How to Become a Real Estate Agent in California
Planning to start a career as a real estate agent in California? Now's a great time as the California Real Estate market is sizzling hot!
Real estate agents can reap the benefits and earn a high income from the fast-appreciating real estate market and high real estate prices in California.
In fact, the median home price in California was over $500,000 in April 2005.
To get your real estate license in California, you will need to take classes at a real estate school and satisfy all the requirements set forth by the California Department of Real Estate.
There has been tremendous growth in real estate in the last few years in much of the U.S. and especially in California.
Because of this, the number of real estate agents has also increased.
There are now almost 400,000 real estate licensees in California and about 2.5 million nationwide.
Here's what you need to know to become a real estate agent in California:
1) Licensing Requirements in California
2) Duties of a Real Estate Agent
3) What is a REALTOR®?
4) Income Potential
5) Real Estate Schools
How to Become a Real Estate Agent in California
1) Real Estate Agent Licensing Requirements in California
In California, real estate agents MUST be licensed by the California Department of Real Estate.
To obtain your real estate license, you must:
- Satisfy the minimum requirements to apply for the real estate exam:
- Age: You must be 18 years of age or older to be licensed.
- Residence: Proof of Legal Presence in the United States is required.
- Honesty: Applicants must be honest and truthful. Conviction of a crime may result in the denial of a license. Failure to disclose any criminal violation or disciplinary action in an applicant's entire history may also result in the denial of a license.
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Experience: None required.
- Education: Successful completion of the following college-level courses is required to become a real estate salesperson:
- Real Estate Principles (must be completed or in progress to apply for examination and must be completed prior to applying for a license); and
- Real Estate Practice (must be completed prior to applying for a license or within 18 months of license issuance); and
- One course from the following list (must be completed prior to applying for a license or within 18 months of license issuance):
- Real Estate Appraisal
- Property Management
- Real Estate Finance
- Real Estate Economics
- Legal Aspects of Real Estate
- Real Estate Office Administration
- General Accounting
- Business Law
- Escrows
- Mortgage Loan Brokering and Lending
- Computer Applications in Real Estate
- Common Interest Developments
Note: The minimum time to complete each course is 18 calendar days.
- Apply to take the California State exam
- Pass the exam by answering at least 70% correctly
- Apply for the California Real Estate License
- Submit one set of fingerprints that is acceptable to the State Department of Justice (DOJ)
Licensed agents in California must work under the supervision of a licensed real estate broker. Most new agents start out by working for one of the large brokerages in California like Coldwell-Banker, Century-21, Remax, etc.
If you would like to have your own business and work for yourself, you must have a real estate broker's license.
2) Duties of Real Estate Agents
A real estate agent's main job is to assist their clients in the process of buying and selling real estate.
Their list of duties include:
- Submit buyers' offer to purchase to seller for consideration
- Work with escrow officers, lenders, home inspectors, and pest control operators to ensure that terms and conditions of purchase agreements are met before closing dates.
- Interview potential buyers to determine what kinds of properties they are seeking.
- Prepare documents such as listing agreements, purchase agreements, etc.
- Coordinate property closings, overseeing signing of documents and disbursement of funds.
- Act as an intermediary in negotiations between buyers and sellers, generally representing one or the other.
- Determine a property's competitive market price by comparing the property with similar properties that have recently sold.
- Schedule appointments to show homes to potential buyers.
- Generate lists of properties that are compatible with buyers' needs and financial resources.
3) What is a REALTOR®?
A real estate agent becomes a REALTOR® when he or she pays an annual fee to be a member of the National Association of REALTORS® and subscribes to its Code of Ethics.
The agent generally joins through the local board or association.
For example, in Fresno CA, once you have obtained your real estate license, you may pay a fee to join the Fresno Association of REALTORS®. This also makes you a member of the California Association of REALTORS® and the National Association of REALTORS®.
All REALTORS® are real estate agents but not all real estate agents are REALTORS®.
4) Income Potential in California
Real estate agents are generally paid based on a percentage of the sales price. The seller will generally pay 4-6% of the sales price as the fee and that will be split 50/50 between the seller and buyer's broker.
For example, if the fee for a $100,000 house is 6%, the buyer's broker will be paid 3% or $3000 and the seller's broker will be paid 3% or $3000 as well.
The agent is paid by his or her broker, according to their previously agreed-upon commission split. This is often 50/50 for beginning agents, so in that case the agent in our example would receive $1500.
According to the California Employment Development Department, the earnings of a beginning real estate agent can vary from $10,000 to $50,000 a year.
An experienced agent's earnings can vary from $20,000 to $150,000 per year.
5) Real Estate Schools in California
Real estate classes in California are offered at most colleges, community colleges and even at the larger real estate brokerage companies such as Century 21.
Or if you prefer to take classes at your own pace and from the comfort of your home, check out these real estate schools instead:
| School | Phone # |
| Allied Schools | 888.751.2286 |
| Anthony Schools | 800.373.7277 |
| Chamberlin Real Estate School | 800.672.4665 |
Also check out information on how to become a real estate appraiser in California