Benefits of Being a Real Estate Broker Over an Agent
Contrary to popular thought, there are many differences between a real estate broker and a real estate agent. It is tragic enough that most people don’t differentiate between the two. Although you may find some similarities in tasks and responsibilities, there are some distinctive factors that separate the two. To make a clear distinction between both professions, we have to dwell on the issues of salaries, benefits, plus a host of other factors. In order to know the distinction between a broker and a real estate agent, the following points will come in handy.
Opening a brokerage firm can be a hard nut to crack for real estate agents as compared to brokers who are licensed to do so. If you don’t have a real estate brokerage license, it can be a really tall order opening a brokerage firm. If you intend to open your brokerage practice, there are two major ways to go about it. You can manage the firm on your own and be the only beneficiary from all the real estate deals you close. Another way is having associate brokers and real estate agents working under your license in your brokerage company. In the event you recruit these experts to work in your firm, they will split their commissions with you.
The kind of money that real estate brokers earn is what sets them apart from a regular real estate agent. Brokers are the sure winners regarding the amount of fees earned between them and agents. What really makes many agents get brokerage licensure is the money that is associated with it. It is an open secret that you can earn more as a broker than as an agent. To add to the icing on the cake, you can make even more money if you have real estate agents and associate brokers working in your brokerage firm.
Let’s face it; there are brokers with the relevant qualifications and training who are not yet ready to open their own real estate brokerage firms. In this case, they can still work as associate brokers in a brokerage firm. Though this means working alongside real estate agents who don’t have the brokerage license, the perks are still a notch higher compared to agents. The broker license is what will ensure that the broker gets paid better than the agents even if they are handling the same type of transactions.
It reaches a point where property owners don’t need the stress and hassle that comes from managing their property. This is where property management companies prove useful by providing professional services. The good news is that if you are a licensed broker, you are perfectly eligible to provide property management services. At the same time, it is vital to note that real estate agents are not allowed to manage properties. Considering how lucrative the property market is, this is an added source of revenue for the broker. These points tell us that brokers have got it good as compared to agents.