Life as a Real Estate Broker

A career as a real estate sales agent can be very financially rewarding. However, as you were working for your broker for the last year, you have come to the realization that you are splitting your commissions with your broker (your boss) by giving them 50 percent of the commission fee charged, despite the fact that they really did not have anything to do with the sale of the properties you brought to the table! Wouldn't it be nice to be your own boss in the real estate field so you could sit back and take half the commissions of the people that work under you?

After being licensed as an active real estate sales agent and working under a broker for at least a twelve month period of time, you can advance your career to becoming a broker. There is another state mandated class that you will need to take along with another state exam that you are required to pass before receiving your active Broker's license. Once you have received your license, you can go into business for yourself.

You have the choice to either open your own business or go off on your own direction or you can buy into a franchised company with the reputation it already has to help you build your business. It is probably is your best interest whenever possible to buy into a franchise. When you do this, the parent company has already established themselves in the community as well as the country and has preset methods of doing business. This way all you have to do is open the doors of your new location and get to the work of doing what you do best, selling real estate.

As the broker of your own business, you are now the boss! You will need to hire licensed sales agents and property managers to work under your license so that they can each work independently to bring in as many sales and rental transactions as possible for your location. You are responsible for the legal matters regarding the transactions that happen in your location. Therefore, you will need to be at every sales closing and rental agreement signing to be sure that everything has gone according to the state regulations. As a result of your liability and responsibility to your agents, you are entitled to collect a spilt off of the commission that your agents charge for their transaction. Typically you can expect to collect anywhere from 20 to 50 percent of the commissions they earn. Think of it this way, you run and manage the office when your agents cover the field work for you, and if you have twenty agents that each sell $1,200,000 worth of transactions a year you can collect as much as $42,000 per agent or a total of around $840,000 a year! How great is that!?!

You can just imagine what your yearly income would be if you owned two or three locations in the area. Welcome to the ownership side in the world of real estate.