How to kickstart a flourishing career in California real estate
For decades, the California real estate market has been a popular real estate hotspot due to its flourishing economy, pleasant climate, and quality of life.
The state is home to some of the world’s leading companies, large-scale industries, and multinational organizations particularly in technology, entertainment, and agriculture.
Due to the rising demand for residential and commercial real estate, California has continued to be a fertile opportunity ground for aspiring and experienced real estate professionals.
Despite higher upfront costs and median home prices, the allure of the Golden Gate State continues to attract the interests and investment of homebuyers and wealthy individuals.
From sprawling urban metropolises like San Francisco and Los Angeles to more quaint and less busy regions like Central Valley, the real estate landscape is diverse and welcoming.
Be it the picturesque natural beaches and mountains or the close proximity to leading companies and global businesses, CA’s real estate market has its distinctive appeal.
For aspiring real estate professionals, California can be a great starting point to enter the industry and embark on a fulfilling and financially rewarding career path.
Did you know that the top real estate professionals in California can make anywhere between $150K to $180K while enjoying a flexible schedule and a stable work-life balance?
Even as a part-time real estate agent, you can earn around $25K to $40K annually without having to slog doing a conventional nine-to-five job.
Imagine earning a six-figure income while building a professional network that can allow you to be your own boss within a few years. Sounds like a professional dream come true?
To make this dream a reality, all you need is a California real estate license and you will be on your way to work with clients, close real estate deals, and earn
With more than 18,000 licensed real estate agents in CA, you need to prepare yourself for working in a competitive industry.
If you are curious to explore the possibility of working as a part-time or a full-time real estate professional in California, this article will help you get started with all the key aspects.
Understanding the allure of the California real estate market
With a median home price of $900K and above, California’s real estate market is one of the hottest and most lucrative housing markets in the country.
The Golden State has been witnessing strong demand and a surge in the number of homes sold year on year.
Thanks to the favorable location, pleasant weather, and strong economic outlook, California’s real estate market is witnessing high demand from homebuyers, investors, and realtors.
From major cities and metropolitan areas like San Francisco, San Jose, and the Bay Area to towns like Fresno, real estate in California is putting out promising growth numbers.
Markets estimates and industry reports project that California’s housing and commercial real estate markets are poised to grow in the coming years due to the following factors:
- Favorable Climate: Sunny California has become a popular state for skilled workers and homebuyers who are flocking to this state due to its pleasant climate. Colloquially known as the ‘Sunshine State’, freezing temperatures are rare and residents can enjoy Mediterranean-like warm weather.
- Attractive Lifestyle: California’s attractive vibe and unique lifestyle options make it a hot favorite destination for homebuyers and real estate investors. Beautiful beaches and picturesque natural views combined with outdoor adventure options and world-class shopping and restaurants are popular favorites.
- Strong Job Outlook: Employment opportunities are a crucial aspect for potential buyers and migrants and California is amongst the top markets in terms of job outlook and employment growth. California has added more than 500,000 new job openings due to the presence of numerous companies, enterprises, and startups.
In addition to the above, there are multiple factors adding to the appeal and charm of real estate in California.
If you are interested in earning good money as a part-time or full-time real estate agent, now is a good time to enter, especially as the median home prices are appreciating in value.
As a new agent, you can expect to earn anywhere between 2 to 3 percent commission on every deal you help close.
This means if you can sell a single-family home worth $900K, you can expect to take home anywhere between $20K to $25K in commission.
All you need to achieve this is a real estate license in CA and you will be set to work anywhere in the state without any restrictions or limitations.
Benefits of working as a real estate agent in California
A career in real estate is a professional dream for thousands, especially if you are someone who values independence and financial freedom and wants to be your own boss.
California’s strong and popular real estate market opens up numerous avenues for earnings and commission whilst allowing professionals to define their own working hours.
As a real estate agent, working in markets like Los Angeles, Nevada, San Diego, and San Francisco can be financially rewarding and emotionally fulfilling for you.
Before we discuss in detail what are the California real estate requirements, let us give you a brief overview of some of the amazing benefits of working in this dynamic industry.
