California Real Estate Licensing Trends: October 2023

How Many Brokers & Salespersons Are Licensed in California?

According to the CA Department of Real Estate (DRE), here are the total number of Brokers and Salespersons licensed in October 2023 compared to September 2023. The numbers also show the total amount of licensees from 1 year ago and 2 years ago.

  • Brokers:
    • This Month: 127,187
    • Last Month: 127,322
    • 12 Months Ago: 128,604
    • 24 Months Ago: 133,598
  • Salespersons (Agents):
    • This Month: 310,024
    • Last Month: 309,887
    • 12 Months Ago: 301,843
    • 24 Months Ago: 305,685

Breaking Down the Trends

A Growing Salespersons’ Community

You might notice there was a decrease of roughly 3,800 Salesperson licensed 2 years ago compared to the total number licensed only a year ago. One would think the number of agents would continue to become lower considering the real estate market was dealing with a large increase in interest rates. The opposite actually occurred, and the number of licensed agents increased up to 310,024 in October of 2023. That was an increase of almost 9,000 licensed individuals in one year.

Brokers: The Backbone of the Industry

Although there is a slight dip in the number of brokers compared to the previous years, their substantial presence in the industry signifies the overall strength of the market. Becoming a broker opens up avenues for higher responsibilities and rewards. If you aim for a position of leadership, pursuing a broker’s license is a great step to take.

California Salesperson Licenses Issued vs Exams Administered

  • New Salesperson Licence Issued (Agent)
    • This Month: 2,154
    • Last Month: 2,724
    • 12 Months Ago: 2,991
  • Salesperson (Agent) Exams Administered
    • This Month: 4,583
    • Last Month: 4.677
    • 12 Months Ago: 4,716

What Is The Passing Rate of The California Real Estate Exam?

As you can see, over half of the people who took the state exam did not pass and get their license in October. Only 47% of test takers were issued a California real estate license that month. The September numbers were much better with 58% of the passing students obtaining a license. One year ago in October 2022, about 63% of people passed the exam and were licensed. From what we have seen, the average number of people each year who pass is 50% or less.

California Broker Licenses Issued vs Exams Administered

Here are the October and September number of Broker examinations taken and Broker licenses issued:

  • New Broker Licenses Issued
    • This Month: 320
    • Last Month: 329
    • 12 Months Ago: 395
  • Broker Exams Administered
    • This Month: 2,187
    • Last Month: 2,255
    • 12 Months Ago: 2,991

Why do so many brokers fail the state exam? In October, 2,187 people took the Broker exam, and only 320 passed. That means only 14.6% of the people who took the exam passed and received a broker license. September was not any better with 14.5% of examinees passing and getting licensed. The Broker exam is more difficult than the Salesperson exam. It contains 50 more questions and you must pass with a 75% or higher score. These statistics show if you do become a broker you will be certifiably more knowledgeable than your peers. This is a unique selling point when obtaining new clients.

How Chamberlin Makes a Difference

The process to get your real estate license or broker license is confusing. Which courses do you need to take? Why does the DRE require Brokers to take so many classes? We help people with all these questions and provide DRE-accredited coursework so you can qualify to take the state exams. Our success is also attributed to our exam preparation and crash course which helps both Brokers and potential new agents prepare. Other characteristics include:

  • Expert Guidance: Learn from the industry veterans who bring real-world insights to your learning experience.
  • Flexible Learning: Our online courses give you the liberty to learn at your own pace, fitting perfectly into your busy schedule.
  • Success Stories: Join the league of our successful alumni who have carved a niche for themselves in the real estate sector.

Feel free to reach out to us, and we’ll be happy to guide you at every step.

Source: https://www.dre.ca.gov/stats/2023-2024.html

Decoding Real Estate Licenses: Can Your California License Be Used in Other States?

Being a real estate agent in California has its perks – you’re in one of the most dynamic and lucrative markets in the world. However, there comes a time when opportunities arise in other states, and you’re left wondering, “Would my California license work in other states?” Today, we’re addressing this and other related questions to help you navigate this cross-state conundrum.

