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. In order to know the distinction between a broker and a real estate agent, the following points will come in handy.
In terms of opening an independent brokerage firm, property brokers have it easy as compared to their real estate counterparts. Before you can open a real estate brokerage firm, it is imperative that you be licensed as a broker. When you need to open a brokerage firm, there are two main 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. In this kind of working agreement, the associate brokers and agents will split their commissions with you.
The main difference between an average real estate practitioner and a broker is the level of fees and benefits earned. There is really no comparison between the fees earned by brokers and the ones earned by 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.
It is true that there are qualified and licensed brokers who are not yet ready to open their own brokerage firms. So the next best option would be to work under a licensed brokerage firm as an associate broker. 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. Due to their license, the associate brokers will get higher perks even if they are working on the same deal.
It reaches a point where property owners don’t need the stress and hassle that comes from managing their property. If this happens, then it is time to rely on the expert and professional services of property management companies. The good news is that if you are a licensed broker, you are perfectly eligible to provide property management services. On the flip side; real estate practitioners cannot manage a property. Considering how lucrative the property market is, this is an added source of revenue for the broker. These are some of the benefits that brokers have over real estate agents.