How to work in California real estate as a real estate agent
Are you searching for a career where you can be your own boss and work as per your own schedule and goals? Look no further than California’s lucrative real estate industry.
California is renowned for its world-class residential and commercial properties, pleasant climate, strong job outlook, and stable economy.
The sunshine state is home to the international companies and businesses along with big tech companies which make it amongst the world's highly sought after locations.
Did you know that the top real estate agents in CA can make as much as $200K in a year while enjoying a flexible work schedule and higher professional independence?
Working in California real estate can unlock a plethora of income and commission opportunities, whether you are interested in a part-time or a full-time career path.
The best part about starting a career in real estate is the fact that it costs relatively less to obtain a license and you need not spend years for college education.
All you need to work with clients, earn commissions and help people buy and sell properties is a California real estate license.
As a real estate agent, you will get the chance to work with clients from all walks of life and help them achieve their homeownership goals.
Due to the low entry barrier, it is fairly easy to get your start and once you have obtained a license, you can continue to advance in your career by gaining education and experience.
Are you already excited about starting an exciting and rewarding career as an agent in California? Buckle up as it’s mandatory to obtain your real estate license first.
If you are ready to make the most of California’s booming real estate market and tap into the myriads of growth opportunities, now is the time to plan your career.
To help you get started, we have put together this article which covers all the aspects of being a licensed professional.
From the minimum qualifying criteria to the educational requirements and everything else in between, this article will outline all the steps you need to complete to get your license.
Understanding California’s real estate landscape
Thanks to a strong economy, growing job market and beautiful natural landscapes, California is placed as one of the most sought-after real estate markets in the country.
Continuing its significant growth, California’s real estate market has shown incredible resilience to demonstrate strong demand for residential and commercial real estate.
Home to popular cities like San Francisco, Los Angeles, San Diego, and Las Vegas, the Golden Gate State is preferred by skilled professionals, migrants, and real estate investors.
The demand for general as well as luxury housing in California continues to be strong and there is no shortage of interest from first time as well as seasoned buyers.
This means that if you work hard and put in the effort, you can become financially secure and professionally independent while working in a dynamic and fulfilling profession.
However, the state of California only allows licensed professionals to work with clients and earn commissions on closing a real estate deal.
Getting a license is not only a legal and regulatory requirement, it is essential to finding job opportunities and gaining the trust of clients.
To kickstart your career, you must obtain a real estate license in CA and unlock the full potential of what the state’s fertile real estate landscape has to offer to professionals.
If you are on the fence about whether or not to obtain a license, here are some of the pros of working as a licensed real estate agent in California.
1. High income potential
Imagine earning a six-figure income without having to work in a conventional nine-to-five grind.
Imagine working with clients and helping them achieve their homeownership dreams and goals as you earn commissions on every deal you close.
One of the most important reasons why people choose real estate as a career is due to its high income potential.
Whether you choose to work part-time or full-time, you can work as hard as you want and earn as much money as you can without any upper limit.
Consider this - if you can help close a real estate deal worth $2 million for a luxury home in California, you can make around $50K for yourself.
2. Lower barrier to entry
To work in California real estate, you do not need any advanced diploma or years of school. All you need is a basic high school diploma and pre licensing education.
Compared to other professions with a six-figure income potential, joining real estate is easier for anyone who can meet the qualifying education requirements.
In California, you can become a licensed real estate agent by completing 135 hours of state-approved pre-licensing education from a college, school, or course provider.
If you can successfully complete the coursework and pass the state licensing exam, you will be on your way to work with clients with a salesperson license.
3. Opportunities for networking
Having a wide professional network is one of the ways to grow in your career and working in real estate can help you achieve this.
As an aspiring real estate agent, your job will require you to work with numerous industry professionals.
From brokers and realtors to home appraisers and loan officers, you will liaison with individuals who will be a part of your professional network.
Working in California real estate can give you opportunities to meet new people and forge new connections which can be beneficial for building a successful career.
Now that you have learned about why getting a license is integral to your professional success, it’s time to go deeper into understanding what it takes to get your license in CA.
Becoming a California real estate agent
To reap the benefits of a career in real estate, you need to obtain a real estate license in California first as it is the foundation for a successful, thriving career.
However, before you embark on the licensing journey, it is important to ensure that you can qualify for the profession.
In California, all applicants are required to meet a set of pre-established qualifying requirements to prove their eligibility for a real estate license.
Here’s a checklist of all the statutory eligibility requirements as established by the Department of Real Estate (DRE) in California:
- 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 in education or a GED equivalent
If you fulfill the above requirements, the next step is to complete the qualifying education requirements for a real estate license.
Like most states, California requires all individuals to complete pre licensing education and obtain a minimum level of knowledge and understanding of the industry, state and federal laws and other fundamental principles.
The California DRE allows only qualified and educated individuals to work with consumers and guide clients in real estate transactions.
If you are wondering how to get a California real estate license, the most crucial step is to complete 135 hours of state approved pre licensing education.
The pre-license course curriculum is broadly divided into three courses worth 45 hours each.
These include - Real Estate Principles (45 hours) and Real Estate Practice (45 hours). The third class is an elective of your choice which you can pick based on your interest.
Some common elective courses options are - real estate finance, real estate appraisal, property management, legal aspects of real estate among others.
Generally, it takes students between two to six months to complete the entire course credits, however, if you enroll in a self-paced online course, you can choose to complete it sooner.
It is recommended that you check with the California DRE for the most updated and accurate pre-licensing course and curriculum requirements.
Many students and applicants often wonder about the benefits of completing 135 hours of course credits beyond fulfilling a mandatory qualifying requirement.
You should think of pre-licensing education as the pathway to unlocking a successful career with opportunities for growth and profitability.
Education will also equip you with the necessary knowledge and training to complete your duties and tasks as a licensed real estate agent.
The coursework will help you learn about the workings of the industry and its underlying structure and operating processes.
Most importantly, pre license education will prepare you for the next big challenge in your licensing journey i.e. the state licensing exam.
Tips for passing the California licensing exam
After you have completed the pre-licensing education in California, the next step is to take the California sales associate licensing exam.
The exam consists of multiple-choice questions covering both state and national specific portions to test your knowledge of general industry principles and other topics.
You should aim to score at least 75% or above to pass the sales associate license test.
If you are wondering how to get your CA real estate license by passing the exam easily, here are some practical and actionable tips.
1. Create a regular study schedule.
Preparing for the real estate test is time consuming, especially as you will be completing several courses and multiple topics.
Having a pre-established study routine will help you allocate specific time duration to complete various courses and give enough time to each topic.
This way, you can manage your coursework better and cover more ground without having to worry about the course curriculum.
Having a study schedule will also help you be more consistent with your exam preparation.
2. Understand the exam structure and format.
Getting better at any exam requires you to understand the exam format in detail.
You should start your preparation by looking at the type of questions asked and the language options available for students.
Additionally, you must learn about the common exam topics which are most frequently covered in multiple-choice questions.
You can ask your teachers or fellow students to help you get familiar with the type of questions asked in the test.
Once you familiarize yourself with the exam structure and format, you will be better prepared to tackle the different questions.
3. Practice using mock tests
Practicing with the help of sample questions and mock tests is a good way to get confident.
Like any other test, the California sales associate licensing exam is also based on some common test topics and questions that you can expect to tackle on the day of the test.
Many real estate courses and schools provide simulated tests and sample questions to help students get an assessment of their level of preparation.
Taking a California real estate exam practice test can give you an honest assessment of your exam readiness. Plus, it will help you improve speed and time management too.