Sunnyvale, CA · Member since 2016 · 27 posts · 12 votes
Hello Bigger Pockets community!
I'm just starting out with my online real estate courses and I'm wondering what are the pros and cons are of being a real estate agent versus being a real estate broker. I live in California and from what I've read, you need to be an agent for at least 2 years before becoming a broker, but can circumvent that if you have a 4 year degree (which I have). From all of your experiences, I would love your personal input on the pros and cons of the two.
I currently have a mentor who says being an agent is sufficient and doesn't feel the need to go after her broker's license. But as I chat with other agents, I've repeatedly heard, "why don't you just go for your broker's licence?"
So I wanted to reach out to the greatest community in the world as see what else had to be said!
(... and just like any test that I've ever taken, I must ask, is the real estate agent exam hard?)
Real Estate Consultant · Chicago, IL · Member since 2014 · 720 posts · 439 votes
10y
@Zachary Sit , I have a question for you: Do you live your life based on people's feedback or based on what you really want?
Do you want to be a broker and manage other agents? Do you want to be responsible financially of other agent's lives, opening an office and trade a 9;00-5:00 job to be the slave of an office?
Being a broker, it's an ego driven business. RE offices are rarely profitable, less than 1 in 10 offices are actually making money, however, few want to give up. Most big franchises make money from the franchise money, however, the offices that hold the licenses are profitable few years of every 5 years!
How experienced are you to open up an office?
I'll share with you, In my first years in business, I had a ton of clients ask me the same question. After awhile I gave in and went back to school to get my 120 hours in, paid all the fees, took my exams and became a "broker". Guess what happened, my sales did not increase. Did I learn anything? Yes - I do not have any desire to open an office and love what I am already doing.
I train and mentor new agents because I love to give back and help them, I advise seasoned agents because I love to, and I continue running my business regardless of the title.
If you decide to go for this license, go for the real reason: to open your own office, however, run your business as an agent for at least few years to see what you really like doing, and in the same way, learn what running an office really means.
Real Estate Agent · Hastings, NE · Member since 2014 · 6 posts · 0 votes
10y
As far as circumventing the broker requirements:
Each state's real estate commission sets the guidelines for brokers and agents. You will not doubt need to read their publications for the state portion of your licensure test (if they require it).
Real Estate Agent · Falls Church · Member since 2012 · 2k+ posts · 1k+ votes
10y
@Zachary Sit if you are not an agent right now, you should focus on becoming an agent first. The knowledge you get as an agent is what will make you a good broker.
No college degree that I know of will prepare you for what a broker faces every day.
Real Estate Broker · Tampa, FL · Member since 2016 · 41 posts · 13 votes
10y
I also doubt you can skip the agent's license with a four year degree and become a broker. Usually that applies to the agent license only if it was in a real estate related field. My 4-year degree in management didn't qualify. But as stated each state is different and you should check the requirements. I also call to be sure.
I am a broker associate in the State of FL and it is only useful if you plan to manage other agents. If you only want to sale, the agent's license is enough. The broker's license is all about running a brokerage FT.
Real Estate Consultant · Chicago, IL · Member since 2014 · 720 posts · 439 votes
10y
@Zachary Sit , I have a question for you: Do you live your life based on people's feedback or based on what you really want?
Do you want to be a broker and manage other agents? Do you want to be responsible financially of other agent's lives, opening an office and trade a 9;00-5:00 job to be the slave of an office?
Being a broker, it's an ego driven business. RE offices are rarely profitable, less than 1 in 10 offices are actually making money, however, few want to give up. Most big franchises make money from the franchise money, however, the offices that hold the licenses are profitable few years of every 5 years!
How experienced are you to open up an office?
I'll share with you, In my first years in business, I had a ton of clients ask me the same question. After awhile I gave in and went back to school to get my 120 hours in, paid all the fees, took my exams and became a "broker". Guess what happened, my sales did not increase. Did I learn anything? Yes - I do not have any desire to open an office and love what I am already doing.
I train and mentor new agents because I love to give back and help them, I advise seasoned agents because I love to, and I continue running my business regardless of the title.
If you decide to go for this license, go for the real reason: to open your own office, however, run your business as an agent for at least few years to see what you really like doing, and in the same way, learn what running an office really means.
Sunnyvale, CA · Member since 2016 · 27 posts · 12 votes
10y
Thank you everyone for the extremely helpful input!
Lumi Ispas thank you so much! That insight into the life of a broker was beyond helpful. Really appreciate the answers your reflection questions brought out.