How to start your career in California real estate

Home to world-class cities like San Francisco, Los Angeles, and San Diego among others, California boasts some of the most popular real estate markets in the country.   

Thanks to a strong economy, booming job market, and a diverse natural landscape, California is one of the most sought-after locations in the country.

The Golden Gate State is home to Silicon Valley which is the home soil for some of the world’s largest and most innovative companies and organizations.

California is famous for its pleasant sunny weather and picturesque natural surroundings, offering an exciting mix of natural beauty and sprawling industrial charm, which continue to attract homebuyers and investors from across the country. 

Market data estimates that the median selling price of a California home has appreciated by 40% in value in the last five years.

Picture this - the median selling price of a California home is around $600K to $800K and the average commission rate in California is between 5 to 6 percent, you can easily make around $35 to $40K.

These statistics and trends point towards the fact that there are numerous growth opportunities in the residential and housing market for real estate agents and brokers. 

On top of it, California also boasts of a strong luxury housing market with properties selling for more than a million dollars to the ultra-rich and high-net-worth individuals. 

Do you wish to pursue a life-changing career where growth and income opportunities are abundant and achieving a work-life balance is easier?

If yes, then working in California real estate might just be the right career for you. The best part is that you do not need to complete any advanced education and invest many years. 

Whether you want to work part-time or full-time, all you need to get started is a California real estate license and you will be able to work with clients anywhere in the state.  

When it comes to building a successful career, it takes more than just a license - you need to understand the profession, and your responsibilities and learn about the laws and regulations. 

If you have set your sights on joining the California real estate market, we have put together this in-depth article which covers all the key aspects of getting licensed. 

Why pursue a career in California real estate

Before applying for a real estate license in CA and completing all the steps required in the licensing journey, it is important to take a step back and align your expectations. 

Many applicants and individuals often consider real estate as a get-rich-quick scheme or a shortcut to make easy money. 

However, in reality, it is as competitive as any other profession and requires you to put in the effort, hard work, and skills to succeed in the industry. 

With that said, working in California real estate certainly is an experience of a lifetime and can help you build a life of financial freedom and flexibility. 

Here are some key benefits why it is worth pursuing a profession in California real estate. 

• High income potential

One of the most important reasons that make real estate one of the most promising career paths is the high income potential it offers. 

Imagine earning a six-figure salary while helping people achieve their homeownership dreams. 

Imagine taking home $50K in commissions by helping sell a luxury California home worth $2 million dollars. 

Industry data and employment data estimate that you can make around $150K to $200K annually as a licensed and experienced real estate agent in California. 

The best part is that there is no limit to how much money you can make - the more deals you close, the higher your earnings. 

• Greater autonomy and independence

A career as a real estate agent in California can give you the opportunity to choose your clients, working schedule, and other terms. 

Real estate is a preferred profession for individuals who seek better work-life balance and the ability to be their own boss. 

It is up to you to choose how much and when you need to work to meet your financial and career goals. 

Independent agents have the freedom to establish their own working hours, find their clientele, and set their own targets and goals. 

Even if you are employed with a real estate agency or brokerage firm, you will have the flexibility to manage your work-life schedule and shape your career. 

Compared to a traditional, nine-to-five job, a career as a real estate agent gives you higher autonomy and a higher degree of independence.

• Networking opportunities

The real estate industry is a wide net of diverse professionals with unique skills and various job roles.

If you are someone who likes to work with people and expand your professional network, working in California real estate can help you unlock a plethora of networking opportunities. 

From agents and brokers to home appraisers and loan officers, you will meet and work alongside many professionals while helping your clients buy and sell real estate. 

Working in real estate can provide you with numerous opportunities to attend industry events, networking seminars, members-only communities and forge new connections. 

It is rightly said that your network is your net worth, especially in an industry like real estate where the bigger your network is, the more opportunities you can tap into. 

If you dream of becoming financially independent and building a successful professional life on your own terms, then working in California real estate can help you achieve your goal. 

