The real estate brokers as a job is one of the best jobs you can secure while you are abroad as an international or as a citizen planning to diversify business investment. To many, they might think that it is a very hard business while to some, they already know what to do and how to go about it, however here in this article you will find simple ways on how to become a real estate broker, know more about real estate and probably get the information that will help you know how to start up the business.
So are you Planning to buy or sell a home? Then actually there’s a good chance you’ll work with a real estate agent, broker, or Realtor.
Therefore, you must have in mind that real estate pros are licensed to help you buy, sell, or rent a home for anyone that request for that.
When we mean real estate brokerage, we mean a broker however, what is a real estate brokerage? How different is it from being a real estate agent or a realtor? however let’s try and discuss more about real estate and a broker or agent.
Therefore, a real estate broker, real estate agent or realtor is a person who represents sellers or buyers of real estate properties and helps them secure it safely.
A broker may work independently, while an agent works under a licensed broker to represent clients. Brokers and agents are licensed by the state to negotiate sales agreements and manage the documentations.
Buyers and sellers are generally advised to consult a licensed real estate professional for individual state’s laws of agency signed by all parties outlining their duties.
Real estate brokers/ agents fall into four categories:
- Dual agents: To protect their license to practice, a real estate broker owes both parties fair and honest dealing and must request that both parties (seller and buyer) sign a dual agency agreement.
- Seller’s agents: Commonly called “listing brokers” or “listing agents”, are contracted by owners to assist with marketing property for sale or lease.
- Buyer’s agents: are brokers or salespersons who assist buyers by helping them purchase property.
- Transaction brokers: Provide the buyer and seller with a limited form of representation but without any form of obligations.
Real Estate Brokerage Firm (Real Estate Brokerage)
A real estate brokerage firm is a company or organization owned and handled by a licensed real estate broker who represents buyers and sellers of real estate.
Yes it is handled by the principal broker, who then hires other real estate brokers and agents to work under him specifically.
A real estate brokerage firm operates under should also be licensed or affiliated with the principal broker’s license.
Difference between a Real Estate Broker, Agent, and Realtor
Most people regard real estate brokerage as agents while others may use the word realtor. They are similar and you have to learn more about their abilities.
A real estate agent must work for real estate brokers and they need to pass the state requirements and obtain a real estate license.
However, Brokers work for themselves, build a real estate brokerage firm, and hire real estate agents. They may also deal with other brokerage firms.
Types of services that a Broker can provide
The services are:
- Exposure — Marketing the real property to prospective buyers.
- Facilitating a Purchase — guiding a buyer through the process.
- Facilitating a Sale — guiding a seller through the selling process.
- FSBO document preparation — preparing the necessary paperwork for “For Sale By Owner” sellers.
- Comparative Market Analysis (CMA) — an estimate of a property’s value compared with others. This differs from an appraisal in that property currently for sale may be taken into consideration. (competition for the subject property)
- Total Market Overview — an objective method for determining a property’s value, where a CMA is subjective.
- Broker’s Price Opinion — estimate of a property’s value or potential selling price
- Real estate appraisal — in most states, only if the broker is also licensed as an appraiser.
- Property Management
- Exchanging property.
- Auctioning property. (In most states, only if the broker is also licensed as an auctioneer.)
- Preparing contracts and leases. (not in all states).
- Home Selling Kits — guides advising how to market and sell a property.
- Hourly Consulting for a fee, based on the client’s needs.
- Leasing for a fee or percentage of the gross lease value.
Licensing and Insurance (Real Estate Brokerage)
The rules on real estate broker’s license can vary, all real estate professionals are licensed as brokers. However, to hire other brokers or agents, you must apply for a higher-level license.
Brokers must also have errors and omission insurance (E&O), checking the event of an error or omission by the broker or any of its agents, the client can sue.
What Real Estate Brokers Do
Real estate brokers work for themselves or manage teams of real estate agents whose work is to buy, sell, and rent property.
A good real estate broker should be able to execute various real estate transactions and should have the right skills to coach other real estate professionals.
