How to Become a Real Estate Broker in 2022 (Without the Stress)

In 2014, I set out on my own and started an autonomous brokerage firm. It has been a long and excite road, and I bet some of you are wondering if it ’ randomness time for you to become a real estate broke and start your own travel. I can help you think through all of the pros and cons of becoming a real estate of the realm broker, but first, I ’ ll honkytonk into some basics. In this article, you ’ ll find the data and resources you need to make this major decision and to know if you ’ re ready to take this giant star future step in your real estate of the realm career .

What Is a Real Estate Broker?

First things first, real estate brokers are experience real estate agents who have continued their education, completed the necessity courses, passed a broker ’ sulfur examination, and have been licensed by their state. If you ’ re in Texas, California, New York, Illinois, Georgia, Massachusetts, or Michigan, check out our state-specific guides.

What’s the Difference Between a Broker & an Agent?

expand/collapse Simply put, a salesperson real estate of the realm agent must work under a broker. A broke is amply licensed to work independently, either within a brokerage or by starting up their own brokerage and hiring salesperson. Watch Chris break it down in under two minutes :

What Does a Real Estate Broker Do?

Brokers much do the lapp work as salesperson. On the buyers side, they help clients seek out properties that match their criteria, make offers, negotiate, and manage the purchase transaction through close. On the sales english, brokers list and grocery store properties for their sellers, negociate, and besides see the process through to close. additionally, brokers can hire raw agents, trail and supervise them, oversee administrative staff, and ensure everyone is acting in accord with the law and ethical best practices. last, a agent is going to have an increase measure of fiscal province. Brokers will oversee and review contracts and make certain everything is perfect—both for their own transactions and those of agents working under them .

Are There Different Types of Brokers?

Yes ! There are unlike types of brokers within a brokerage. The designated broker ( or principal agent or broker-in-charge ) ensures that everyone within the brokerage is adhering to local, state of matter, and federal real estate laws. The managing broker oversees the salesperson, hires new agents, offers train, and manages the administrative team. Associate brokers have their broker licenses and are separate of the brokerage. typically they don ’ thyroxine monitor other brokers or salesperson. In some states, like New York, you can besides hire a broker of record. I call these brokers “ Four-star Generals. ” They think they ’ ve earned their stripes so they feel entitled to just sit behind a desk and bark orders. eminence that terminology is unique in each submit. For example, in Illinois, a newly licensed salesperson is called a broker and they ’ five hundred continue on to become a managing broke at the future phase of their career .

Why Should I Become a Real Estate Broker?

In my dozens of years in the real estate diligence, I ’ ve been a REALTOR 30 Under 30 agentive role, broker-owner, franchise partner, recruiter, speaker, coach, and author. I ’ ve launched two brokerages, invested in two others, and coached broker-owners. I ’ ve put in the crazy workweek and the insomniac nights, and yes, I made plenty of mistakes along the way. There are many reasons one might want to become a real estate of the realm agent. It ’ s a natural progress in your career and an crucial step in professional development. But I want to make sure you ’ re taking this adjacent step for the right reasons, avail you avoid major mistakes, and save you a lot of grief in the process .

Becoming a Broker Means You Can: 

  • Earn more, either by getting a better split within your brokerage or by starting your own brokerage and earning splits from your salespeople. 
  • Build your own brand or offer a unique service or system that other brokerages are not doing. Your competitive advantage separates you from the competition in the customer’s view. This would allow your brokerage to stand out.
  • Cut back on selling and instead focus on recruiting, training, and leading new real estate agents. 

