I am considering a career change to real estate and am curious about....?

Question

It seems to me that the ultimate goal would be to become a broker, yet I have encountered countless realtors who have been in the business for many years yet don't strive to become one. Why is that?

Answer 1

True, Brokerage business owners reap many bucks. But they also bear the brunt of owning a business. This is like any other business. You need to hire an accountant to do the books, lease or buy a building, hire salespeople and handle all the issues that come with having employees. You'll need to decide commission scales, and business expenses. This is a LOT of work. Its easier to be a darn good Real Estate broker that has a knack for selling. You can get your license, do your thing and move about if you don't like an area or it goes cold. Some people give themselves an edge and only work selling new construction homes. Others specialize in luxury homes, others anything goes.

Answer 2

The broker is responsible for the other agents working under his license. I've been a Realtor for 14 years, and have seen agents do some pretty stupid stuff. If I was a broker, I would either have to have the fax machine under lock and key - nothing goes out without me seeing it, or a huge supply of pepto-bismol.

When I was a probation officer, I spent the last two years supervising a department, and (in those years) lived by the pager. I was always correcting stuff to ensure the county did not get sued for something one of my probation officers did. I will not go through that again.

Answer 3

for some if they have a nice steady network of sellers and buyers, one can make a pretty penny just being a sales agent, Along with this they have few responsibilities, free to work when it's convenient, do not have to worry about legal compliance with the other agents to the state board, paying overhead for the office etc, they just have to worry about their clients and their commissions

But at same time if you are a broker, and get a really good sales team to together you can make some serious cash, not have to deal with picky clients, just administrative duties which is not that difficult. In a high income area brokers make 1% of every sale so you can do the math

Answer 4

My father and good friend have been in the real estate business quite a while. I asked them this question and they state there is too much liability in owning your own brokerage. They say in the realty business: "there are those who have been sued and those who will be sued." By working for a broker you avoid the liability of getting sued, and the same if you are a broker you can get sued because one of your realtor's screwed up someones deal.

Answer 5

It takes more to be a broker. Opening your own office and staying afloat takes tremendous effort. You need the skills and attitude to make it as a top producer. Be experience enough in the real estate business to make wise decisions in order to avoid litigation. Their knowledge and industry perspective are critical to good strategic planning and management. Brokers responsibilities includes managing the office, keeping current on industry trends, be able to prioritize and analyze any given situation, communicate valuable information, recruit agents, know something about real estate law, and much more.

Answer 6

It takes money and responsibility. It's alot less flexible being a broker and realtors get into the business many times for the flexibility.

Answer 7

There is tremendous liability as has been stated. However whether you're a broker or not you still can be sued. You have to be able to keep a fresh attitude when searching for new clients. Some folks new to sales get a few sales leads initially and then get upset when they have to prospect on their own.

Answer 8

One word.... responsibility. You basically own a business and are held entirely liable for it. Why do it when you can make tons of cash without the whole responsibility of owning a business?