How to build a successful career in California real estate

A career in real estate offers numerous promises and a myriad of growth opportunities, especially in a popular state like California.
Home to some of the hottest real estate markets, California continues to retain its spot as one of the most desirable and attractive places to live and invest in.
San Francisco, Bakersfield, Los Angeles, and Santa Maria are some of the many renowned locations where the demand for residential and commercial real estate continues to soar.
California offers a fertile landscape for aspiring and experienced real estate professionals who wish to earn a six-figure income while enjoying professional autonomy and freedom.
Due to the strong economy, world-class quality of living, bountiful natural parks, and attractions and a myriad of job opportunities, California is one of the most active markets.
The average median housing price of $750K has been growing steadily over the years at the same time, the number of homes sold also increased by a whopping 16% year-on-year.
If you are considering a career as a part-time or a full-time real estate agent, now is a good time to enter California’s real estate market and embark on a rewarding professional journey.
With unlimited earning potential and the ability to help clients achieve their goals, real estate agents can enjoy a fulfilling career path.
However, to achieve these dreams, you must first prove your ability by meeting state and federal requirements and obtaining a California real estate license.
Getting licensed is a mandatory requirement and an essential step in building a successful, thriving career in the industry.
If you are wondering how to go about applying for a license and what it takes to become a licensed real estate agent, this article will answer your queries in detail.
To help you take your first step towards a promising career, this beginner’s guide will get you going with confidence.
Why do you need a real estate license?
You might be wondering why you need a real estate license and how can i get my real estate license in California easily.
Like many regulated professions and industries, real estate also works on a set of state and federal laws that are established to protect the interests of consumers and professionals.
As a result of the various laws and regulatory guidelines, getting a license is a mandatory requirement to establish your credibility as a knowledgeable and skilled professional.
The California DRE is the state authority for issuing and renewing licenses to individuals and it is important that you follow all the steps and fulfill the licensing requirements completely.
As per the Department of Real Estate (DRE) in California, only licensed individuals are allowed to work with clients and earn commissions by participating in a real estate deal.
Since you will be dealing with finances and personal information of consumers and helping them make important decisions, it is mandatory to meet certain standards of training.
To achieve the qualifying standard, you need to complete mandatory education, pass the state licensing examination and clear federal background verification.
Having a license is valid proof that you are eligible and qualified to assist clients in real estate deals and transactions.
Without a license, you will not be legally permitted to partake in a real estate deal or earn commissions through a real estate transaction.
Most importantly, not having a valid and active license will discourage potential clients from working with you or taking your services.
Individuals without a license are also not preferred by employers and brokerages for job opportunities.
In simple words, if you have a valid state license, you will be able to get the most out of your career path and reap growth opportunities that an unlicensed individual would miss out on.
Now to start with, there are two types of real estate licenses you can apply for - first is the salesperson license which is the first step for getting into the industry.
Second is the broker’s license which you can apply for after gaining a couple of years of industry experience and completing advanced courses and education.
In the coming sections, we will give you a step-by-step process overview on how to get a California real estate license.
Understanding California’s attractive real estate landscape
Before you start the journey of getting licensed, it is important to understand why California continues to be a goldmine of opportunities for real estate agents and brokers.
Being a prime real estate market, California’s housing and residential real estate market is showing no signs of slowing down.
In fact, post-pandemic, the market has bounced back tremendously to achieve new highs of demand and interest from homebuyers and real estate investors.
According to market data, California boasts 40 percent of the top 10 hottest real estate markets in the country.
Markets in San Francisco, Fremont, Palo Alto, Dublin, Santa Clara, Bakersfield, Los Altos, Sunny Vale, San Jose, and San Francisco are amongst the most popular regions.
Are you wondering what makes California a real estate hotspot and why are real estate professionals optimistic about a bright future?
Firstly, the real estate market is benefiting from California’s strong economic outlook and booming employment opportunities.
The Golden Gate State is home to some of the world’s leading technology companies and organizations which attracts thousands of skilled professionals to the state.
