Real Estate Broker

Real estate brokers are the keel to any property market, as they facilitate in selling and buying of homes. It is also a very promising profession, which is supported by thousands of brokerage companies in the USA. 

However, before aspiring to be a licensed real estate broker, you have to start getting a feel of the job. Here, it is imperative to define some basic guidelines for fundamental actions that have to be performed.

Education & Training

When you’re ready to start your broker education, you’ll find a few choices for where to study. Some courses might even be online, making them convenient for you to attend. Nevertheless, you should ensure that the particular course chosen is accredited by the state’s real estate commission.

Schools with Real Estate Programs

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How Do You Become a Real Estate Broker?

To become a real estate broker, you’ll need specific training, a license, and practical experience. These requirements however vary depending on the state that you reside in. So, make sure to research the regulations of your state.

But generally, here’s how you can start:

  • State-approved Course. Start with the pre-approved real estate sales courses familiarizing you with aspects such as finance, law, and ethics. 
  • Licensing Exam. Get your state real estate agent license to be legally able to practice real estate sales. 
  • Work as an Agent. Get the needed experience by working as a real estate agent. Before you can get your license you will be required to have at least two years of sales experience. 
  • Broker Course. When possible, a more detailed broker course focusing on the functions of real estate is to be completed. 
  • Broker Exam. Last but not least, take and pass your state real estate broker examination to get your license to operate.

How Do They Make Money?

Real estate brokers make their money by earning a commission. This commission is a set percentage taken from the property’s sale price. When a property sells, the total commission is often split between the broker who offered his services to the seller and the buyer’s broker.

Below are some average annual earnings from the Bureau of Labor Statistics.

StateHourlyAnnually
Alabama$36.25$75,390.00
Alaska$34.47$71,710.00
Arizona$33.36$69,390.00
Arkansas$27.81$57,840.00
California$47.73$99,280.00
Connecticut$49.82$103,620.00
Delaware$36.89$76,740.00
Florida$42.29$87,970.00
Idaho$37.43$77,850.00
Indiana$40.09$83,390.00
Iowa$37.45$77,900.00
Kansas$33.76$70,230.00
Kentucky$34.85$72,490.00
Louisiana$26.97$56,090.00
Maine$38.07$79,190.00
Massachusetts$61.45$127,810.00
Michigan$39.32$81,780.00
Minnesota$34.86$72,510.00
Mississippi$28.52$59,320.00
Montana$32.71$68,040.00
Nevada$41.49$86,300.00
New Jersey$54.04$112,390.00
New Mexico$34.98$72,760.00
New York$73.59$153,070.00
North Carolina$43.97$91,460.00
North Dakota$36.49$75,890.00
Ohio$33.06$68,770.00
Oklahoma$22.11$46,000.00
Oregon$36.07$75,020.00
Puerto Rico$13.49$28,050.00
Rhode Island$95.08$197,760.00
Tennessee$40.44$84,110.00
Utah$37.97$78,990.00
Vermont$48.95$101,810.00
Virginia$35.09$72,980.00
Washington$37.26$77,490.00
West Virginia$33.63$69,950.00
Wisconsin$41.90$87,150.00

Occupation: Real Estate Brokers (SOC Code419021)
source: data.bls.gov

Career Overview

Who is a Real Estate Broker?

In its basic definition, a real estate broker is an agent who goes beyond basic licensing. They meet higher requirements and manage other agents.

A real estate broker has the right to own and control their own real estate enterprises and oversee other brokers. 

Here’s a look at what real estate brokers do every day:

  • They advertise homes together with specific aspects like price. 
  • They arrange for sales podiums commonly called open houses for the new clients to view houses. 
  • Capture and advertise property images with the view of displaying the best features of the properties. 
  • Help buyers figure out what they need in a home and how much they can spend.
  • Make sure the ownership of a home passes from one person to another smoothly.
  • Hire agents as the business expands. 

Who Do Real Estate Brokers Work for?

Real estate brokers may be independent or manage their own company or firm. They also might be employed by main real estate firms as well. Sometimes they assist clients who are selling homes, and at other times they assist those who want to buy homes. 

The main purpose of a real estate broker is to facilitate an accurate convergence of the right property and the right buyer.

Who Do They Represent?

Real estate brokers can work for different people in the transactions and sale of properties. They could be used on behalf of the seller, the buyer, or in some cases both the seller and the buyer. 

Here’s how it differs: 

  1. Seller’s Agent: When the broker works for a seller, their job is to help sell the house at the best price. They focus on marketing the property and finding the most suitable terms that they can take to the seller.
  2. Buyer’s Agent: If the broker is being compensated by the buyer, their goal is to make sure the buyer finds a property they love at a fair price. They help the buyer with making offers and guiding them through the buying process.
  3. Dual Agency: Sometimes a broker works for the buyer and the seller simultaneously in the same transaction. This can sometimes be complex due to the need to be impartial with results. Finding common ground can sometimes prove difficult.

Real Estate Broker vs Agent

A real estate broker is someone who has more training and can run their firm compared to an agent. Agents work for brokers and help people buy or sell properties. Both need a license but brokers have passed additional exams, allowing them more responsibilities and the ability to supervise agents.

Real Estate Broker vs Appraiser

A real estate broker facilitates buying and selling properties, often negotiating on behalf of clients. An appraiser, on the other hand, focuses on determining the value of a property. While brokers center on transaction support, appraisers provide value assessments critical for loans and sales price agreements. Both roles require specific licensing and training.

Real Estate Broker vs Mortage Broker

A real estate broker assists clients in buying, selling, and renting properties. Mortgage brokers are intermediaries that assist clients in locating the most suitable loan for purchasing a house through the comparison of several lenders. Real estate brokers are involved with the selling of property while mortgage brokers are involved with the sale of the finance for the purchase of the property.