, physical learning or enrolling in an online, self-paced real estate course.
Many individuals prefer learning via online classes as they are more flexible and convenient, especially if you are a working professional or a busy individual who wants to switch careers.
Note that it is mandatory that you choose a state-approved real estate education provider to complete your pre-license education.
Lastly, you need to complete background verification and federal criminal history checks to meet the minimum standards for honesty, integrity, and truthfulness.
To do so, you must submit an electronic scan of your fingerprints to the California DRE for review and approval.
Once your background has been verified, you can submit your salesperson licensing application and move to the next step.
Passing the California licensing test
One of the most important and crucial requirements for getting a real estate license in California is passing the state licensing test.
The DRE in California requires all individuals to take the salesperson licensing test at any of the state approved examination centers.
In California, you can take the test at any one of the following locations or regions:
- Sacramento
- Oakland
- Los Angeles
- Fresno
- San Diego
The purpose of the exam is to test your knowledge and training in real estate laws, principles, and various fundamental topics.
The test consists of 150 multiple choice type questions, both state and national specific portions and you will have to complete the test in a duration of 3 hours.
To pass the test, you must score at least 75 percent or above and if you are unable to clear the test on one attempt, you can take another attempt after 24 hours.
If you are wondering, the licensing test is considered as moderately difficult by many students, especially if you are attempting it for the first time.
However, if you practice well and are familiar with the type of questions asked in the exam, you should not find it too challenging.
Many real estate colleges and schools provide exam test prep resources and learning modules to help students prepare better for the test.
From simulated exams and study groups to mock questions and video-based lectures, you can make use of practical exam prep resources to boost your confidence.
Taking practice tests and attempting sample questions can help you gain a real-world understanding of the type of questions asked in the test.
Most importantly, study tools and resources can help you get comfortable with managing your time and ensuring that you can attempt the maximum number of questions.
Finding Employer Sponsorship
You might be wondering what happens after you pass the California licensing test for real estate agents - the answer is that you will receive your salesperson license.
However, to start working with clients and participate in real estate deals, you must first activate your real estate license.
The California law requires every newly licensed professional to find employer sponsorship and submit the details of a state licensed sponsoring broker or a brokerage firm.
It is mandatory that you learn the workings of your profession and understand your job duties and responsibilities under the guidance and supervision of an experienced broker.
Since California has thousands of licensed brokers and firms across the state, you can easily find the one most suitable for your professional goals and needs.