First, you must take the required courses to become a licensed broker. The courses are college-level and usually take more time than salesperson courses, but many agents prefer them because they’re more interesting. Broker courses generally focus on finance, appraisal, and economics. Once you’ve completed all of your required courses, you can sit for your brokers exam. To take the exam, you’ll need to pay around $500.
There are many components to becoming a licensed real estate broker. The most difficult part is typically passing the real estate exam. Depending on the state you’re in, the pass rate is between 50-60 percent. However, this doesn’t mean it’s impossible – the exam requires a lot of hard work and study. The exam is lengthy and can be very difficult, so you should plan ahead.
Some states require a minimum number of transactions before you can earn a real estate broker’s license. Others will require two years of active work as a real estate salesperson. In addition, you’ll need to hang your license under a broker. Real estate brokers oversee the salesperson’s activities and offer continuing education and business advice. In return, brokers earn a percentage of a saleperson’s commission.
Another component is the training. Real estate agents must complete continuing education every two years. Continuing education is important, because it is necessary to stay on top of industry trends and stay out of trouble. However, some real estate investors delay taking the exam until they complete the coursework and are confident they know the material well enough. This can cause the material to fade from memory. You need to be a good student, and keep in mind that studying for the exam is a full-time job.