Steps to become a licensed real estate agent in California

Like most states, California has its specific set of licensing requirements and eligibility criteria which must be fulfilled to earn a salesperson or broker’s license. 

The California Department of Real Estate (DRE) is the state’s regulatory and licensing authority which establishes the standards, guidelines, and laws for professionals. 

Wondering what it takes to obtain a real estate license in California and embark on an exciting and rewarding career? 

Let’s go through the steps and requirements you must fulfill to obtain your license.

Step 1: Meet the basic eligibility criteria

Before applying for a California real estate license, you must meet the basic eligibility criteria. 

According to the DRE in California, every applicant must fulfill the basic statutory requirements which are:

• You must be 18 years of age or older
• You must be a legal resident of the state of California or a lawfully residing alien
• You must have a high school degree or GED equivalent in education
• You should not have any history of felony or any criminal activity

If you are not sure whether you are completely eligible or not, you can take a fitness determination test before committing to completing the next set of licensing requirements. 

Step 2: Complete pre-licensing education

To qualify for the California real estate licensing exam, you must complete state-approved pre-licensing education. 

As part of the qualifying requirements, the Department of Real Estate (DRE) in California has made it mandatory for all applicants to complete 135 hours of pre-licensing education. 

The curriculum of pre-licensing education is broadly divided into three main courses each worth 45 course credits.  

The two mandatory courses are - Real Estate Principles (45 hours) and Real Estate Practice (45 hours). 

The third course (45 hours) can be an elective of your choice and you can pick from many options like - real estate finance, real estate appraisal, and property management among others. 

Note that students have the flexibility to choose their preferred medium of completing pre-licensing education. 

This means you can choose to join a classroom-based real estate college in California or enroll in an online, self-paced real estate prep course. 

However, most students prefer the convenience and flexibility of online pre-licensing courses as they can be completed from anywhere on any device. 

If you are a working professional switching to a part-time or full-time real estate agent job, there are many online course providers that offer flexible learning schedule options.

If you are wondering how long it takes to complete pre-licensing education, typically, it takes most students between a couple to five months to complete the entire coursework. 

Step 3: Pass the California licensing test

After completing the pre-licensing education, you will become eligible to apply for the California salesperson licensing exam. 

The California DRE requires all applicants to take the salesperson licensing exam and pass it by scoring at least 75 percent or above. 

The exam is a closed book, multiple-choice questions test and it covers the courses and topics you will study during your pre-licensing education. 

The salesperson licensing test consists of 150 multiple-choice questions and you will get 3 hours and 15 minutes to complete the test. 

You can schedule the exam at any of the state-approved exam centers and choose your preferred day, date, and venue. 

Along with the exam application, you will also be required to submit proof of completion of your pre-licensing education from a state-approved education provider. 

Step 4: Find employer sponsorship

Congratulations on passing the salesperson licensing exam! You’re now just one step away from starting your career as a real estate agent. 

To activate your salesperson license, you need to find employer sponsorship and work under the supervision of a senior, more experienced broker in California. 

With more than 100K licensed brokers in California, finding a suitable sponsoring broker who can take you under their wing should not be a challenge. 

Tips to pass the California Real Estate License Exam

Now that we have covered how to get a California real estate license, let us give you some practical tips and tricks on how to boost your exam preparation. 

• Create a schedule: 

Firstly, you must create a learning schedule that gives you enough time to spend on each topic. 

Since you will be completing multiple courses and topics, it is important to get better at managing your time effectively. 

Some topics are going to be more complex than others, this is where you will need to allocate extra time to the difficult topics and tackle them.  

• Practice using mock tests

Mock tests are a highly effective way to familiarize yourself with the type of questions you can expect to face in the licensing test. 

Most pre-licensing course providers offer sample tests and mock exams which are simulated to give students a real-world feel of the actual exam. 

Practice tests are a good way to monitor your progress and understand your strengths and weaknesses. 

• Review course materials

Before the exam date, it is recommended that you spare some time to solely review your class notes and important pointers. 

Since you will attempt multiple questions, it is important to practice the key topics all over again and jog your memory.