Are you looking to level up as an agent? Are you considering making the move to become a broker? Broker's have a lot more responsibility than a real estate agent, but they also have a lot more freedom. It's definitely a jump worth considering if an agent feels they want more out of their real estate career.
What Does Being a Broker Mean?
A broker is a real estate agent that took more classes, passed more tests, and now can work for themselves. Brokers also have the option to create their own brokerage and have real estate agents work under them. All real estate agents have to hang their license under a brokerage - so becoming a broker takes out the middle man. Agents who are also brokers, and work independently, get to keep more of their commissions because they don't have brokerage fees to pay.
Typically, real estate agents pay a percentage of their commission to their brokerage. So, brokers also make more money in this way. Another way that brokers bump up their income is to get involved with other small business in other areas of real estate like lending and title companies. Some brokers become owners in these businesses as well. This pairing up of resources is a great way for smaller brokerages and other real estate companies to level up.
Responsibilities to Consider
Something to consider before becoming a broker is if agents are willing to become a broker is the added responsibility. Brokers may be responsible for errors that the agents who work underneath them make. There is undoubtedly a lot more exposure to liability and risk as a broker if you choose to create a brokerage.
Brokers could always just work independently, but the issue here is that is all of the steps worth it if you don't eventually have agents under you paying you some of their fees and commissions? Because of this, brokers need to be careful about the agents they hire.
If you're an agent and feel that you want to be able to do more, and maybe are a bit of an entrepreneur - than make the steps to become a broker!
Have a comment, tip, or concern?
Thanks for reading Elite Informer! Here's more where that came from.