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. It is tragic enough that most people don’t differentiate between the two. Though some of their tasks and job descriptions may be similar, there are some vital distinctions in a wide array of factors. 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.
When it comes to running a brokerage firm, real estate brokers definitely claim the bragging rights over property agents in terms of independence. Before you can open a real estate brokerage firm, it is imperative that you be licensed as a 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. Another way is having associate brokers and real estate agents working under your license in your brokerage company. In this kind of working agreement, the associate brokers and agents 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. There is really no comparison between the fees earned by brokers and the ones earned by agents. The major reason that drives many real estate agents to become brokers is the money that comes with it. It goes without saying that you can make a whole lot of money as a real estate broker than you can make as a real estate 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.
There are brokers who prefer to first work under a brokerage firm instead of opening their own practice. That leave the most ideal choice of working as an associate broker under a licensed broker. Even though the associates will work hand in hand with agents without a broker’s license, the compensation will still be higher. The superior licensure that a broker has will ensure that they get higher commissions and pay than the real estate agents working at the same firm and handling the same deals.
At times, property owners get tired of managing their own properties. In such cases, property management firms can come in very handy to provided expert and professional management services. What’s so special about being a broker is that you are allowed to offer 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 are just some of the advantages that brokers have over real estate agents.