Last Updated on: 19th January 2023, 05:17 am
To become a realtor or real estate broker, you first need to become a real estate agent. And so, real estate agents, realtors, and brokers all have a lot of similar tasks they do, such as:
- Reviewing homes that are about to be listed for sale
- Assisting clients with preparing their homes for sale, such as suggesting repairs or renovations
- Conducting property showings for prospective buyers
- Reviewing and drafting real estate contracts
- Providing market analysis and property valuations
- Negotiating offers and closing deals
- Staying informed of local real estate laws and regulations
- Networking and marketing to build a client base.
- Marketing and more.
To get a clearer understanding of this particular topic, read the basics in this post: What Is A Real Estate Agent, Realtor and Real Estate Broker?
But anyway, the main question here will then be: How does someone become a realtor or real estate broker?
Let’s get to it one at a time.
How to become a realtor?
To become a realtor, you have to be a licensed real estate agent and an active member of National Association for Realtors (NAR). Membership with NAR is what gives someone the “realtor” title besides just being a real estate agent.
How are realtors different from real estate agents?
Realtors, just like real estate agents are professionals who represent the buying and selling of houses. There’s not much differentiation between the two, however, being a realtors mean that someone has gone one step further by pledging to abide by NAR’S code of conduct and being a member of it.
Realtors promised to operate with full transparency, honesty and integrity that make them more appealing to work with. This means that realtors are going to put your interest above theirs when dealing with them.
Do you need to be a realtor?
No. Real estate agents can choose not to become a realtor.
Is it free to be a member of NAR [National Association of Realtors]?
Being a member of NAR isn’t free. Realtors pay an annual fee to stay active members.
Join NAR here: Membership Page
What are the benefits of being a realtor?
The benefits of being a realtor are as follows:
- Access to Multiple Listing Service: This is a database service that gives access to either regional or local properties that are currently for sale on the market or have sold in the past.
- Latest updates on policies and training about the industry.
- High-quality educational resources and programs.
- Latest updates on industry trends and best practices.
- Opportunities to wider networks through local and national conferences and meetings.
Let’s talk more about MLS…
Does it cost money to have access to MLS?
Access to MLS is free for realtors who are active members of NAR. But technically it’s not because membership to NAR that gives you free MLS access has a fee.
Here’s a list of the top MLS:
Is it possible for non-realtors to have MLS access?
Yes. But you have to be a member of a local real estate association. And just like NAR, you’ll need to pay a fee.
Does it cost less to be a member of a local real estate association than to be a member of NAR?
Membership in a local real estate association can be less expensive than membership in NAR. However, if you’re an agent that works for a brokerage that has MLS access, you may be able to access the MLS for free without having to join a local or national real estate association.
Why do realtors have to pay for an MLS at all?
MLS is a database website for real estate properties and it must be maintained. Its service allows you to search and list your properties to be available on the market, run comparables, and access quality resources and tools for marketing to help you with your work. In short, MLS helps real estate professionals in their marketing to sell properties. And that’s why you have to pay for it.
Note that your MLS listings can also be showcased on your own personal website. This process of data exchange typically requires a third-party tool that uses Internet Data Exchange (IDX).
Learn how to make your personal website here: Make Real Estate Website
Learn how to integrate an IDX here: Open Showcase IDX Live Demo
Now let’s get to the second main question of this post…
How to become a real estate broker?
To be a real estate broker, you must:
- Have two years of experience as a real estate agent (salesperson).
- Need to complete additional education and training.
- Pass the broker licensing exam to obtain a broker license.
Real estate brokers are still real estate agents. They’re just licensed to open and operate real estate businesses and do the transactions on their own. And being a real estate broker will allow you to keep 100% of your real estate commissions.
Take a real estate broker course here:
How to keep 100% of your commissions as a real estate broker?
You’ll need to register as an independent broker, which is different from a just being real estate broker. And if you are able to close a real estate deal on your own, you will get to keep the entire commission for yourself.
What is the difference between an independent real estate broker and a regular real estate broker?
Being an independent broker means that you have to be your own real estate brokerage firm. This means that an independent broker is a broker who operates their own real estate business while a real estate broker who holds a real estate broker license but is not registered as an independent broker typically works for a specific brokerage firm.
Do you need to hire real estate agents and employees to operate as a real estate independent broker?
No. As an independent real estate broker, you can run your business without hiring agents or employees. This means that you are able to represent buyers and sellers in real estate transactions on your own, without being affiliated with a specific brokerage firm.
In this case, you as the broker would be the sole proprietor of the firm. This basically means that you will have to take care of all aspects of your business by yourself, such as:
- Negotiating and closing deals
- Financial management and more.
Don’t you need a physical office to register as an independent broker?
As an independent real estate broker, having a physical office is not generally required to operate your business. However, you’ll need to have a separate workspace within your home to properly conduct business, along with having the necessary equipment in place.
Don’t forget to check out our other posts.
Hope this helps!