Practical guide for aspiring real estate agent in California
Have you been dreaming of a career in California real estate where you can work independently and escape the monotony of the conventional nine-to-five job?
Do you dream of achieving financial independence with a six-figure income while enjoying a flexible work-life balance?
A limitless earning potential and A high degree of work autonomy are just two of the many benefits of working in California real estate.
Plus, you will get to experience the fulfilling satisfaction of helping clients buy and sell real estate and help them achieve their homeownership goals.
Did you know that the top real estate agents in CA can earn anywhere between $150K to $200K? On top of a six-figure income, they enjoy additional job perks and amazing benefits.
If you are curious to explore the path of working in real estate on a part-time or full-time basis, now is a good time to plan your career.
The best about joining real estate is the lower entry barrier which means you do not need to spend years completing education.
As long as you meet the state-specific licensing requirements and obtain your California real estate license, you will be able to work anywhere in the state and earn a commission.
California has always been one of the most popular and attractive real estate markets and despite external factors, it has shown resilience and continues to post strong demand.
Working in California as a real estate agent can unlock a wealth of opportunities for you. Plus, it can help you build a thriving career as a dynamic, independent professional.
If you are ready to embark on a journey where you can give shape to your professional dreams, you must obtain a real estate license first and foremost.
Like most states, California also requires individuals to obtain a state-approved license in order to be eligible to work with clients and earn commissions in a real estate transaction.
To help you get started, we have put together this article which covers all the aspects of becoming a licensed real estate agent including the steps involved in the process.
Keep on reading to learn more about the various licensing requirements and what it takes to start a career with confidence.
The allure of California’s real estate landscape
California is home to many of the world’s leading companies and businesses. It is popularly known as Silicon Valley due to the presence of technology and software companies.
With a GDP of around $3 trillion, California is one of the strongest economies in the country and it continues to grow and prosper over the years.
California is the national and worldwide hub for innovation and entrepreneurship and is considered by many as the most attractive real estate market around the globe.
In addition, the state is also home to many of the country’s largest and well-connected entertainment and tourism spots which invites visitors and buyers from all across.
San Francisco, Los Angeles, Bakersfield, San Diego, Santa Clara, and Sacramento are some of the hottest real estate markets in the country for skilled professionals, business people, homebuyers, and high-net-worth individuals.
The job outlook is strong and has steadily been improving over the years, plus, companies and organizations in California offer higher wages as compared to many other states.
California is home to a rich landscape of natural orchids, scenic views, green areas, rich entertainment options, diverse culture, and world-class amenities for residents.
On top of it, the sun shines frequently in the Golden Gate State and the weather is pleasant.
Safe, private neighborhoods and a plethora of natural parks and trails also make California a popular destination for skilled workers and homebuyers.
Be it single-family homes or luxury condominiums, California’s real estate market is diverse and offers something for everyone.
Real estate agents in California can make a median annual income of $80K to $90K while enjoying the flexibility to work on their own schedule and find their own clients.
Thanks to the low unemployment rate, diverse living options, world-class amenities, and an attractive lifestyle, California continues to attract homebuyers and real estate investors.
If you are a resident of California and considering a career as a part-time or full-time real estate agent, now is a good time to get started on getting a license.
It will require putting in time, effort, and cost to obtain your real estate license in CA and start working with clients.
Yes, obtaining a license will require time, effort and cost but the investment will pay off in the long run as you will gain many advantages and opportunities with a state-approved license.
Getting your license might seem daunting, but it is a step-by-step process that if followed with diligence and planning, is easy to complete.
Basic California Real Estate Licensing Requirements
In California, you can apply for two specific licenses to enter the real estate industry and start working with clients.
First is the salesperson license which is the best way to enter the industry and start your professional career.
Second is the broker’s license which you can apply for after gaining a few years of work experience and completing additional education.
To obtain a real estate license in California, you must meet the specific licensing requirements for the type of license you are applying for.
