5 steps to becoming a real estate broker

Have you ever wondered how to become a real estate broker? What are the steps to land this rewarding job?

Selling or buying a home is one of the most difficult and important financial decisions a client can make. With rising real estate market prices, you can earn up to 6.9 million by selling your house!

Of course, most home sellers and buyers work with an agent to help navigate the process. It can be a real estate agent or a real estate broker.

Brokers hire real estate agents and mentor them, train them and ensure that all transactions are legal and coordinated. Then they take a portion of their agent’s revenue through block fees or commission splits.

But learning to become a real estate broker is not easy. So here are the steps to becoming a real estate broker – you will understand what the job is all about.

Portrait of a happy real estate agent with a couple in the background.

1. Find a real estate pre-licensing course

The vital requirements of the real estate broker first gain experience as a real estate agent. Realtors work under brokerages to rent, sell, and buy homes or other properties. In some states, officers take pre-licensing training courses at a state-approved school.

Pre-licensing courses teach real estate, ethics, legal issues, taxes, finance, contracts, and insurance. After completing their training and obtaining their license, agents can work for a real estate broker.

Agents with years of experience who want to become brokers might require more training. To obtain a real estate broker’s license, they must take prerequisite courses for obtaining the license. The expenses for an accredited bachelor’s degree course can range from $200 to $1,000.

Training courses for future real estate brokers include:

  • Real estate law
  • Real estate investments
  • Construction and development
  • Real estate principles
  • Contract law
  • Real estate practice
  • Property management
  • and business law

In addition, broker candidates must complete three approved course topics, including:

  • Brokerage and mortgage loan
  • Fiduciary deposits
  • Advance real estate financing
  • Administration of the real estate office
  • Advanced real estate appraisal
  • Advanced legal aspects of real estate
  • IT applications in real estate
  • Developments of common interest

Some real estate brokers work for an established broker as an associate broker. Associated brokers work the same way as broker-managed real estate agents. Working as an assistant broker can give brokers valuable experience in building their brokerage.

2. Pass licensing requirements

Similarly, like real estate agents, brokers must be licensed in their state. To have a broker’s license, one must first have a valid sales agent license with years of experience. In most states, brokers must need two years of experience as a sales agent, but in some states they may need three years of experience.

To meet the requirements for real estate brokers, brokers must complete training authorized by their state. Upon completion of the licensing training course, prospective brokers can take their state’s licensing exam. After passing this exam, they must first pass a criminal background check to qualify for a real estate broker’s license.

3. Research the salary

Glassdoor says a median real estate broker salary in the United States was $89,681 in base salary and $30,547 in commission. A median is more of an example than an average, which can become low or high depending on the incomes at either end of the spectrum. For the national survey, the high end of the real estate broker’s salary scale was $370,000 and the low end was $41,000.

Due to brokers’ commission income, their profits depend on the trades they make for their clients. These earnings can fluctuate depending on housing demand and the broker’s success in getting clients. The success of a real estate broker depends on his ability to attract new clients.

As brokers gain experience and build a network of contacts in their area, they can build a reputation and grow their industry. Additionally, brokers who attract a higher volume of business may hire real estate agents as employees.

4. Understand the job description of the real estate broker

A real estate job description is to manage transactions between sellers and buyers. Their work includes drafting contracts and details, managing sales prices and overseeing negotiations. If you want to have a brokerage, you may need to find clients for your industry.

For example, you can promote your services in local newspapers or on social media. You can also accept referrals from past customers. Realtors work flexible hours and may spend time traveling to meet with clients and view properties.

You will need to find clients and properties, advertise and list, organize open houses and write contracts. Brokers work nights and weekends to accommodate their clients’ listening hours and schedules. However, if you like to start as an associate broker, you can continue to work for the real estate broker who hires you as an agent.

5. Learn the different types of real estate brokers

There are three types of real estate brokers. The principal broker monitors the brokerage and ensures that the sales agents have valid licenses. Similar to managing real estate brokers, they oversee the day-to-day procedures of the brokerage.

Finally, the associate broker has a real estate license but works as an agent. Real estate brokers usually start their real estate companies. Brokers can thrive by increasing their customer base and keeping a loyal customer.

Learn how to become a real estate broker today

After completing the real estate broker training, you must take all the necessary steps to obtain a broker’s license. Then you will need to look for a brokerage to hire you and gain experience.

After all, knowing the requirements of real estate brokers can make a big difference in the longevity and success of your career. Earn your way to a real estate broker’s license and help others find their dream home!

Want to know everything about becoming a real estate broker? You can learn more about real estate and other topics by browsing through the rest of our real estate agent guides!