Real Estate Articles

Number of real estate licensees continues to rise despite market transition

Even as the housing market witnesses a transition, the number of real estate licensees continues to rise in the state of California. It becomes more important for buyers and sellers to seek a real estate professional who is knowledgeable and whom they can trust to take care of their needs.

California Department of Real Estate Commissioner Jeff Davi wants his department to become more and more efficient because each year brings more real estate licensees.

"One in 53 adults is a real estate agent," Davi recently told Bay Area Realtors. "There are a lot of you out there and you keep on growing. Even if the market is transitioning, we have yet to see that trend in the number of real estate agents."

Davi indicated in 1992, there were 269,000 real estate licensees and the DRE had a staff of 411 employees; today, there are 523,000 licensees and a DRE staff of 342 employees. This year, despite slower sales, Davi said the number is growing by 300 new licensees a week. He noted that last year, there were 1,000 new licensees per week.

Reporting on recent progress at the DRE, Davi said licensing processing times are down 55 percent. He also happily noted that more people are taking advantage of the eLicensing process. The latter now handles 53 percent of all license renewals, 59 percent of all miscellaneous license transactions and 79 percent of all examination scheduling requests.

The DRE commissioner said the licensing process used to take a period of 180 days; it now averages 80 days. Once the electronic exam is in place, he hopes to shorten the time frame to two months. Plans are underway to begin conducting electronic license exams in a proctored environment. A pilot is planned for Sacramento in the spring.

It is the DRE's mission to protect the consumer through financial compliance audits of real estate licensees and subdivision developments. Clearly, Davi stated, with the number of real estate licensees growing and the DRE staff shrinking, it has been difficult to accomplish this mission.

"The market is changing and we are receiving more complaints. There are more issues," Davi said.

The DRE handles about 7,000 cases a year; last year, there were 8,453. He expects 2007 will see 8,000 cases. Thirty-six percent of cases involve criminal violations; 21 percent trust fund handling and record keeping; 10 percent, supervision and negligence; 4 percent, unlicensed activity.

Davi said the DRE has been receptive to calls from real estate professionals to tighten requirements of the profession in order to promote higher standards. He pointed to a number of laws now in place that require more of licensees, including the elimination of the conditional license. However, California Governor Arnold Schwarzenegger is all for accessibility.

"The Governor looks at this industry as an opportunity, where a lot of people have been able to get in and be successful, but we must protect the public too," said Davi. "Let's go after the bad together, but let's not take away from the people we're benefiting."

He asked agents' help with regard to enforcement and encouraged them to contact the DRE when they learn of violations taking place.

Information presented by Davi illustrates the importance of finding a well-qualified real estate professional, said Mark Burns, president of the Silicon Valley Association of Realtors® (SILVAR), a professional trade association whose over 4,000 Realtors and affiliates on the Peninsula and in the South Bay are also members of NAR. Burns said more than ever, buyers and sellers need to know that their real estate professional is someone they can trust.

Whether somebody is buying or selling a home, finding a good Realtor® and understanding his or her role should be the first step in what could be the most important transaction in a lifetime.

“Today’s home buyers and sellers want and deserve to know that their real estate professional is someone they can trust and who has their best interests at heart,” Burns said.

Not all real estate agents or brokers are Realtors®. A Realtor is a licensed real estate agent or broker who is a member of National Association of Realtors® (NAR), the world’s largest professional trade association, and is held to a higher standard than other real estate professionals.

The "REALTOR®" designation is used by real estate agents and brokers who must adhere to a strict Code of Ethics. The Code of Ethics goes beyond state licensing requirements and sets Realtors apart from other real estate licensees. The Code of Ethics protects all parties to the real estate transaction, not just a Realtor’s client. Realtors must complete ethics training by taking at least 2.5 hours of instruction at least once every four years to keep membership in NAR. If a local association of Realtors finds a Realtor in violation of the Code of Ethics, disciplinary action can be imposed.
 
A knowledgeable Realtor is a necessary ingredient in a successful transaction, said Burns. To find a Realtor, Burns recommends checking SILVAR’s Web site at www.silvar.org for a list of Realtors by location.

The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.

The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.

Variations of this article have appeared in local area newspapers.

For further information, please contact Rose Meily at SILVAR Public Affairs, e-mail , or phone (408) 200-0109.

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