3 Benefits of Being a Broker

Written by Posted On Monday, 13 January 2020 11:03

When you first start your career in real estate, it is good to work in an established firm and build a solid client base. Once you have a bit of experience, however, you may want to expand your horizons and look for new opportunities. Getting a license to be a broker is a logical next step. If you have decided that real estate is the career you love, there are several benefits to becoming a broker. You can earn more money, expand your job prospects and up your marketing game.

  1. Make a Higher Salary

There is not really a limit on how much money a great real estate agent can make. Having a broker license, however, can help you earn a higher salary more easily. If you are at least 20 years old and have at least two years of experience in real estate sales, you are likely eligible to train for this license. The choice to do so can really pay off. According to the U.S. Bureau of Labor Statistics, the median salary for a real estate agent is about $48,690 per year while the median salary for a broker is about $58,210 per year. That is a pretty significant return on the investment of taking the brokerage course and fulfilling the requirements to get the additional certification.

As a real estate broker, you can often get a higher commission split. You still get the commission you are due on the sales you make. In addition to the payout that you get when you help clients buy or sell property, as a broker you can also supervise agents, entitling you to a portion of the commissions on their sales. These commissions can add up quickly, depending on the number of agents you supervise and the volume of work they produce.

  1. Explore a New Opportunity

Owning a brokerage firm comes may come with a few more responsibilities, but you can reap several benefits as well. For starters, you can either earn commission on your agents' sales or, if they keep all their commissions, you can charge them flat fees in exchange for the support of your firm. If owning your own business is not appealing to you, you may also work in an established firm as a managing broker, receiving many of the same financial benefits without the responsibility of being the firm's lead decision maker.

Another possibility for those with a brokerage license is property management. Property owners often don't have the desire or the qualifications to handle the business side of rental properties, such as collecting rent or making lease agreements. They often outsource this work to brokers to handle these tasks on their behalf. Large property management firms often hire brokers on staff to manage leases and payments.

  1. Enhanced Your Marketing Strategies

When you have a brokerage license, you can update your marketing materials to reflect your additional qualifications. Many prospective buyers and sellers would rather work with someone who is well-established in the area and has a great deal of real estate experience. When you are listed as a broker instead of an agent on your firm's website or when potential clients see this distinction on your business card, they may be more inclined to hire you. A licensed broker has the extra training and experience many clients are seeking when they are making major changes such as where they will be living. Being able to claim this license can put you ahead of many of the local agents and help you gain more clients.

Becoming a real estate broker takes a little extra work beyond your real estate license, but it can be well worth the effort. You can expand both your employment opportunities and your earning potential. A license to be a broker also gives you an edge when it comes to marketing your services to homeowners or prospective buyers in your area. Getting your brokerage license can help further your real estate career.

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