It’s not surprising that Million Dollar Listing – Los Angeles is on its 15th season on Bravo. We all love watching the professional and personal lives of L.A. real estate agents in Beverly Hills, Hollywood, and Malibu as they sell luxury properties.
While some watch Million Dollar Listing for its entertainment value, you may be intrigued by the deals Josh Flagg, Josh Altman, and Tracy Tutor oversee. Do you have what it takes to work in real estate in the L.A. area? Here’s how to become a real estate agent in Los Angeles.
Key Takeaways
- To become a real estate agent in Los Angeles, you need to complete 135 hours of coursework, pass a background check, succeed in a licensing exam, and obtain sponsorship from a licensed broker. These steps ensure agents are well-prepared to enter the competitive market.
- Despite a general decline in California home sales, the Southern California region remains a hot spot. With high median home prices and substantial commissions, real estate agents in Los Angeles have the potential to earn significant incomes.
- Building a successful career involves understanding local trends, forming professional relationships, and engaging in continuous education. Networking and ongoing training are essential for maintaining a competitive edge in the industry.
Los Angeles Real Estate Market
Someone looking at California real estate data might not be encouraged to enter the industry since there’s been a steady drop in home sales. However, when you zero in on Southern California data, you’ll discover a different story. In December 2023, almost half of all homes sold in the state were in the Southern California region. Additionally, the median sales price in California at the end of last year was $819,740, a 6.4% year-over-year increase.
While California’s population may be decreasing, Los Angeles has consistently experienced job growth, making it an attractive destination for job seekers. It’s an entertainment hub, but the tech sector has seen substantial growth in Silicon Beach, located on the west side of Los Angeles. Prominent educational institutions and the healthcare sector also enhance job opportunities in the region.
Overall, the Los Angeles economy is strong, with a Gross Domestic Product (GDP) of approximately $1.23 trillion as of 2022.
Learn more about the state of the market in L.A. by reading Real Estate Trends in L.A.: Los Angeles Real Estate Market Forecast 2024.
Is It Worth Becoming a Real Estate Agent in Los Angeles?
Yes! It’s an excellent time to become a real estate agent in L.A. Here’s why:
- High Median Home Prices: With median home prices in Los Angeles reaching an all-time high, real estate agents can earn substantial commissions from each sale.
- Job Growth: Los Angeles continues to experience consistent job growth, particularly in the tech and entertainment sectors, attracting potential homebuyers to the area.
- Opportunities: The rise in new home listings and unsold inventory provides more opportunities for agents to help buyers find properties, enhancing their business potential.
There’s room in the L.A. real estate market for you. However, succeeding will require focus, determination, and in-depth industry knowledge.
Are you wondering about your salary starting out as an agent? Learn more by reading Average Starting Salary for a Real Estate Agent.
Challenges and Opportunities in Los Angeles’ Real Estate Market
While the market offers significant opportunities, it also presents challenges. The lucrative market attracts many agents, making it a very competitive region. Like elsewhere in the country, economic trends that are out of your control, such as rising interest rates, can affect the market. Additionally, staying updated on the latest California regulations and policy changes may be challenging.
However, there are a lot of opportunities in the L.A. real estate market.
High Earning Potential: According to Indeed, the average real estate agent in L.A. earns $107,411. The average commission for California real estate agents is 5.14% of the purchase price of a property, which is typically divided among the seller’s agent, buyer’s agent, and their respective brokerages. Since the average home value in L.A. is $972,829, you don’t have to sell many properties to earn a good income.
Diverse and Vibrant Market: From beachfront homes to urban lofts, the variety of properties in the L.A. market allows agents to specialize or explore different niches. And, of course, working with celebrities, executives, and other influential individuals can provide unique experiences and networking opportunities.
Flexibility and Independence: Real estate agents enjoy a flexible schedule and the ability to be their own boss. Although real estate agents must work under the supervision of a brokerage, being a real estate agent is similar to owning one’s own business.
Requirements to Become a Real Estate Agent in Los Angeles
You don’t need a college degree to become a real estate agent in L.A. Here are the general requirements to become a real estate agent:
- Be at least 18 years old.
- Be honest and truthful. Convictions or failure to disclose any criminal violations can result in license denial.
Related article: How to Become a Real Estate Agent Without a Degree
Steps to Obtain a Real Estate License in Los Angeles
If you can meet the basic requirements, you can begin the real estate licensing process.
Step 1: Complete 135 hours of Los Angeles real estate courses.
These courses can be taken online or in person. Online options, like those offered by Allied Real Estate School, provide flexibility.
Step 2: Submit your exam application.
Visit the California Department of Real Estate’s website to fill out the application form and provide proof of completing the 135 hours of pre-licensing courses.
Step 3: Submit your fingerprints for a background check.
This can be done after submitting your exam application or after passing the exam.
Step 4: Pass the exam.
The exam consists of 150 multiple-choice questions, and the time limit is 3 hours and 15 minutes. You need a score of at least 70% to pass.
Step 5: Obtain sponsorship from a licensed California broker.
Find a broker or brokerage to work under. Consider your work preferences and values to find the right match.
Wondering how long it takes to get your real estate license in L.A.? Read How Soon Can You Get Your Real Estate License?
Building Your Real Estate Career in Los Angeles
Once you have your California real estate license, focus on building your career. Here’s some advice from real estate agents on how to survive this competitive market.
Understand the local market, neighborhood developments, and economic indicators.
Staying ahead of market trends and developing local expertise can set you apart as a real estate agent. Clients rely on our expertise as agents to help them make informed decisions, so it is imperative we are continuously educating ourselves about neighborhood developments, school districts, and local amenities.
– Logan Winn MBA, Realtor® at Exit Realty Consultants
Build relationships with other professionals and potential clients.
Building a robust network is vital. My affiliations with organizations like the International Council of Shopping Centers (ICSC) have been instrumental in forming valuable industry connections. These relationships not only facilitate transactions but also help in obtaining referrals, which are crucial for sustained success in real estate.
– Matt Morgan, IPA Commercial Real Estate
Stay updated with continuing education courses to keep your skills and knowledge current.
Choose a brokerage that offers trainings that fit your style of learning, mentorship programs and robust training. Learning from experienced agents can provide you with practical knowledge and confidence to navigate your first transactions successfully.
– Logan Winn MBA, Realtor® at Exit Realty Consultants
Get started on your California pre-licensing coursework today with Allied Schools. Allied Real Estate School has been helping people become California real estate agents for over 30 years. Offering both livestream and at-your-own-pace online real estate classes, Allied Schools also offers continuing education and broker courses. Questions? Contact us today to learn more about how to become a real estate agent in L.A.