- Employing new agents
- Offering training to agents on all points of their career
- Hiring administrative personnel
- Developing a marketing plan for real estate brokerage
- Setting goals for brokerages
- Leasing brokerage office space
- Keeping a positive culture among agents
- Property management
- Record keeping and risk management
- Mentoring new agents
Real Estate Brokers Qualities (Real Estate Brokerage)
Working for Sellers:
While an agent working on a broker’s behalf will often take on broker handler transactions for sellers as well.
Some of a broker’s duties of sellers include:
- Listing homes for sale on the local, MLS, Multiple Listing Service
- Sharing the brokerage listings with other MLS broker members to get buyers to the property
- Sharing the listing commission with successful buyer brokers
- Advising the home seller in preparing their home for listing and showings
- Supervising showing, report to sellers results and feedback
- Submitting any offers to the seller for consideration
- Helping the seller negotiate offers to try and execute a purchase contract with a buyer.
Working with Buyers
- Helping buyers locate all properties in their desired area in their price range and meeting their criteria.
- Coordinating and helping buyers to visit and view properties.
- When a decision is made to attempt a purchase, helping the buyer craft their initial offer and purchase agreement.
- Working with the buyer on their behalf in negotiations with the seller through their agent/broker.
- Once a purchase contract is executed, coordinating the transaction process on the buyer side.
- Delivering and explaining documents in the transaction process.
Steps to become a Real Estate Broker
Below is a step-by-step guide on how to become a real estate broker:
1. You must meet the Minimum License Requirements
There are three basic requirements that you must meet to attain a real estate broker license.
- You must be at least 18 years of age
- You must be a resident of the state you want to start your business in, although you can still apply if you are a non-resident by submitting Consent Service of Process form.
- You must display high levels of honesty by not having any criminal record and should have an admirable character.
2. Gain Real Estate Experience (Real Estate Brokerage)
First to become a real estate broker, you must gain some real estate experience, then you must have two years of full-time experience.
Other ways to gain experience are:
- Get a 4-year degree from an accredited college or university with a minor or major in real estate.
- Work as a part-time real estate salesperson for four years.
- Have experience in a real estate related field that is equal to two years’ experience as an agent.
3. Complete Eight College-Level Broker Courses
Here, You will need to complete eight college-level broker courses before applying for the broker exam.
- Real Estate Appraisal
- Real Estate Economics and Accounting
- Three Elective Courses
- Real Estate Practice
- Real Estate Finance
- Legal Aspects of Real Estate
Broker courses can be undertaken in private real estate schools and accredited institutions of higher learning with courses up to 45 hours, 3 semester units or 4.
Then when you complete your exam, ensure you get course completion certificates and official copies of your transcripts.
4. Do Fingerprint (Real Estate Brokerage)
The law requires that you get fingerprinted If you are getting a license for the first time. But In case you are a real estate agent, you can forego this process because you have undergone it before.
The fingerprinting process helps authorities do a thorough background check on applicants before they can be approved. You will need to carry the Live Scan Service Request form along so that the provider can fill out a portion.
5. Submit The License Application Fees
To apply for this, fill the Combined Broker Examination and License application, attach the required documents, pay the exam and license fees, and mail your application.
6. Schedule Your Exam (Real Estate Brokerage)
Here, you will be required to choose whether to have the Department of Real Estate (DRE) schedule your exam, or you want a self-schedule. On choosing Department of Real Estate (DRE) you will be given an Examination Schedule Notice, which contains the date, time, and location.
If you choose the latter, you will be given an authorization prompting you to select a test time.
7. Pass The Real Estate Broker Exam
You will have 24 months (2 years) to pass the real estate broker exam. For verification purposes, carry a photo Identity (ID) Card during the exam.
In the exam, you will have five hours split into two sessions to complete 200 multiple questions. The questions fall in seven distinct categories. they are-
- Valuation and Market Analysis
- Transfer of Property
- Practice of Real Estate and Mandated Disclosures
- Property Ownership and Land Use Controls and Regulations
- Laws of Agency
See More: Real Estate Brokerage and What You Need Today