Readers have come to the right place if they have ever found themselves thinking about how to become a real estate broker. This post is dedicated to sharing the ins and outs of the process. Not every state has the same requirements and exams though. So, be sure to check with your hometown’s Commission to ensure that you have met or are going to meet the qualifications. Most places mandate that candidates be at least 18-years of age. Additionally, they must complete state-approved classes before taking the test. Finally, to become a real estate broker, the person must also pass an exam.
Some locations have further requirements. These states often require that the applicant get a background check and have their fingerprints put on file. One vital aspect that is usually demanded before a person can become a real estate broker is that they have 1 to 3-years experience as a licensed sales agent. In most cases, but not all, brokers have more education than agents. Several states, including Colorado and New Mexico, license all real estate professionals as brokers. These labels can be quite confusing.
Even if the individual has an independent broker license, he or she must attain higher credentials to have other brokers work under them or employ salespeople. While these stipulations might seem like a pain in the neck, they are put in place to protect agents, brokers, and consumers alike. There are plenty of risks involved with the renting, buying, and selling of properties. Both, the supervising broker and salesperson can be penalized when significant mistakes are made. For example, the parties may receive citations, licenses can get suspended or revoked, or other appropriate measures might be taken by the powers that be. So, weigh all of the pros and cons before jumping head first into a new career and deciding to become a real estate broker.
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Should You Become A Real Estate Broker?
Research from the Bureau of Labor Statistics shows that employment for sales agents and brokers is expected to grow approximately 6% between 2016 and 2026. Hence, there will likely be a job available for you. There is quite a large gap when it comes to the pay of the two occupations. This study revealed that as of May 2017, the annual median wage for agents was $45,990. Of course, this number is nothing to bat an eye at as the amount is very respectable. However, the same analysis also notes that brokers brought home $56,730 yearly. Therefore, if a person is willing to obtain the education and put forth the effort, then perhaps, there has never been a better time than now for them to become a real estate broker.
Know This If You Want To Become A Real Estate Broker
A broker typically earns a commission after the sale of a property is finalized, which means there could be a big payday waiting for them at the end of the rainbow. The amount is usually a percentage or flat fee, but the industry standard is normally around 5 or 6-percent. In other words, if a place sells for $100,000, the 6% take is $6,000. Wait a minute and don’t count your chickens before the eggs hatch though. A 50/50 split also regularly occurs between the buyer and seller’s brokers. Once this divide takes place, the bring home amount drops to $3,000.
Agreements between brokers and agents will vary, so it is of the utmost importance to get the figures disclosed and out of the way up front. After all, the last thing anybody wants is to get taken advantage of and get a surprising sum after a closing. Plus, one must figure in the costs of advertising, insurance, and other necessary fees. Of course, a lot of properties sell for over $100,000 though, but a person can grasp the idea from this example. Read further to gain even more insight into how to become a real estate broker and other useful tidbits.
Expect To Renew Your License If You Become A Real Estate Broker
Along with the training requirements that need to be met before obtaining a license, licensees must take continuing education courses as well to renew their credentials. The classes will touch upon the things learned in the pre-licensing phase as well as shed light on a range of new topics. Subjects may include but are not limited to…
- Construction And Development
- Real Estate Investments
- Property Management
- Business Laws
How long the permit is good for depends on the state in which it was issued. However, it is typically valid for 2 to 4 years. The area’s real estate board normally sends out a certification for renewal, and the renewal ordinarily cannot take place before the person receives this document. Each place differs, but if the licensee allows the credential to lapse, they can frequently get it reinstated, providing that it has not been over 2-years, by meeting the continuing ed requirements and paying late fees.
Choose A Reputable Mentor To Become A Real Estate Broker
This post has already touched on the subject of agents having to work for brokers for a specific period. Experience is one of the key attributes to being successful in the industry. So, if you want to become a real estate broker, it is in your best interests to train with a distinguished and renowned organization. Watch and learn as much as possible. Sometimes, even after obtaining a broker license, people decide to continue working for brokerage firms under the title associate broker.
These individuals are also commonly called broker-associates, broker-salespersons, or associate brokers. They remain supervised but typically receive better perks like a bigger commission percentage. Just like any other job, this one has its ups and downs. However, it is well worth the effort in the long run. So, if you are interested and want to become a real estate broker, do your homework, and start making the change today.