How to become a real estate broker is a little different in every state. But in most cases, you'll need a few years of experience as a real estate agent, as well as additional education. This guide breaks down how to become a real estate broker, regardless of your location.
What Does a Real Estate Broker Do?
A real estate broker — or in some states, a managing broker — runs the daily operations of a real estate firm. Real estate brokers can hire real estate agents. Real estate brokers also offer industry training, marketing support, mentoring, and help with listings.
Real estate brokers earn a part of a real estate salesperson’s commission. This fee is in exchange for running the business, and providing resources and support. As of May 2020, the median annual wage for real estate brokers was $60,370. This added responsibility means that real estate brokers must have more experience and education than a real estate salesperson.
Real Estate Broker License Requirements
To become a real estate broker, you must meet the minimum real estate broker license requirements. These vary by state, but in general, you will need to:
Be a U.S. resident.
Be at least 18-21 years old.
Disclose if you have a criminal record.
Be a licensed real estate agent.
Have experience as a real estate agent. This is also state-dependent. It can vary from having no experience to up to four years. Your accomplishments as a real estate agent may also be an important factor.
Complete your state’s real estate broker education requirements. These requirements may include law, finance, accounting, and management courses.
Take your state's real estate broker exam. Likely, you'll need to take an additional exam to prove you have the knowledge required to be a broker.
The Timeline for a Real Estate Broker Career
If you’re beginning your real estate career with aspirations to become a real estate broker, the following is a roadmap to achieving your career goal:
Complete a pre-license course
Pass your state's real estate exam
Affiliate with a broker to activate your real estate license
Gain real-life, industry experience working as a real estate agent
Complete the state-approved real estate broker course
Pass the state-specific real estate broker exam
Tips for Becoming a Real Estate Broker
When you're ready to become a real estate broker, it's essential that you meet your state's local real estate broker license requirements. Here are our top tips for making sure you do everything by the book:
Ensure that your state approves the courses you take. You can visit your state’s department of labor website or the real estate commission website. You can also visit your state’s Realtor website for added guidance. These should help you understand your local requirements.
Study for your state's real estate broker exam. While every state’s real estate broker exam varies, there are similar multiple-choice questions included on the exam. These topics can very. Some topics may include:
Real estate law
Real estate finance
Get help from other local brokers. Probably the best resource for help is your own broker! Ask them how they got started, and see if they have any tips for completing the process.
Find Your State's Real Estate Broker License Requirements to Excel Your Career
While becoming a real estate broker is a career path that varies by state, every state requires real estate brokers to have a solid base of industry knowledge before advancing to the next level. Becoming a real estate broker requires additional responsibilities, expertise, and effort, but it will pay off with a higher salary, career satisfaction, and professional growth.