How to become A Real Estate Broker

Real Estate Brokers help clients buy, sell and rent properties. They work to strike property deals that will either buy the client their most significant asset or bring them immense benefit.

• Licensed Real Estate Broker
• Certified Real Estate Broker
• Broker
• Real Estate Sales Associate

What do Real Estate Brokers do?

A Real Estate Broker would typically need to:

• Operate a real estate office or work for a real estate firm, supervising real estate transactions
• Actively solicit listings for the agency; help clients buy and sell real estate, rent or lease properties and arrange loans
• Develop leads for potential listings through advertisements in local publications and showing other available properties in open houses
• Explore leads gathered from various sources, including personal contacts
• Analyse the property to recognise and promote its strong selling points; present it to prospective buyers properly
• Develop descriptions to be used with photographs of the property in ads and promotions on websites and print literature
• Advise clients on prices, mortgages and market conditions; advise homeowners on ways to improve the look of their property to be sold
• Determine the fair market value for each property up for sale after comparing their client’s real estate with similar properties in the area that have been sold
• Strive to obtain the highest bid for a property
• Contact buyers when the property is ready to be shown for sale and arrange a convenient time for viewing the property
• Meet with a prospective buyer whenever required to discuss and view available properties
• Bring the buyer and seller together on mutually agreeable terms when the buyer decides on a property
• Present several counteroffers before reaching a figure that is acceptable to both parties
• Prepare documents such as loyalty contracts, purchase agreements and deeds; ensure all transactions are in complete compliance with valid laws and regulations
• Ensure all terms of the contract, such as repairs or home inspection, are carried out before the closing date, once it is signed by both the buyer and the seller
• Provide buyers with information on loans to finance their purchase; arrange for title searches and title insurance
• Oversee the work of real estate agents working with them

Real Estate Brokers divide their time between the field where they either scope out prospective listings or show clients current listings and their office/home where they drum up business through telephone calls.

The workplace may range from a one-person business to a large firm with numerous branch offices. Many brokers have franchise agreements with national or regional real estate companies to whom they pay a fee for affiliation. 

Real Estate Brokers usually retain the keys of vacant properties to show them to prospective buyers whenever possible. Their work schedule could go beyond 40 hours per week; it often includes evenings and weekends to accommodate clients’ schedules.

Finding a new job might seem challenging. Real Estate Brokers can boost their job search by asking their network for referrals, contacting employers directly, using job search platforms and leveraging social media. Many work part-time and supplement their income with additional jobs in law or finance. Self-employment is the preferred option.

Real Estate Brokers are generally employed by:

• Real Estate, Rental & Leasing Firms

Professional associations and organisations, such as the Society of Industrial and Office Realtors (SIOR) or the International Real Estate Federation (FIABCI) are crucial for Real Estate Brokers interested in pursuing professional development or connecting with like-minded professionals in their industry or occupation.

Membership in one or more adds value to your resume while bolstering your credentials and qualifications.

• Finding sellers is getting more challenging because of lack of trust and results in inventory shortage and lack of income
• Online listings and digital home shopping are a serious competition
• Digital transformations are complex and need to be outsourced which is expensive
• Essential Search Engine Optimisation (SEO) strategies to drive quality traffic to one’s website are expensive

By and large, Real Estate Brokers need significant work experience before applying for a professional license. Applicants should have acquired two+ years as a full-time or four+ years as a part-time real estate agent or two+ years in a related role as a property manager or loan officer.

Part-time and summer employment in a real estate office will provide you with valid practical experience. Read about the profession and interview/job shadow experts working in real estate to prove your commitment to course providers and prospective employers. 

There are no standard academic requirements for the real estate field. However, as the real estate market becomes more competitive and complex, employers increasingly prefer to hire candidates with a college degree. 

You can complete a certificate or an associate/bachelor’s degree program in real estate from an accredited community/private college or university. Ideal programs would include real estate appraisal, real estate economics & accounting, real estate practice, real estate finance and the legal aspects of real estate.

High school courses in English, business, computer science, math and a foreign language that serves your region of work will help prepare you for communicating with clients and handling sales.

