Advantages of a Real Estate Broker as Compared to an Agent
Contrary to popular thought, there are many differences between a real estate broker and a real estate agent. It is tragic enough that most people don’t differentiate between the two. Although you may find some similarities in tasks and responsibilities, there are some distinctive factors that separate 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. The following pointers will make understanding the difference between real estate brokers and real estate agents a walk in the park.
Opening a brokerage firm can be a hard nut to crack for real estate agents as compared to brokers who are licensed to do so. Before you can open a real estate brokerage firm, it is imperative that you be licensed as a broker. In the event you need to actualize your brokerage company, you can follow either of two routes. You can manage the firm on your own and be the only beneficiary from all the real estate deals you close. Another way is having associate brokers and real estate agents working under your license in your brokerage company. In the event you recruit these experts to work in your firm, they 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. When it comes to the fees earned by both professionals, brokers take the trophy hands down. The major reason that drives many real estate agents to become brokers is the money that comes with it. It is a no-brainer that brokers earn higher than real estate agents. 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.
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. 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 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.
At times, property owners get tired of managing their own properties. 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. At the same time, it is vital to note that real estate agents are not allowed to manage properties. With the property sector at an all-time high, this means that the broker gets bonus revenues. These are just some of the advantages that brokers have over real estate agents.