How to become a part of California’s booming real estate market
California has been one of the world’s hottest real estate markets for decades but it still offers lucrative opportunities for agents and brokers.
The Bureau of Labor Statistics in the U.S. has reported that real estate agents in CA easily make $120K in a year and the top 10 percentile can earn as much as $180K.
As a real estate agent, you will get the opportunity to meet and prospect clients, understand their requirements and suggest suitable property options to meet their needs.
Due to high demand for residential and commercial real estate, California is booming with opportunities for real estate professionals.
On top of it, the strong job market, world-class quality of living and a pleasant climate also makes California one of the most attractive real estate markets in the country.
Every year, thousands of individuals dream of making it big in California’s strong real estate landscape and if you are one of them, now is a good time to start preparing.
Despite the low barrier of entry and a relatively easy career path, becoming a real estate agent requires careful planning, disciplined efforts and a rigorous approach.
Most importantly, if you wish to work with clients and help them buy and sell properties, you must obtain a California real estate license which is a mandatory requirement.
Since California’s real estate market is highly competitive, you will need more than just hope and luck to make it big.
To build a thriving career, be it on a part-time or full-time basis, you must prepare yourself by getting the required knowledge and training to be of value to your clients.
Now before you get overwhelmed by all the licensing requirements and tasks, here’s a fact - if you prepare for getting a license with a step-by-step approach, it is not too complicated.
To help you get started on your licensing journey, we have put together this in-depth guide which covers all the steps you need to become licensed.
From basic eligibility criteria to California specific educational requirements and beyond, you will learn about all the key aspects on how to start your career in real estate.
Understanding the role of a real estate agent
Before you embark on a rewarding and fulfilling career journey in CA real estate, it is important to understand the common duties and responsibilities you will perform.
Real estate agents are licensed professionals who work with buyers and sellers to help them in real estate transactions.
Your core job responsibility is to help your clients navigate the journey of buying and selling properties in a fair, transparent and profitable way.
Although your exact job duties might vary depending on your employer or brokerage, here is a list of the most common tasks and responsibilities you will perform:
As a real estate agent, you will be expected to perform a range of duties as part of your job.
- Responding to leads and queries via texts, emails or meetings
- Following up with prospects and clients and offering your services
- Meeting with clients to understand and discuss their needs and requirements
- Helping clients buy, sell and lease properties in the state
- Working with buyers to find suitable properties to meet their needs
- Working with sellers to help find suitable buyers
- Showing properties and conducting site visits for clients
- Reviewing real estate contracts with buyers and sellers
- Promoting and advertising property listings through ads and classifieds
- Preparing deeds, contracts, rental agreements and paperwork for transactions
- Liaising with home inspectors, brokers and appraisers to provide property evaluation
- Maintaining regulatory compliance in accordance with the state and federal laws
- Providing consultation to clients and helping them make informed decisions
- Managing property databases, listing details, deal records and other information
Since you will be expected to juggle an array of administrative, marketing, customer service and operational tasks, it is important to obtain the required training and knowledge.
Most importantly, it is mandatory that you apply and obtain a real estate license in CA to ensure that you are representing the best interests of your clients in a legal and lawful way.
In the coming sections, we are going to discuss in detail what it takes to obtain a license and
start your career in CA real estate.
How long does it take to become a licensed real estate agent
Before committing to the journey of getting a license, it is important to understand how long it will take to achieve your goal.
Generally, it takes most people a few weeks to 60 days to complete all the steps involved in becoming licensed.
However, you must keep in consideration the fact that if you are unable to clear the mandatory steps, such as, passing the licensing exam, in your first attempt, the time required to obtain a license will increase.
If you are preparing for a career, it is advisable that you take the guidance of professional teachers and instructors who can help you in planning your licensing journey.
For most students, especially those who are giving it their first attempt, the process of getting licensed might seem daunting, but with proper planning, it is pretty straightforward.
The key is to remain committed to your goal and stay disciplined in your pursuit of working as a licensed real estate agent in CA.
