How to kickstart your real estate career in California
California’s housing market continues to post steady demand and strong interest from homebuyers and real estate investors.
The Golden Gate State is home to some of the most popular and hottest real estate markets in the country such as San Francisco, Sacramento, San Antonio, and San Jose among others.
Despite an average selling price of a single-family home of around $750K, the real estate demand for residential housing continues to grow.
According to property listing and sales data, the average property value of a home increased by an impressive 5 percent making it a great market for sellers.
In California, the number of homes sold also grew by 3.5 percent compared to the previous year, indicating the housing market is still popular.
If you are an aspiring agent or a broker and want to make the most of the real estate rush in the Golden Gate State, now is a great time to kickstart your career.
Working in California real estate is an exciting and rewarding profession where you can build a thriving career.
Not only can it help you earn a six-figure salary and amazing commissions but it can also provide you the job satisfaction of helping people achieve their dreams.
In fact, many professionals find the flexibility and opportunities for professional and personal growth second to none.
As a real estate salesperson or broker, you will not find yourself trapped in a conventional nine-to-five job as there is never a dull day in this career.
From meeting interesting clients and potential customers to closing deals and networking at events, there’s a lot to experience in this profession.
The best part is you can literally earn as much as you want because there is no upper cap on how much you can make as an agent or a broker.
Did you know that a skilled real estate salesperson in California can make as much as $170K annually along with thousands of dollars in commissions?
If you are excited to start your career in California real estate, you have come to the right place.
In this in-depth guide, we have put together everything you need to know about how to get a California real estate license.
For many individuals, starting a new career might seem like a huge challenge or a daunting task, but with proper education, guidance, and clarity, it is an achievable dream.
To help you get started, we have covered all the key aspects of working in California real estate - from qualifying education and important skills to licensing and beyond, this article will set you on the right foot.
California Real Estate Landscape
California’s real estate industry continued to flourish and create exciting opportunities for salespersons, brokers, and realtors.
Cities like Palo Alto, Santa Clara, Fremont, Bakersfield, Los Altos, Sunny Vale, Dublin, San Jose, and San Francisco are showing steady demand for residential and commercial real estate.
The housing market in California is benefiting from the strong economic outlook, growing job market, and high mortgage rates.
Since the last few years, several metropolitan cities and areas in California have regularly been making headlines due to their strong demand and promising growth forecasts.
While many other popular real estate markets in the country are witnessing a flattening, California’s real estate landscape is showing resilience.
Property listings and market data indicate that California is home to around 40 percent of the top 10 hottest real estate markets in the country.
As more buyers and investors are ready to lap into the state’s attractive benefits and unmatched amenities, the demand is projected to outperform other markets.
So, what exactly does this mean for real estate agents and brokers in California?
The bottom line is – that California real estate continues to attract homebuyers and investors making it a fertile landscape for aspiring and experienced real estate professionals.
With rising home prices, new housing inventory, and a growing number of home applications, California’s real estate is going to be busy and blooming in the years to come.
If you are keen to give your real estate career a flourishing start, now could be a great time to enter the market and start assisting clients in buying and selling real estate.
However, to take your first steps into the industry, you must first obtain a California real estate license which will allow you to legally offer your services to clients.
Let’s take a look at how you can become a licensed real estate salesperson in CA.
Pre-licensing eligibility requirements in California
Before you start preparing for getting your license, it is important to understand that California requires applicants to meet the basic eligibility requirements.
To become a licensed real estate salesperson, you must be at least 18 years of age or older. Plus, you must be a legal resident of the United States or a lawfully residing alien.
Another mandatory requirement is that all applicants must have a high school diploma or GED equivalent in education.
The California Department of Real Estate (DRE) also requires applicants to pass the minimum standards of honesty, integrity, and truthfulness.
The DRE requires that you have a clean background and no history of any criminal activity, felony, or convictions.
In case you have a history of any unlawful, illegal, or criminal acts against your name, it is important that you report the same to the DRE in California to avoid getting your application rejected.
