How To Become A Real Estate Broker
Real estate brokers assist individuals in purchasing, selling, or renting a property. A real estate broker differs from a real estate agent, as a real estate broker is completely licensed to manage his or her own real estate business. As a real estate broker, you will be representing your client when they wish to purchase, sell, or rent a property. It is the responsibility of the real estate broker to inform their clients on mortgage costs, housing market conditions, and prices of a property.
A real estate broker will showcase properties that are for sale or rent by advertising, open houses, and real estate listing services. It is the job of the real estate broker to show the client a potential property and negotiate the purchase or rental contacts on behalf of the buyer, seller, or renter. It’s crucial for the real estate broker to ensure all of the terms and contracts of the sale or rental are completely met.
A real estate broker is in place to make the process of purchasing, selling, or renting of a property less stressful and seamless for the client. If have business skills, are meticulous with the small details, incredibly personable, and want to be a part of the real state realm, a career as a real estate broker may be for you!
Why Become A Real Estate Broker
Real estate brokers are incredibly knowledgeable about the real estate market in their specific area. A real estate broker is the first person you may encounter during your property search. It is vital for a real estate broker to foster a personable, professional relationship with their client. A real estate broker will connect with their client to:
- Understand what kind of property they are looking for
- How much they wish to spend on a property
- Match the property to their client’s needs
A real estate broker is essentially an expert within the real estate market; they are knowledgeable about communities, crime rates, school districts, and entertainment within an area. Additionally, a real estate broker will understand the various financing options, types of mortgages, zoning, and housing laws. A real estate broker works as an independent individual, with real estate agents working for them and overseeing their real estate business.
Qualities & Skills Of A Real Estate Broker
If you are looking for employment within the field of real estate brokerage, it is imperative that you possess the following skills in order to obtain a real estate broker position.
- Interpersonal Skills – As a real estate broker, you must have exemplary interpersonal skills when dealing with customers and clients. You MUST have an honest, enthusiastic, trustworthy, and pleasant demeanor when working with clients and other professionals.
- Business Skills – Real estate brokers must be incredibly business savvy, as many are self-employed. You must be able to manage each aspect of your business, from finances to advertising your services to professionals and clients.
- Problem-Solving Skills – As a real estate broker, you must be able to adapt quickly and address issues with clients and professionals. It will be your responsibility to perform negotiations on behalf of a client; therefore, it is imperative that you can solve concerns effectively and efficiently.
- Organizational Skills – As stated above, many real estate brokers work for themselves, therefore, it is imperative that you are able to work efficiently and independently. If you find yourself working for a real estate firm or independently, it is imperative that you can prioritize your tasks while remaining incredibly organized.
Real Estate Broker Work Environment
Real estate brokers typically work in an office setting, such as leasing, brokerage, and other real estate environments. The real estate broker can work for themselves, or a large firm with several branch offices. Additionally, a real estate broker can have agreements or contracts with regional or national real estate office, so they foster a working relationship to sell properties together. The career of a real estate broker is busy, as they are typically showing properties to clients and traveling to meet with prospective clients. Many real estate brokers work more than full-time, often in the evenings and weekends in order to accommodate a client’s schedule.
Real Estate Broker Salary
The Occupational Employment and Wages Report of the Bureau of Labor Statistics of the US Department of Labor showed the mean hourly wage in May 2012, of a real estate broker is $28.05.
Average Real Estate Broker Annual Salary
The average annual salary for real estate brokers is $75,910 a year. Salaries start at $24,160 a year and go up to $151,660 a year.
Average Real Estate Broker Hourly Wage
The average hourly wage for a real estate broker is $36.50. Hourly wages are between $11.61 and $72.92 an hour.
Stats were based out of 40,530 employed real estate brokers in the United States.
Highest Paying States For Real Estate Brokers
- 1. Connecticut $62.37 / hr $129,730 / yr
- 2. New Hampshire $60.79 / hr $126,450 / yr
- 3. Ohio $56.11 / hr $116,700 / yr
- 4. Massachusetts $49.87 / hr $103,720 / yr
- 5. District of Columbia $48.33 / hr $100,520 / yr
Top Paying Cities For Real Estate Brokers
- 1. Hartford, CT $70.94 / hr$147,560 / yr
- 2. Columbus, OH $64.98 / hr$135,170 / yr
- 3. Sacramento, CA $54.75 / hr$113,880 / yr
- 4. Fresno, CA $51.54 / hr$107,200 / yr
- 5. Boston, MA $51.23 / hr$106,560 / yr
Data provided by the Bureau of Labor Statistics (BLS).
Real Estate Broker Career Outlook
The career outlook for a real estate broker looks to grow, with a projected increase of 11% from 2012 to 2022. Due to the increasing use of real estate brokers, population increase, and the demand for home sales, the employment of brokers will continue to grow. Other factors that have an influence on the increase are first-time homebuyers, rising consumer spending, and an improving job market. The employment of a real estate broker is dependent on the real estate market, interest rates, and fluctuations within the economy.
Real Estate Broker Degree
If you wish to pursue a career in real estate brokerage, you must have a high school diploma and become licensed. If you wish to become a licensed real estate broker, you must complete several real estate courses and pass the licensing exam.
In order to complete your licensing exam, you must be 18 years old, complete the real estate coursework, and pass the exam.
It is important to note that real estate licenses are typically non-transferrable among each state. For example, if you move to another state and wish to become licensed, you will have to take the state’s particular licensing exam.
In order to obtain a real estate broker’s license, you need to acquire one to three years of experience as a real estate sales agent. You will need additional coursework and training. In many states, the completion of a Bachelor’s degree in real estate, finance, business administration, economics, or law, can be substituted for experience or training.
You will need to renew your real estate brokerage license every two to four years. As a real estate broker, you will need to constantly complete continuing education and training courses within the real estate realm. Innumerable real estate associations offer coursework and professional development program for those new to the real estate brokerage world. The coursework for real estate agents and brokers may discuss topics such as real estate laws, mortgages, financing options, and real estate essentials.