Before going into how to launch a real estate career in California, let us understand why should you select this state to do so.
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The California Real Estate Market – 2024 Trends
Home buyers in California have some good news coming for them. It is expected that home prices that have remained high throughout 2023 will take a dip. The reason for this optimism is the steady decline in mortgage rates in the last quarter of 2023.
As per data from Freddie Mae, the 30-year fixed mortgage rate was 6.69% in the last week of January. Despite this easing, mortgage rates have not approached normalcy, leaving home prices quite high and out of reach of home buyers, especially first-time ones.
So, the California real estate scenario is projected to be a seller’s market, at least in the near future. However, for some, 2024 may be the right time to buy a home, taking advantage of falling mortgage rates. But buyers should expect home prices to remain high in some markets while in some areas, it might soften to a degree.
What do all these trends hold for you as an aspiring real estate agent in California? Since your earnings will be based on a percentage of the sale price, you stand to gain whenever you can close a deal. Real estate agents make about $90,000 annually in California and the more houses you sell, the more you make.
Homes in California will always be in demand given the strong economy and population migration to the state in search of new opportunities.
It is therefore worth your effort to launch your career as a real estate agent in California.
Click here to learn how to become a real estate agent in California
Steps To Become A Real Estate Agent in California
The requirements to be a licensed real estate agent in California are, barring a few, common to all states in the USA.
Let us now go through them in detail.
Basic Requirements
To get a California real estate license, you must be at least 18 years old and a citizen of the USA. You can start your preparations with the California real estate license course before the cut-off age but the license will be awarded after you turn 18 only.
Lawfully admitted aliens to the USA can become real estate agents in California provided they have working rights in the country.
Pre-license California Real Estate License Course
To apply for a real estate license in California, you must go through the pre-licensing course as mandated by the Department of Real Estate (DRE) in California. This California real estate license course is 135 hours duration and covers three modules of 45 hours each.
- Real Estate Principles (45 hours)
- Real Estate Practice(45 hours)
- One elective course (45 hours)
Among the elective courses that you can choose from are Business Law, Computer Applications in Real Estate, General Accounting, Legal Aspects of Real Estate, Property Management, and a few others.
The California real estate license course can be taken online or at any real estate school in a classroom environment. However, the course should be approved by the California Department of Real Estate. To qualify for a license, only state-approved courses will do so check this aspect before selecting a provider.
California has time constraints when it comes to completing the pre-licensing course. For example, one 45-hour correspondence course cannot be completed in less than 2.5 weeks and two courses in less than five weeks. If you go through the California real estate license course at a college, the duration must be threesemester units or four quarter units.
While there are several options for course providers, select an online course for your convenience. You can study anytime and from anywhere while on the go. All that you need is an Internet-enabled device and you can complete the coursework at your pace.
The instructors are all experienced real estate professionals and the courses are taught through audio and video lessons. Some providers offer the California real estate license course through downloadable e-books which can be printed. Choose a course wisely and one that matches your learning style.
Submit Fingerprints for Verification
Real estate agents must maintain high standards of ethics and honesty. You will thus be required to submit your fingerprints to the concerned authorities for background verification and obtain a fitness certificate. You should not have any past criminal records or acts of felonies.
Apply for A California Real Estate License
At this stage, apply for a real estate license online to the California Department of Real Estate along with the licensee fees. Attach proof of having completed the 135-hour California real estate license course and the fingerprint fitness certificate.
The subsequent license exam must be completed within two years from the date of application otherwise, it will be time barred and the fees will be lapse.
Passing the California Real Estate License Exam
After applying and scheduling your license exam, you must pass the test to qualify for a real estate license in California.
The exam is conducted electronically at Fresno, La Palma, Oakland, Sacramento, and San Diego. There are 150 multiple-choice questions, each having four options. To pass the exam, you must get at least 70% of the questions right. The results are informed at the exam center itself soon after you complete the test.
After all these steps are completed, find a broker to mentor you during the initial stages of your career.
You will now receive your California real estate license to launch your career as a real estate professional.