A Real Estate License Isn’t Enough

Published On

September 18, 2023

Do You Need a Real Estate License to Sell Houses?

If you’re selling (or buying) a home, you know you’ll want the services of a real estate salesperson. But what you may NOT know is that every real estate agent is not created equal. Here’s why just merely being a licensed real estate agent isn't a sufficient qualification to represent your property needs. 

The good news is yes, you do need a real estate license to sell houses. That is a legal requirement in the real estate industry. But while more populous states tend to have more stringent requirements to earn a license (California is one of the more difficult states), it is still surprisingly easy to achieve. 

First, you must complete 135 hours of approved classes. A quick google search will unearth dozens of accredited courses, some as low as $100. For the price of a nice dinner and 3 weeks of work, you can knock out the biggest hurdle to getting your license in California. 

Then you must pass the course’s final, 3-hour exam (70% or higher). With average historical pass rates around 50%, it’s safe to say this test isn’t exactly a bar exam. You must also pass the state’s salesperson test, of similar difficulty. 

Next is the criminal background check. Haven’t committed any crimes? Congratulations, you can check this off your list. You’ll need a real estate broker to sponsor your license (aka someone willing to let you work for their brokerage and earn them money) – there are currently about 130,00 brokers in California, chances are you could find one willing to sponsor you. With all that done, you submit the rest of your application and that’s about it – you can join the ranks of real estate agents embarking on an exciting career selling real estate.

 

For just a couple months of time and less than $1,000 all in, you’re a California real estate licensee. With no four-year real estate education or graduate degree requirements, along with the associated time and costs, the bar to become a real estate agent is pretty low. Unlike other professions that weed out the uncommitted, unpassionate, and untalented – real estate essentially gives any newcomer a chance to enact a real estate transaction. Indeed many real estate agents have clearly been enticed by the commission fees paid to agents and view practicing real estate as a path to get rich quickly. 

Licensed Agents and the Real Estate Business

This is all but confirmed in the data. According to the California Department of Real Estate, there are currently about 430,000 licensees. But the California Association of Realtors, a trade organization that’s essentially table stakes for any active real estate agent, only has about 185,000 current members. That means that for the majority of people with a real estate license in CA, it is either a hobby, or worse, they’ve already abandoned their newfound “career.” For some careers, such as a real estate investor or licensed attorney, the licensing exam is merely a handy tool in their belt for them to own properties and/or  flip houses. So just having a real estate license is hardly a rock-solid endorsement of an agent’s abilities. If you consider that the DMV has issued over 30 million active driver licenses, and have spent any time on the freeway lately, you certainly relate the notion that a license hardly correlates with competency. 

Of course, this is not to say real estate agents are worthless; such a thought could not be further from the truth. There’s certainly a reason why 89% of sellers and 88% of buyers use an agent for their transaction; not just a single reason either, there are a multitude of reasons why savvy buyers and sellers choose a real estate  agent. What you want is the RIGHT agent to optimize the process.

Make Sure You Find a True Real Estate Professional to Sell Property

So if you’re dipping your toes in the real estate market, how do you make sure you have a premier, career real estate agent and not just a speculator with a license?

If you want to sell real estate, then you must think like real estate investors. Check any potential agent’s credentials. How reputable is their real estate brokerage? How many years experience do they have? What is their track record? What is their sales volume? How do they work? What memberships and awards do they hold? How are they compensated? What have other clients said about them? How do they communicate? What do they value your home at and what is their specific strategy for you?

Or better yet, let TrueParity handle all the homework for you. If you want to eliminate the uncertainty and pick the best, experienced agent for your home sale, visit TrueParity.com and start receiving customized proposals for your home today. All someone needs is a real estate license to sell a house, but to sell your home for the best possible outcome you need a proven listing agent.

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