At some point, every real estate agent needs a broker if they want to use their license to legally sell property and earn commission. You can take the Texas pre-license courses and licensing exam without a broker, but the Texas Real Estate Commission (TREC) will require that you submit a broker sponsorship form before your license will be made active.
The question is, when should an agent line up a broker?
Pros and Cons to Finding a Broker Before You Pass the Test
Already know which brokerage you want to work with? Lucky you! One major benefit to lining up a broker early on is it streamlines the licensing process . You’ll be able to submit the Sales Agent Sponsorship form (SF1-3) with your application so everything is done at once. After passing the exam you’ll get an active license and can start working.
Your future broker can also start showing you the ropes, provide advice on preparing for the exam and help you submit all the paperwork.
But it could be difficult to find a broker if you haven’t already passed the exam . This is particularly true if you have your sights set on a top performing brokerage. There’s no guarantee that you’ll pass the exam and actually get your license so some brokers are hesitant to invest their time.
Which brings up another point worth considering. How will you feel if you line up a broker and then don’t pass the exam? It happens a lot and you’ll have a few more chances to pass, but some people would rather not risk the embarrassment.
Pros and Cons to Finding a Broker After You Pass the Licensing Exam
Selecting a broker is a big decision. Waiting until you pass the real estate license exam gives you more time to research and weigh your options . You’ll also have more time to learn about the industry before deciding which brokerage is the best fit.
However, if you don’t find a broker before submitting your application you’ll receive an inactive license after passing the exam . You’ll then have to find a broker, complete the Salesperson Sponsorship form and submit the form to TREC for approval before your license is active. Needless to say, all this will take time that you could be using to close your first sale.
Waiting could put pressure on you to make a quick decision. It’s kind of like speed dating, which doesn’t always end up in a match made in heaven.
Keep in mind, broker sponsorship isn’t set in stone. You can change brokers at any time if your first choice doesn’t pan out as expected. What’s most important is finding a brokerage that provides mentorship and is invested in your success.