Real Estate License Reciprocity

First, let’s define reciprocity. Reciprocity means that states have an agreement to recognize and accept each other’s real estate licensing requirements. If you’re licensed in one state and want to become licensed in another, you can bypass some requirements, like pre-licensing education or even the licensing exam.

Would My California License Work in Other States?

Sadly, the answer is no. California doesn’t have reciprocity agreements with any state. This means that if you want to practice real estate in other states, you’ll have to meet their licensing requirements, which often involve completing pre-licensing education and passing the state’s real estate examination.

How Do I Get Licensed in Other States?

Despite the lack of reciprocity, getting licensed in another state isn’t necessarily a daunting process. Here are the general steps to follow:

  1. Research the Requirements: Each state has its unique requirements. Check the real estate commission website for the state you’re interested in to understand what’s needed.
  2. Complete Pre-Licensing Education: Many states require pre-licensing courses. Ensure to enroll in a state-approved school.
  3. Take the Licensing Exam: You’ll have to pass the state’s real estate exam. Consider exam prep courses to increase your chances of success.
  4. Submit the License Application: Once you’ve passed the exam, submit your license application to the state’s real estate commission.
  5. Join a Brokerage: Some states require new agents to work under an experienced broker for a specified period.

Can I Be Licensed in Multiple States at the Same Time?

Yes, you can be licensed in multiple states at the same time. There’s no federal law limiting the number of states where you can hold a real estate license.

Is There a Limit to the Number of States I’m Licensed In?

No, there is no limit to the number of states you can be licensed in. However, keeping track of the requirements for each state can be challenging, so it’s advisable to be strategic in choosing where to get licensed.

Do I Have to Be a Resident of Each State?

Residency requirements vary from state to state. While some states require you to be a resident, others do not. Check the specific requirements for each state you’re interested in.

Do I Have to Sell a Certain Number of Houses in Each State to Keep My License Active?

While most states don’t require you to sell a certain number of houses to maintain your license, they do require you to renew your license periodically (typically every 2-4 years). Inactivity over a long period might cause your license to expire.

Do I Have to Do Continuing Education in Each State to Keep My License Active?

Yes, most states require continuing education for license renewal. The number of hours and the course content required can vary significantly from state to state. Make sure to check with the real estate commission in each state where you hold a license.

Conclusion

While your California real estate license doesn’t provide direct access to other markets, the path to multi-state licensure is navigable. Research, education, and strategic planning are key elements in this journey. So, whether you’re attracted to the bustling markets of New York or the serene landscapes of Oregon, your dreams of cross-state real estate practice are achievable!

Should California Real Estate Investors Obtain a Real Estate License?

When delving into the world of real estate investing, one question that often surfaces is whether obtaining a real estate license would offer any significant benefits. This decision can be more complex than it initially appears. In this blog post, we will comprehensively address this topic, particularly for investors in California. We aim to answer some of the most frequently asked questions on the subject.

Saving Money on Commissions: A Definite Plus

Obtaining a real estate license in California comes with the benefit of saving on commissions. As a licensed agent, you can potentially save thousands of dollars on commissions when buying or selling properties.

Here’s how it works:

* When you buy a property, the seller typically pays a commission that is split between the buyer’s agent and the seller’s agent.

* As a licensed real estate agent, you can represent yourself, which allows you to collect the buyer’s agent commission.

Thus, instead of paying the commission to an external agent, you’ll be putting that money back into your pocket, substantially impacting your return on investment.

Representing Yourself in Transactions: Greater Control and Convenience

Yes, as a licensed real estate agent, you will indeed be able to represent yourself in transactions. This privilege extends beyond monetary savings. Self-representation can give you:

  • Greater control over negotiations and closings.
  • The convenience of setting your schedule for property showings, inspections, and more.
  • More direct communication with all parties involved in the transaction.

While this is an attractive benefit, remember that successful representation requires a firm understanding of real estate laws, contracts, and best practices to avoid any potential pitfalls.

Working With a Broker: A Requirement, But Not Without Its Advantages

If you’re a new licensee in California, you will need to hang your license with a sponsoring broker. This requirement may seem like a downside, but working under a broker can actually offer numerous advantages:

  • Access to mentorship and guidance.
  • Broker-provided marketing tools and resources.
  • Potential for client referrals.
  • Access to office space for meetings.

