What's the Cost of a Real Estate License in California?

Getting your California real estate license may cost somewhere between $698 and $1,099, but this investment pays off with a flexible career in a high-paying field.

There are several costs involved in getting a real estate license, including pre-license real estate courses, state exam fees, application fees, and fingerprinting fees.

Let’s take a closer look at each of these expenses and discuss some of the other costs you might incur as a new real estate agent.

Cost #1: Pre-License Real Estate School Courses: $199–$500

The very first step in your journey to a real estate license is to take the three state-required pre-license courses:

• Real Estate Principles - 45 hours

• Real Estate Practices - 45 hours

• A state-approved elective, such as Legal Aspects of Real Estate - 45 hours

The cost of these courses can vary significantly, depending on the provider, but you should expect to pay a few hundred dollars.

As you look at state-approved real estate schools, pay special attention to:

• Access to the course materials. Do you have to attend courses on campus? Can you access the coursework from your cellphone?

• Student support. Will there be real estate professionals available to answer your questions?

• Value. How well will the school prepare you to pass your state exam? A low-cost course that doesn’t provide the exam prep you need could end up costing more if you have to retake the state exam multiple times.

• Payment plans. AceableAgent, for example, offers payment plans that break up the cost of your pre-licensing course into monthly payments, making your real estate education more affordable.

Cost #2: Exam Fee: $100 Per Attempt

Once your coursework is complete, you can apply to take your state exam. CA’s Department of Real Estate (DRE) currently charges $100 per attempt for the real estate salesperson exam.

It’s a difficult test, and many people need two or even three attempts to pass it. Passing on the first try will save you time and money, which is why it’s so important to choose a real estate school that prepares you — like AceableAgent.

Cost #3: Application Fee: $350 for a Four-Year Real Estate License

The sales agent application fee for a real estate license is currently $350. Fortunately, your CA real estate license is good for four years.

Cost #4: Fingerprinting Fee: $49

For public safety, agents in CA are required to pass a background check and have fingerprints on file. You’ll need to pay a fingerprinting fee of $49 in addition to the application fee to help cover this administrative service.

The Total California Real Estate License Cost: $698–$1,099

Adding all these costs together, you should expect to pay between $698 and $1,099 to get your real estate license in California, with the biggest expense variable being which real estate school you choose.

Other Costs to Become a Real Estate Agent

After getting your real estate license, you will incur additional costs as a real estate professional. Here are some of the costs of doing business as an agent (make sure you record all these business expenses because they can often be deducted from your income taxes as an agent).

NAR Membership Dues

If you choose to become a REALTOR, you’ll need to join the National Association of REALTORS® (NAR®), as well as the California Association of REALTORS® (CAR®) and your local chapter. Each of these levels levies their own fees. The total can easily exceed $400 per year, between NAR ($156), CAR ($197), and your local chapter (dues will vary). Joining NAR can provide benefits like training, networking, and industry lobbyists.

Multiple Listing Service (MLS)

The MLS lists all properties available for sale, under contract, and recently sold, so a subscription to this system is critical to your success as a new agent. The subscription fee may be included in your NAR membership or paid by your broker. But some agents pay for it separately. Prices vary by MLS. In Riverside County, for example, non-REALTOR sales agents pay $570 per year plus an upfront fee of $282.50.

Marketing Expenses

You should expect to invest in marketing yourself as a real estate agent. Social media is a good way to get started for free, but you may also want printed items like business cards, property flyers, signs, and mailers. You’ll also likely need a website and may want to spring for paid advertising in local newspapers and magazines. There is no set amount for these expenses, but you can create a budget as part of your real estate business plan.

Start-Up Cushion

Real estate is different from many other career paths. Real estate agents typically work on commission instead of receiving a predetermined salary, so you only get paid when you close a deal. And it can take time to close your first deal. So you may want to establish a nest egg or keep your day job to pay the bills as you start your new career.

Is a California Real Estate License Worth the Cost?

Real estate offers more flexibility and higher income potential than most other career paths. CA real estate agents make around $90,000 on average. So, as long as you’re a hard-working self-starter, a California real estate license is absolutely worth the cost.

Start Working Toward Your CA Real Estate License Today

Your new career starts with getting your real estate license. Enroll in your CA real estate course today and start studying to pass your test, earn your license, and launch your new career!