How To Get Your Real Estate License In CA - A Complete Overview
Are you an aspiring real estate agent in California? Do you want to know how to obtain real estate license in CA? This post is your one-stop guide to reaching your goal and launching a very rewarding career in the state.
You will also get an idea of the real estate market to estimate whether it is worth your time and effort to be in this profession in CA.
So, let us get started on the projections of the real estate market and how to get your real estate license in CA.
State Of The California Real Estate Market
The California real estate market is on an upturn at present. Data from the California Association of Realtors (C.A.R.) projects home sales to increase by 10.5%.
The median home prices are also expected to go up by 4.6% as compared to 2024. What makes the market additionally attractive is that mortgage rates are expected to dip, though marginally.
What does it mean for those curious about how to obtain real estate license in CA? The equation is quite simple. With inventory increasing and more homes in the market, buyers will take a plunge to get their dream homes at competitive rates.
Further, a drop in mortgage rates will make home loans attractive. On the other hand, with median home prices rising, it is the ideal time for sellers to offload their properties.
Hence, the real estate market in California is equally poised as a seller’s and buyer’s market. If you now go through the process of how to get your real estate license in CA and enter this field, it will be a win-win situation for you.
The Benefits of Becoming A Real Estate Agent in CA
We have seen that it is beneficial to get a real estate license in California, going by market trends. Let us now evaluate what getting a real estate license in CA means for your earnings and lifestyle.
Earnings of real estate agents
The earnings of real estate agents are commission-based; they do not earn fixed salaries like most jobs. The commission is typically 6% of the sale price of a property, divided between the seller’s and the buyer’s agents.
Now, considering that the median home price in California is $784,840, a sale at 3% commission (for each agent) will fetch you around $24,000. Closing around four to five deals per year will get you past the six-figure mark.
This is an earning level that is not common in other careers. A newly-licensed real estate agent in CA earns about $114,000 per year, with top earners bringing home above $200,000 a year.
However, the amount varies as per cities, with Santa Ana, CA leading the pack with $141,986 per year, followed by Sacramento, CA at $136,826 per year. This makes it worthwhile to learn more about how to get your real estate license in CA.
Lifestyle Paybacks
Imagine a scenario where you are your own boss in your profession and get to decide when and where to work. You can schedule your work times around your lifestyle, availing the opportunity to spend quality time with family and friends whenever you want to. This is what you get after going through the steps on how to become real estate agent in CA.
There is a flip side, though, to this arrangement, but they are few and far between. You might have to work on holidays and weekends to comply with clients’ requests for showings as per their convenience.
However, remember the amount you get when you close a deal, regardless of the day that you are working on.
These benefits should push you towards how to obtain real estate license in CA.
How To Get Your Real Estate License In CA
Before getting to the stage where you start the process of getting a license, some preliminary eligibility norms must be fulfilled.
- Ensure that you are at least 18 years old, a cut-off age on the date you apply for a license. This does not stop you from completing other requirements, like going through the pre-licensing coursework before reaching 18 years.
- You must be a citizen of the USA with a Social Security Number. Non-citizens, like legally-admitted aliens, can also apply for a license if the authorities have granted them working rights in the country.
- The minimum educational requirement to obtaining a real estate license in CA is a high school diploma. An equivalent, such as a GED, will also do.
With the basics out of the way, let us now get into the details of how to become real estate agent in CA.
Step 1: Completing the pre-licensing coursework
This is a crucial step in your journey to how to get your real estate license in CA. It is mandated by the California Department of Real Estate (DRE), the controlling body for the real estate industry in California.
DRE decides the curriculum of the pre-licensing course and issues and renews real estate licenses in CA. As per DRE directives, you must have a license to deal in real estate on behalf of others for a commission.
The purpose of the coursework is to impart adequate knowledge about the complex rules and regulations governing the real estate sector. This is important if you are to provide error-free services to your clients in the future.
This profession stands on complex rules and regulations, and every deal involves massive amounts of money. Without a thorough understanding of the subject, you might make mistakes, leading to severe legal and financial implications for both you and your clients.
The pre-licensing course consists of two parts. One is the national section with subjects that cover the real estate industry in general and are valid in all the states in the USA.
The other is the state section that deals with the rules and regulations specific to California only. Both parts must be thoroughly mastered to pass the real estate licensing exam.
