Before going into the process of how to get a California real estate license, let us evaluate whether it is worth your time and effort to be a licensed real estate professional in the Golden State. We will check it from two perspectives, one, the California real estate market trends, and two, what it personally means to you.
California Real Estate Market Trends
According to Heather Ozur, the President of the California Association of Realtors, home prices are leveling off and more homes are coming onto the market. Hence it is a great time for well-qualified buyers to enter the market. Additionally, lower prices are making homes more affordable, and the growing inventory means buyers have more choices. This is a rare opportunity now for people to find their dream homes at a good value.
Why Should You Be A Real Estate Agent In California
The career of a real estate agent is unlike a typical 9-6 job where you rush to meet fixed timings, often at the cost of being with family and friends. It is not the case with real estate agents who are their own bosses and get to set work schedules. As an agent, you get to decide how many hours to put in a day and when. Of course, you might have to work over the weekends to meet client demands for showings per their convenience but this is rare and far between.
With a California real estate license and with hard work and dedication, earning six figures is a distinct possibility. Real estate agents earn a commission of 6% of the sale price of a property divided equally between a seller’s and a buyer’s agent. With the average California home price at $500,000 and at 3%, you earn a minimum of $15,000, and this is only one transaction.
Overall, now is the time to get a California real estate license to kickstart a very lucrative career.
How Do You Get A California Real Estate License
Now, let us explore the steps to get a real estate license in CA.
Step 1: Basic Requirements
Before starting the journey to become a real estate agent, meet certain basic requirements.
You must be at least 18 years old and a citizen of the USA to apply for a real estate license. Migrants with working rights in the country are also permitted to apply for a license. On the educational front, you should have a high school diploma or an equivalent such as a GED.
Step 2: Completing Pre-Licensing Coursework
All aspiring real estate agents in CA must go through 135 hours of pre-licensing coursework. This is mandated by the California Department of Real Estate (DRE), a body that controls the real estate sector and issues and renews real estate licenses in CA.
The coursework provides training and knowledge to aspiring real estate professionals and prepares them to offer highly effective services to their clients in the future.
The pre-licensing course consists of 3 modules of 45 hours each. The first two are Practice of Real Estate and Principles of Real Estate. The third 45-hour module is an Elective topic from the following options.
- Real Estate Finance
- Real Estate Appraisal
- Legal Aspects of Real Estate
- Real Estate Economics
- Real Estate Investments
Choosing a pre-licensing course provider to guide you through the complex subjects must be done carefully.
First, select a course that is approved by DRE. Spending time and money on any unapproved course will not be counted as having met the DRE eligibility norms to appear for the licensing exam.
Next, select either an online course or a physical classroom-based one per your comfort zone. However, an online course is beneficial. Most important is the cost factor. Online courses are cheaper than physical schools and you do not have to spend for on commuting to regular classes.
Moreover, you can access the study materials from any place and at any time after you download them onto your Internet-enabled device without disrupting your normal routines.
Among the best online DRE-approved course providers in CA is RealEstateU. Not only are their study materials of the highest quality but they are also very affordable.
Step 3: Background Check
After completing the coursework, have your fingerprints scanned electronically for verification of any past acts of felony or criminal records. DRE requires real estate agents to have high moral character and financial integrity as they handle large amounts in real estate deals. In case of an adverse fingerprint verification report, DRE reserves the right to reject your application for a license. The fingerprint scan fee is $40.
Step 4: Schedule Licensing Test
On the DRE portal, schedule a licensing test date at a convenient designated exam center by paying a fee of $60. The test is proctored by a third-party administrator. Even though the test is held online, you must physically visit the test center.
Step 5: Appear For And Pass The Exam
The California real estate license test has 175 multiple-choice questions and you must score at least 75% to pass it. There is a general national section and a state-specific section that deals exclusively with real estate rules and regulations valid in California.
Step 6: Find a Licensed Broker
Get a licensed real estate broker in California to hire you.
Step 7: Apply for a Real Estate License
Once all these steps are completed, apply for a California real estate license on the DRE portal and launch your career in this niche.