How to Become a Real Estate Agent in California

Ready to jump in and get your California real estate license, but not sure where to start?

We’ve got you covered.

Getting licensed doesn’t have to be confusing. Consider this your step-by-step roadmap: we’ll walk you through California’s legal prerequisites, show you how to pick the best licensing schools, review the costs, and help you choose a great broker so you can start closing deals with zero guesswork.

We’ll cover:

Sell gorgeous homes like this when you become a real estate agent in California

5 Steps to Get a Real Estate License in California

The California Department of Real Estate (DRE) requires that, in order to become a licensed real estate agent in the state of California, you must be at least 18 years old and a resident of the state (or meet the criteria in the out-of-state licensing guidelines).

You’ll also need to complete the following steps:

  • STEP 1:  Complete three pre-license courses (total of 135 hours) with an approved real estate school:
    • Real Estate Practices (45 hrs)
    • Real Estate Finance (45 hrs)
    • Real Estate Principles (45 hrs)
  • STEP 2:  Pass the real estate school exam with a score of at least 70%
  • STEP 3: Schedule and pass the California state real estate license exam with a score of at least 70%
  • STEP 4: Select a sponsoring brokerage
  • STEP 5:  Submit an application to the California Department of Real Estate
    • After you pass the state exam, they will send you the CA Salesperson License Application (Form RE 202). You’ll have to complete and submit the form, along with application fees and fingerprints within one year after passing the state examination.
    • Fingerprint / Background Check requirements

How Long Does it Take to Get a California Real Estate License?

Once you decide to become a real estate agent in California, you’re probably excited and want to get started immediately.  Before you leave your current job, it’s important to have a solid understanding of how long it takes to get your license in California. Here is what an average timeline looks like:

  • 3 to 12 weeks to complete your 135-hour pre-licensing courses
  • 1 to 3 weeks to get your state licensing exam scheduled
  • 2 to 3 weeks for the real estate commission to process your license application
  • 1 to 4 weeks to interview and select a real estate brokerage

As you can see, it typically takes about 4 to 5 months to get licensed. While this timeline estimate may seem a little daunting, we have a few suggestions on how you can expedite things…

  • First, taking an online course will definitely speed things up. Instead of attending scheduled in-person classes 2 to 3 times weekly, you can learn at your own pace online. 
  • We would also recommend interviewing brokerages while you are waiting to take your state exam, so you are ready to hang your license with a broker as soon as you pass the examination and your application is approved. 

If you stay focused, it’s definitely possible to become a real estate agent in California in less than two months.


Woman using calculator to determine the cost to become a real estate agent in California

Cost to Get a Real Estate License in California

There are several fees involved when working to become a real estate agent in California…

  • Pre-License Real Estate Course – $140 to $700
  • Fingerprinting fee – $49
  • Application Fee – $350
  • State Exam Fee – $100
  • State exam prep courses or materials – $25 to $150 (optional)

** Total Cost to Get Licensed in CA = $649 to $1,398


More Expenses to Expect as a Realtor

Getting a license is just the beginning! What many aspiring Realtors don’t realize is that there are several other costs to consider when becoming a real estate agent. Whether you’re building a new business and opening a dance studio, coffee shop, or starting your real estate empire, keep in mind there are always start-up costs involved.

Here are some of the most common expenses:

If you add up the costs to get your license and the expenses involved in becoming an agent, you’ll likely need somewhere between $1,550 and $2,900 to launch your new real estate career. There are other marketing and promotional expenses as well, but those are optional.

** Total Cost to Become a Real Estate Agent in California = $1,550 to $2,900


Learn more about costs to become a real estate agent in California:

WHAT OTHER EXPENSES SHOULD I EXPECT?


Find the Best Real Estate Schools in California

To get your real estate license, you’ll have to attend a school that’s approved by the California Department of Real Estate. There are at least a dozen approved real estate schools throughout the state. Some are online, others in person, and a few do a combination of the two.

Here are a few of the most popular:

SEE WHICH SCHOOL IS BEST FOR YOU >

When shopping for the best online real estate schools, you’ll want to compare pricing, but there are a few other things you will need to consider:

  • Do they share their “pass rate”? This will tell you what percentage of their students passed the state exam on the first try.
  • Does the school offer any guarantees if you don’t pass? For example, one school will pay the fee for you to retake the state exam.
  • Are practice tests given to the students or is there any additional charge?
  • Do they offer a separate exam prep course or a weekend cram course?

How to Select a California Real Estate Broker

In California, you must affiliate with a real estate brokerage in order actively help home buyers and sellers. This is often referred to as the “sponsoring broker” or “managing broker.” Picking the right brokerage to work with can be key to your success as a newly licensed agent.

We would recommend shopping for the best broker once you’ve completed the pre-licensing course and are waiting to take your state exam or while the California Department of Real Estate is processing your application. There are a few ways to do this:

  • Ask around. Find out which brokerages your friends and family have worked with in the past and see what they liked most about them. Don’t hesitate to reach out to local agents in your area to see what they like most about their broker.
  • Research online. Once you’ve narrowed down your choices to 3 to 5 companies, do some research online. There are always dozens if not hundreds of YouTube testimonials and feedback from real estate agents.
  • Check out groups on social. There are quite a few Redit and Facebook groups for aspiring agents and you’ll get lots of (honest) feedback from agents at different brokerages.
  • Schedule interviews. We highly recommend meeting (in person, via phone, or a zoom) with two or three brokerages, because the benefits and commission splits can be dramatically different from one firm to the next.

