In 2014, I set out on my own and started an independent brokerage firm. It has been a long and exciting road, and I bet some of you are wondering if it’s time for you to get your real estate broker license. If you’re still not sure, check out our section on the pros and cons of getting your broker’s license.
But if you’re ready to get started, you first need to understand the basic process, requirements, and costs. I’ll help you do that and give you the resources you need to take this exciting, giant next step in your career journey.
Steps to Getting a Real Estate Broker License
1. Learn the Requirements for Your State
The first step is, of course, to learn the requirements in your state. In most states, there are basic legal requirements to get your license (in addition to experience and education).
Minimum Age to Get a Real Estate Broker License
You must be at least 18 years old in order to get your real estate broker license in all 50 states. Some require you to be 20 years old. Of course, since you usually need to be at least 18 to get your real estate salesperson license, this makes sense.
Criminal Conviction History
Likewise, since you cannot get your real estate license with a felony conviction on your record in most states, you cannot get your broker license under these circumstances either. If you did manage to successfully petition your state licensing department to grant you a salesperson license with a felony conviction, you will need to do the same for a broker license.
State-specific Shortcuts
Many agents don’t realize that there are often exemptions for the education and experience requirements listed below. Attorneys in good standing with the state’s bar and those who have college degrees in real estate-related majors generally don’t need to take the required education courses and may not need the required experience either.
State-by-state Resources for Managing Broker Candidates
If you’re in one of the following states, check out our guide with all the information about licensing, tailored to you.
2. Complete & Document the Required Experience & Transactions
Most states require a certain number of months or years of real estate experience to qualify as a broker. Others, like New York and Texas, require a minimum number of transactions, which you need to complete and document before getting your license. In general, those states have a points system to help you understand if your combined years in real estate and transaction experience meet their criteria. Here’s a sampling:
| State | Time Requirement | Transaction Requirements | Exceptions |
|---|---|---|---|
| California | 2 years as a salesperson in the last 5 years | No | Attorneys and those with a 4-year college degree in real estate are exempt from education requirements |
| New York | At least 2 years as a salesperson or 3 years in the general real estate field | Yes | Attorneys do not need to meet the time, education, or transaction requirements |
| Florida | 2 years as a salesperson in the last 5 years | No | Attorneys and those with 4-year college degree in real estate may not need to meet education and/or time requirements |
| Texas | 4 years as a salesperson in the last 5 years | Yes | Attorneys and those with 4-year college degree in real estate may not need to meet education requirements |
Since your managing broker is legally your broker of record, they will likely already have the documentation you need. Generally, you do not need to provide details from your past transactions. You just need to know the number and type of transactions you’ve closed as a salesperson.
3. Take Your Real Estate Broker Prelicensing Courses
Once you’ve learned the qualifications you need to get your broker license and completed and documented the right number of transactions, you need to complete your real estate broker courses.
The length and difficulty of your broker licensing courses vary by state, but you should expect to spend at least a full week in classes to qualify for your broker license. Many agents will find the broker courses more interesting than their salesperson prelicensing, but they do tend to be more difficult.
Real Estate Broker Prelicensing Course Hours by State
| State | Hours Required |
|---|---|
| California | 225 hours |
| New York | 75 hours |
| Florida | 72 hours |
| Texas | 270 hours |
Consider taking your real estate broker courses online with Colibri Real Estate. They offer the same courses as everyone else, but often for a better price. Plus, they’re our top pick for best online real estate school.
4. Pass the Real Estate Broker Exam
Just like your salesperson license, the next step in getting your broker license is usually taking and passing your state’s broker prelicensing exam.
While the tests vary from state to state, they are all multiple choice and will probably take you several hours to complete. All real estate broker exams are pass-fail, and in order to pass the exam (in most states), you need to get 70% of the questions correct.
How Hard Is It to Pass the Real Estate Broker Exam?
The real estate broker exam is generally a little bit harder to pass than the real estate salesperson exam. However, since many people who take the salesperson exam have no real estate experience, the pass rate for broker exams is often higher.
5. Apply for Your Real Estate Broker License
Once you’ve passed your broker exam, all you need to do to officially become a broker is to apply for your license! The process is pretty straightforward in most states. You need to fill out your application and gather your information, including documented experience (if needed), test results, and certificate of course completion and submit everything to your state’s professional licensing or real estate commission.
That’s it! Congratulations, you are now a licensed real estate broker!
Costs for Getting a Real Estate Broker License
Again, this varies by state, but getting your real estate broker license can cost between $400 and $1,200. Here’s a quick breakdown of the costs for courses and fees to get your broker license in California, New York, Florida, and Texas:
Costs to Get a Real Estate Broker License in 2023
| Courses (through Colibri Real Estate) | Fees | Total | |
|---|---|---|---|
| California | $395 | $894 | |
| New York | $185 | $604 | |
| Florida | $117 | $316 | |
| Texas | $235 | $1,123 |
Skills Needed to Become a Real Estate Broker
To be successful, real estate brokers will need to build on the skills that they developed during their time as agents:
But brokers can also:
If you’re thinking about building your own brokerage, remember that it’s not just about being a great salesperson or the number of transactions you’ve done—it’s about being a good manager. Your brokerage will fail or succeed based on the team that you build and retain.
Take the time now—before you even get your broker license—to get clear on your objectives, think about the skills that are required, find a competitive advantage, determine the type of agents you want to serve, and consider what your processes and procedures will look like.
Tools to Start a Brokerage
If starting a brokerage sounds like your next great adventure, I have plenty of resources to help you along the way. Consider these five important next steps (and check out the worksheets and guides to help you accomplish them):
- Really do some soul searching and decide what kind of brokerage you’d want to build. Read my article on how to start and get those wheels turning.
