You probably focused on being a real estate sales agent when you first began out in the business in order to have access to the sector. However, as time goes on, you might have set new objectives for yourself, such as mentoring other agents, assuming leadership roles within your brokerage, or even founding your own independent brokerage or running a franchise brokerage. You will require a broker's license in order to fulfill these professional aspirations.
A real estate broker has more duties and is required to have a greater level of experience, knowledge, and skill. However, being a broker can lead to a number of professional opportunities and offer excellent financial rewards. Remember that broker licensure requirements differ from state to state, just like agent licensure requirements do. To find out the exact requirements in your area, contact your state's professional regulatory office.
How To Obtain Your Broker's License In Steps
To obtain your broker's license, you must typically complete the following steps, however, specifics differ from state to state.
Meet the age requirement—typically, you must be at least 21 years old when you apply for the license.
possess some working experience as a real estate agent with a license. You'll need at least two years of agent experience in many states, and you'll likely need four or more in others.
Complete the considerably more in-depth pre-licensing broker education programs before applying for your license. You will learn more about the ownership and operation of a real estate firm, as well as legal, financial, and contract difficulties, in your curriculum.
To obtain a broker's license, you must pass a state exam, fill out an application, and have your background checked. Your past as a licensed agent and any criminal convictions will be reviewed as part of this.
Within the first year of receiving your license, you must finish post-licensure training in order to continue working as a broker.
How Long Will It Take For Your License To Be Upgraded?
To prepare for the real estate broker licensing exam, most jurisdictions mandate 60 to 90 hours of classroom instruction, either in person or online. You will undoubtedly need to review the material and go through a test preparation process in addition to receiving basic teaching before you can take the broker's exam.
The amount of time needed to study for your exam can vary greatly depending on a number of other factors, such as:
- Your working hours
- Your private life
- Your study techniques
- Your knowledge and skill
- Your teaching style and pace
What Is The Price?
Getting your real estate broker's license comes with a lot of expenses. The breakdown consists of:
- Pre-licensing coursework: The cost of an online course might be as low as $200 or as much as $500.
- Application for a license: The cost of your application, which includes fingerprinting, background check, application fee, and test fees, is typically $150.
- Post-licensing coursework: You will typically have to spend several hundred dollars during the first year to finish post-licensure coursework. You will then need to meet ongoing criteria for continuing education in order to renew your license annually. The price varies depending on the sort of training you receive and the amount of hours necessary.
What Additional Compensation Can A Broker Or Managing Broker Expect?
The average real estate broker makes $60,370 per year, compared to the average real estate agent's $49,000, according to the Bureau of Labor Statistics. Due to the wide range of options available to real estate brokers and the significant disparity between brokers at the top and bottom of the earning spectrum, this number is, nevertheless, misleading.
Possession of a broker license makes chances possible such as:
- A real estate sales team's manager
- Managing broker of a franchise or independent brokerage
- Owner or broker of a franchise or independent brokerage
- Investment and development in real estate
- Management of a real estate investment portfolio
- Management of real estate properties
Due to their greater education and more extensive credentials, real estate agents may also have an advantage with clients. By representing larger, more complicated properties and transactions, this can result in higher commissions.
The extra opportunities you'll get from getting your broker's license will continue to pay off throughout your career, even though it requires some time and money. As your knowledge and expertise grow, so do your professional standing and possibilities.