1. High income potential
On average, a real estate agent with experience earns around $90K annually and in a popular market like California, the income potential can go as high as $150K.
Real estate offers lucrative earnings and commissions to anyone who is skilled, people-centric, and good at sales.
The best part is that you do not have any upper bound on how much you can earn as an agent - the more deals you close, the more money you can make.
The highest paying agents can make as much as $200K in a year in California real estate, thanks to the steady demand from homebuyers and real estate investors.
Even as an entry-level agent, you can expect to start with a good base pay of around $70K and as you gain experience, the amount you make goes higher.
Imagine earning $50K in commissions by helping your client sell their home worth $2 million dollars or more! That dream can be a reality in California real estate.
2. Networking opportunities:
A career in California real estate is an opportunity to expand your professional network and meet industry professionals.
There are numerous roles, functions, and departments in real estate and you will get the chance to liaise with fellow professionals such as - brokers, realtors, appraisers, and loan officers among others.
Since you will be dealing and meeting with other professionals, you can expect to exchange knowledge and ideas to grow your network and expand your horizons.
Whether you choose to work part-time or full-time, a career in real estate will enable you to join networking groups, exclusive communities, and members-only events.
Growing your professional network can help you unlock numerous business opportunities and open up new markets and clients.
3. Lower entry barrier:
Working in real estate and earning good money is a possibility thanks to the low entry barrier and easy- to-follow step-by-step process.
All you need is a real estate license and you will be legally able to choose your clients and help them buy and sell real estate.
To start your career in real estate, all you need is a high school diploma and minimum qualifying education to obtain a salesperson license.
As long as you are able to complete mandatory pre-licensing education and training, you will be ready to start working and will be able to advance in your career.
Imagine making $100K a year without having to spend years getting a college education - real estate makes it easier to start a professional career in California.
Now that you have learned about the pros of working as a real estate agent, let us walk you through the California real estate license requirements you need to complete.
Basic eligibility requirements for a real estate license in CA
Like most states, California also follows a pre-established set of state and federal laws governing the real estate industry and its professionals.
To work with clients and help consumers buy and sell real estate, you need to obtain a state-approved license in California first.
The Department of Real Estate (DRE) in California requires all individuals to meet certain statutory requirements to prove their eligibility for working as a real estate agent or broker.
If you want to obtain your license, you must first meet the basic eligibility criteria which are:
- You must be at least 18 years of age or older
- You must be a legal resident of the state of California
- You must have a high school diploma or GED equivalent
- You must not have any history of felony, criminal, or unlawful activity
If you meet the above requirements, you can proceed to move to the next steps and complete the required set of California real estate license requirements.
Step 1: Complete mandatory pre-licensing education
California DRE requires all applicants to obtain a minimum level of qualifying education to become eligible for working with clients.
To obtain a salesperson license in California, you must complete 135 hours of DRE-approved pre-licensing education and training.
The purpose of pre-licensing education is to equip you with the fundamental knowledge of real estate principles, practices, and various laws and regulations.
Additionally, education will also give you a strong foundation to learn about the industry and its working and the type of tasks you will be performing as an agent.
The good part is that you can choose whether you want to learn in an in-person, classroom environment or complete your pre-licensing education online in a self-paced way.
Generally, students prefer the flexibility and convenience of enrolling in online real estate prep courses as they can be completed from anywhere on any device.
Once you complete mandatory education and course credits, you will be eligible to take the salesperson licensing exam in California.
Step 2: Take the California salesperson licensing test
The DRE in California requires all applicants to take the salesperson licensing test and prove their knowledge and competence by attempting various multiple-choice questions.
Passing the licensing exam is mandatory to receive your license and to do so, you must score at least 75 percent or above in the test.
The exam consists of 150 multiple-choice questions and you will get 3 hours in total.
If you pass the test successfully, you can submit your salesperson licensing application to the California DRE for review and approval.
Note that you will be required to submit an electronic scan of your fingerprints along with your application as part of the mandatory criminal history and background verification.