Should I Upgrade To A Broker License?
Are you a person who wants to keep moving forward in your life instead of just being comfortable with what you are earning and being content with what you have achieved already? Do you want to be in control, or do you just want to work under a boss? If you are a person who likes to be in control and you have worked as a real estate agent for the required number of years, you can definitely achieve more by becoming a broker.
Getting a broker’s license would definitely open new doors of success for you as you would be able to work with bigger corporations, other brokerages, and developers. You can even set up your own brokerage firm and go all in instead of just being on the sidelines and working hard as a real estate agent while earning less. Becoming a business owner is definitely a better thing to do instead of just being an employee. You have already done the hard part if you have been in the market for several years, so it is definitely time to step up your game a bit, and start a new career as a broker.
Why a Broker License
A real estate agent is a great career choice in a metropolitan city, especially if you have the spark, you are good at analytics and you can communicate well. Being a real estate agent is requires a lot of hard work, and you need to be sponsored by a licensed broker in order to work in the industry. So, this means that you are basically an employee of a broker or a brokerage firm.
If you like your job as an employee, that is well and good, but if you want to open your own brokerage firm, you need to obtain a broker’s license. There are multiple reasons why it is more beneficial to become a broker instead of a real estate agent:
- For a real estate agent who has worked in the industry for quite a while, the next logical step ahead is becoming a broker.
- You won’t have to pay any of your hard earned money as commission to your broker anymore.
- With a broker’s license, you would be able to play with the big fish in the industry. You would be the owner of the business, not just one of many employees.
- You can go for the bigger chunk of the profit and earn more with much less effort as compared to a real estate agent because you will be managing many deals and real estate agents at a time.
- If you think you are a good manager and you can make better decisions than your current broker because of your skills and knowledge you’ve gained being a real estate agent, you need this license.
How do I get a Broker license?
Becoming a broker is a step towards becoming a big player in the real estate business. It is impossible to complete a deal without a broker and if you want to qualify for a broker’s license you need to fulfill certain conditions. Requirements vary state by state, but here are the common ones:
- You generally need to be 21 years old or older when you are applying for the license.
- You should have worked as a licensed real estate agent for 2 years or more. Some states require more than 4 years of experience.
- You need to complete the pre-license broker courses.
- You need to pass a qualifying state examination.
- You will have to disclose any criminal history.
What are the benefits?
Real estate contracts are the core of the business, and they need to be done right in order to keep the market moving in the right direction. Brokers make these contracts happens, and you will get direct access to the local Multiple Listing Service (MLS) once you’ve got your license. You will become a property manager instead of just someone who has to show property around to people day in and day out.
Every real estate agent needs to have a sponsorship from a broker so you can be a boss. You will be able to hire smart, ambitious, like-minded people like real estate agents and grow your business. A broker’s license will give you the power to create a team that can help you achieve the heights you’ve dreamt of during your real estate agent days.
Real estate brokers can bring in a lot of revenue especially when you look at the statistics of business revenues in the metropolitan cities. The demand for real estate brokers is increasing every day. There were 92,790 new job openings for real estate brokers in the last year and the demand is just going upwards. Owning a brokerage is not only about having the chance of earning much more than your peers, but it is also a chance to build your own legacy.
You don’t have to split your commission with anyone anymore. You would be the one hiring people and you can have your desired commission from the real estate agents you would be hiring.
Some final thoughts...
Although there are different laws and requirements for getting a broker’s license, you generally need to have a minimum work experience of 2 years as a real estate agent. Getting a broker’s license requires a financial as well as a time commitment, so you need to think long and hard before making this decision. If you want to be a big player in the industry and you think you’ve worked enough days as an agent, this license is the key to taking your career to the next level. Try to read all the requirements in your state before opting out of your real estate job, and create a contingency plan in case you are unable to pass the exam.
The best option would be to enroll in a well-reputed institution to prepare for the broker’s license exam. According to a recent report, there will be a 28.15% increase in real estate broker jobs in the coming 5 years just in the US alone. So, the future looks quite bright for you if you are able to obtain the license. We wish you all the best and we would love to assist you further, as you can post your queries in the comment section.