Becoming a real estate agent in California is easier than you think
A career in real estate is like a dream come true for any ambitious, dedicated, and sincere individual who wants to be their own boss and define their own rules for success.
If you are someone who wants to take control of your professional destiny and pave your own path to a thriving career, then working in real estate might just be the right fit for you.
The real estate world works on the power of relationships and trust and it is the engine that drives forward the dreams of millions of homebuyers and property investors.
Many people want to work in real estate due to the sheer number of opportunities to make money and earn commissions.
Be it part-time or full-time, one of the greatest advantages of working as a real estate agent is that you can make a six-figure income without having any limit to your earning potential.
This means the more clients you work with and the more deals you close, the more money you can take home for yourself.
Imagine earning a 5 to 6 percent commission on selling an average California single-family home of around $800K worth.
Sounds too good to be true, right? It is certainly possible in a booming and popular real estate market like California.
In California, you can start a real estate career without having any specialized education or an advanced bachelor’s degree.
All you need is a high school diploma and the will to put in the effort to complete state-specific pre-licensing education and you will be on your way to earning your California real estate license.
Ready to live the dream and ride the waves of success in California real estate? We are here to help you navigate the journey of becoming a licensed professional with confidence.
Whether you are a complete beginner taking your first steps into a professional world or someone who is looking to switch careers, this detailed guide will cover all the key aspects of earning your CA salesperson license.
The role of a real estate agent
Before we dive deeper into how to apply for and obtain a real estate license in CA, it is important to take a step back and understand what exactly the job requires you to do.
To start a successful career and build a long-term professional journey, it is important that you learn about the duties and responsibilities of a real estate agent.
Put simply, real estate agents are licensed professionals who work with consumers or clients and help them in navigating through the stages of buying or selling a property.
Agents are sought after by clients who want to get assistance and guidance in closing a deal and getting the best value for their money.
Real estate agents (also known as salespersons) can choose to work in residential, commercial, luxury, or any other industry niche.
As a real estate agent in California, your job will revolve around helping individuals buy or sell real estate and guiding them as a seller or as a buyer’s agent.
When the deal is closed, you will earn your commission which is generally between five to six percent of a property’s final selling price.
This means if a California home worth $500K is sold, you will earn around $15K in commission. It is important to note that you will have to split the commission with your brokerage or agency.
It is no surprise that working in California real estate can be a lucrative career path, however, you must be prepared to tackle a wide range of tasks as part of the job.
Real estate agents juggle multiple responsibilities and there is never a dull moment in the day in the life of an agent. Listed below are some of the common job duties of an agent.
- Responding to potential and existing client inquiries via text, phone calls, or emails
- Following up with leads and enquiring about their needs and requirements
- Educating clients about state and federal laws, regulations, and consumer rights
- Working with sellers to list their properties on local classified sites, online platforms, and other listing databases
- Working with buyers to discover suitable properties for their budget and needs
- Represent the best interests of buyers and sellers in the matters of a real estate deal
- Work with property appraisers, home inspectors, brokers, loan officers, and underwriters to facilitate a transaction
- Maintain the database of client interactions, transactions, and other important details
- Conduct market research and stay updated about the latest trends, developments, and industry changes
- Give detailed information to potential clients about a property and its location, value, fixtures, features, and amenities
- Present and review purchase contracts on behalf of buyers and sellers
- Attend events, seminars, and networking meetups to promote your brokerage firm
- Promote properties for sale or purchase via listings, ads, and classifieds
In addition to the above, real estate agents are expected to support the work and activities of their employers.
Your job will cover aspects of administrative, marketing, and customer service-oriented tasks which might seem repetitive but are essential to your career growth.
Now that you have learned about what you are expected to do, the next step is to prepare for getting your real estate license in California which we are going to discuss in detail next.
California licensing requirements for agents
Like many professions, real estate also has its share of laws, regulations, and guidelines for aspiring and experienced professionals.
By definition, a real estate agent is a licensed professional who has completed the minimum level of training and education to work with clients and help them in a financial transaction.
In California, you are required to complete a set of requirements and prove your eligibility to obtain a salesperson license.
To do so, you must complete a series of steps and meet the qualifying requirements established by the California DRE (Department of Real Estate).
Here’s a checklist of all the basic requirements as established by the California Department of Real Estate (DRE):
- Be at least 18 years of age or older.
- Be a legal resident of the state of California.
- Have a high school diploma in education or GED equivalent
- Be honest, ethical, and truthful, and meet the minimum ethical standards
If you meet the basic statutory requirements, you can move on to the next set of licensing requirements.
In California, it is mandatory to complete 135 hours of pre-licensing coursework from a state-approved college or course provider.
Completing pre-licensing education is essential for your career as it will guide you about the key topics and courses related to the real estate industry.
Listed below are some of the core courses you will complete during your pre-licensing education credits:
- Principles of Real Estate
- Real Estate Finance
- Law of Contracts
- Law of Agency
- Promulgated Contract Forms
These courses will provide you with the fundamental knowledge of working as a real estate agent.
During your pre-licensing education, you will also learn about the various state and federal laws along with the best practices and guidelines for industry professionals.
Plus, the knowledge and training will also prepare you for the salesperson licensing exam which is going to be the next step in completing the California real estate license requirements.
Note that you are free to complete your coursework online or virtually too as it offers more flexibility and practicality for many aspirants.
However, note that you must only choose a state-approved education provider for your pre-licensing course to ensure that you are learning from updated, accurate, and verified instructors and curriculua.
Once you obtain a certificate of completion of education, the next requirement is to pass the criminal history and background verification check.
The state of California requires all applicants to undergo a federal criminal background check to prove they hold good moral character and have no history of felony or unlawful activity against their name.
To complete this step, you must submit an electronic scan of your fingerprints along with your licensing application to the California DRE for review and approval.
You can schedule an appointment to get your fingerprints taken at any of the state-approved live scan vendors as per your preferred date and time.
After your application is approved, you will be eligible to take the salesperson licensing exam in CA which is a crucial step in your licensing journey.
Passing the California Real Estate Exam
For many students and applicants, passing the exam seems like an uphill battle that they are not sure of winning.
To become a licensed real estate agent in CA, you must take and pass the state licensing exam by scoring at least 75 percent or above.
While it is understandable that an exam might stress you out, especially if you are attempting it for the first time.
Here are some actionable and practical tips you can use to feel more confident and prepare better for the exam.
Tip 1: Understand the exam structure
Start by looking at the type of questions asked and get a good grasp of the exam’s format and the language you can choose to answer.
Next, you should learn about the exam topics and various sections and the languages supported in the exam.
Tip 2: Take Practice Exams
Practicing using mock tests and sample questions is a great way to equip yourself with an understanding of the type of questions you can expect to face.
This will boost your confidence and give you a sense of how well-prepared you are for the different topics.
It can give you an honest assessment of your exam readiness and prepare you for tackling multiple questions in a limited time frame.
Tip 3: Create a study schedule
Preparing for a real estate exam is time-consuming, especially as you will be learning about multiple courses and topics.
By allocating specific time slots for the different topics, you can manage your coursework better and work on your weaknesses.
Having a set schedule and a learning plan will help you be more consistent with your exam preparation and ensure you are managing your time properly.