How Do I become a Broker?
Becoming a broker is different than a real estate agent. A broker can work with both the home buyer and home seller on a transaction. They typically have agents working with them that bring in the business for the broker company. Most states require that you first get a real estate salesperson license, and then obtain a broker license. Most of the states require that you have an education level (typically 4 years of college) as the education requirement. If you don’t have the education you can always purchase courses from the school you are attending and satisfy the requirement.
What is the annual salary potential for a broker?
Median annual earnings of salaried real estate brokers, including commission, were $50,330 in 2002. The middle 50 percent earned between $29,240 and $90,170 a year. The lowest 10 percent earned less than $17,920, and the highest 10 percent earned more than $145,600 a year.
Commissions on sales are the main source of earnings of real estate agents and brokers. The rate of commission varies according to whatever the agent and broker agree on, the type of property, and its value. The percentage paid on the sale of farm and commercial properties or unimproved land usually is higher than the percentage paid for selling a home.
Commissions may be divided among several agents and brokers. The broker or agent who obtained the listing usually shares their commission when the property is sold with the broker or agent who made the sale, and also with the firm that employs them. Although an agent’s share varies greatly from one firm to another, often it is about half of the total amount received by the firm. Agents who both list and sell a property maximize their commission.
Click here to find your local real estate commissions office.