- Create a budget with my worksheet.
- Consider your competitive advantage and come up with a name. Start thinking about branding your new business.
- Determine your procedures and processes. For example, what splits are you going to establish?
- Start strategizing for recruitment. Learn how to attract both customers and agents!
Pros & Cons of Becoming a Real Estate Broker
In my dozens of years in the real estate industry, I’ve been an agent, broker-owner, franchise partner, recruiter, speaker, coach, and author. I’ve launched two brokerages, invested in two others, and coached other broker-owners. I’ve put in the crazy workweeks and the sleepless nights, and yes, I made plenty of mistakes along the way.
There are many reasons why you might want to become a real estate broker. It’s a natural progression in your career and an important step in professional development. But making sure you take this next step for the right reasons will help you avoid major mistakes and save you a lot of heartache in the process.
Becoming a Broker Means You Can:
On the Flip Side, Don’t Become a Broker Just To:
7 Things I Wish I Knew Before Starting My Real Estate Brokerage
Typical Broker’s Earnings
Earnings depend entirely on the work you put in and the market where you reside. More deals and higher sale prices will both result in higher annual earnings. Our guide below uses a proprietary tool to estimate the typical salary for brokers in every state:
AVERAGE SALARY: $87,310.60
AVERAGE SALARY: $91,183.22
AVERAGE SALARY: $100,709.60
AVERAGE SALARY: $82,055.40
AVERAGE SALARY: $98,223.80
AVERAGE SALARY: $96,669.40
AVERAGE SALARY: $92,418.20
AVERAGE SALARY: $88,003.40
AVERAGE SALARY: $88,835.80
AVERAGE SALARY: $89,245.20
AVERAGE SALARY: $91,485.40
AVERAGE SALARY: $90,628.60
AVERAGE SALARY: $89,901.00
AVERAGE SALARY: $89,753.40
AVERAGE SALARY: $89,995.40
AVERAGE SALARY: $93,475.40
AVERAGE SALARY: $84,792.20
AVERAGE SALARY: $85,953.00
AVERAGE SALARY: $92,386.60
AVERAGE SALARY: $98,685.60
AVERAGE SALARY: $94,007.60
AVERAGE SALARY: $89,326.40
AVERAGE SALARY: $96,187.80
AVERAGE SALARY: $86,601.40
AVERAGE SALARY: $93,790.80
AVERAGE SALARY: $84,447.60
AVERAGE SALARY: $88,701.25
AVERAGE SALARY: $99,894.75
AVERAGE SALARY: $84,409.40
AVERAGE SALARY: $100,636.25
AVERAGE SALARY: $86,782.50
AVERAGE SALARY: $99,324.00
AVERAGE SALARY: $94,772.25
AVERAGE SALARY: $89,305.20
AVERAGE SALARY: $86,996.25
AVERAGE SALARY: $95,972.00
AVERAGE SALARY: $92,119.25
AVERAGE SALARY: $92,305.25
AVERAGE SALARY: $75,608.00
AVERAGE SALARY: $93,062.75
AVERAGE SALARY: $86,711.40
AVERAGE SALARY: $91,706.50
AVERAGE SALARY: $92,151.00
AVERAGE SALARY: $88,176.00
AVERAGE SALARY: $90,354.80
AVERAGE SALARY: $88,468.00
AVERAGE SALARY: $97,621.80
AVERAGE SALARY: $83,735.00
AVERAGE SALARY: $84,161.75
AVERAGE SALARY: $88,662.40
The Average Real Estate Broker Salary for Every State
Real Estate Broker FAQs
Have questions on the basics? Read on!
What’s the difference between brokers & agents?
Simply put, a real estate salesperson or agent must work under a broker. A broker is fully licensed to work independently, either within a brokerage or by starting up their own brokerage and hiring salespeople.
Note that nomenclature is unique in each state. For example, in Illinois, a newly licensed salesperson is called a broker and they’d continue on to become a managing broker at the next stage of their career.
Watch Chris Linsell break it down in under two minutes:
Also check out a new resource from one of our top online education providers, Colibri Real Estate:
What does a real estate broker do?
Brokers often do the same work as salespeople. On the buyer’s side, they help clients seek out properties that match their criteria, make offers, negotiate, and manage the transaction through closing. On the sales side, brokers list and market properties for their sellers, negotiate, and also see the process through to closing.
Additionally, brokers can hire new agents, train and supervise them, oversee administrative staff, and ensure everyone is acting in accordance with the law, ethics, and best practices.
Finally, brokers undertake increased fiscal responsibility. Brokers will oversee and review contracts and make sure everything is perfect—both for their own transactions and those of agents working under them.
Are there different types of brokers?
Yes! There are different types of brokers within a brokerage.
The designated broker (or principal broker or broker-in-charge) ensures that everyone within the brokerage is adhering to local, state, and federal real estate laws.
The managing broker oversees salespeople, hires new agents, offers training, and manages the administrative team.
Associate brokers have their broker licenses and are part of the brokerage. They don’t typically supervise other brokers or salespeople. Note: In some states, agents are known as associate brokers. In this case, they have the same status as salespeople under the supervision of brokers.
In some states, like New York, you can also hire a broker of record. I call these brokers “four-star generals.” They think they’ve earned their stripes so they feel entitled to just sit behind a desk and bark orders.
Bringing It All Together
Getting your real estate broker license can be a fairly long and expensive process, but follow these steps and you can be your own boss in no time. Take it from me, becoming a broker can be one of the most rewarding career steps you ever take.
Do you have advice for someone considering becoming a real estate broker? Leave a comment below!
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