{exp:weblog:info weblog="{my_weblog}"}{blog_title}{/exp:weblog:info}

My friend decided to become a broker, but he hasn’t any luck of making more money from it.  I’m confused; if he’s not making more money than he usually does then why did some agents prefer to become a broker instead of being just an agent?

Most people become brokers because having a broker’s license allows you to sell real estate anywhere in the US. If you have a sales person’s license you can only sell in the state you are licensed in. In addition, having a broker’s license will allow you to operate a real estate business on your own.

I think they just want to cut out the middle man. Being a broker, you are the listing agent and selling agent as well, is that correct?  I know years ago I was looking into becoming an agent and didn’t like that fact that I had to share my commission.(call me greedy)

Did they just start selling? If so the market is pretty slow, and maybe that is the reason they are not making as much as when they were an agent?  I think if you friend hangs in there, in time, they will discover that making a choice of being a broker was a beneficial one.

snowbird - 20 February 2008 09:33 AM

I think they just want to cut out the middle man. Being a broker, you are the listing agent and selling agent as well, is that correct?  I know years ago I was looking into becoming an agent and didn’t like that fact that I had to share my commission.(call me greedy)

Did they just start selling? If so the market is pretty slow, and maybe that is the reason they are not making as much as when they were an agent?  I think if you friend hangs in there, in time, they will discover that making a choice of being a broker was a beneficial one.

Snowbird,
Your answer is a little off. Being a broker doesn’t cut out the middle man. You can be a broker and still work for a company where you split your commission. The middle man is usually the company you work for. If you operate your own company you cut out the companies portion of the commission.

In terms of being the listing and selling agent. Often the broker may not have a choice in where he falls in the transaction. For example I may have clients looking to buy a house that you list. Then the commission is split between the two of us. I am the selling agent and you are the listing agent. Most agent do not have more then 10-15 listings, so the chances of you finding a buyer for your listing is slim. Ususally another agent will find a buyer. Sometimes it can be a conflict of interest to be a listing and selling agent.

My sister and I are both real estate agents but she is going for becoming a broker.  I guess I will wait to see how well she does because she has been doing this longer than I have and have more experience.

I guess I was looking at being a broker as having your own business, not being a broker and working for a company.  What would be the advantage of being a broker and working for another company?

If she becomes a broker maybe the two of you can work it out were you share the expenses and each of you keeps your full commission. She has to keep in mind that she is held responsible for all of your real estate transactions. Where are you located?

pinkgreenmommie - 19 February 2008 10:37 PM

Most people become brokers because having a broker’s license allows you to sell real estate anywhere in the US. If you have a sales person’s license you can only sell in the state you are licensed in. In addition, having a broker’s license will allow you to operate a real estate business on your own.

This statement is not correct.  Having a Brokers license does not allow you to sell anywhere in the US. Each state has different laws and regulations for real estate brokers.

In my state (Colorado) we do not have “agents.” We are all licensed as “brokers.” This law was changed several years ago in an effort to raise the educational standard and lessen the liability. To become a Broker one has to attend more classes and accumulate more hours than an agent.

We have different levels of Brokers.  There is a managing broker who after 2 years is allowed to supervise associate brokers (similar to agents in other states). 

When discussing real estate law and practice it is important to acknowledge every state in the U.S. has its own laws.  Each being very different.  In some cases we use the same words, but with different meanings.

This distinction makes understanding real estate across state lines very difficult, not just for the consumer, but agents/brokers as well.

NOTE: Once a person holds a brokers license it is possible to become licensed in other states. Some states offer “reciprocal licensing”.  It is my understanding they broker would still need to take the State portion of the real estate exam.  Additionally to be licensed in multi-states, one would need to pay the licensing and insurance fees for each individual state.  This in itself could get expensive, particularly if enough sales aren’t being made in each state.

You should definately research the real estate laws in your specific state.

I was a licensed real estate associate in Florida, but not a broker.  In Florida, the main reason that someone would want a broker’s license would be to open their own office. 

I recently moved to North Carolina, they do not have full reciprocity and I will be required to retake the course and the test to get a license here.  The laws are much different here, I believe in North Carolina, you have to get your broker’s license eventually just to sell real esate.  I have not taken the course yet, so I’m not positive.

How does the process of becoming an agent differ from obtaining a broker’s license?