The Role of a Real Estate Broker: What You Need to Know
Launching a career in real estate can be an exciting proposition for anybody, regardless of whether they are just starting in the workforce or are a seasoned worker. However, there are a myriad of career choices to consider in real estate that span across different areas of the field.
With that said, pursuing the path of becoming a real estate broker is an extremely common and lucrative option to keep in mind. Learn everything there is to know about the role of a real estate broker in a transaction and how to get started in this career.
Real Estate Broker vs. Agent: What is the Difference?
First and foremost, it’s important to clarify a common misconception related to real estate brokers. Many people often consider that agents and brokers are the same thing, but they are actually two different career paths. A real estate agent is the middleman of a real estate transaction and helps to facilitate that transaction by representing either the buyer or seller.
On the other hand, a real estate broker can tackle the same exact duties, yet they can also do so much more. In fact, they are responsible for ensuring the transaction is completely legal and handled properly in accordance with regulations. A real estate broker often own their own brokerage and has multiple agents underneath them who report to them directly. Brokers usually earn their money as a portion of the commission that agents receive.
How Does a Person Become a Real Estate Broker?
Becoming a real estate broker is slightly harder than becoming a real estate agent given that the requirements of being a broker are more in-depth than that of an agent. Specifically, a real estate broker must have completed the following courses:
1. Real Estate Practice
2. Legal Aspects of Real Estate
3. Real Estate Finance
4. Real Estate Appraisal
5. Real Estate Economics or Accounting
6. Three Courses from the Following:
- Real Estate Principles
- Property Management
- Business Law
- Real Estate Office Administration
- Escrow
- Advanced Legal Aspects of Real Estate
- Mortgage Loan Brokering and Lending
- Advanced Real Estate Finance
- Advanced Real Estate Appraisal
- Computer Applications in Real Estate
- Common Interest Developments
Once the required coursework from the above list has been completed, a person must apply for the broker salesperson exam. This four-hour exam comprises of 200 multiple choice questions that requires a 75% to pass. Once this has been completed, a person can receive their real estate broker’s license.
The Daily Life of a Real Estate Broker
Generally, the life of a real estate broker involves spending a majority of time at their brokerage office, helping agents’ stage and show homes, working on scheduling appraisals, and meetings with potential clients. Combined with these tasks are a focus on generating potential leads for the business, focusing on developing a research and marketing strategy, and assisting with the entire closing process of a home.
On average, a real estate broker works somewhere between 30 to 50 hours per week once they are established in their field. However, in the beginning period of time just after receiving a license, it would not be abnormal to work upwards of 50 hours for a number of months or even years.
Tips for Getting Started as a Broker
Building a book as a broker is challenging as the success a broker has often falls on their own shoulders. Therefore, identifying some beneficial tips for getting started as a broker can help anyone make a name of themselves:
1. Start by reaching out to people within your own circle to find connections
2. Go with the basics and cold call from door-to-door
3. Learn from the successful people in the industry
4. Reach out to local developers in the area who may be able to help
5. Place an emphasis on creating a relatable brand
The Bottom Line
Becoming a real estate broker is an excellent way to establish yourself in the booming field of real estate, but it will not be an easy journey. As mentioned, there are a variety of different courses a person must take in order to become a broker that make the task challenging.
However, with the right dedication and mindset anybody can become a successful broker. Once a person earns their broker’s license, though, the challenges are not over. It’s important to seek out mentors in real estate who can guide you towards that success, rather than struggling on your own.
