The average home value in San Francisco is $1.4 million. Is it worth becoming a real estate agent in San Francisco? Since the income of real estate sales professionals is based on the percentage of the sale price, we would say, “Yes, it’s worth it to become an agent.”
But how do you get started in the real estate industry in San Francisco? Many successful agents say they got their start by working in the rental market, shadowing successful agents, and using a real estate farming plan to establish a solid presence in a specific market. But before you can do any of these things, you need to get licensed. Here’s how to become a real estate agent in San Francisco.
Key Takeaways
- San Francisco’s premium real estate market, characterized by high property values, offers significant earning opportunities for agents. Even with market fluctuations, the potential for substantial commissions remains strong due to the city’s consistently high home prices.
- The San Francisco real estate market remains active, with a competitive atmosphere and quick sales turnaround. Additionally, agents can tap into the lucrative rental market, providing another revenue stream.
- Becoming a real estate agent in San Francisco involves completing 135 hours of pre-licensing courses, passing the state exam, and securing a sponsorship from a licensed broker. Building a successful career in this competitive market requires continuous education, networking, and staying informed about local market trends and regulations.
San Francisco Real Estate Market
As of late summer 2024, the San Francisco housing market shows signs of resilience and challenges. The median home price has increased to around $1.4 million, reflecting a 1.1% rise compared to the previous year. However, the market is witnessing a decrease in the overall volume of transactions, particularly in the luxury segment, where sales of homes priced above $5 million have dropped from their peak years.
Despite the high prices, the market remains competitive, with many homes selling quickly, often above the listing price. For instance, in May 2024, 82% of the house and 44% of condo sales closed above the asking price, indicating strong buyer demand.
Read Real Estate Trends in San Francisco to learn more about the San Francisco market.
Is It Worth Becoming a Real Estate Agent in San Francisco?
Yes! It’s an excellent time to become a real estate agent in San Francisco. Here’s why:
Real estate agents have high earning potential since San Francisco is a premium market.
San Francisco remains one of the most expensive housing markets in the United States, with median home prices around $1.4 million and condos averaging $1.1 million. Even with a slight cooling in the market, the high property values mean that agents can earn substantial commissions from each transaction. Additionally, despite a recent decline, luxury home sales still represent significant commission opportunities due to their high price points.
The San Francisco housing market remains active.
The market remains highly active and competitive, with a notable percentage of sales closing above the asking price—82% for houses and 44% for condos in May 2024. Homes are selling rapidly, often within an average of 22 days on the market. This brisk pace ensures a steady flow of transactions, providing real estate agents ample opportunities to close deals.
Agents can diversify into San Francisco’s lucrative rental market.
The rental market in San Francisco remains robust, with median rent significantly above the national average. As the demand for rental properties stays high, agents are consistently needed. This diversification into the rental market allows agents to tap into an additional revenue stream.
These factors and a lower interest rate make late 2024 a great time to enter the San Francisco real estate market, offering both high-earning potential and an active market.
Challenges and Opportunities in San Francisco’s Real Estate Market
While the San Francisco 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 higher-than-normal interest rates, can affect the market. Additionally, staying updated on the latest California real estate regulations and policy changes may take time and effort.
However, there are a lot of opportunities in the San Francisco real estate market.
High Earning Potential: According to Indeed, the average salary for a real estate agent in San Francisco is $118,828. Granted, it may take time for you to earn a good income since the real estate starting salary is based entirely on commissions.
The average commission for California real estate agents is 5.14% of a property’s purchase price, typically divided among the seller’s agent, buyer’s agent, and their respective brokerages. Since the average home value in San Francisco is $1.4 million, you don’t have to oversee the sale of many properties to earn a good income.
Diverse and Vibrant Market: San Francisco’s real estate market is diverse, vibrant, and full of unique opportunities. From historic Victorian homes to sleek, modern condos, the market offers a rich tapestry of architectural styles. Each neighborhood has its distinct character, appealing to a wide range of buyers and renters, from tech professionals and entrepreneurs to artists and families. The city’s varied landscape—punctuated by rolling hills, ocean views, and iconic landmarks like the Golden Gate Bridge—adds to the city’s allure.
Flexibility and Independence: Real estate agents enjoy a flexible schedule and the ability to be their own bosses. Although they must work under the supervision of a broker, being a real estate agent is like owning one’s own business. Real estate is an excellent profession for those with entrepreneurial spirits.
Requirements to Become a Real Estate Agent in San Francisco
You don’t need a college degree to become a real estate agent in San Francisco. 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 criminal violations can result in the California Department of Real Estate denying your license.
Are you 18 and ready to make money in the real estate market? Read this to learn how much time it takes to get your California real estate license.
Related Article: How to Become a Real Estate Agent Without a Degree
Steps to Obtain a Real Estate License in San Francisco
Here’s a quick guide on how to obtain a real estate license in San Francisco. For more information on CA real estate licenses, read this in-depth guide or speak with a licensing expert.
Step 1: Complete 135 hours of San Francisco online courses.
These courses can be taken online or in person. Allied Real Estate School offers two online options: at-your-own-pace or live stream.
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.
You can submit your fingerprints after completing the application or passing the exam.
Step 4: Pass the exam.
The California real estate test consists of 150 multiple-choice questions. It must be completed within 3 hours and 15 minutes. You need a score of at least 70% to pass.
Step 5: Obtain sponsorship from a licensed San Francisco broker.
Real estate agents must work under the supervision of a broker. Consider your work preferences and values to find the right San Francisco brokerage.
Building Your Real Estate Career in San Francisco
You won’t automatically start bringing in large commission checks as soon as you are licensed. It takes hard work and connections to do well in this competitive market. However, having a solid background in real estate law and a deep understanding of the San Francisco markets will help you build your career.
Get to know the ins and outs of the San Francisco real estate market.
Staying ahead of market trends and developing local expertise can set you apart as a real estate agent. Clients rely on an agent’s expertise to help them make informed decisions, so you must continuously educate yourself about neighborhood developments, school districts, and local amenities.
Build relationships with other real estate professionals, business leaders, and residents.
Building a robust network is vital. Enjoy making connections with others. You’ll love helping your friends find a home they love in San Francisco.
Stay updated with continuing education courses to keep your skills and knowledge current.
California real estate regulations and policies change periodically. Stay current by attending local industry events and taking continuing education courses 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 can help you with continuing education and broker courses. Questions? Contact us today to learn more about how to become a real estate agent in San Francisco.
Source:
“Market Update: San Francisco Real Estate Heats up in Summer 2024.” Vivre Real Estate. Accessed August 23, 2024. https://vivrerealestate.com/blog/market-update-san-francisco-real-estate-heats-up-in-summer-2024.
