I'm a real estate agent. What's the advantage of me being a broker?

Answer 1

Brokers make the policies, do the hiring and firing, and generally make the most money.

They are also responsibile for approving or denying all contracts written by their agents.

If you want to own your own office, you will need a brokers license.

Answer 2

I'll try and explain:

A full broker does not have to work with a broker, they may either operate their own firm or work in a firm. They may manage an office or elect to simply be an agent with a broker's license and conduct sales just like anybody else. Aaaahhhh, the power of having choices in one's career!

The difference is sort of like, do you want a doctor or a nurse to diagnose and treat you if you are ill. Both have a medical backgrounds, but the nurse can not do what a doctor does. Sometimes a nurse will pull a doctor out of a hard spot, but usually it is the doc that calls the shots and saves the day.

To qualify for a full brokers license requires a greater level of education and being at an affiliate or associate level a period of time (usually a few years) before being eligable for a full broker license. The state will also hold a full broker to a higher level of acountability than the lesser licensed person.

When I would go for a listing interview, once I've explained the difference between my license status and an affiliate, without fail I got the listing. It shows the public that you have a higher level of dedication to the profession, greater knowledge, and usually greater experience. I encourage all my affiliate brokers to go for the full broker license status. As with anything, the more you learn the more you earn. My income went up with each new level of education I achieved. I also have the CRB, CRS and GRI designatiojns. Currently I am a CCIM candidate, working on acheiving the CCIM designation; this is considered the "PhD" of real estate. It is also the most difficult series of classes I've ever taken. I have therefore over 500 hours of real estate education. It is worth every penny I have spent.

As a managing broker it is my responsibility to over see the daily activitites of agents working under me. I am charged by the state with training and seeing that they comply with the law, both state and federal. I set sales goals and assist with objectives for the agents. Occassionally I must resolve issues between agents, clients and customers. Sometimes I am a marriage councilor, financial councilor, or just a good listener. As the "Broker" I must wear several hats and maintain my own sales business. No, I am not God. Yes, sometimes I am called upon to make a King Soloman decision. And then pray it was the right one.

One more thing for the public's benefit:
An affiliate or associate broker must work for a broker. A full broker works for YOU, at no additional charge.

Answer 3

I don't think peopel are giving you any true answers. So from a guy who has been doing this for 25 years let me share with you a few thoughts.

First of all the sales person's job and the broker's job is two different jobs. So are the personality of these individuals. We cannot make a quarterback out of a line backer. The dumbest mistake is to take your top sale person and try to make them a manager. You end up hurting both. On the other hand, if you stronger in management, then brokerage operation may be for you.

If you are a sales person and enjoy sale, stay being a sale person. It is a fact top sale people make more money than sales managers.You can get your broker's license but it really does not do anything for you. The broker license course only deal with the broker laws. You are better off getting your GRI or CCIM.

For someone to say when the agent brings in a commission check, the agent gets half and the broker gets half for doing nothing, it just proves how ignorant the person is and should not be giving advise on this subject.

First of all, if you are the broker, you are held accountable by your state for everything your agents do. They will hang for your agents' screw ups. Secondly, he is paying for the rent, office salaries, utilities, insurances, advertising, coffee and all the way down to toilet paper. The average earnings for a broker national wide is about 6 to 12 percent of revenue. Worse of all, he has to pay for all these expenses whether the agent brings in a sale on not. In other words, the broker takes the risk for the agent and back the agent with resources. There are agents who will pick up other part time work when things go bad. The broker's overhead goes full time 365 days out of a year. Unless if you are talking about being a one man show and operate out of your garage. In that case, go to REMAX. No matter how you cut it, your overhead is there.

Now having said that, there are lot of benefits of owning your own brokerage. Keeping 100% of the commission and put it in your pocket is not one of them. In orfer for it to work, you need to have a fairly good size office with a bunch of good listers. The typical office keeps about 30 to 35 percent of the total commission generated as "company dollar". With that, they will have to cover all overhead and hopfully there is sonething left afterwards. So you have to make it up with volume.

For a typical office, about one third of your people are producing. One third just got off the bubble and get ready to produce and the other third are on their way out. Recruiting and training becomes you major task instead of listing and selling real estate.

Forget about commission splits. That is a verey cruel carrot-on-the-stick trick for recruiting. It appeals to agents with big egos and little intelligent. For most comapneys, they charge pretty much the same commission rate, They pay similar rent, utilities, advertising rates and so forth. So how come some will split with you while others pays you 95%? What they do is to give you different rates and juggle the amount of resources thus the risks to take. In the end, everyone gets paid the same when you tally up all the costs. The bottom line is who takes the risk?

Answer 4

The next time you hand over a piece of your commission to your broker after you did all the work while he did nothing, I think the light will turn on. ;)

Regards

Answer 5

i think you would be able to not only show a house but you will assist in them purchacing the house as well and youll make alot more money!!

Answer 6

Your agents do the sales & you get half.