Real Estate Broker

Overview

Who is Real Estate Broker?

To become a real estate broker, one should get experience as a real estate sales agent. Sales agents operate for brokerages, assisting their employers' customers in purchasing, selling, or renting homes or another real estate. Most states require sales agents to complete a pre-licensing training course given by a state-approved institution. Pre-licensing students study real estate legal concerns, ethics, real estate financing, contracts, taxes, and insurance. Once they complete their training and become licensed, sales agents can work as brokers.
Sales agents with at least two years of experience who aspire to become brokers may seek extra training. Some of the subjects covered in broker courses are the same as those covered in sales agent courses, such as taxes and real estate financing. Prospective brokers will also study the law related to brokerage operations, real estate investments, building and development, property management, and company law.

Some brokers do not launch their brokerages immediately and instead operate as associate brokers for a designated broker. Associate brokers often perform the same activities as sales representatives hired by a broker. They do not have the same responsibility and liabilities as a broker who owns and operates their firm. Working as an associate broker may provide brokers with significant experience that they can use if and when they decide to open their brokerage.

Certification or licensure requirements:

Like real estate sales agents, brokers are required to be licenced by their respective states. A real estate sales agent licence must be held in good standing for at least two years before applying for a broker licence in the state of California. Most jurisdictions need brokers to have at least two years of experience operating as a sales agent, although other states only demand one year of experience. Other states may require three.

In addition to completing experience criteria, prospective brokers must undergo a state-approved training course. A broker training course may last several weeks and include real estate law, finance, agency law, contracts, and property management. Students may take their state's broker licensure test at the end of the course. Brokers who pass this test may be needed to pass a criminal history background check to get a licence.

Prospective brokers must work as real estate sales agents for one to three years before applying for a licence, depending on their state's standards. Completing the requisite training course and passing the broker licensure exams may take weeks or months.

Typical day at work

What does Real Estate Broker do?

In addition to being a licenced real estate agent, a real estate broker is a licenced real estate professional in their own right. A real estate broker has skills that can assist people with real estate transactions, and a broker, like an agent, may also assist with selling or purchasing real estate. The primary distinction between a broker and an agent is that it is a broker's responsibility – whether working for a brokerage or working solely for themselves – to ensure that all real estate transactions are legal, that all paperwork is correct and complete, and that all monies, such as funds in escrow accounts, are appropriately recorded and reported. However, a real estate broker is not always a brokerage firm, which may quickly become confusing for non-real estate professionals.

Being a sales broker requires handling a heavy load of administrative detail. Legal documents must be accurate and events must be coordinated for multiple listings. On any given day, you might have to:
Complete, submit, and file real estate documents, agreements, and lease records
Organize appointments, showings, open houses, and meetings
Create and distribute flyers, newsletters, and other promotional materials
Develop and maintain paper and electronic filing systems for records, correspondence, and other material
Create monthly, quarterly, and annual budgets
Develop marketing plans for listings
Create and build on client databases
Research active, pending, and sold listings and draft comparative market analysis (CMA) reports
Respond to texts, emails, and phone calls
Update websites and social media profiles
An established sales agent or broker might have the budget to hire an assistant to handle some or all of these administrative tasks. When you're just getting started in the industry, you’ll probably have to take care of them yourself.

Lead Generation
Finding clients is central to your success as a sales agent or broker: After all, without buyers and sellers, there would be no transactions and, therefore, no commissions. A common way to build contacts and generate leads is through a real estate sphere of influence (SOI) strategy that focuses on generating leads through people you already know including family, friends, neighbors, classmates, business associates, and other social contacts.

Because most people buy, sell, or rent property at some point in their lives, everyone you meet may be a client someday. That means your day might regularly include meeting and speaking with lots of people, handing out business cards, and filing away contact information to build out your SOI. After the first contact is made, you’ll need to follow up with phone calls, emails, snail mail, or text messages so the people you meet remember your name for the future.

Working With Clients
You'll spend part of each day working directly with clients, whether they're buyers or sellers. And keep in mind, it won’t always be during business hours. This means you may have to sacrifice some of your personal time—time you spend with family and friends. And if something pops up at the last minute, it may mean canceling a social event.
As a seller’s agent, for example, you may spend time preparing a listing presentation, taking digital photographs of a client’s property, and staging the home so it shows well. As a buyer’s agent, you may spend time combing through the Multiple Listing Service (MLS) to find suitable listings and sending them to potential buyers. You'll also be showing the property to interested buyers. You may also accompany clients to inspections, meetings with loan officers, closings, and other activities where your presence is either required or requested.
 

Abilities & aptitude needed

What are the skills, abilities & aptitude needed to become Real Estate Broker?

A commercial real estate agent job is not for everyone since it takes a highly specialised set of abilities. Education, as well as the ability to work swiftly with figures and evaluate data, are required. Interpersonal skills, a commitment to client satisfaction, and persuasion are essential. Multi-taskers who love working in a fast-paced atmosphere with diverse individuals are most suited for agent employment.

Courses

Which course I can pursue?