Wondering How To Become a Licensed Real Estate Agent in California? Read This Guide To Get Started

Do you want to work in a dynamic industry where opportunities for growth and success are abundant? If yes, a career as a real estate agent in California might just be the right fit.

Home to world’s leading companies, large scale industries and multinational organizations particularly in technology, entertainment and agriculture, California’s economic outlook and job market is second to none.

Add to that the pleasant weather, picturesque natural parks and mountains and world-class amenities and benefits and you get a place like California which is the land of dreams and aspirations for anyone seeking better quality of life and professional prosperity.

California’s real estate landscape is diverse and the demand for housing and commercial properties has been growing steadily.

Despite the pandemic and slowdowns California continues to be a land of opportunity for real estate agents and brokers. Homes in CA have appreciated by 40% in their value since the last five years and the valuations are continuing to peak.

Home to popular real estate markets like San Francisco, Los Angeles, Bakersfield, San Diego, California continues to post strong numbers with a median home price of $850K.

The Golden Gate state attracts the wealthiest and high net worth investors in addition to skilled workers and homebuyers from across the country.

Did you know that the top real estate professionals in California can make anywhere between $150K to $180K while enjoying a flexible schedule and a stable work-life balance.

For aspiring real estate professionals, California can be a great starting point and can help you build a lucrative, rewarding and fulfilling career path.

However, to unlock the benefits of working as a real estate agent, you must first complete a set of state and federal requirements and obtain a valid CA real estate license.

Since only licensed professionals are allowed to work with clients and earn commissions, you must prepare yourself for getting your license to work in real estate.

In this article, we will walk you through all the steps to become a real estate agent in California and start a new career from scratch.

Whether you want to work as a part-time or a full-time real estate agent, this article will answer all your questions.

Understanding California’s real estate landscape

From major cities and metropolitan areas like San Francisco, San Jose and Bay Area to towns like Fresno, real estate in California offers a fertile opportunity landscape.

California has one of the hottest housing markets in the country and continues to witness strong demand from homebuyers, skilled migrants and real estate investors.

The demand for housing and residential real estate has been growing steadily over the years which is depicted by the growing demand for homes and rising home prices.

With around 40 million Californians calling the Golden Gate state their home, the demand for skilled and licensed professionals is growing steadily.

Industry research and market surveys report that California’s real estate prospects are looking bright for the future because of the following reasons:

• Strong Job Outlook: Employment opportunities and job market is an important indicator of the prospects of a real estate market. In California, the proximity to world-leading companies, startups and organizations has resulted in a boost in job outlook, leading to around 100,000 new job openings in the coming decade.
• Pleasant Climate: Sunny California has been a popular housing market due to its warm climate, especially for workers and retirees moving in from states with extreme cold or hostile weather. Known as the ‘Sunshine State’, freezing temperatures are rare in CA and residents enjoy a mediterranean-like climate for most part of the year. 
• World-Class Lifestyle: California’s appeal hinges greatly on its world-class quality of living and attractive lifestyle. The sunshine state offers numerous entertainment, lifestyle and leisure choices such as beautiful beaches and picturesque natural trails combined with outdoor adventure options and fancy restaurants

Are you interested in earning good money in commissions by helping Californians buy and sell real estate?

If yes, now is a great time to enter the market and reap benefits of the sky high property valuations.

Imagine helping a client sell a home worth $900K in a real estate deal - you can earn anywhere between 5 to 6 percent commission and make between $20K to $25K.

Does this seem like a great side gig or an ideal long-term career path? Are you wondering how much to get real estate license in California, then keep on reading till the end.

Why choose a career in California real estate

Choosing a career path is an important decision and it requires careful planning and consideration.

Working in popular real estate markets like Los Angeles, Nevada, San Diego and San Francisco is a professional dream for thousands who want to be their own boss.

If you are on the fence of deciding whether you should invest time, effort and resources in getting licensed, then here are some of the advantages to choose this career path.

High income potential

For most individuals, working in real estate is a path to achieving financial independence.

The top real estate agents in CA make as high as $150K in a year and the best part is that there is no cap on how much you can earn - the more deals you close, the more money you can make.

Even the starting pay for a newly licensed agent is around $60K to $70K if you work hard and close deals.

As you progress in your career, your income prospects will grow as well and over a period of time, you can multiply your earnings.

If earning good money is your professional priority, working in real estate can help you achieve a lucrative pay and numerous commission opportunities.

Lower entry barrier:

Whether you want to work part-time or full-time, a career in real estate is easy to begin with as the barrier to entry is low.

Irrespective of whether you are a complete beginner or someone looking to switch careers, you can start your career by putting a few months of effort and dedication.

Imagine making $100K to $120K annually without having to spend years getting a college degree - all you need is a California salesperson license to begin with and you will be legally able to work with clients and close deals.

The minimum education requirement to obtain a salesperson license is to have a high school diploma and complete 180 hours of pre licensure coursework in CA.

As long as you are able to complete mandatory pre licensing education and training, you will be ready to start working and will be able to advance in your career.

Opportunities for networking:

Do you wish to be a part of a growing, active community of students, peers and experienced industry professionals?

Since real estate comprises numerous job roles, departments and functions, you can easily network with fellow agents, brokers, realtors, appraisers and the likes.

California is home to thousands of licensed real estate agents who regularly host meetups, networking events as part of members-only communities.

A career in California as a real estate agent can open doors for you to meet new people, grow your network and expand your knowledge and horizons.

