If you’re a real estate agent looking to have a more control over your career, maybe it’s time you consider becoming a broker. Here’s some information you should know before you take that first step to get your broker’s license.
Benefits of Being a Broker
By becoming a real estate broker, you have the opportunity to manage your own business and be your own boss. More importantly, you have the potential to make more money by receiving commissions each time a property is bought, sold or rented by the agents who work for you.
Getting Your Broker’s License
To obtain a broker’s license you will need to take specific courses and pass a more comprehensive written exam than what’s needed for a general real estate license. Depending on the state, you may also require some college-level courses and/or equivalent work experience.
For example, here are some of the required courses for a broker’s license in the state of California:
• Estate Practice
• Legal Aspects of Real Estate
• Real Estate Finance
• Real Estate Appraisal
• Real Estate Economics or Accounting
You also have to take two or three additional courses from a list of about a dozen others to qualify for a broker’s license.
Getting your broker’s license is only the first step. You’ll constantly need to update your training to stay current with the newest designations and certifications. This training is important to keep you ahead of industry trends and also to help you guide other agents. (Source)
Role of a Listing Broker
When you’re the listing broker, you’ll discuss the terms of the proposed sale with the seller and write up the contract with an agreed-upon commission fee, which is typically between 5% and 6%. You are then responsible for the cost of marketing the property online and off, uploading it on to the MLS and contacting other brokerage companies or “buyer brokers” to help initiate the sale.
Role of a Buyer Broker
When you act as a “buyer broker,” you are bringing potential buyers to a listed property. Once the sale is made, you’ll split the commission with the “listing broker” and collect about 3% of the sale. If you are fortunate enough to be the listing broker of property and find a buyer who is not working with a broker or agent, you get the full 5% to 6% commission for yourself.
By becoming a broker, you can have more opportunities to earn commissions and increase your income in this highly competitive and rewarding business.
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