Key Essentials Of Getting A California Real Estate License
This post will cover the essentials of obtaining a California real estate license, providing with a clear understanding of the subject. You will know about why a real estate career in California is a very rewarding one, the entire process to obtain a real estate license CA, and your total outlay both in time and money.
Before going into the nitty-gritty, let us first briefly evaluate the real estate market in California.
Current Trends Of The Real Estate Market In California
Projections of the California Association of Realtors (C.A.R.) estimate home sales to increase by 10.5% and median home prices to increase by 4.6% year on year in 2025. Additionally, mortgage rates are expected to dip marginally, and coupled with improved housing supply, the current scenario is tailor-made for more buyers and sellers to enter the market.
Critical market predictions for 2025
Mortgage rates are expected to decline from 6.6% in 2024 to 5.9% in 2025.
Home sales are expected to reach 304,400 from 275,400 in 2024.
Median home prices are expected to rise to $909,000, an increase of 4.6%.
Housing affordability will remain the same at 16% as wages and home prices remain in sync.
Hence, from the above data, it may be concluded that times are bright for real estate agents in California, and now is the time for aspiring agents to jump into the fray. Moving forward based on C.A.R. projections, 2025 is a more competitive market based on declining mortgage rates and steady price growth.
Why Should You Get a California Real Estate License
The question is whether it is worth your time and money to get a real estate license California. The answer is yes for the following reasons.
The possibility of high earnings is very high and for hardworking agents, taking home six figures is a reality.
Real estate agent earnings are commission-based and are around 6% of the sale price of a property divided equally between the seller’s and the buyer’s agents. Considering the median sale price of a house at $900,000 in California, one deal fetches about $27,000 for each agent. Only four such deals in a year take the income to six figures.
Real estate agents are their own bosses and as one of them, you get to set your work schedules and timings. There is no daily pressure of a regular job, thereby enabling you to spend more time with friends and family.
You might of course be working on weekends and holidays, arranging showings at clients’ requests but that is not very frequent either.
The above points prove that there can be no better reasons to dive into the career of a real estate agent in California.
So, let’s get started on how to obtain a real estate license CA.
Getting A Real Estate License CA: Basic Norms
Before being eligible to apply for a California real estate license, the following basic requirements must be met.
You should be at least 18 years old to apply for a CA real estate license. You are permitted to complete other steps such as going through the California real estate license course and finishing the background check before you turn 18. The rule is that you should be 18 on the date you apply for a CA real estate license.
Real estate agents must be citizens of the USA with a Social Security number. Legally admitted migrants too can apply for a license provided they have been granted working rights in the country.
On the educational front, the minimum requirement is having a high school diploma or an equivalent such as a GED.
Once these three points are met, you can get down to completing the steps to get a California real estate license.
Steps To Get A Real Estate License CA
Step 1: Go through the California real estate license course
The curriculum for the California real estate course is set by the California Department of Real Estate (DRE). It is the body that issues and renews real estate licenses and controls the industry in the state. DRE stipulates that any person who wants to buy, sell, lease, or rent real estate properties on behalf of third parties for a commission must have a real estate license to do so.
The pre-licensing course is 135 hours in duration and consists of two parts. One is the national section that covers subjects, rules, and regulations common to the real estate sector in the USA. The other is the state-specific part that deals with the real estate laws valid in California only.
There are three modules of 45 hours each in the California real estate license course as follows.
Compulsory Modules 1 & 2 of 45 hours each, total 90 hours
- Principles of Real Estate
- Practice of Real Estate
Elective Module of 45 hours
- Real Estate Finance
- Real Estate Appraisal
- Legal Aspects of Real Estate
- Real Estate Economics
- Real Estate Investments
The reason why it is important to thoroughly complete the pre-licensing course because it lays the foundation for your career in the future. The real estate industry is a complex one with several rules and regulations that are binding on deals made. Since large sums of money are involved in transactions, it is essential to have deep knowledge of the industry for a successful career.
Check out the DRE-approved online real estate pre-licensing California real estate course from RealEstateU. They are among the best in this field as their courses are designed by leading real estate professionals with years of experience in this niche. Their courses are also the cheapest in this niche without compromising on the ability to help you pass the licensing exam on the first try.
How to choose the best real estate course in California
Since so much rides on going through a California real estate license course which helps you to pass the licensing exam, select a course provider after a lot of careful thought.
Here are a couple of points to consider.
Select a DRE-approved course
Any course provider that you select must be approved by the DRE. This is essential as otherwise, the hours spent on completing the pre-licensing studies will not be considered as having met the DRE-stipulated eligibility norms to appear for the licensing exam. To be sure, visit the DRE portal and check the list of approved course providers in California.