When researching and interviewing different brokerages, keep in mind that many are independently owned franchises. So one Keller Williams or Sotheby’s office could be completely different from another that’s just 10 minutes away. The culture, training, support team, and sometimes even the fees and commission splits can vary from franchise to franchise.


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20 QUESTIONS TO ASK WHEN INTERVIEWING BROKERS >>

Focus on What’s Most Important: SUPPORT

While many newly licensed agents are focused on finding a broker with the best commission splits, we would highly recommend that you make commission splits #2 or #3 on your list. The most important thing you should look for in a brokerage is how they support brand new real estate agents. Do they have a formal training program? Will you have at least three other real estate experts you can reach out to if you have questions? And if so, are those experts available outside traditional business hours? Does the brokerage provide you with a mentor? And if so, what will the mentors do to assist you?


Is it Easy to Become a Real Estate Agent in California… and Succeed in the 1st Year?

You made it through 135 hours of classes, passed the state exam, and selected a great broker — congrats! The next step is getting you mentally prepared to build a successful, thriving new business in the Golden State!

Your pre-licensing course is primarily focused on learning the common terms, ethics, and laws when practicing real estate in the state of California. The courses don’t usually go into much detail (if any) on preparing home valuation reports, writing contracts, or the 101 ways to market and promote your new business. It’s up to you to get motivated and learn as much as you can!

As a newly licensed real estate agent, it’s key to focus on:
  • Building your personal network. Being a successful real estate professional means having a large network of people that like and trust you. If you don’t already have a network or sphere of influence, you’ll need to regularly get out, socialize, network and meet new people. Once you’ve built up a substantial network, you have to find ways to stay top of mind with your network. This could include things like sending out a monthly newsletter, birthday cards, and connecting on social media.
  • Becoming a neighborhood expert. If you want to be the go-to REALTOR in your area, you need to know your local market. This could include touring homes in the area, researching new developments, studying the real estate sales statistics, and letting as many people as possible know that you are here to serve them.
  • Marketing and promoting yourself online. From blogging on your website to running Facebook ads, posting on social media, and networking in local online groups
  • Understanding how to talk to potential clients. It’s so important that you learn how to connect and communicate with people about real estate and how to overcome objections.

Kerry Lucasse and the Building Better Agents team talk with hundreds of newly licensed real estate agents each year. Most have no idea how challenging the first year or two can be and how much you need to learn to be successful. This business is not as easy as it looks on TV! Real estate can be a rewarding and profitable business if you are a self-starter who is 110% committed to being successful and you have the support of a great mentor and brokerage.


Luxury condos for sale in California

California Real Estate License: Commonly Asked Questions

The California Real Estate Exam:  How hard is it?

Most agents will describe the real estate licensing exam as “not easy.”  There are 150 multiple-choice questions with a minimum passing score of 70%. You’ll have 3 hours and 15 minutes to complete the state licensing exam.
The real estate course exam only has 100 questions and you’ll have two tries to pass. You’ll need to pass this before scheduling the state examination.

How long does it take to get my exam results back?

If you took the real estate licensing exam electronically, ​you will receive your exam results right after you complete the exam — instant gratification! If you took the exam in a paper format, you will receive your results via mail in approximately 5 business days.

What happens if you fail the California real estate exam?

It’s not uncommon for people not to pass the real estate exam on the first try. In California, they make it fairly simple for you to retake the exam, you just need to reschedule and pay the exam fee of $100 again.
Please note that you can’t reschedule the exam until you’ve received notification that you failed the exam. ​Once you have the notification, you can reapply online, using the DRE eLicensing Online System you can mail in your Examination Result Notice (form RE 418A) form along with the $100 exam fee to the DRE.

How do I become a real estate broker in California?

In order to become a real estate broker in California, you’ll have to have a minimum of two years full-time licensed salesperson experience within the last five years, or two years of unlicensed equivalent experience, or a four-year degree with a major/minor in real estate is required. Aspiring brokers will also have to take eight required college-level courses. Learn more about the CDRE requirements.

I have a real estate license in another state. Does California offer reciprocity?

If you are a licensed agent in Florida or Arizona, for example, and would like to get your license in another state, many US states have a “reciprocity agreement” with one another. This means that you don’t have to attend any additional classes, you just have to pass the state portion of the exam to hold an active real estate license in that state.
In California, they do not have reciprocity with any other states in the US. If you’d like to become a real estate agent in another state, you will have to take that state’s pre-licensing course and pass its state exam.

What are the requirements for Continuing Education?

The California Department of Real Estate (CDRE) requires that agents renew their real estate license every four years. Agents will need 45 hours of Continuing Education (CE) credits completed prior to the renewal. The state of California does specify the types of courses you’ll need to take to reach 45 CE credits. Some will be offered by your local Board of Realtors or your broker. Others you’ll need to enroll in an online course with an approved real estate school like Colibri Real Estate School, Kaplan, or the CE Shop.

Is Getting a California Real Estate License Worth It?

Honestly, it depends on what your goals are.  If you just want to sell a few homes each year to friends and family, you’ll have to crunch the numbers to see if the cost of getting and maintaining your real estate license is worth it. With a median home sales price of $850,000 in California, agents generate an average of $24,000 in gross commission (before broker split) on each sale. If you sell one or two homes each year, the cost of acquiring and maintaining your real estate license is well worth it.
If your goal is to make this a full-time business, then becoming a California Realtor, then absolutely!  The CA real estate market is booming and the commission earned on each sale makes it very possible to earn six figures in your first year.
It can be a challenge moving from a salaried position to a commission-based business, so it’s important to have at least four to six months saved so you have time to ramp up your real estate sales.  If you don’t have that nest egg yet, you may want to keep your current job for a short period of time until you lay the foundation for your new real estate business.