Certification from an objective and reputed organisation in finance, business administration, economics and law can enable you to stand out in a competitive job market and allow you to become an independent consultant.

Successful certification programs protect public welfare by incorporating a Code of Ethics. Also, check out real estate associations that offer courses in real estate fundamentals, real estate law and mortgage financing. They can help you acquire valuable insights into customer & personal service, sales & marketing, clerical tasks and administration.

Real Estate Brokers need a professional license to practice. Typically, licensure requires an application, processing fees, an examination, and relevant education and experience.

Some locations require applicants to have completed 18 years, a specific set of college-level real estate courses and a stipulated period of related work experience.

You must pass a digital Real Estate Broker examination that tests your understanding of valuation & market analysis, contracts, transfer of property, financing, the practice of real estate & mandated disclosures, property ownership & land use controls & regulations and laws of agency. 

First-timers must undergo fingerprinting in a live scan location to allow for a thorough background check.

Some regions may accept a bachelor’s degree instead of experience or training requirements. Check with the local real estate board or real estate licensing commission for better clarity on exact requirements.

Performance, experience, and the acquisition of professional qualifications drive the career progression of Real Estate Brokers. Most seek to expand the quality and scope of their services; others seek advancement by taking on senior managerial roles or by specialising in residential or commercial real estate. Yet others purchase an established real estate business, join one as a partner or set up their own offices. 

Real Estate Brokers with a strong sales ability and extensive social and business connections in their community should have the best job prospects.

Continuing professional development (CPD) will help an active Real Estate Broker build personal skills and proficiency through work-based learning, a professional activity, formal education, or self-directed learning.

Brokers who intend to open their own company often take business courses in marketing and accounting. CPD is also essential for the regular renewal of professional licenses and certifications. It allows you to upskill continually, regardless of your age, job, or level of knowledge.

A Simple Explanation Of Key Terms

Real estate is a piece of residential, commercial, industrial or agricultural land or property and all improvements attached to it.

The contract between the people who wish to sell or rent the property and the Real Estate Broker who arranges the sale and represents the sellers in the transaction is called a listing.

Many real estate web sites feature virtual real estate tours known as 360 - videos that walk viewers through properties.

What Led To The Boom Of Modern Real Estate Business

The general increase in the total population and consequently in the number of pieces of real estate for sale or rent, the growing percentage of people owning property and the complex laws related to the transfer of real estate led to the universal demand for experienced and trustworthy Real Estate Brokers.

Sources of Income

The owner of a property for sale/rent agrees to pay the broker a specific percentage of the selling price if their property is sold; no wonder then that Real Estate Brokers work to obtain the highest bid for the property.

Besides selling real estate, some brokers rent and manage properties for a fee. They may also sell insurance or practice law to supplement their income from the real estate business.

What Brings Success?

Real Estate Brokers must be familiar with the real estate market in the area, the local communities, the crime information and the proximity to schools and shopping. 

They need to monitor various financing options, government programs and types of available mortgages. A thorough knowledge of real estate, zoning and fair housing laws will only serve to cement their reputation.

Above all, though, the broker’s resourcefulness and creativity in arranging financing that works in favor of both the buyer and the seller can mean the difference between success and failure in closing a sale.

Potential Pros & Cons of Freelancing vs Full-Time Employment

Freelancing Real Estate Brokers have more flexible work schedules and locations. They have full ownership of the business and can select their projects and clients. However, they experience inconsistent work and cash flow, which means more responsibility, effort and risk.

A full-time Real Estate Broker, on the other hand, has company-sponsored health benefits, insurance, and retirement plans. They have job security with a fixed, reliable source of income and guidance from their bosses. Yet, they may experience boredom due to a lack of flexibility, ownership, and variety.

When deciding between freelancing or being a full-time employee, consider the pros and cons to see what works best for you.

Half of all houses in Japan are demolished within 38 years since there is virtually no market for pre-owned homes.

When you can match a buyer with the property of their dreams while ensuring a fair deal for both the buyer and seller, your reputation as a Real Estate Broker whose phone never stops ringing is set.

“Success in real estate comes down to two factors: taking care of and valuing the customer.”

― Michael Miedler, Century 21 CEO