Benefits of Being a Real Estate Broker Over an Agent
When it comes to matters real estate and property, not many people realize that there is a difference between a real estate agent and a real estate broker. Sadly, most people assume that they are one and the same thing. Despite the fact that some of the responsibilities are the same, there are some visible differences between 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. By understanding the factors given below; knowing the difference between a real estate agent and a broker will be child’s play.
In terms of opening an independent brokerage firm, property brokers have it easy as compared to their real estate counterparts. Prior to launching your own real estate brokerage firm, you have to be a licensed broker. If you intend to open your brokerage practice, there are two major ways to go about it. You can handle all property transactions and be the sole recipient of all the benefits from the deals. On the other hand, you can recruit real estate agents and associate brokers to work for you. It goes without saying that these agents and associate brokers will share their commissions with you.
The kind of money that real estate brokers earn is what sets them apart from a regular real estate agent. When it comes to the fees earned by both professionals, brokers take the trophy hands down. The sheer amount of money earned is what drives many real estate practitioners to get a broker’s license. It is a no-brainer that brokers earn higher than real estate agents. To further sweeten the deal, a broker can earn even more if there are associate brokers and agents working for his 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. Regardless of working side by side with agents without a broker’s license, associate brokers still get paid more. 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. Is it not amazing that brokers are licensed and allowed to offer professional property management solutions? On the other hand, real estate agents are not eligible to manage property management firms. With the real estate sector currently flourishing, this can be an added bonus to a broker in terms of an additional stream of revenue. These are some of the benefits that brokers have over real estate agents.