Qualifying requirement for a real estate agent license
Like most professions, real estate is also governed by a set of state and federal laws along with regulatory guidelines for individuals and firms working in the industry.
To work with clients, represent their interests and earn commissions, every individual must meet a set of basic statutory requirements to prove their eligibility. These are as follows:
- Be at least 18 years of age or older
- Be a legal resident of the state of California or a lawfully residing alien
- Have a high school diploma or GED equivalent in education
- Have a good moral conduct without any history of felony or criminal activity
Only if you meet the above qualifying requirements, you should invest time and effort in applying for a salesperson license.
You can undergo a fitness determination test to prove your eligibility and ensure that you will be allowed to obtain a CA license.
Educational requirements for getting a real estate agent license
Whether you want to work part-time or build a full-time career in real estate, it is essential to complete the minimum level of qualifying education to start your career.
Like most states, California also requires aspiring real estate agents to complete pre-license education and equip themselves with the industry principles, laws and regulations.
As per the Department of Real Estate in California, you must complete 135 hours of state approved pre-licensing education to qualify for a license.
The purpose of pre license education is to learn about fundamental topics and courses which will prepare you for working with clients in a professional way.
Here are some of the mandatory courses which you will cover during your pre license education and training in California:
- Real Estate Principles
- Real Estate Practice
- Property Management
- Business Law
- Real Estate Finance
- Promulgated Contract Forms
- Real Estate Office Administration
- Real Estate Accounting
Note that you have the freedom to decide whether you want to complete your education by attending an in-person college or enroll in an online real estate pre licensing course in CA.
Generally, most students prefer the convenience and practicality of online classes as they can be completed from anywhere at your own schedule.
Passing the California Real Estate Licensing Exam
Once you have successfully completed the California real estate course and obtained a certificate of completion, the next step is to take the sales agent licensing exam.
According to the DRE in California, passing the licensing exam is a mandatory requirement to prove your eligibility and obtain a license.
You can schedule your test online by visiting the California DRE website and choosing a preferred location for taking the test.
The test consists of multiple choice questions covering both state and national specific components. To pass the test you must score at least 75 percent or above.
Note that you will have to pay a one-time examination fee of $100 to take the salesperson licensing exam in California.
Many first-time applicants often wonder about the difficulty of the state licensing exam and the fact is that the test is certainly challenging but it is manageable if you prepare well.
There are many real estate education providers which offer exam prep resources and study material to help students get familiar with the type of questions covered in the test.
To boost your preparation, you can make use of sample questions and mock tests which will help you understand the exam structure and format while managing the limited time.
Once you pass the licensing exam, you can proceed to the next step in your licensing journey which requires clearing background verification.
Background verification and criminal history check for agents
Now that you have completed your education and passed the licensing exam, you are just a few steps away from getting your real estate license in California.
One of the most important licensing requirements is clearing federal criminal history and background verification checks.
The California law requires only lawful individuals with good moral conduct and no history of felony to work with clients.
To complete this step, you must get your fingerprints scanned at any of the live scan vendor locations approved by the California Department of Real Estate.
Next, you need to submit an electronic scan of your fingerprints along with additional verification documents to the department for review and approval.
Note that you will have to pay a one time fee of $49 for getting your fingerprints verified and approved.
Once your background verification is completed and your application is approved, you will receive your license within a few weeks.
Find employer sponsorship
Congratulations on receiving your California salesperson license after doing all the hard work and showing commitment to your career.
However, there is one more step you must complete to activate your license and start working with clients.
The California law requires every newly licensed professional to find a sponsoring broker or a brokerage firm licensed in the state.
It is mandatory that you work under the supervision of a senior, more experienced broker who can provide you real-world experience and practical knowledge.
The best part is that there are more than 100,000 licensed brokers in California and you can easily find a suitable one who will be willing to sponsor you as an employee.
Once you have found a sponsoring broker, you must submit your employer sponsorship details to the California DRE for activating your salesperson license.