Next on the list of eligibility requirements is completing the pre-licensing education to get a real estate license in CA.
Like most states, California requires applicants to complete mandatory qualifying education from a state-approved and accredited institution and prepare for the state licensing exam.
In California, you must complete 135 hours of pre-licensing education from an education provider approved by the California DRE.
The pre licensing education curriculum is designed to give students an understanding of the fundamental principles of working in the real estate industry.
Plus, the education exposes students to the state and federal laws and guidelines for real estate salespersons, brokers, and realtors.
The 135 hours of pre-licensing education will cover important courses such as:
- Principles of Real Estate: This covers the basic principles of working in the real estate industry and its underlying components, processes, and policies. You will also learn about the state and federal laws governing real estate professionals.
- Real Estate Practices: This covers the fundamental knowledge of real estate concepts and terminologies such as property management, contracts, escrow, types of property, appraisal, and real estate finance among others.
In addition to the mandatory courses, the curriculum will also include elective courses which you can pick based on your interest and prospects.
Note that you are free to join an in-person, physical classroom-based course or enroll in an online real estate course to complete your pre-licensing education.
As long as your education provider is recognized and their courses are accredited by the Department of Real Estate in California, you are good to go.
Generally, many students prefer enrolling in an online real estate school to complete their course credits from virtually any location and enjoy a more flexible schedule.
Depending on your learning preferences, budget, and schedule, you should make an informed decision on whether in-person or online classes will work better for you.
California Real Estate Licensing Exam
After completing the mandatory 135 hours of pre-licensing education, you will be eligible to apply for the California salesperson licensing exam.
The California DRE requires all applicants to take and clear the salesperson licensing exam to prove their competence and ability to work in the industry.
You can apply for the salesperson licensing exam and choose a preferred date and time to take the test.
In California, you can take the licensing exam at a Pearson VUE center in one of the following locations:
- Oakland
- Fresno
- Sacramento
- San Diego
- Los Angeles
The salesperson licensing exam consists of 150 multiple-choice questions covering both state and national-specific portions based on your pre-licensing course curriculum.
You will get a total of 3 hours to complete the test and tackle all the questions and you must score at least 70 percent or above to pass the test.
In case you are wondering - yes you can reappear for the exam if you are unable to clear it in one attempt. However, note that it will cost you a $60 fee for each attempt to take the salesperson licensing exam in California.
California Real Estate Salesperson Application
After completing the pre-licensing education and clearing the salesperson licensing exam, you will require just a couple of additional steps to earn your licensure.
Now that the hard part of the licensing journey is behind you, you need to complete your real estate salesperson licensing application and submit it to the DRE in California.
Firstly, you need to submit proof of completion of your 135 hours of course credits along with a certificate of passing the licensing exam.
Additionally, you are required to submit an electronic copy of your fingerprints to complete a background check.
California law requires all applicants to complete mandatory background verification and criminal history checks to meet the standards of ethics and code of conduct set by the state and federal regulatory authorities.
It will cost you around $49 to get your electronic fingerprints at any of the state-approved live scan providers.
Note that if you are not a resident of California, you are required to submit a consent to service your application by processing your personal information.
Once you have successfully submitted your salesperson licensing application along with the required documents and background verification proofs, you only need to wait a few more days.
After the California DRE processes your application and approves the documents attached, you shall receive your CA salesperson license within a few weeks.
Finding a sponsoring brokerage
Congratulations on getting your real estate license in CA after completing all the required steps and doing the hard work.
Although you are now eligible to start working in the industry, there is one last step you must complete to start your career.
California law requires all newly licensed salespersons to find a sponsoring brokerage with an active license.
It is mandatory for you to find a supervising and more experienced broker who can guide you and supervise your activities early on in your career.
Sponsoring brokers help newly licensed agents learn the workings of the industry and navigate the ins and outs of the trade.
To build a thriving, long-term career, you must find a more experienced brokerage firm willing to sponsor you.
You can easily look for local brokers and firms in your area or seek sponsorship from more prominent and renowned names to get started.