However, you must also be prepared for some expenses, such as broker fees, which vary from one brokerage to another.

Access to the MLS: Your Key to Comprehensive Market Data

One significant advantage of having a real estate license is gaining access to the Multiple Listing Service (MLS). The MLS is a database of nearly all properties for sale in a given area, listed by member real estate professionals.

Having access to the MLS allows you to:

  • Discover and analyze new investment opportunities.
  • Conduct comparative market analyses.
  • Gain insights into market trends.
  • Access detailed property information that may not be available to the public.

Thus, MLS access could indeed be a game-changer for real estate investors in California.

Selling Houses for an Agency: Not Mandatory

As a licensed real estate salesperson in California, you do not have to sell houses for an agency. Although many real estate agents work for agencies, it’s not a requirement. Your real estate license gives you the flexibility to choose how you want to use it:

  • You could represent yourself in your investment transactions.
  • You might decide to take on clients and sell properties for them.
  • You could also choose to use your license strictly for investing and not participate in traditional buyer or seller representation.

In essence, having a license broadens your options, providing an avenue for additional income and opportunities within the industry.

Wrapping Up

In conclusion, there are distinct advantages for real estate investors in obtaining a real estate license in California. These include saving money on commissions, representing oneself in transactions, gaining access to the MLS, and not being obliged to sell houses for an agency. Although working with a broker is required, it comes with its own set of advantages.

However, remember that acquiring and maintaining a license requires time, effort, and money. Thus, your decision should be based on a careful assessment of whether these benefits align with your long-term investment goals and strategy.

In the ever-dynamic world of real estate, information is power. Armed with a real estate license, investors gain access to tools and resources that may prove invaluable in their journey. As always, consider your personal circumstances and consult with industry professionals when making this important decision.

How Can I Become a Real Estate Broker in California?

Are you considering a career as a California real estate broker? Becoming a licensed broker can open up new opportunities which are not available to an agent with only their salesperson license. To become a broker in the Golden State, we will walk you through the process step by step, from the minimum requirements to the costs involved, and even the differences between a broker and a real estate agent. 

What is a Real Estate Broker?

In simple terms, a broker is a professional who has obtained a higher level of real estate licensing, allowing them to oversee and operate their own real estate business. Brokers have more responsibilities and greater authority compared to real estate agents. They can supervise agents, handle transactions, and even open their own brokerage firm.

Minimum Requirements to Apply for the California Broker Exam and License

To obtain a California real estate broker license, you need to meet several minimum requirements:

  1. Age: To apply for a license, you must be 18 years of age or older.
  2. Residence: License applicants must provide proof of legal presence in the U.S. If you’re not a California resident, there are specific guidelines for out-of-state applicants.
  3. Honesty: License applicants must be honest and truthful. Conviction of a crime or failure to disclose any criminal violation or disciplinary action may result in the denial of a license.
  4. Education and/or Experience: Effective January 1, 2013, broker applicants must meet one of the following criteria:
    • Have a minimum of two years full-time salesperson’s experience within the last five years.
    • Have two years of unlicensed equivalent experience.
    • Hold a four-year degree from an accredited college or university with a major or minor in real estate.

Statutory Courses

In addition to the education and/or experience requirements, broker applicants must successfully complete at least eight statutory-required college-level courses. These courses are divided into two categories:

  1. Five required courses:
    • Real Estate Practice
    • Legal Aspects of Real Estate
    • Real Estate Finance
    • Real Estate Appraisal
    • Real Estate Economics or General Accounting *
  2. Three elective courses (choose at least three from the following):
    • Real Estate Principles
    • Real Estate Property Management
    • Real Estate Office Administration
    • Escrows
    • Business Law *
    • Mortgage Loan Brokering & Lending *
    • Advanced Legal Aspects of Real Estate *
    • Advanced Real Estate Finance *
    • Advanced Real Estate Appraisal *

*courses are not available at Chamberlin Real Estate School.

Note: If you complete both Accounting and Economics, you only need to choose two courses from the second group.

