How to become a real estate broker

Is becoming a real estate broker right for me?

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Overview
What do real estate brokers do?

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How to become a Real Estate Broker

Becoming a real estate broker involves several steps, including education, licensing, and practical experience. Here’s a general guide to the process:

Meet Eligibility Requirements
You must be at least 18 or 19 years old, depending on your state or country. In addition, most regions require that aspiring real estate agents and brokers have at least a high school diploma or General Education Development (GED) certificate.

Bachelor’s Degree (Optional)
While not required, some real estate brokers may opt to pursue a degree in real estate, or a related field such as business administration, marketing, or finance.

Pre-Licensing Education
After meeting the basic education requirement, prospective brokers must complete an accredited pre-licensing course from a real estate school or institution. The number of required hours varies depending on the US state or country, but typically ranges from 60 to 180 hours.

The course curriculum generally covers key topics such as:

  • Real estate principles and practices
  • Property ownership and land use
  • Contracts and agency relationships
  • Property valuation and appraisal
  • Real estate finance and mortgage laws
  • Real estate ethics and professional conduct
  • State-specific real estate laws and regulations

Licensing Exam
To operate as a real estate broker, candidates must pass the real estate licensing exam. To qualify for the exam, they must usually provide proof of completing the pre-licensing education.

The exam usually has two parts:

  • A national section that covers general real estate laws and principles and practices
  • A state or regional section that focuses on specific laws and regulations in your state or jurisdiction (if in a country other than the United States)

License Application
Once you pass the exam, you’ll need to apply for your real estate license through your state’s or country’s real estate regulatory agency. You may be required to submit a background check and fingerprinting as part of the application process.

Gain Experience as a Real Estate Agent
Most states require you to work as a licensed real estate agent for a certain number of years (usually 1-3 years) before you can become a broker. Gain experience handling real estate transactions, negotiating deals, and working with clients to develop the skills needed to run your own brokerage.

Complete Broker Education
Enroll in broker-specific courses, which typically cover more advanced topics like real estate law and contracts, business management, brokerage operations, real estate finance and economics, and property management. Meet state education requirements to work as a real estate broker, usually ranging from 60 to 150 credit hours.

Pass the Real Estate Broker Licensing Exam
After completing the required education, pass the state broker exam. This exam is generally more in-depth than the agent exam and covers advanced real estate principles, business practices, and legal regulations.

Apply for a Broker License
Once you pass the exam, submit an application to your state’s real estate licensing authority. You may also need to provide proof of experience and education. There are typically fees associated with applying for and maintaining your broker license.

Choose Your Broker Path
Once licensed, you can operate independently, running your own real estate business and representing clients. You can also choose to work for or manage a larger real estate brokerage, overseeing other agents and assisting with transactions.

Maintain Your License
Most states require brokers to complete continuing education courses to keep their knowledge up to date and maintain their licenses.

Certifications
There are several certifications and designations available for real estate agents and brokers that can enhance their expertise and marketability. These credentials often focus on specific areas of real estate or advanced skills. Here are some notable ones:

  • Accredited Buyer’s Representative (ABR) – Offered by the National Association of REALTORS® (NAR) and its affiliate, the Real Estate Buyers Agent Council (REBAC), this certification focuses on improving skills in serving buyers and understanding their needs.
  • Seller Representative Specialist (SRS) – This designation, offered by the National Association of REALTORS® (NAR), focuses on skills specific to working with sellers. It covers topics like listing and marketing strategies, seller representation, and negotiation techniques.
  • Certified Residential Specialist (CRS) – Awarded by the Residential Real Estate Council (RRC), this designation is for agents who have demonstrated advanced knowledge and experience in residential real estate transactions. It requires completing advanced coursework and meeting transaction experience requirements.
  • Graduate, REALTOR® Institute (GRI) – This designation is provided by the National Association of REALTORS® (NAR) and covers advanced education in real estate practices, ethics, and laws. It requires completing coursework and passing an exam.
  • Seniors Real Estate Specialist (SRES) – Offered by the National Association of REALTORS® (NAR), this certification is designed for agents who work with senior clients, helping them navigate the real estate process as they transition into retirement or downsizing.
  • Certified Luxury Home Marketing Specialist (CLHMS) – This certification, awarded by the Institute for Luxury Home Marketing (ILHM), is for agents who specialize in luxury properties. It focuses on advanced marketing strategies and understanding the luxury real estate market.
  • Certified Negotiation Expert (CNE) – This certification, offered by the Real Estate Negotiation Institute (RENI), focuses on negotiation techniques, helping agents become more effective in negotiating terms and prices on behalf of their clients.
  • Master Certified Negotiation Expert (MCNE) – This advanced certification is for agents who want to deepen their negotiation skills beyond the basics, focusing on complex and high-stakes negotiations.
  • EcoBroker Certified – This certification is for agents who are knowledgeable about eco-friendly and sustainable real estate practices. It covers green building practices, energy efficiency, and environmentally conscious real estate practices.
  • Military Relocation Professional (MRP) – Also offered by NAR, this certification is for agents who work with military service members and their families. It focuses on understanding the unique needs and challenges of military relocations.
  • e-PRO® – This is another certification administered by the National Association of REALTORS® (NAR). It focuses on using digital tools and strategies to enhance online marketing and client communication.
  • Certified Commercial Investment Member (CCIM) – This certification, focused on commercial real estate investments, is offered by the CCIM Institute. CCIM designees come from a variety of professional backgrounds including asset management, brokerage, banking, development, property management, law, and accounting.
  • Certified Property Manager (CPM) – Although focused on property management, including operations, finance, and tenant relations, the CPM designation from the Institute of Real Estate Management (IREM) is valuable for brokers involved in managing commercial properties.

Professional Organizations
In addition to the certifying bodies referenced above in the Certifications section, the following organizations also support and provide networking opportunities for the real estate brokerage community:

  • National Real Estate Investors Association (NREIA) – This association focuses on investment properties and offers resources and networking opportunities for real estate agents and brokers who specialize in or work with investors.
  • American Real Estate Society (ARES) – ARES provides academic research and professional development opportunities in the real estate field, including access to industry journals and conferences.
  • National Association of Real Estate Brokers (NAREB) – Founded in 1947, NAREB focuses on promoting equal housing opportunities and improving the real estate profession, particularly among minority communities. It provides professional development and advocacy for its members.
  • National Association of Exclusive Buyer Agents (NAEBA) – While primarily focused on buyer agents, NAEBA provides resources and training that can be beneficial for all real estate professionals, including real estate brokers.
  • International Real Estate Federation (FIABCI) – FIABCI, the global real estate association, connects real estate professionals across borders, offering international market insights and networking opportunities.