Becoming a licensed real estate broker opens doors to career and professional development, networking capabilities, higher earnings, and the opportunity to own your own real estate brokerage.

 

However, this accomplishment doesn’t come with ease, and there are mandatory and advisable steps to be taken. In this article, we’ll be discussing how you can become a real estate broker.

 

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Take and Pass a Agent Licensing Exam

Even if you wish to be a real estate broker, you must first become a licensed real estate agent by taking an agent licensing exam that is set by the state’s licensing board. In order to qualify to partake in this exam, most licensing boards will require you to take a course to meet the educational requirements. This course usually takes 4-6 months to complete depending on the state.

Meet the Minimum State Requirements

In almost all states, you are required to obtain a real estate agent license for two to three years before you can apply to become a licensed real estate broker. Some states such as New York have a point system in which you must achieve a minimum of 3,500 points to be eligible for a broker’s license.

 

It’s important that you look into the state requirements before you consider becoming a real estate broker. You can refer to your state’s real estate licensing board for more information.

Take Brokerage Licensing Course and Pass Exams

Once you’ve met the minimum state requirements to register for a broker’s license, you’ll need to take a real estate broker’s course. Unlike the real estate agent license course, this one will cover a comprehensive range of topics that will prepare you for your career advancement such as real estate financing and property valuation.

 

Once you’ve completed this course (usually 75-150 credit hours), you’re now ready to sit for a brokerage licensing exam.

 

Familiarizing with Industry Software

As a broker, you’re allowed to hire real estate agents under your license to look for new business opportunities and clients. Hence, it’s even more important that you take full advantage of software that can streamline your workflow and boost your performance such as Paperless Pipeline's real estate broker software.

 

Even if you’re not opening your own brokerage soon and want to work under a brokerage as an associate broker, your job scope will be vastly different compared to when you were a real estate agent. Therefore, learning about the software which can smoothen your day-to-day activities is an added benefit.

 

Choosing The Type of Broker You Want to Be

Not all brokers do the same work scope. In fact, you may need additional licenses for different broker types. The three main brokers are:

 

Associate Brokers

Associate brokers are qualified brokers that work for another brokerage firm. Those who have just received their broker’s license find this route a better way to get into the brokerage business as they do not need to take on the risks opening their own brokerage firms might have.

 

Managing Brokers

In many states, managing brokers are required to have a managing broker license on top of their broker’s license. As the name implies, managing brokers will be managing the day-to-day operational activities of the real estate agents under the brokerage as well as solve any internal conflicts within the brokerage.

 

Designated Brokers

Designated brokers act as supervisors for the real estate agents. They are legally responsible for all the transactions the real estate agents complete. Designated brokers are not involved in the day-to-day activities of managing the agents.