OVERVIEW
What is a Real Estate Broker?
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Real estate brokers play a key role in property transactions, guiding clients through the complex process of buying, selling, or leasing real estate.
These licensed professionals act as an intermediary between buyers and sellers, assisting them in the process of buying, selling, and leasing commercial, industrial, and residential properties. To effectively support clients, real estate brokers must have in-depth knowledge of local markets, legal regulations, and industry
A real estate broker’s primary role is to represent clients throughout the legal, financial, and logistical steps of a property transaction. This includes overseeing inspections, repairs, and legal documentation that must be completed before a sale can be finalized. By coordinating with different professionals throughout the process, brokers ensure that all necessary steps are taken to protect their clients' interests and facilitate a smooth and successful transaction.Ìý
While brokers usually employ sales agents to work directly with clients and handle many of the previously mentioned tasks, they retain ultimate responsibility for all transactions that pass through their brokerage. In this capacity, they're often referred to as principal brokers. Principal brokers also assist with property showings, provide detailed market analysis, and guide buyers through the process of making competitive offers.Ìý
RESPONSIBILITIES
What Does a Real Estate Broker Do?
In addition to market expertise and negotiation skills, successful brokers must excel in client management, leadership, and financial oversight. The outcome of their brokerage depends on their ability to attract potential clients, effectively manage employees, and maintain a firm grasp on their brokerage's financial matters.Ìý
Here are some of the most important responsibilities that go into running a successful brokerage:Ìý
- Creating property listings. Real estate brokers are responsible for writing compelling property listings that showcase the unique features and selling points of each property. They leverage their understanding of market trends and buyer preferences to highlight the most attractive aspects of a property and capture potential buyers' attention.Ìý
- Advertising available properties. To facilitate maximum exposure and reach the right audiences, real estate brokers use a variety of advertising methods. These include online platforms, social media, print media, and other marketing channels to promote their properties.Ìý
- Taking photographs of properties. Visual representation plays a major role in garnering excitement from potential buyers. Brokers ensure properties are visually well-represented by coordinating high-quality photography for listings and marketing materials.
- Scheduling open houses and showings. Real estate brokers coordinate open houses and showings to give future buyers an opportunity to see the property in person. They schedule showings, coordinate tours, and present properties in a way that helps clients evaluate their options.
- Helping clients determine their property needs and budget. Real estate brokers have to nurture an intimate understanding of their clients' specific needs and financial capabilities. Through in-depth consultations, brokers help clients decide on details like location, size, amenities, and budget. If needed, brokers may consult with government departments like the U.S. Department of State regarding mortgage loans or subsidies.
Where Does a Real Estate Broker Work?
Real estate brokers operate in various settings. They can choose to work as self-employed professionals, establishing their own independent real estate business, which allows them the freedom to set their own schedules, define their business strategies, and build their brand.
Alternatively, brokers can work within established real estate agencies, collaborating with other professionals, benefiting from established networks and resources, and accessing a wider range of listings. They also work at rental and leasing companies, assisting clients in finding suitable properties to rent or lease.ÌýÌýÌý
Brokers can also be employed by property management firms to oversee the operations and maintenance of real estate assets, ensuring efficient property management. Additionally, a licensed broker can work as an associate broker, meaning they work as an agent under an existing brokerage. In all these settings, real estate brokers provide their expertise to clients, guiding them through the real estate market and ensuring successful transactions.
EDUCATION & BEST DEGREES
How Do I Become a Real Estate Broker?
Becoming a real estate broker requires completing specific education, gaining experience, and obtaining licensure. Here are the steps you should take to pursue this career:
1. Consider getting a bachelor’s degree in business or finance.Ìý
Although not always required, a degree in business or finance provides a solid foundation for a career in real estate brokerage. The coursework in these degrees covers topics such as economics, marketing, accounting, and real estate investing principles.Ìý
2. Complete a state-approved real estate sales course.
Most states require individuals to complete a state-approved and qualifying licensing course to become a real estate professional. These courses impart knowledge about real estate laws, practices, contracts, and ethics. The duration and content of the course vary depending on your state's requirements. Some students complete this through an accredited real estate school or online degree program.3. Pass your state's real estate agent licensing exam.
3. Pass you state's real estate agent licensing exam.
After completing the real estate sales course, you must pass your state's licensing exam. This exam tests your knowledge of real estate principles, laws, and practices. Once you pass, you'll receive your real estate license, allowing you to work under a licensed broker's supervision.
4. Obtain work experience as a real estate agent or salesperson.
Practical experience is an important step to becoming a real estate broker. Working as a listing agent provides valuable insights, builds networks, and strengthens your understanding of the buying and selling process.