Since you will be dealing and meeting with other professionals, you can expect to exchange knowledge and ideas to grow your skills and find new business.

Higher flexibility and independence:

Working in real estate is a good choice if you want to define your own working hours and achieve a stable work-life balance.

The high career flexibility can give you the ability to manage work and life better and achieve better job satisfaction.

As a real estate agent in CA, you can choose to work as per your own preference and your desired goals and professionals targets.

Whether you are self-employed or you are working with a brokerage firm, real estate offers high professional autonomy and career flexibility.

You will be the one in control of your professional destiny - from the paycheck to the clients, you will be in control of how you shape your career.

Clearly, there are numerous benefits of becoming a real estate agent, especially in California’s booming market.

Working in real estate is like having access to a golden ticket for career growth which will allow you to achieve your professional goals.

To become one, you should apply for a salesperson license in California which is the first step towards working in the industry as a licensed professional.

If you are thinking how can I get my real estate license in CA and start working with clients, we are going to give you the detailed steps in the coming sections of this article.

How long does it take to become a licensed real estate agent

Before committing to a career, it helps to set the right expectations, especially around the timelines required to become a professional and achieve your career objectives.

To work as a real estate agent in CA, it will take you anywhere between a couple of months, depending on how soon you are able to complete the steps required in getting licensed.

Generally, it takes most people a few weeks to 90 days to complete all the steps including the pre license education, the license exam, background verification and employer sponsorship.

For most students, especially those who are starting as complete beginners, the most important question that arises is what are the steps to obtain a license.

The license process might seem daunting, but with proper planning, it is simple and straightforward. Let’s walk you through the step-by-step process next.

Basic qualifying requirements for a CA real estate license

Like most states, California also follows a pre-established set of state and federal laws for aspiring real estate professionals.

As per the Department of Real Estate (DRE) in California, you must fulfill minimum eligibility requirements to become eligible for a salesperson license. These are:

• You must be at least 18 years of age or older
• You must have a legal residency proof in the state of California
• You must have a high school diploma in education or GED equivalent

If you meet the basic statutory requirements, you can proceed to complete the next steps in the licensing journey.

In the coming sections, we will walk you through on how to apply for real estate license in California and complete the process easily.

California pre-license education requirements

Wondering how to get a real estate license in CA online? You must meet the minimum education requirements and prove your knowledge and skills first.

The DRE in CA requires aspiring real estate salespersons to complete 135 hours of pre license coursework from a state approved education provider.

Pre license education is an umbrella term which refers to a set of courses formulated to give you the fundamental knowledge of real estate principles, laws, practices and regulations.

Here are some of the mandatory courses which you will cover during your pre license education and training in California:

• Real Estate Principles
• Real Estate Practice
• California Real Estate Law
• Real Estate Finance
• Property Management
• Promulgated Contract Forms

The courses will also cover important topics such as - consumer rights, property types, real estate finance, property appraisal, laws of agency, fair practices among many others.

Completing education will prepare you to understand the role and responsibilities of a real estate agent and how to work as a professional with clients.

To complete 135 hours of state approved education, you can choose to join an in-person, classroom based environment or enroll in an online course.

Most students prefer the flexibility of online courses as they can be conveniently completed from anywhere on any device.

After completing pre license coursework, you will be eligible to take the salesperson licensing exam in California.

Passing the salesperson license exam in California

The DRE in California requires you to take the salesperson licensing test at any of the state approved examination centers because passing the exam is mandatory to receive a license

The purpose of the exam is to test your knowledge and training of real estate laws, principles and various fundamental topics. You can take the test at any one of the following locations:

• Los Angeles
• Sacramento
• San Diego
• Oakland
• Fresno

The purpose of the salesperson license exam is to assess your knowledge and preparation of real estate laws, principles and industry guidelines for professionals.

The closed-book test consists of 150 multiple choice type questions covering state and national specific portions and you will have to complete the test in a duration of 3 hours.

To pass the salesperson license exam in CA, you must score at least 75 percent or above and if you are unable to clear the test on your first attempt, you can take another attempt.

Many students wonder how difficult it is to pass the license exam on their first attempt. Although the pass rate is around 60 percent, if you practice well and are familiar with the type of questions asked in the exam, you can find the test not daunting.

It is recommended to prepare for the license exam with the help of exam test prep resources such as mock tests, sample questions and on-demand doubt clearing sessions.

Passing background verification

In California, you must fulfill the minimum standards of honesty, integrity and truthfulness to prove that you have good moral conduct to work with clients.

The DRE in California requires aspiring agents to complete federal background verification and criminal history check.

To complete this step, you must get your fingerprints scanned at any of the live scan vendor locations approved by the California DRE.

Then you can submit an electronic scan of your fingerprints to the DRE for review along with your salesperson license application for approval.

Finding Employer Sponsorship

If you successfully complete all the above steps to get a real estate license in California, you will receive your license within a few weeks.

However, to start working with clients and earn commissions, you must first activate your license.

To do so, you need to find a sponsoring broker or brokerage firm licensed in CA and submit your employer sponsorship details to the Department of Real Estate.

As per the California law, newly licensed agents must work under the supervision of a senior broker and gain real-world professional experience.

Since California has thousands of licensed brokers and firms across the state, you can easily find the one most suitable for your professional goals and needs.

Once you have found a suitable broker or brokerage firm to work with in CA, you can finalize them and submit your sponsorship details.