New Record: Number of California Real Estate Licensees Hits Half a Million

1 out of every 52 adults in California holds a real estate license.

With the number of real estate licensees soaring in California, you’ve got to wonder how many of these licensees are properly trained and qualified to help consumers buy and sell homes. In fact, the National Association of Realtors (NAR) and the California Department of Real Estate (DRE) are increasing their public awareness campaigns and their services to enable consumers to verify licenses online and assist in the selection of a qualified REALTOR®.

What is the difference between a real estate agent (licensee) and a REALTOR®? First of all, only half of the real estate licensees nationwide are REALTORS®. In order to become a REALTOR®, a licensee must join the National Association of REALTORS® and abide by its strict code of ethics. Members of NAR belong to one or more of 1,700 local associations/boards and 54 state and territory associations of REALTORS® and can join NAR’s many institutes, societies, and councils.

Smart home sellers realize they need the expertise in pricing their home, making connections with REALTORS® working with buyers, arranging and staffing open houses, and coordinating with other professionals in the sales process. A recent NAR study shows that the home price for sellers who use a REALTOR® is 16% higher than for those who do not. In addition, 9 out of 10 homebuyers use a REALTOR® during to assist with the homebuying process.

In another recent study by the Real Estate Center in Texas, it was determined that agents with less than 2 years experience obtained about a 1.1% lower sales price for their sellers than those who had 2-5 years experience, and the marketing time was 1.9% longer.

To accommodate the demand for real estate licenses, the DRE has held numerous "mega-exams" where thousands of applicants took the real estate license exam. The DRE also increased the services available through its online licensing system.

"The level of interest in real estate licensure is unprecedented," Commissioner Jeff Davi said. "With so many new licensees, the DRE has also increased its consumer protection efforts."

The DRE recently partnered with the state Department of Corporations, Department of Financial Institutions and the Office of Real Estate Appraisers to develop a centralized internet site for consumers to verify licensing information from all four departments at once.


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