Secondly, California offers a pleasant climate and abundance of natural parks, renowned landmarks and scenic views which make it a popular residential and vacation destination.
Another important factor behind California’s strong real estate prospects is the sheer vastness of land which makes it a good destination for property projects and investments.
Lastly, due to low mortgage rates, buying a new home in California is easier and more affordable for individuals who want to finance their purchase.
Due to the above reasons, homebuyers, skilled professionals and wealthy individuals continue to lap up every opportunity to buy and invest in real estate.
These trends indicate that the Golden Gate State will continue to experience higher property valuations and rising demand for real estate.
If you are ready to give your real estate career a glorious start, now could be a great time to enter the market and prepare yourself for the exciting future possibilities.
To get a head start, you need to start with getting your salesperson license. In the next sections, we will dive deeper into how to get your CA real estate license.
Steps for becoming a licensed real estate agent in California
Real estate agents are expected to understand the market inside out and provide a fair, transparent and professional service experience to their clients.
To become a successful real estate agent, you will have to gain the required knowledge, education, and industry experience.
However, your journey will start with completing the minimum qualifying criteria and fulfilling the state and federal licensing requirements. Let’s take a step-by-step look at them below.
Step 1: Meet the minimum eligibility requirements
As per the Department of Real Estate (DRE) in California, you must meet preliminary statutory requirements which are:
- Applicants must be at least 18 years or older in age
- Applicants must have legal proof of residence in California
- Applicants must have completed high school education or have a GED equivalent
Step 2: Complete pre-license education
Like many professions, real estate also requires professionals to complete a minimum level of education and training to become eligible to work with clients.
The California DRE has made it mandatory for every individual to complete 135 hours of pre license education from a state approved education provider.
Pre-license education is an umbrella term that refers to a set of courses and topics formulated to give students the knowledge of licensing laws, industry standards, and other fundamental subjects of their profession.
The 135 hours of pre-license course credits will be divided into three courses which are -
- Principles of Real Estate 1 (45 hours)
- Principles of Real Estate 2 (45 hours)
- Real Estate Practice (45 hours).
In case you are wondering, you will have the flexibility to choose between joining a physical, in-person classroom course or enrolling in an online pre-license class.
Many students often consider pre license education as a mere requirement to be ticked off a checklist, however, it is the foundation upon which a successful career is built.
Once you have successfully completed your course credits, you will receive a certificate of completion from your education provider.
Step 3: Pass the California salesperson license exam
The next important step in your licensing journey is passing the California salesperson licensing exam which is a test of your knowledge.
The licensing exam is an in-depth test consisting of both state and national-specific portions to test your understanding of real estate laws, principles, and regulations.
The licensing exam consists of 150 multiple-choice questions and you will get three hours to complete all the questions. To pass the test, you must score at least 75 percent or above.
Many students often wonder if passing the licensing test is difficult - the level of difficulty depends on your preparation and knowledge.
To boost your level of preparation, taking mock tests and practicing using sample questions is a proven technique.
Another important tip is to have a study schedule and manage your time effectively to ensure you are giving time to each course topic.
Step 4: Clear the federal criminal history check
California law requires that every individual aspiring to be a real estate professional must have a clean record with no history of felony or criminal activity.
It is mandatory for all applicants to pass the federal criminal history and background verification test to obtain a real estate license in CA.
To complete this step, you need to provide an electronic copy of your fingerprints for background verification and clearance.
Along with your fingerprint scan, you need to complete and submit your salesperson license application for approval.
After submitting all the above documents and proof of verification, you should wait for a few weeks to get your application reviewed.
Step 5: Find a sponsoring broker
If you complete all the steps above successfully, you will receive your salesperson license and you will be on your way to working as a licensed professional.
However, as a last step, you need to activate your license, and to do so, you need to submit your employer sponsorship details to the California DRE.
The California DRE requires licensed agents to work under the supervision of a senior, supervising broker licensed in the state.
Since California is home to thousands of licensed brokers, you can easily find a suitable one in your region or city.