Interest in becoming a real estate agent and broker increased significantly as thousands of people wanted to get a piece of a market that seemed to have no limit.  Unfortunately, the real estate bubble has burst, and one of the reasons the real estate bubble has burst is because many people bought homes they could not afford  They were anticipating that home values and equities would continue to skyrocket.

After receiving an adjustable rate from the bank, prospective buyers were able to purchase their dream homes only to later discover the true meaning of their contracts.  Refinancing the home also played its role in the tumbling of the real estate market.  Although home prices and profits have dropped, there are still lucrative ways for people who desire to make money in the real estate market to do so.

Today, the career of being a real estate broker continues to thrive due to the change in market conditions being favorable to buyers.  A real estate broker helps a seller sell a property and stands in as the liaison between the buyer and seller.  Real estate brokers normally use agents to assist them with selling properties.  Buying a home is complex and significant; therefore, individuals usually seek out real estate agents or brokers that can help them with the process.

Some of the Requirements to be a Broker:

The License and the Exam:

Without a license you can't operate.  In order to become a real estate broker a license is required.  Every state within the U.S. requires that a real estate broker have a license.  Only in the case that a property is for sale by owner does the broker not need a license to complete the transaction.  DRE

The real estate broker's exam is loaded with questions pertaining to fundamental real estate laws, property laws, zoning and tax laws.  Knowledge of the real estate market in their home state and intimate information about their local community proves helpful to a new broker.  Brokers taking the exam must have knowledge about legally mandated inspections, repairs, and other post-sell issues that arise after a property is in contract.

What's On the Exam:

Real Estate Terminology – The new broker needs to learn the language of the real estate pros.  For example, the term “for sale by owner” is often abbreviated FSBO and is a term that future real estate brokers should be aware of when taking their licensed exam.

The Broker Must Be Able to Do the Math! -  Other terms on the real estate exam include information on loan rates, adjustable rates, and fixed rate.  A good real estate broker will need to know the difference between rates so that mortgage payments can be adjusted accordingly.  Some brokers also help the homeowner with the  financial details such as being involved in the financing and loan process.

Making Sure the Property Doesn't Harm the Potential Buyer - Properties must be able to meet environmental regulations to ensure the safety of all parties involved in the buying and selling process, and such issues are covered on the exam. For example, a home with black mold (which can kill) is unsellable and a broker should know this beforehand.

A Broker Needs to Learn the Law -  On the exam there will be questions on real estate law, and other issues pertaining to the aspects of buying and selling a home. Becoming a real estate broker is not an easy job and entails multiple duties.  The real estate broker is expected to participate in all aspects of selling a home including advertisement and marketing, price negotiation, and effectively closing the sale.  Although the broker has various duties, each duty is proportionately important when attempting to make an income.

How Much Are Brokers Paid?

Like most independent agents, real estate brokers are normally paid through commission.  Depending on the broker and seller's negotiated fees, the commission could range anywhere from five to nine percent of what the property sells for.  The higher the price of the home, the more the broker makes which is why appraising properties at higher fees are beneficial to the bottom-line.  Another factor that plays an important role in the income of the agent is the competition the broker faces from other agents and brokers in the area.  The more experienced and established an agent or broker is, the more likely they will have a larger client base over time. 

Becoming a real estate broker is a desirable field because of the broad range of services that can be provided through the broker.  Some of the services include appraisals, document preparation, consulting, and even supervising in housing auctions.   Many housing auctions are conducted on foreclosed homes.  Crowds of people usually gather for auctions that they have found through foreclosure listings. 

A good broker knows how to sell a house and market it effectively to a targeted buyer. 

The majority of real estate brokers in the market focus on residential properties such as homes or condominiums but these two types of property are not the only kind that brokers can get involved in.  A real estate broker has the option to get involved in commercial, agricultural, and even industrial property sales.  The type of property a real estate broker manages will depend on their particular interest and expertise.

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