Costs Involved

While pursuing a real estate broker license in California, you will need to factor in the costs associated with the process. Here are the primary expenses to keep in mind:

  1. Education Costs: These can vary widely from one school to another. Chamberlin Real Estate School offers each course for only $89, with discounts for purchasing multiple courses at the same time.
  2. Examination Fee: There is a $95 fee required when you apply for the state examination. This fee covers the administrative costs of processing your application and scheduling your test date.
  3. License Fee: Once you have successfully passed the state examination, you will need to pay a $300 license fee to obtain your real estate broker license. This fee allows you to legally operate as a broker in the state of California.
  4. Fingerprinting: As part of the application process, you will need to provide one set of classifiable electronic fingerprints. The fingerprinting process incurs a separate fee, which is currently $56 for California residents and out-of-state applicants. This is not required if you are currently licensed by the DRE or were licensed by the DRE in the past two years.

It’s important to budget for these costs and ensure you have the necessary funds to cover them. Remember, investing in your education and licensing is an investment in your future as a real estate broker.

Exam and Licensing Process

Here are the steps for the exam and licensing process to become a real estate broker in California.

  1. Course Completion: Before you can apply for the state exam, you must successfully complete all eight required courses, including the five mandatory courses and three electives.
  2. Application Submission: Once you have completed the required courses, you can submit your license application to the California Department of Real Estate (DRE). The application will be reviewed, and if approved, you will receive further instructions regarding the examination process.
  3. State Examination: The state exam consists of 200 multiple-choice questions, and you must achieve a minimum score of 75% to pass. The exam covers various topics related to real estate practice, legal aspects, finance, appraisal, and more. It’s essential to study and prepare thoroughly to increase your chances of success.
  4. License Issuance: After passing the state examination, it typically takes approximately 6 to 8 weeks for the DRE to process your application and issue your real estate broker license. Once you receive your license, you are officially recognized as a licensed real estate broker in California.

Continuing Education as a Broker

As a licensed real estate broker in California, you are required to complete continuing education courses to maintain your license. These courses are designed to keep you updated on industry trends, changes in regulations, and best practices in real estate.

The California Department of Real Estate (DRE) mandates that brokers complete 45 hours of continuing education every four years. This requirement includes a 15-hour course on ethics, agency, trust fund handling, fair housing, and risk management, along with other elective courses.

What Can a Broker Do Differently from a Real Estate Agent?

Brokers will have additional responsibilities and privileges compared to real estate agents. Here are some key differences:

  1. Supervision: Brokers have the authority to oversee and supervise real estate agents. This means you can hire and train agents, provide guidance, and ensure compliance with regulations and ethical standards.
  2. Independent Operation: Brokers can operate their own real estate brokerage firm, while agents typically work under the supervision of a broker. This allows brokers to establish their brand, develop business strategies, and build a team of agents.
  3. Transaction Handling: Brokers can handle real estate transactions directly. They can represent clients in buying, selling, leasing, or renting properties. This added responsibility gives brokers more control over the entire transaction process.
  4. Higher Earning Potential: Brokers often have the potential to earn higher commissions compared to agents. With their own brokerage, brokers can set commission structures and earn a percentage of the transactions facilitated by their agents.

Becoming a broker offers greater autonomy and the opportunity to take your real estate career to the next level. It allows you to have more control over your business and opens doors to new avenues of success.

 

The Bottom Line

Becoming a real estate broker in California requires dedication, commitment, and fulfilling specific requirements. By meeting the minimum qualifications, completing the necessary coursework, passing the state examination, and obtaining your license, you can further your career in the real estate industry.

Remember, the path to becoming a broker involves investing in your education, both in terms of time and finances. However, the benefits and opportunities that come with being a licensed broker in California make the journey well worth it.

Whether you aspire to run your own brokerage, have more authority in the industry, or increase your earning potential, obtaining a real estate broker license can be a game-changer for your career. So, take the first step by clicking here!

Do You Need A Real Estate License To Flip Houses?

Do You Need A Real Estate License To Flip Houses

House flipping is a lucrative way to make money by purchasing properties needing repair, renovating, and selling them for a profit. However, the process is not without its complexities, and it’s common for people to wonder whether they need a real estate license to flip houses. While having a license to flip houses is not required, having one can be highly beneficial, as it provides a deeper understanding of the market, which can lead to more profitable deals.

