Advantages of a Real Estate Broker as Compared to an Agent
Regarding the real estate and property industry the majority of people don’t have an inkling that there is a distinction between a real estate broker and an agent. Sadly, most people assume that they are one and the same thing. 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. In order to know the distinction between a broker and a real estate agent, the following points will come in handy.
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. Prior to launching your own real estate brokerage firm, you have to be a licensed broker. In the event you need to actualize your brokerage company, you can follow either of two routes. You can handle all property transactions and be the sole recipient of all the benefits from the deals. Another way is having associate brokers and real estate agents working under your license in your brokerage company. It goes without saying that these agents and associate brokers will share their commissions with you.
The main difference between an average real estate practitioner and a broker is the level of fees and benefits earned. There is really no comparison between the fees earned by brokers and the ones earned by agents. The sheer amount of money earned is what drives many real estate practitioners to get a broker’s license. It goes without saying that you can make a whole lot of money as a real estate broker than you can make as a real estate agent. To further sweeten the deal, a broker can earn even more if there are associate brokers and agents working for his brokerage firm.
There are brokers who prefer to first work under a brokerage firm instead of opening their own practice. In this case, they can still work as associate brokers in a brokerage firm. Regardless of working side by side with agents without a broker’s license, associate brokers still get paid more. The superior licensure that a broker has will ensure that they get higher commissions and pay than the real estate agents working at the same firm and handling the same deals.
There are occasions that property owners need to avoid the stress that comes with managing their own property. This is where property management companies prove useful by providing professional services. Is it not amazing that brokers are licensed and allowed to offer professional property management solutions? On the flip side; real estate practitioners cannot manage a property. With the real estate sector currently flourishing, this can be an added bonus to a broker in terms of an additional stream of revenue. These points tell us that brokers have got it good as compared to agents.