How Do I Know When I Am Ready to Become a Broker?

The single best thing about being a real estate agent is that there is no one way of doing things. There’s no set schedule, no set hours, no set sales quota, or promotional ladder to climb. There are certain timelines to be followed, outlined by State Real Estate Commission rules and regulations. For example, you must obtain your post-license education within a certain number of years, and you must have had a specific amount of real estate sales experience before you can obtain your broker’s license. But these are guidelines meant to shape your journey if you choose it. Every ambition you have in your own real estate career is completely up to you.   

But if you are considering taking your career a step further, and you’d like to explore the possibilities of advancing your current license, read on. We are going to contemplate the natural transition from salesperson to broker and how to know when you are ready to take the plunge.

Today we’ll discuss the following topics: 

1. How to know when you are ready to become a managing broker. 
2. Are you naturally entrepreneurial? 
3. From doing to teaching, the satisfaction that comes from helping others. 

Are you ready to become a managing broker? 

Let’s start with the basics. Do you love what you do? If you are not excited about the real estate industry, then becoming a real estate broker might not be the career path for you. But why? Some may argue you don’t have to love what you do to do it, and that’s true. But I do believe if you are going to create a business around an industry and inspire others to follow in your wake, then having some underlying passion is going to work in your favor. Another question to ask yourself is what’s the why? Why might you want to become a managing broker?  Do you want to make more money? Do you want to push yourself further and try new things? Or are you really itching to get out from under another person and finally be your own boss? Well, if any of these “whys” resonate with you then you’re probably going down the right path. All these motivations are going to feed into your business plan and be a massive part of your brand. 

Are you naturally entrepreneurial? 

If being self-motivated has been your strength, then it might be time to get your broker’s license. Starting a brokerage is like a startup, as you are taking on massive risks for potentially huge reward. You are leaving the comfort of only having your sales license. You still had someone to call for help and you were only responsible for yourself and your sales.

Let’s quickly go over some pros and cons of starting your own brokerage. 
Pros: 

• You will be your own boss. 
• Higher earning potential. 
• Hiring staff/agents. 
• Flexibility & Creative control. 
• Passing off difficult clients to your agents. 

Cons: 

• Large time investment. 
• Potential risk for losses/expenses, especially in the beginning. 
• Managing different personalities. 
• Failure is ultimately on you. 

What’s the big picture here? It all just depends on where you are in your career and what you see yourself doing in the next 10-15 years. Do you see yourself wanting your name “in the headlines” or are you perfectly comfortable with the salesperson grind? Either way is completely fine but asking yourself these questions is going to help you make the right choice for your career goals. 

From doing to teaching, how the career shift works. 

As we age, we tend to start thinking about our impact on this world and the way we affected people.

The general mindset of a broker versus a salesperson is completely different. 

Salesperson mindset: 

• Sale oriented. 
• Looking out for themselves. 
• Does not need to rely on other people. 
• Busy throughout the day/weekends. 

Broker mindset: 

• Moving away from chasing the sale and moving toward teaching what they’ve learned. 
• Focus on long term strategic goals. 
• Creating an environment that people want to be a part of and thrive in. 
• Considering the “why” for all their daily activities. 
• Discovering and nurturing new talent. 

Now you need to be introspective. Are you a leader? Would you enjoy being your own boss as well as others? Are you a person who guides and communicates well with other people? You also need to think about your downfalls and try to hire people who can fill in the gaps for you. Maybe you are someone who tends to be disorganized. Finding a wonderful admin or transaction coordinator who is very detail oriented is going to help you be successful. Then you can use your talents elsewhere. Maybe you are creative or strategic and you want to focus on marketing and branding. Maybe you love to teach, and you want to guide your new agents on their career path. Either way, becoming a broker is a huge decision so make sure you learn as much as you can before making your choice. 

 
If you’ve read this and you are ready to take the next steps, go back to the main page of our website and read through your state brokerage requirements. If you have any questions that you’d like to speak with us personally about, call us, at (859) 525-0303. Check back to the Career Corner for more information on opening your own brokerage next month.