If you live in California you should have no trouble finding a real estate agent. A new report from the California Department of Real Estate says there is a real estate agent for every 52 adults in the state. This is a 57 percent increase over the last 5 years.
This sounds like many people taking the test and then doing nothing with the license. But if you think about it, with this many people running around with a license, how do you find the good ones? And after all these new real estate agents start screwing up, and it is perfectly natural for new people in a job to make errors as they learn, it will cast an even darker pall on the reputation of the real estate agents in the state.
Ask any top producing real estate agent and they will tell you that a closing can turn into a mess with new agents which hurts the reputation of everyone associated with the closing. And this in turn will push people to the new technology of the web and end up lowering commissions across the board.
As of April, the trend continued with the number of licensees climbing to 495,000.
To accommodate the demand for real estate licenses, the DRE conducted numerous “mega-exams” in which thousands of applicants took the real estate license examination. The department also increased the services available through its online licensing system, which has issued licenses to more than 70,000 people since March 1, 2005.
“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.” via the Sacramento Business Journal:
Update: The Next Bracket has an interesting point on the comparison of real estate agents and doctors in the country.
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Wow that is a big amount per person I would be interested to see if that is active agents or both active and inactive.
That's interesting. That's more real estate agents than doctors per person!
That is allot of agents. But the rate at which agents quit the business is extremely high as well. I'm not sure, but I think that 75% of all agents who get licenced today quit within 18 months because they can't make enough money with all of the competition around. They end up getting 'real jobs'. And don't forget that they are moving forward with the rule that requires a potential agent to take all 3 exams first, before they can get a licence. No more 'conditional' licences. I think you'll see a drop in the number of licences being issued in the year after that takes effect.
This why we as Realtors can not sit on our laurels and must provide a higher level of service to earn the respect and business of the clients we serve.
I'm conducting a study of what new agents find most appealing when choosing a broker, as well as other trends related to new agents leaving the business. If anyone has any input, I would love to hear it.
Senate Bill 1461
As a result of SB 1461 all California real estate agents will be required to display their DRE number on their marketing materials. This includes business cards, stationary, flyers postcards and websites created for introductory purposes and it begins in 2009. http://www.cuttlefishdesigns.com is available to help agents make this transition. ei. $76. for 1000 full color front and back, glossy 14 pt. business cards. Have us design them or design your own online at http://www.cuttlefishdesigns.com/idesign
Where are you getting statistics for the number of licensed real estate agents? I couldn't find anything on the DRE website which I would expect to have the most accurate info.
Mary
The post was from 2006. If I had to guess, the ratio has gone up since then.
Are there any new stats for the number of california real estate agents? How many new agents in the last 2 years? How many left the business? Can’t find them anywhere!
I had no idea the ratio was so high. No wonder it is so competitive. You gotta give props to all those agents struggling out there in this market.
$100 Million in probates through my MLS (253 deals) and my competition highest count had 4 probates. I have been enjoying this niche for 23 years. Now I’m teaching it…..
A lot of people actually get their license so they can list their own home, or collect the commission if they buy. Others want to have it so they can make extra cash in their spare time, or use the license when the market is good and bow out when times get tough. It is true that it can be hard to find out if an agent has experience. What the Department of Real Estate needs to do is require at least an associates degree to be an agent and more to be a broker. That will deter the "part timers".
I recently petitioned the Governor of California, Commissioner of Real Estate and used Dr. Donna Grogan’s severe “style and approach” in teaching and grading each required real estate course at El Camino College, Torrance, CA in mandating that only the broker designation be used as the only mechanism and authority to do any type of real estate transaction in California.
This will raise the bar for real estate licensing at par with the medical, legal, accounting and other professional occupations that require one to pass tough medical board, bar and CPA exams.
What this will do is cut the fat (1/2 million) sales agents with a dropout rate of 75% to minimum levels and provide clinical professionals who will be dedicated to serve the consumer regardless of the state of the always changing real estate market.
Another element that comes to mind is the simple fact that with a 50% failure rate the DRE seems to be more in collecting fees (easy revenue stream) rather that promoting the excellence in real estate standards that should be achieved with the BROKER license. It is so sad that some people remain sales agents for 20 + years without being forced to pass the Broker License test. If you cannot become a Broker after being in the business for two decades then there is something wrong with the DRE methodology or the person who is quiet experienced but is reluctant to achieve the higher requirement in his profession. What a shame and sham agency the DRE epitomizes? I believe Jerry Brown, the comeback elder statesman, who has a lot on his plate can do some immediate good with this no brainer change.
There is something quiet wrong the way real estate is licensed since 1917 and the time has come to elevate this profession to a level wherein the best enter and ensure the integrity of this profession wherein credibility and competence is guaranteed.
I think that 75% of all agents who get licensed today quit within 18 months because they can't make enough money with all of the competition around.
That must be a good news not only for real estate agents but for buyers as well.
These ratios are way off.
As of fall 2010 there are 327,000 licensed agents in California registered with the National Association of Realtors. There are 37 million people in ca, at least half of which are old enough to receive a license. That is around 1% of the workforce, or 1 in every 100 adults. That is still a lot though in order to sustain a long term career in real estate.
Wow! One agent for every 52 adults! I wonder what the statistics are for this year.
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This article has been posted years ago. I don't know the exact figure but i think its more than that. but it's nice to see this for reference. Appreciate you sharing this.
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