How to Become a Real Estate Agent in Sacramento, California
With median home prices reaching an all-time high of about half a million dollars, the real estate market in Sacramento has grown significantly in recent times. The market is 16.1% above the previous year, and home values have been increasing each month.
This makes the Sacramento real estate market a perfect location to start and/or build your career as a real estate agent.
You must understand that the Sacramento market can be a hard one moving forward. However, you can build a successful career as a real estate agent in Sacramento if you follow the steps in this guide.
5 Steps to Becoming a Real Estate Agent in Sacramento
You are eligible to apply for and get a real estate license to practice as an agent in Sacramento once you are at least 18 years old and can work in the U.S.
This section will cover, in detail, the step-by-step process you have to follow to get started.
Enroll in a Real Estate School
One of the major requirements to become a real estate agent in Sacramento is to complete 135 hours of real estate coursework. This coursework is state-specific, and you must complete it before you can take the real estate license exam.
You can only take the coursework by enrolling in one of the real estate schools approved by the Department of Real Estate. These schools help you complete the required courses and prepare for the real estate license exam.
They also certify you upon completion and passing of the coursework. You will need this certification when applying for your license.
Pass the 3 Required Courses
You can spread the compulsory 135-hour coursework out to fit your schedule. The coursework comprises 3 required courses, with each of the courses evenly split into a 45-hour duration.
You have to complete these 3 courses and take the license exam within a year of your enrollment.
- Real Estate Practice
- Real Estate Principles
- One elective course
You have several options to choose from for your elective course. These courses will provide you with a slightly different perspective depending on your choice. Here are some of the options available to you:
- Real Estate Finance
- Real Estate Appraisal
- Property Management
- Real Estate Economics
- Business Law
- General Accounting
- Office Administration
These courses are designed and formulated by the DRE to treat the fundamentals of becoming a real estate agent in California. In addition, you will learn about the relevant real estate topics and terminology that the license exam will be based on.
Apply for the Real Estate Exam
After completing the compulsory 135 hours of real estate coursework, you can apply to take the California Real Estate Salesperson Examination.
This exam is somewhat difficult to pass, with a pass rate of about 50%, so you have to prepare diligently.
In applying for the exam, you will have to fill out an application form and pay a fee of $60 for the exam. You will also have to submit a valid photo ID, a completed live scan form, and the certificates for your coursework.
Once your application is processed, you can go ahead to schedule the time, date, and venue of your exam. You will also have to pass a background test.
Pass the Exam
Passing the real estate exam is the most crucial step you have to take. The DRE sets 150 multiple-choice questions, and you need a score of at least 70% to pass.
The exam can be stringent and demanding, but it is not impossible. All you have to do is study diligently before the exam.
Sign with a Brokerage
You cannot practice as a real estate agent until you sign with a brokerage in California, even after getting your license. You have to work under a broker. Finding a brokerage to sign you can be like the typical job-seeking process.
All you have to do is reach out to a brokerage that piques your interest. Let them know that you have just received your license, and they can schedule an interview with them. Once you scale this phase, you can start your career as a real estate agent in Sacramento, California.
How Competitive is the Sacramento Real Estate Market?
The Sacramento real estate market, is very competitive. Most homes in Sacramento receive about 7 to 8 offers on average and are sold in just over a week. This shows the influence of robust housing demands and low mortgage rates.
Areas like the Sacramento-Roseville-Arden-Arcade Metro home, Sacramento County, and Sacramento City have shown a drastic increase in value. This also makes it a perfect place to start your career as a real estate agent.
How Much Money Do Sacramento Agents Make?
Sacramento real estate agents can make between $52,964 and $101,855 a year on average, with the median income being about $87,243. However, you should understand that real estate agents earn a commission basis, not a salary. In other words, they may stand to earn a whole lot more.
The median home price in Sacramento is around $500,000, and this puts your commission at around $15,000, using the 3% rate.
How Fast Can You Become a Real Estate Agent in Sacramento?
It should take about 5 to 6 months to become a real estate agent in Sacramento, depending on how quickly you complete your coursework. The fastest you can complete your coursework is 2 months.
You then apply for the exam and have your application processed. After taking your exam, you will have to sign with a brokerage. All of these would typically take about 3 - 4 additional months.
Should You Become a Real Estate Agent in Sacramento?
While the journey can be rigorous and challenging, being a real estate agent in Sacramento can be more rewarding than you think.
Other than the robust income, you can have a flexible schedule and take pleasure in helping people make the critical decision of buying their homes. This makes it entirely worth all the stress.
TL;DR: To become a real estate agent in Sacramento, you have to complete your pre-licensing education, pass the real estate exam, and then sign with a brokerage when your license arrives in the mail.