Did you know that a Canadian development company offered that anyone who bought one of their condos would get one free avocado toast a week from a nearby restaurant for the entire year?
Real estate all over the world is a crucial business and people get creative to sell or rent you a home, apartment, or condo.
There is a process of becoming a real estate broker, and it involves classwork and tests, but if it’s the job you are passionate about, once you complete the steps you are set to embark on your career path.
Keep reading and we will help walk you through how to become a real estate broker and give you tips to use along the way.
Broker vs. Agent
Real estate brokers can represent the buyer or the seller. When they represent the buyer, they will work with you to find an apartment or home that fits your needs and budget. They will help you through the entire buying process—from helping you get the right documents for payment to going to showings with you.
When real estate brokers represent the seller, they list a condo or home for sale, market the property and schedule open houses and times for people to see it on their own.
There are also sales agents, and brokers may hire agents to work with clients, whether that be going to a showing with a buyer or helping set up a showing with a seller.
The brokers are responsible for every property that is bought through their brokerage—they are paid on commission of the final sale. They pass some of the commission to the real estate agent that helped them.
The main difference between a real estate broker and an agent is licensed to sell property, but can’t work on their own; they must sell it under a licensed broker. A real estate broker is licensed to have a private real estate firm.
There are more requirements to becoming a real estate broker than a real estate agent, but ultimately you can do more like a broker.
How to Become a Real Estate Broker
There are more education and experience required when you are working to become a real estate broker. There are requirements from your state and tests; you will also want to gain experience in the field by working at a brokerage as an agent.
Almost every state has requirements of experience in the field—working as a real estate agent and being a part of a certain number of sales before taking the real estate licensing test.
States also may do a background check, like any other job, and get a minimum score of the test. In New York, you need two years of full-time real estate agent experience and 3,500 transaction points (for one closed single-family home, condo, or co-op sale, you get 250 points).
In some states, including New York and Illinois, if you are licensed to practice law, the real estate agent experience or test may be waived.
The point system in New York there are points based on the transaction of a single-family home, condo or co-op, office building, commercial lease or rentals, and subleases.
You must hit a certain amount of sales or points before you can move on to the next step of becoming a broker.
There are also state reciprocity rules that allow you to practice in other states. For example, if you have a California real estate license, you can get a new real estate license by reciprocity in Alaska (and multiple other states).
This is helpful because if your family moves or if you want to move, you’ve set yourself up in a career that can transfer somewhere else easily.
Back to the Classroom
Every state has classroom requirements of school hours before you can become a broker. The education hours can vary between 45 hours to 900 hours.
In New York, you need 120 hours total that breaks down into 45 hours of broker-qualifying courses and 75 hours of sales licensing courses (these are completed if you have a NYS sales license).
In Illinois, you need 45 classroom hours with required course topics that range from real estate agent responsibilities to advertising regulations to real estate agent safety.
The key to how to be a broker is passing the real estate broker licensing exam. It’s more detailed and intense than the real estate agent exam. You will need to prepare and study ahead of time to pass the test or meet the minimum score in your state.
How do you become a real estate broker? Study hard for the exam, and you will succeed!
Here Are Some of the Top Test Tips
To be successful on your test, you need to be prepared and know what you are getting into. These tips will help you achieve a passing score.
1. Know Your State
The test is based around the state you live in and are trying to become a broker in, so it is vital to study the licensing requirements in your state.
2. Exam Preparation Class
Take an exam prep class to get all the most recent information, rules, and laws to pass the exam. Real estate rules change from year to year, so it’s essential to stay up-to-date.
3. Study and Review Exam Subjects
Create a study guide to review all the potential subjects the real estate broker exam may include. From contracts to property ownership and land use controls to property valuation and financial analysis, there are multiple possible subjects you should be prepared for them all.
4. Practice Makes Perfect
Take a practice exam and get familiar with the format, timing, and layout. Once you have the type of questions down, you will feel better going into the test.
Take on the Real World
After you pass the state requirements and test, you should look to gain experience on how to be a broker. What better way than joining a brokerage firm?
You can join a firm as an associate broker where you can start to build your network and gain valuable experience. You can watch your leaders and how they manage their real estate agents and a company culture that fits how you see yourself if you were to run a real estate brokerage firm.
You will learn the commission splits work and study how the firm uses marketing to nurture and convert leads.
If you are looking to start on your right after you pass all state requirements, you can find a sponsoring broker. This is a helpful shortcut if you want to leave the brokerage where you’ve been gaining experience and go off on your own.
There are many tools out there for you to help you succeed, you just need to fit your fit, and you will see career development as you gain more real-world experience.
Time to Become a Real Estate Broker
After learning about the steps on how to become a real estate broker, you are ready to prepare yourself to take in a lot of classroom knowledge while also gaining real-life experiences.
You will find a brokerage that is the right fit for you or start one on your own; either way; you are ready to take on the real estate world.
Read more articles about business ventures on our website and gain some more useful knowledge!