What Is House Flipping?

House flipping is a process that involves purchasing a property that needs repairs or renovations, intending to increase its value, and selling it for a profit. This starts with buying the property at a lower price than its actual value, investing in it through repairs, decorations, modernizing, remodeling, and then selling it for a profit. The goal is to make a profit that includes the costs of the property and the costs of the renovations. If you need a more detailed guide on house flipping, you can search online and find many resources to help.

Advantages Of Having A Real Estate License

Here are some of the benefits of having a real estate license when flipping houses:

  1. More Knowledgeable About Prices: Real estate training programs offer extensive information on property management, home appraisals, ownership, government regulations, contracts, financing, and the general process. This knowledge can be helpful when determining the right price for a property.
  1. Increased Familiarity With The Market: More familiarity with the market can help you determine if it is a good time to sell or buy and help you build wealth through real estate investments. For instance, knowing the best locations, the ideal size of properties, the current trends in the market, and what buyers are looking for can help you make more informed decisions when purchasing properties.
  1. May Be Able To Reduce Costs: A real estate license can help you avoid paying commissions on one side of a transaction or even receive a commission personally, reducing your costs. This can result in more significant profits when selling the property.
  1. More Access To Buyers: Generally, only licensed real estate agents have access to certain sites with property listings. Having a real estate license can give you access to these sites, allowing for more opportunities and the potential for more money.
  1. Networking Opportunities: Real estate agents have a wide range of contacts, including other agents, brokers, investors, contractors, tradespeople, inspectors, lawyers, and people of influence. A real estate license can give you access to this network, which can be advantageous.
  1. Flexible Working: Real estate agents typically need to adjust their schedules according to their clients’ availability. Nevertheless, as a general guideline, you have the freedom to set your own working hours. This means that pursuing a career in real estate can offer you greater flexibility in your work schedule, perhaps even for your own real estate investment ventures!
  2. Potentially Bigger Profits: The National Association of Realtors suggests that those with a real estate license earn larger profits on properties compared to those who do not have a license. Therefore, having a real estate license can help you learn more about the market and the industry and earn a more considerable profit margin.

Is Flipping Houses Hard?

Flipping houses is not necessarily hard, but it requires patience, time, and effort. It is important to note that you will not always profit from flipping houses. Understanding the potential for losses and how to deal with such situations is critical. This is when house flipping gets “hard.” Some people may find themselves out of their depth if they do not know how to handle these situations.

Where To Get A Real Estate License?

If you’re looking to become a licensed real estate agent, Chamberlin Real Estate School might be the perfect choice. Our courses are available online, making it convenient for anyone with a busy schedule or who lives far from in-person classes. You can study at your own pace, but you have the advantage of a licensed instructor, available to answer any questions you may have. Additionally, Chamberlin Real Estate School has been helping students for 70 years, which means they we have a wealth of experience and knowledge to draw on. We’re also based in Campbell, CA, which means you’ll receive support by people right here in California, who genuinely care about your success.

The Bottom Line

While you don’t necessarily need a real estate license to flip houses, having one can give you a significant advantage in the industry. A real estate license provides extensive market knowledge, reduces costs, and potentially increases profits. It also offers networking opportunities to help you build valuable real estate contacts. However, it’s essential to remember that flipping houses can be risky, and there is always the potential for losses. Therefore, it’s vital to have a solid understanding of the market, the industry, and the potential risks involved before embarking on a house-flipping venture.

Obtaining a real estate license is an excellent place to start if you’re interested in pursuing a career in house flipping or real estate. A real estate license will give you the necessary knowledge and tools to succeed in the industry and open up opportunities for professional development and career advancement. In addition, with a real estate license, you can be confident that you’re making informed decisions and are equipped to handle any challenges that may arise along the way.

Whether you decide to pursue a real estate license or not, the key to success in flipping houses is to be patient, diligent, and knowledgeable. By doing your research, being strategic in your investments, and leveraging the right resources, you can successfully flip houses and achieve your financial goals.