Online or physical classroom courses
California real estate license courses are available in both online and physical classroom-based environments. What you choose depends on your preferred learning style and the platform that matches your comfort zone.
However, online courses bring several benefits to the table.
First, you are not tied down to regular classroom timings which can be very inconvenient if you have a busy daily routine or are otherwise gainfully employed. Online lessons can be downloaded onto any Internet-enabled device and studied from any location and at any time.
Next, online courses are cost-effective and cheaper than physical courses in real estate schools. Apart from the course price, you save substantially on not having to commute to physical schools.
Select a proven package
Before selecting a California real estate license course package, look for one that offers practice questions and mock tests. Practice questions and mock tests replicate the real licensing exam scenario and hence, not only will you know about the format and structure of the test questions but you will also get a shot of confidence for the test.
Step 2: Complete background verification
A background check is compulsory to get a California real estate license. Applicants must go through a detailed background investigation for any criminal history or an act of felony that includes a fingerprint scan and a review of their criminal past. After submission of fingerprints, DRE will receive a report from the Department of Justice (DOJ) regarding any arrests or criminal convictions.
Real estate agent applicants submit fingerprints through a live scan process at designated centers. They must inform the DRE of any criminal violations even if convictions were dismissed, expunged, or if they received a pardon. In case of a conviction, DRE will review the applicant’s background to decide whether to disqualify them from obtaining a California real estate license.
Step 3: Schedule a licensing test
After background verification and getting a Fingerprint Clearance Certificate, visit the DRE portal and schedule a licensing exam. The process involves the following steps.
On the DRE portal, create an e-licensing account and apply for the online test for a real estate license CA.
Upload documents such as a fingerprint clearance form and pay the required exam fees.
After the application is approved, log in to the DRE portal and select a date and the test exam center. Exams in an electronic format are held at Fresno, San Diego, Los Angeles Vicinity, Oakland, and Sacramento.
Print the exam notice and take it to the exam center.
Step 4: Appear for the licensing exam
On the date and exam center fixed appear for the licensing exam. The test is of 3 hours in duration and consists of 150 multiple-choice questions. You must get at least 70% of them correctly to pass the exam. The questions are from both the nation and state-specific parts of the California real estate course.
The detailed exam content is as follows:
- Practice of Real Estate and Disclosures: 25% of the exam (37-38 questions)
- Laws of Agency and Fiduciary Duty: 17% of the exam (25-26 questions)
- Property Ownership and Land Use Controls: 15% of the exam (22-23 questions)
- Property Valuation and Financial Analysis: 14% of the exam (21 questions)
- Contracts: 12% of the exam (18 questions)
- Financing: 9% of the exam
Since the exam is held online, the results in a pass/fail grade only are declared soon after the exam is over. Detailed subject-wise marks are not announced or informed at any stage, even when an email is sent later to confirm the result.
Step 5: Apply for a California real estate license
After you pass the licensing test, visit the DRE portal and apply for a real estate license CA. Upload all documents related to completing the California real estate course and fingerprint scan certificate. You will now be issued a California real estate license which will be activated only after you complete the next step.
Step 6: Find a licensed broker for sponsorship
Sponsoring brokers are experienced real estate professionals whose brokerage firms are allowed to employ newly licensed real estate agents and brokers. As per California law, fresh real estate agents must find a licensed broker who will employ them and teach them the practical aspects of real estate transactions.
When you apply for a CA real estate license after passing the licensing test, an inactive license will first be issued to you. It will only be activated after you inform your employment status with a brokerage firm. Hence, you can only launch your career as a real estate agent after you get the sponsorship of a real estate licensed broker.
These are the steps to get a California real estate license.
Cost of Getting A Real Estate License CA
The cost of obtaining a CA real estate license can be divided into fixed and variable costs.
Fixed costs
- Fingerprint live scan fee: $49
- Exam fee is $60 per attempt
- License application fee for four years: $245
- Total: $354
Variable cost
This is the cost of the pre-licensing coursework and varies greatly among providers. The cheapest while being top quality is RealEstateU with packages starting as low as $99 for the course only. Throw in study guides, mock tests, and practice questions and the cost rises proportionately.
The pre-licensing course materials cost significantly more for classroom-based courses than for online ones. Real estate schools with physical classes have fees ranging from $700 to $1000.
Hence, the cost of getting a real estate license CA ranges from $450 to $1350 depending on the selected California real estate license course.
Summing Up
Getting a California real estate license and embarking on a career as a real estate agent is both rewarding and lucrative. For aspiring real estate agents, the market is favorable and now is the time to cash in on it.