Thinking of becoming a real estate broker? Real estate broker jobs increase your earning potential because, instead of working simply for yourself, you’ll have a team giving you a percentage of their commission. If you have a passion for leadership and helping others maximize their talents then moving from an agent into a broker role could be a good fit for you.
Are you trying to decide between becoming a real estate broker or following one of the many other real estate career opportunities you can pursue with your real estate license? Here’s everything you need to know about real estate broker jobs before you take the plunge.
What does a real estate broker do?
Real estate brokers lead teams of agents who assist with buying and selling property. A real estate broker has to not only excel at conducting real estate transactions but also be able to coach agents to do the same.
Here are some responsibilities you might see people undertaking in real estate broker jobs:
- Hiring new agents
- Training agents at all points of their careers
- Creating a marketing strategy for the brokerage
- Leasing brokerage office space and hiring administrative personnel
- Set growth targets for the brokerage
- Keep a positive culture amongst agents
- Perform real estate transactions
- Mentor new agents
Real estate brokers are coaches, leaders and agents all at the same time.
Real estate broker vs. real estate agent: What’s the difference?
Although you might hear the title real estate broker used interchangeably with real estate agent, the two are not synonymous. Usually, you enter the real estate industry as an agent with a salesperson license before going on to become a broker after receiving additional licensing.
Agents who are launching their careers generally find a brokerage to work within. In exchange for administrative and marketing support, an agent will give the brokerage a percentage of their commission. Managing real estate broker jobs are focused on finding and developing new agents to work within a brokerage, but you can also work alone as a broker.
Requirements you’ll need for most real estate broker jobs
Real estate broker jobs aren’t entry-level positions. You’ll need both work experience and real estate industry knowledge before you can become a real estate broker.
Licensing requirements vary by state, but you’ll most likely have to upgrade your additional license by taking post-licensing education and writing a broker exam. You also may be required to practice real estate and perform a certain number of transactions before becoming a real estate broker. The required number of years depends on the state, though the standard time requirement ranges from one to three years.
Since every state has different regulations, make sure you research the requirements in the state you wish to practice real estate before getting started.
How is a real estate broker usually paid?
Real estate brokers are paid on commission, which means they don’t normally earn a salary (although some brokerages do pay a base salary in addition to commission). A percentage of the final transaction also goes to an agent if one was used in the sale.
According to NAR 2017 Member Profile data, broker-owners who sell earn an average of $90,910 each year while broker-owners who do not sell earn an average of $54,670 annually.
Where to search for real estate broker jobs
Once you’re ready to make the jump into being a real estate broker, there are a few ways to get a job at a brokerage.
Option 1: Start your own brokerage
After you meet your state’s brokerage requirements you can decide to launch your own brokerage, hiring agents to work underneath you and training a whole team. You’ll want to decide if you’re going to have be a franchise or independent brokerage. Then, go through all the steps to create a business in your state before finally marketing your brokerage and taking on clients.
Option 2: Join a brokerage
Instead of launching a brokerage from scratch, you may decide to join an existing brokerage as an additional broker on the team. You’d still likely be responsible for recruiting and training your own agents but you could rely on the experience and resources of other brokers to help you get started. If you’re trying to test the waters and see what opportunities might be available to join a brokerage, let other brokers you work with know you’re getting your broker’s license. Once you get the word out there you can start asking for referrals and connections to brokers who might be looking to expand their business by taking on another partner.
Important considerations before joining a real estate brokerage
Before you jump into a real estate brokerage as a new broker there are some questions you’ll want to ask. Since being a broker is a different workload and skill set than becoming a real estate agent you’ll want to make sure that you’re setting yourself up for success with this new career move. Here are some ways to evaluate which brokerage is right for you:
- Do you have similar work styles and values as the other brokers you’d be working with?
- How have more experienced brokers mentored new brokers at this particular brokerage? Do you have specific examples you can point to? Try to stay away from generalities, everyone has good intentions but what you’re looking for here is follow-through.
- What is the commission split?
- What administrative resources will the brokerage supply you with?
- Is this the right niche for you?
Are you ready to become a broker?
Real estate broker jobs aren’t the same as being a real estate agent. Many view becoming a real estate broker a career accomplishment that will help them get further down the path in their career. But being a broker isn’t for everyone and it certainly isn’t something to rush into. Take time to assess if you’re truly ready to make this commitment before you obtain your broker license. Then, when you’re ready, ask for support from those who you trust in the real estate community. Having a job as a real estate broker is a huge accomplishment and a goal worth striving for if your dream is to lead your own team toward real estate success.