What Should You Look for in a Real Estate Broker?
Before you can officially become a real estate agent, you need to apply for a license with the help of a real estate broker. Who is a real estate broker and what do they do for you? A real estate broker essentially holds your license. They can provide support and training, or they can be very hands-off. Whatever they do, you will be splitting your commissions with your broker and paying desk fees. The costs can be a shock to first-timers, but there’s more to a broker than fees alone.
First, what does it take to get your real estate license? The specifics differ state by state, but here’s what the process generally looks like:
- You can start by signing up for real estate courses online; real estate licensing schools like RealEstateU offer online courses generated entirely by their own instructors for as little as $99.
- You take a proctored exam from the real estate license school – this prepares you for the state real estate exam.
- Schedule and write the state real estate exam.
- Once you pass, you apply to become a real estate agent with the help of a broker. But what’s a broker and how important are they?
You need a broker to get your real estate license and start practicing. Your broker will take part of your commission (usually a 60/40 split in your favor, but not always). How’s that fair, you wonder?
Different real estate brokers offer different levels of support and training for new real estate agents. Some brokerages may offer a 50/50 split, but with it comes a lot of valuable training and mentorship. This will make you a better real estate agent in the long run, and at a certain point, once you’ve started closing sales and you’re no longer new in the industry, you can ask to increase your split of commissions.
Brokers may also offer office space, insurance, and other resources, so your commission split and any additional fees are really a two-way street. A brokerage that starts at 70/30 may not offer the kind of support you need as a new real estate agent. A good brokerage will give as much as they take. There are some important qualities to look for in a broker:
- A good brokerage can help you expand your business by providing systems and models that help you find new clients and close sales.
- They can give you training & mentorship that will transform you from a novice real estate agent to a pro.
Your real estate education may start with online real estate courses, but it continues with your brokerage. You can visit RealEstateU.tv. to learn more about online real estate courses and advice for choosing a broker.
Brokers are often happy to take on new agents, and you should interview several before deciding on one. Don’t just ask about costs such as desk fees and commission split. Ask how they can support you and help you grow your business.