On the Flip Side, Don’t Become a Broker Just To:

  • Save money.
  • Avoid supervision and/or regulation.
  • Grow your business just for the sake of growth

associate article

7 Things I Wish I Knew Before Starting My Real Estate Brokerage

What Is a Typical Broker’s Earnings?

associate brokers can negotiate better splits with their brokerage house. If you start your own, you ’ ll make full moon commissions from your own deals, but besides get a reduce or a burst from the salesperson who work under you. nationally, as of May 2022, the median broker “ wage ” ( or total earnings ) was $ 77,296 per class. According to ZipRecruiter, reported salaries may range from $ 43,000 in the depleted 25 % and $ 100,000 in the circus tent 75 %. This reflects statistics collected by the Bureau of Labor. The medial broke wage in 2021 was $ 62,010, with the lowest 10 % earning below $ 30,000 and the highest 10 % earning above $ 100,000. Earnings, however, depend wholly on the work you put in and the grocery store where you reside. More deals and/or higher sale prices will result in higher annual earnings. [ associate article : The modal real Estate Broker Salary for Every State ]

What Skills Are Needed to Become a Real Estate Broker?

veridical estate brokers build on the skills that they develop during their time as agents :

  • Buying
  • Selling
  • Negotiating
  • Marketing

But brokers can besides :

  • Recruit new agents
  • Train
  • Mentor
  • Lead a team
  • Oversee administrative staff
  • Oversee contracts

If you ’ re thinking about building your own brokerage, remember that it ’ second not just about being a big salesperson or the number of transactions you ’ ve done—it ’ s about being a good coach. Your brokerage will fail or succeed based on the team that you build and retain. Learning how to hire, train, and cope employees is a monumental feat on its own. The best advice I can give you is to be very net on your expectations for each position from the begin. But to do this, you ’ ll need to have established clear processes and procedures in advance. If you ’ ra considering starting a brokerage, I suggest you take the time now—before you tied get your agent license—to be clear on your objectives, think about the skills that are required, find a competitive advantage, determine the type of agents you want to serve, and consider what your processes and procedures will look like .

What Are the Experience Requirements?

Since you can legally enter into contracts of sale as a real estate of the realm agent, all states require that you have experience as a accredited real estate of the realm agent in order to become a real estate broke. Some states equitable say you need to be actively licensed for a number of years, while others, like New York and California, ask you to have closed a certain number of transactions.

here is a quick summation of the have requirements in California, New York, Florida, Texas, and Illinois .

Minimum Real Estate Broker License Experience Requirements by State

State Time Requirement Transaction Requirements Exceptions
California 2 years as a salesperson in the last 5 years None Attorneys or those with a 4-year college degree in real estate are exempt from education requirements
New York At least 2 years as a salesperson or 3 years in the general real estate field Yes—3,500 points for salespeople working for at least 2 years, or 5,250 for working in general real estate field within 3 years; more info Attorneys do not need to meet the time, education, or transaction requirements
Florida 2 years as a salesperson in the last 5 years None Attorneys and those with 4-year college degree in real estate may not need to meet education and/or time requirements in Florida
Texas 4 years as a salesperson in the last 5 years Yes—3,600 points; more info Attorneys and those with 4-year college degree in real estate may not need to meet education requirements in Texas
Illinois* 2 years as a salesperson in the last 3 years None Attorneys do not need to meet the education requirements in Illinois

*Again, since salespeople are called brokers in Illinois, brokers are called managing brokers. * Again, since salesperson are called brokers in Illinois, brokers are called managing brokers .

What Are the Education Requirements?

While the length and trouble of your broke license courses varies a spot by state, you should expect to spend at least a wide workweek in classes to qualify for your agent license. Just remember that these are college-level courses, so they will be a bite more difficult than salesperson courses. many agents will find the broke courses more matter to than their salesperson prelicensing education. In most states, there is more of a focus on appraisals, finance, and economics .

Real Estate Broker Prelicensing Course Hours by State

State Hours of Real Estate Broker Licensing Courses Required
California 360 hours
New York 45 hours
Texas 900 hours
Florida 72 hours
Illinois 45 hours

How Much Does It Cost to Get a Real Estate Broker License?

What Are the Steps to Getting a Real Estate Broker License?

here is a quick overview of the march in all 50 states : 1. Learn the basic requirements for your state 2. dispatch and document the want have 3. Take your real estate broke prelicensing courses 4. Pass the actual estate of the realm broke examination 5. Apply for your broker license on-line

1. Learn the Requirements for Your State

The beginning footprint is, of run, to learn the requirements in your state. In most states, there are basic legal requirements to get your license ( in summation to education and experience ), and these include a minimal old age prerequisite and a clear condemnable history .