5. Get certified in real estate.Ìý
While not required, obtaining professional certifications in real estate demonstrates expertise and commitment to the field. TheÌýÌý(NAR) offers certifications likeÌýÌý(CRS) andÌýÌý(CRB), which typically require experience, education, and passing an exam.Ìý
6. Complete a state-approved real estate broker course.Ìý
To qualify for the real estate broker licensure, you’ll need to complete a state-approved real estate broker course. This course delves deeper into advanced topics such as real estate law, finance, property management, and brokerage operations.ÌýÌý
7. Pass the real estate broker exam.ÌýÌý
After completing the real estate broker course, you'll take the exam specific to your state. It typically covers a broader range of topics and assesses your understanding of complex real estate concepts, ethics, and broker responsibilities. Passing the exam will grant you the real estate broker license, allowing you to operate independently and open your own brokerage.Ìý
Best Degrees for aÌýReal Estate Broker
Choosing the right degree for real estate broker success depends on your goals and interests. These degree options align with many real estate careers:
Business
Marketing – B.S.
For those who want to lead brands and steer consumer markets:...
For those who want to lead brands and steer consumer markets:
- Time: 60%Ìýof graduates finish within 19 months.
- Tuition:Ìý$3,830 per 6-month term.
- Courses: 37 total courses in this program.
Skills for your résumé you will learn in this program include:Ìý
- Communication
- Marketing
- Sales
- Management
- Project Management
- Product Management
Marketing is a creative and exciting field—and one where an undergraduate degree will open better opportunities.
Business
Accounting – B.S.
Have a knack for numbers or fine-tuning finances?...
Have a knack for numbers or fine-tuning finances?
- Time: 62%Ìýof graduates finish within 24 months
- Tuition:Ìý$3,830 per 6-month term
- Courses: 41 courses in this program
Skills for your résumé you will learn in this program include:
- Accounting
- Finance
- Financial Statements
- Communication
- Detail Oriented
- Research
Take your first step toward CPA certification and learn how to use GAAP, ledgers, and journals.
Business
Finance – B.S.
This online finance program is career-focused so you will gain relevant...
This online finance program is career-focused so you will gain relevant industry skills.
- Time: 62%Ìýof graduates finish similar programs within 24 months
- Tuition:Ìý$3,830 per 6-month term
- Courses: 41 courses in this program
Some careers and jobs this business degree will prepare you for:
- Management
- Accounting
- Finance
- Spreadsheets
- Financial Analysis
- Problem Solving
The competency-based model at ºÚÁÏÍø allows you to move as quickly as you can master the material, and do your coursework on your schedule. Flexibility is key with the B.S. in finance at ºÚÁÏÍø.
SKILLS
What Skills Does a Real Estate Broker Need?
Real estate brokers need a versatile skill set to thrive in the competitive and ever-evolving real estate industry. To effectively serve clients and navigate the complexities of property transactions, real estate brokers must possess diverse skills, including the following:ÌýÌý
- Written and verbal communication skills, including presenting informationÌýÌý
- Strong negotiating skillsÌýÌý
- Marketing knowledgeÌýÌý
- Analytical and research skillsÌýÌý
- Understanding of legal mattersÌýÌý
- Leadership skills
By continuously honing and developing these skills, brokers can differentiate themselves, provide exceptional service to their clients, and build a successful real estate career.Ìý
How Much Does a Real Estate Broker Make?
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Real estate brokers have the potential to earn substantial income, primarily through commissions on property transactions.ÌýActual earnings depend on several factors, including experience, geographic location, market conditions, and individual performance.
According to the U.S. Bureau of Labor Statistics (BLS), the average annual salary for real estate brokers in May 2024 wasÌý. However, thisÌýnumberÌýcan varyÌýwidely,Ìýwith total compensation ranging significantly based on the volume and value of transactions completed.
With salaries ranging from around $30,000 to $160,000 per year or more, real estate brokers stand to make an attractive income depending on someÌýimportant factors. The lower end of the income spectrum may reflect entry-level or part-time positions, while experienced brokersÌýoperatingÌýin lucrative markets usually earn more.Ìý
Commissions are a percentage of the transaction value and are typically split between the broker and the brokerage. The commission structure may vary, but it is common for brokers to earn a percentage of the sale price whenÌýrepresentingÌýbuyers or sellers. This means that the more transactions a broker successfullyÌýfacilitates, the higher their income potential.Ìý
What Is the Job Outlook?
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The BLS states that employment of real estate brokers is projected to grow byÌýÌýfrom 2024 to 2034. This growth will be driven by factors such as population expansion, increasing real estate transactions, and the ongoing demand for professionals well versed in property transactions.Ìý
Approximately 46,300 job openings for real estate brokers are projected each year on average over the decade. This encompasses both new positions and those resulting from retirements or career transitions. WhileÌýthe industryÌýoffers promising opportunities, the competitionÌýremainsÌýsignificant. Aspiring brokers can enhance their prospects byÌýacquiringÌýa strong skill set, building a professional network, and staying up to date on industry trends.Ìý
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No need to wait for spring or fall semester. It's back-to-school time at ºÚÁÏÍø year-round. Get started by talking to an Enrollment Counselor today, and you'll be on your way to realizing your dream of a bachelor's or master's degree—sooner than you might think!
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