However, the California Department of Real Estate (DRE) has established certain minimum eligibility requirements that are applicable to all aspiring professionals. These are:
- You must be 18 years of age or older.
- You must be a legal resident of California
- You must have a high school education or GED equivalent in education
If you meet the basic statutory requirements, you can proceed to complete the next steps in the licensing journey.
To confirm your eligibility, you can also take a fitness determination test which will ensure that you fully qualify for a career in real estate.
Education requirements for a California salesperson license
Like most states, California also requires individuals to complete a minimum level of education and training to qualify for a career in real estate.
As per the DRE in California, every applicant must complete 135 hours of pre-licensing education to qualify for a salesperson license.
If you want to work with clients, close deals and earn commissions, you must learn about the various state and federal laws and other fundamental principles of your profession.
This is where pre-licensing education comes in as a means to equip yourself with the required knowledge and training to work in California’s real estate market with a license.
As per the DRE in California, every applicant must complete 135 hours of pre-licensing education to qualify for a salesperson license. Here’s what you can expect to learn:
- Principles of Real Estate (45 hours)
- Real Estate Practice (45 hours)
- Real Estate Finance (45 hours)
Completing a California real estate course which covers all the mandatory and elective courses is the way to go about completing the mandatory education requirements.
There are numerous real estate colleges, schools, and online course providers in CA and you are free to choose the one that best suits your learning needs, schedule, and budget.
However, it is important to ensure that you only choose a DRE-approved education provider to ensure you are meeting the education and training guidelines.
Many students opt for an online, self-paced course as it is more flexible and easier for busy individuals, especially those who are transitioning from a different career to real estate.
Another advantage of choosing a proven online real estate pre-licensing course is the fact that you can get access to exam prep resources and specialized learning modules.
Completing Background Verification for Real Estate License
The California DRE regulates and oversees the licensing process in the state and is the official authority for issuing and renewing licenses to professionals.
One of the core responsibilities of the DRE in California is to protect and safeguard the rights and interests of consumers and maintain high professional standards in the industry.
To ensure this, the California DRE requests all aspiring professionals to meet and clear the federal background verification and criminal history check.
The state and federal guidelines require you to meet the standards by displaying qualities like honesty, integrity, and truthfulness in your conduct.
As part of your licensing journey, you must submit an electronic scan of your fingerprints to the State Department of Justice (DOJ) for verification if you are applying for the first time.
There are more than 500 locations fingerprint centers and you can visit any of the state-approved live scan vendors to get your fingerprints taken.
On the basis of the evaluation and your history, the DRE might choose to grant or reject your licensing application.
Passing the Salesperson licensing exam in California
Once you have cleared the background verification, you will be eligible to take the salesperson licensing test in California.
The test consists of state-specific and national-specific sections consisting of 150 multiple-choice questions in total.
Some common exam questions are based on topics you will cover during your pre-licensing education hence it is recommended to take your education seriously.
These are - real estate laws, property ownership, type of contracts, land use, finance in real estate, legal guidelines for agents, and consumer rights among others.
You will get a total of 3 hours to complete the test and to pass it, you need to score at least 75 percent or above. Passing the exam is mandatory to obtain your salesperson license.
Find Employer Sponsorship
If you pass the salesperson licensing test successfully, you will receive your real estate license within a few weeks.
However, to activate your license, you need to find a licensed broker or brokerage firm in California that will be willing to sponsor you.
Since sponsoring brokers and firms are generally looking for newly licensed agents, finding one will not be a challenge.
However, before you decide on your employer, make sure to do your research about some important aspects.
As a newly licensed agent ready to start your career, you must work under the supervision of a broker who can provide you with the required training and guidance to succeed in your career.
Another important factor to keep in consideration is how the commission will be split between you and your employer sponsor.
Generally, most brokers prefer working on a 50/50 split basis whereas some can also agree to a 60/40 split. Some brokers also prefer working on a monthly fee basis.
Make sure to interview licensed brokers in your area or region and make sure to be clear and forthcoming in your communication.