Minimum Age to Get a Real Estate Broker License

You must be at least 18 years old in order to get your substantial estate agent license in all 50 states. Some require you to be 20 years previous. Of path, since you need to be at least 18 to get your real estate salesperson license, this makes sense .

Criminal Conviction History

similarly, since you can not get your real estate of the realm license with a felony conviction on your record in most states, you can not get your broke license either. If you did manage to successfully petition your state license department to grant you a salesperson license with a felony conviction, you will need to do the same for a agent license .

Our State Specific Guides to Getting a Broker License

Learn more about what ’ second required in these states with our specific guides :

2. Complete & Document the Required Experience (+ Transactions, if Needed)

Most states require a sealed number of months or years of real estate of the realm have to qualify as a broker. however, if you are in a express like New York or Texas that requires a minimum count of transactions, then you need to complete and document those transactions before getting your license. Since your managing agent is legally your agent of record, they will probably document your qualifying transactions for you. Don ’ metric ton worry, though—in order to apply for your license, you do not need to provide any details from your transactions. You just need to know the number and type of transactions you ’ ve closed as a salesperson .

3. Take Your Real Estate Broker Prelicensing Courses

once you ’ ve learned the qualifications you need to get your broke license and completed and documented the right numeral of transactions, you need to complete your very estate broke courses. Consider taking your real estate of the realm agent courses on-line with Colibri Real Estate. They offer the like courses as everyone else, but much for a better price. Plus, they ’ re our lead pick for best on-line substantial estate school. many agents don ’ triiodothyronine realize that there are often exemptions for the education and experience requirements. Attorneys in good stand admitted to the state ’ mho bar and those who have college degrees in real estate-related majors broadly don ’ t need to take the command education courses and may not need the want experience either .

4. Pass the Real Estate Broker Exam

barely like your salesperson license, the future pace in getting your broke license is to take and pass your country ’ south broke prelicensing examination. While the tests vary from state of matter to department of state, they are all multiple choice and will take you respective hours to complete. All real number estate of the realm broke exams are pass/fail, and in order to pass the examination, you need to get 70 % of the questions correct .

How Hard Is It to Pass the Real Estate Broker Exam?

The real estate broke examination is generally a fiddling act harder to pass than the veridical estate of the realm salesperson examination. however, since many people who take the salesperson examination have no real number estate of the realm experience, the pass rate for broker examination is much higher .

5. Apply for Your Broker License Online

once you ’ ve passed your agent examination, all you need to do to officially become a real estate of the realm broker is to apply for your license ! The process is pretty straightforward in most states. You need to gather your information, including your application, documented have ( if needed ), and certificate of completion of the course, and submit everything to your department of state ’ randomness license or real estate commission. That ’ s it ! Congratulations, you are immediately a license substantial estate broker !

Want to Start a Brokerage?

immediately, I ’ thousand not necessarily encouraging you to start your own brokerage house. I just want to provide you with information to ensure that you have a real and true painting of what becoming a real estate broke means. From here, alone you can make the best decision for you—based on your individual goals and situation.

If you think starting a brokerage sounds like your following great gamble, I have plenty of resources to help you along the means. Consider these five important following steps :

  1. Really do some soul searching and decide what kind of brokerage you’d want to build. Read my article on how to start and get those wheels turning. 
  2. Create a budget with my worksheet.
  3. Consider your comparative advantage and come up with a name. Start thinking about branding your new business.
  4. Determine your procedures and processes. For example, what splits are you going to establish?
  5. Start strategizing for recruitment. Learn how to attract both customers and agents!

Bottom Line

Getting your real estate broker license can be a long and expensive process, but follow these steps and you can become a broke and even consider starting your own brokerage. Take it from me, becoming a broke can be one of the most reward career steps you always take. Do you have advice for person considering becoming a substantial estate broker ? Leave a comment below !

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