The Difference Between a Real Estate Agent and a Broker

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A popular goal for many real estate agents is to become a real estate broker. You may already be aware that once you get your real estate license, you can’t work as an independent agent. You will need to join a  brokerage in order to sell property. But what if your long-term goal is  to work independently or to supervise other real estate agents? Maybe  you would like to own a brokerage one day. In order to do that, you will  need to become a real estate broker. In this article, we’ll take a look  at what a real estate broker does and how to plan to become a real  estate broker in the future. 

A real estate agent is an individual who has fulfilled all of their state’s salesperson licensing requirements and has earned his or her real estate license. States have different requirements, but all require completing a certain amount of prelicensing education and passing an exam. After earning licensure, a real estate agent must  be hired by a brokerage in order to perform real estate work. The  brokerage provides the agent with the support, guidance, and sometimes  the resources necessary to do their work. In return, the brokerage takes  a split from the real estate agent’s sales commission.  Real  estate brokers earn not only their agent license but their state’s  broker license, as well. The additional licensure allows brokers more  freedom and possibilities than real estate agents. Brokers can work  under a brokerage while supervising other agents (usually called a  Broker Associate) or work independently while owning their own business  (Broker Owner). While operating independently, they might decide to hire  real estate agents to work under them in order to become more  profitable. Ultimately, brokers have the opportunity to shape their own  career path, with or without oversight from a brokerage. This  freedom is ideal for many prospective real estate agents. The career  path of a real estate broker offers control, flexibility, and the  potential to earn much more money. If you’ve made the decision to pursue  your broker’s license one day, take a look at what you’ll need to do in  order to accomplish this goal.

How to Become a Real Estate Broker

All states have different requirements for broker licensure, but in general, you will need to complete the following:

Just  like with real estate licensure, the requirements to earn your broker  license vary by state. Finding out what your state requires can save you  a lot of time in the long run, and can give you a solid roadmap for  your initial years as a real estate agent. You can find the requirements  you will need to fulfill on your state’s real estate commission  website. For example, in California, prospective brokers will need a minimum of two years of full-time experience as an agent in addition to 8 college-level real estate courses.  Knowing what you will need to accomplish in order to get your broker  license can help you map out your schedule as early as possible.

On  average, most states require 2-3 years of experience working full-time  as a real estate agent. You could potentially take your broker exam 2-3  years after joining your first real estate brokerage. This may seem like  a long time, but it will go fast. You will be busy learning on the job  and from your fellow real estate agents, in addition to taking the  required coursework to qualify for the broker exam.

In  addition to experience, you will need to complete further coursework  that elaborates and expands on the basis of knowledge you built during  your prelicensing education. Real estate brokers are expected to be  experts in their field, so becoming fluent in necessary subject areas is  essential. Many states offer the option of taking real estate courses online so that you can balance your work life with studying.

The  broker licensing exam is different in every state. Check with your  state’s real estate commission website to determine what you should be  prepared to be tested on and what to expect in terms of the number of  questions and exam duration. You may find it helpful to take an exam  prep course, so you’re fully prepared.