If you’ve been a licensed agent for a while now, you’ve probably become more knowledgeable and more confident with every transaction. With all that experience, you may be ready to share your knowledge with others and take the next step in your career. Expanding your business as a real estate broker can dramatically increase your income but it also comes with the weight of increased responsibilities and heightened risk, which you shouldn’t take lightly.
Becoming a Real Estate Broker
Once you obtain your broker’s license, you can take your business in plenty of new directions. One option, if you’re not crazy about the idea of added responsibility, is to continue working for another broker. You may even be able to negotiate a better commission split. Alternatively, you can work independently as an agent broker and keep one hundred percent of your commission.
Of course, your potential for earnings will increase if you hire agents to work under you. You’ll receive royalties, company revenue earned from commissions, Errors & Omissions income, Transaction and/or desk fees from each salesperson.
Whichever direction you choose, as an expert in the field, people will look to you for your knowledge and understanding of the industry.
Are you on a mission to launch a new brokerage? There are several things you need to consider before opening your own office since you’ll be responsible for running the show. Not everyone is cut out for management, but you’ll be successful if you are organized and have the personality to handle some of the tougher tasks. While you can hire people to fulfill some roles, you’ll ultimately be responsible for the following:
- Personnel coordination such as hiring and firing
- Agent recruiting, negotiate Commission splits
- Staff and agent training
- Mentorship programs
- Independent Contractor Agreements
- Agent supervision
- Expenses like rent and utilities
- Administrative tasks
- Record keeping
- Dispute resolution
- Legal responsibilities
- Marketing and advertising
California Broker License Requirements
In the state of California, certain requirements must be met, in order to become a broker:
- Applicants must be 18 years of age and reside in California
- Applicants must have education and/or experience that includes:
- two years as a full-time, licensed real estate agent (within the last five years), or
- two years of equivalent, unlicensed experience, or
- a four-year degree from an accredited college or university with a major or minor in real estate
- Member of the California Bar Association
- Applicants must complete approved, mandatory broker license training
Broker License Training
Before you can schedule your broker examination with the Department of Real Estate, you must complete eight mandatory college-level courses:
- Real Estate Practice; and
- Legal Aspects of Real Estate; and
- Real Estate Finance; and
- Real Estate Appraisal; and
- Real Estate Economics or Accounting*; and
- Three courses from the following list:
- Real Estate Principles
- Business Law
- Property Management
- Real Estate Office Administration
- Mortgage Loan Brokering and Lending
- Advanced Legal Aspects of Real Estate
- Advanced Real Estate Finance
- Advanced Real Estate Appraisal
- Computer Applications in Real Estate
- Common Interest Developments
*If an applicant completes both Real Estate Economics and Accounting courses, they will only need to take two courses from the second group.
Obtain Your Broker License Through Agent Real Estate Schools
At Agent Real Estate Schools, we’ve got everything you need to complete your Broker License training. Of course, if you’re already a broker and want to ensure your new recruits are ready to pass the California state real estate exam, tell them about our Group Study and Fast Track pre-license training programs. Through interactive, in-class sessions or self-paced online learning, candidates can complete their training in the stream that best fits their needs. We also offer Continuing Education for both brokers and agents, to make sure your whole office is up-to-date.
If you eat, sleep, and breathe real estate, and have well-developed leadership skills, this could be the perfect time to obtain your real estate broker’s license. Reach out to Agent Real Estate Schools today and let us know how we can help you move forward in your career.