Have you been dreaming of starting as an agent in San Francisco? What’s keeping you from taking the first step? Here’s a look at how to get started (and succeed!) in the competitive real estate industry in San Francisco.
Key Takeaways
- San Francisco’s real estate market is highly competitive due to its high property values, but it can be very rewarding. Success in this market requires focus, persistence, and a strategic plan.
- Becoming a licensed agent in San Francisco involves completing 135 hours of pre-licensing education, passing the state exam, and obtaining sponsorship from a broker.
- New agents should have a financial safety net and set realistic expectations, as commissions may take time. Learning about local market trends and networking will be essential for building a strong foundation.
- Recognizing and celebrating early milestones, such as securing listing appointments or assisting on a sale, helps maintain motivation as agents build their careers.
Understanding the San Francisco Real Estate Market
San Francisco is known for having one of the most expensive housing markets in the country, so you know that working as a real estate agent in the City by the Bay can be highly rewarding. However, the competition can be fierce.
According to Indeed, the average California real estate agent in San Francisco earns around $116,000 a year. Your income will be based on a percentage of the property’s sale price. The city’s average home price is $1.2 million, so you don’t have to close many deals to make a substantial income.
So, is getting your real estate license worth it in San Francisco? Absolutely! The market is one of the most lucrative in the country, but it’s also competitive. Focus, persistence, and a plan will be essential for long-term success.
Learn more! Request a copy of our salary guide to learn the average California real estate salary.
Step to Getting a Real Estate License in San Francisco
Is real estate right for you? The process to become a licensed real estate agent in San Francisco includes several steps. Here’s a quick run-down of the process.
Step 1: Meet basic eligibility
To become a real estate agent in California, you must be 18 or older and of good character (or be able to pass a background check).
Step 2: Complete pre-licensing education
Complete 135 hours of real estate coursework. Many people take online real estate classes to complete this requirement.
Step 3: Apply for the licensing exam
After your coursework, apply to take the state licensing exam. You’ll also need to submit your fingerprints at a Live Scan Program for your background check.
Step 4: Pass the exam
You’ll need a passing score of at least 70% to earn your license. You’ll need to study for your test, so obtain the best test prep materials on the market.
Step 5: Obtain sponsorship from a broker
In California (as in most states), agents must work under the supervision of a licensed broker.
Choosing the Right San Francisco Brokerage
As a real estate agent, you’ll work independently but under the supervision of a broker. Choosing the right brokerage is essential for your success. Look for one that offers solid training, mentorship, and a reputation for excellence. It may be worth it to pay more in desk fees or commission splits to work for a brokerage that offers the resources a new agent needs to succeed. A strong brokerage can make a significant difference in your early career.
Tips for Getting into San Francisco Real Estate
We know starting a new career can feel overwhelming, especially in a market like San Francisco. How do you survive in a competitive market like San Fran’s? Here are a few tips for surviving – and then thriving.
1. Have a nest egg.
Earning your first commission check will take time, so it’s essential to have realistic expectations. If you’re leaving a full-time job to pursue real estate, consider setting aside enough money to cover 3 to 6 months of expenses. Building a client base and a steady income stream can take a year or more, but success is possible with hard work and dedication.
2. Set realistic expectations.
During your first months as an agent, you might work long hours without significant commissions, and it can be easy to become discouraged. Instead, focus on building your knowledge, meeting other agents and community leaders, and developing marketing materials that showcase your brand.
Remember – the first year is often about laying the groundwork for future success.
3. Learn as much as you can
While real estate pre-licensing courses will teach you the fundamentals, you must go beyond the basics to thrive in the San Francisco market. Make it a priority to stay up-to-date on local market trends, neighborhood property values, and state regulations. Networking with agents and industry influencers will also keep you informed of what’s happening in the community.
4. Learn how to overcome common rejections.
As a new agent, you’ll face plenty of rejection. Practice responses and negotiation techniques with other agents. Ask to shadow successful agents in your brokerage. Learning to talk with potential clients is a crucial part of the job.
5.Celebrate milestones and small wins.
In the beginning, your wins might seem small. Maybe you’ll land a few listing appointments or assist a more experienced agent with a sale. Acknowledge these accomplishments, as they provide motivation and momentum to keep moving forward.
Ready to Get Started?
If you’re ready to take the next step in your real estate career, Allied Schools offers comprehensive pre-licensing courses designed to prepare you for the California real estate exam. Enroll today and get on the path to becoming a successful real estate agent in San Francisco.