The course is 135 hours in duration, split into three modules of 45 hours each. They are as follows:
- Principles of Real Estate (45 hours)
- Practice of Real Estate (45 hours)
- One Elective Subject (45 hours)
You may select the third from a subject you are strong in from the following:
- Real Estate Finance
- Real Estate Appraisal
- Legal Aspects of Real Estate
- Real Estate Economics
- Real Estate Investments
For top-of-the-line DRE-approved and online study materials, check out the pre-licensing course provider RealEstateU. All their packages are designed by leading real estate professionals, and hence, you are assured of high-quality study materials. Comparatively, these courses are the lowest-priced in this niche.
Select a top pre-licensing course
There are several pre-licensing courses in the market, but making the right choice will help you pass the licensing exam on the first try. Here are some tips on how to go about it.
First, select a package that has mock tests and practice questions. These are costlier than basic packages but will help you prepare better and, therefore, are worth the extra investment.
The benefit of mock tests is that they have practice questions that replicate what you will get in the licensing exam. This helps you to prepare better for the exam as you are aware of the form and structure of the test.
Next, select a course that is approved by DRE. Study materials of any other course provider do not count towards completing the 135 hours of pre-licensing education. Visit the DRE portal to check the list of approved courses before investing in one of them.
Finally, choose between an online course and a classroom-based one. While the choice depends entirely on your preferred learning style, consider online courses as they have an edge over physical schools. Let us analyze the reasons why.
You need to commute regularly to real estate schools for physical courses. This requires substantial investment of time and money. Online courses, on the other hand, can be downloaded onto any Internet-enabled device and studied from any location and at any time. Online courses are, therefore, more flexible and convenient.
Step 2: Background check
This is a very important step in how to get your real estate license in CA. Real estate agents must have a clean background without a criminal past or a record of a felony. Checking fingerprints is one way of background verification.
Submit your fingerprints through a live scan at a designated center. The Department of Justice (DOJ) will go through your records based on the fingerprint check and submit a report to DRE.
In case of an adverse report, even if convictions have been dismissed or expunged, DRE reserves the right to halt your path to how to become real estate agent in CA.
Step 3: Schedule a licensing exam
Schedule a licensing exam on the DRE portal by going through the following steps.
Visit the DRE portal, create an e-licensing account, and apply for the licensing exam. Pay the required exam fee and upload documents of having completed the licensing exam and the fingerprint clearance certificate.
After approval of your application, visit the DRE portal again to select a test center and date. Currently, the exam centers are in Fresno, San Diego, Los Angeles Vicinity, Oakland, and Sacramento.
Print the exam approval notice and take it to the exam center. The test is held online, even though you must physically visit the center.
Step 4: Clear the licensing exam
On the scheduled date and time, visit the test center and appear for the licensing exam. The 150 multiple-choice questions must be completed in 3 hours, with the passing grade being 70%.
Since the exam is held online, the results in pass/fail grades are announced soon after completion of the test. Official confirmation from DRE is sent within 2 to 3 weeks of passing the test.
Step 5: Apply for a real estate license
Visit the DRE portal and apply for a real estate license. Upload all documents, including one related to passing the licensing test. A provisional and inactive real estate license will now be issued to you.
Step 6: Get sponsorship from a licensed broker
This is the final step, mandated by DRE, in your quest for how to get your real estate license in CA. Find a licensed broker to sponsor you. As a newly-licensed real estate agent in California, you will need the infrastructure to set up your business and referrals to get clients initially. All these and more will be provided by the sponsoring broker.
Inform DRE of your employment status to get your provisional license activated and launch your career. The license will be issued in the name of your sponsoring broker.
This completes your project on how to become real estate agent in CA.
How Long To Get A Real Estate License In California
How long to get real estate license in CA depends entirely upon your pace of going through the pre-licensing coursework and completing other formalities.
Let us break it down for you.
The pre-licensing coursework of 135 hours can be completed anywhere between a few weeks and a few months. It is based on how much time you can spare for it in a day. Online courses can be completed faster as you can study at any time from any location.
Your license application will be processed by DRE within 6 to 8 weeks, depending on the accumulation of applications at any time. The live scan of your fingerprints is done in a few days. Based on these factors, it takes 15 weeks to a few months to complete how to get your real estate license in CA.
Go meticulously through the process of how to obtain real estate license in CA, and be on your way to a very successful and rewarding career.