Should You Become a Real Estate Broker?
If you’ve worked as a real estate agent for a while, you might start to consider the next possible step in your career—becoming a broker.
If you’ve loved your experiences so far as an agent, becoming a broker and getting your license could open up new opportunities for you with fewer restrictions. While being a broker has its advantages, it’s also not for everyone, and that’s okay too.
When you’re working as a real estate agent, you’re licensed to help people as they buy and sell real estate. You get paid by commission when you complete a deal, and you can represent a buyer or a seller.
If you decide to take the next steps to become a broker, you’re doing the same job in some instances, but you’re licensed to work independently and can employ agents. You’re paid on a commission, but you also get a percentage of the agents’ commissions who work for you.
What Are the Pros of Being a Broker?
The upsides of working as a broker can include:
- You can work for yourself. You might have a lot of independence when you’re an agent, but you still technically work under a broker. You’re under the broker’s legal protection at a minimum and you’re self-employed, but with caveats. When you become a broker, you work for yourself without technicalities.
- Real estate professionals decide to become brokers because it gives them a chance to earn more income. There’s no limit on what you can earn, and as a broker, you aren’t splitting your commission with your broker like you do as a real estate agent. You get your entire commission, plus you can earn commission from the people on your team working under you.
- Being a broker is a good way to set yourself apart in a competitive industry. You can bring the perception of more experience and knowledge when you say you’re a broker and demonstrate a deep level of knowledge about real estate law. Some buyers and sellers prefer working with a broker because they feel they have more knowledge than an agent.
- As a broker, you have more flexibility in how you work. For example, you can be a managing broker, allowing you to take a step back from sales if you want. If you’re a designated broker, you’re running a brokerage. The responsibilities of your day-to-day job can vary quite a bit, and you can pick the right path for you and your needs when you’re a broker. When you’re a real estate agent, you’re almost exclusively a salesperson.
Are There Downsides?
As with anything in life, before deciding to become a broker, you have to be realistic about the possible downsides as well.
First, you’re going to be taking on more responsibilities. For example, you might be hiring and mentoring new agents and managing a brokerage. You could start to feel overwhelmed working as a broker.
Another downside is that it will all fall on you if something goes wrong. You’re responsible for yourself and your legal and financial choices and also for the people who work for you.
Getting your broker’s license takes time and money, and then even once you’ve done that, opening your office and getting up and running in this new role will cost more money.
Don’t assume that you have to become a broker just because that’s what you “should” do. For some people who love the sales aspect of real estate, remaining an agent is the right choice, whereas if you’re interested in expanding and building a team, being a broker could be the best path for you.
A sense of security comes with working under an established broker, but maybe you’re a person who thrives when there’s a sense of challenge, so you don’t want that safety net.
Written by Ashley Sutphin for www.RealtyTimes.com Copyright © 2023 Realty Times All Rights Reserved.