Two of the most common career paths for a person to consider when launching a career in real estate are becoming an agent or a broker. However, these are two distinct career paths, contrary to popular belief, which have different requirements. Learning the differences between these two career paths and the different obligations required of the professionals in these fields can help a person discover which path is the best choice for their interests.
What is a Real Estate Agent?
Real estate agents are the starting point for a career in real estate and are the most basic entry level position for someone who acquires a license. Real estate agents act as the middleman for a buyer and seller of a property and help to facilitate the transaction for the party in question. They earn their money in the form of commission off of the sale, and they are responsible for acquiring their own business.
What is a Real Estate Broker?
On the other side of things for someone considering a California real estate exam crash course, becoming a real estate broker may be the more ideal option. This career path is different from a real estate agent in that it requires more specific classes to be taken ahead of the real estate exam and the exam itself is slightly different. Real estate brokers can start a brokerage where they employ agents under them, and they earn a portion of the commission that their agents earn. However, they can also facilitate purchases between buyers and sellers in a real estate transaction as agents can.
Does a Real Estate Agent or Broker Make More Money?
Naturally, when considering whether a real estate agent or real estate broker is the best path for you, it’s worth looking at the salary potential of each field. In general, a real estate broker will make more money in the long run because they employ agents under them and receive a portion of their commission. Additionally, the added experience that brokers have typically leads to them acquiring business easier than agents do, which leads to more earning potential.
How to Acquire a Real Estate License: Key Steps to Follow
As you begin your path in real estate, regardless of if you think you would like to be an agent or a broker, learning how to acquire a real estate license is the first step. Starting with the license requirements for a real estate agent, the following is necessary:
- A person must be at least 18 years old and a resident of their state
- A person must complete 135 hours of pre-licensing educational requirements including courses in:
- Real Estate Principles
- Real Estate Practice
- One Course Ranging From:
- Real Estate Finance
- Real Estate Appraisal
- Property Management
- Real Estate Economics
- Legal Aspects of Real Estate
- General Accounting
- Real Estate Office Administration
- Business Law
- Escrows
- Mortgage Loan Brokering and Lending
- Computer Applications in Real Estate
- A person must pass the real estate license final exam after providing proof that they passed all of the above courses
- A person must complete their application and show proof of completing all educational requirements
Going beyond the simpler requirements to become a real estate agent, it’s also worth looking at how to become a broker. Most of the educational requirements outlined above will also be required when a person wants to become a broker, but they must also take specific classes that are geared towards brokers. Once those requirements have been met, a person can either take the agent or broker exam.
The agent exam is a three hours exam with 150 multiple choice questions, whereas the broker exam is a longer four-hour exam with 200 multiple choice questions. Both exams require a score of at least 70% to pass. Once this exam has been passed, a person will be issued their respective real estate license and can begin practicing right away.
Launch your career in real estate today
A career in real estate can be a lucrative path to consider for people of all ages and educational levels. Given that success in this field is a direct correlation to the effort you put in, regardless of whether you are an agent or broker, anybody can be successful. Focus on networking once you start your career so that you can get a foothold in the field and advice from mentors who can guide you to success.