“Climb higher, dream bigger, and achieve more”
Let’s admit it, you didn’t step foot in the real estate career to just work as a Realtor forever. You must certainly have had dreams of earning your broker license and starting your own brokerage one day. To conquer this milestone in your real estate career, you would need at least 24 months of experience as a licensed agent.
In this blog, we'll discuss the good and bad sides of “Being a Real Estate Broker”. You would want to know this if you too aspire to become a Broker and open your own brokerage someday.
Reasons Why Being a Real Estate Broker Is Worth It
REASON #1 - You Can Decide on the Rules for Your Brokerage as You Like
You must have certainly worked in at least one brokerage by now. Hence, you may know pretty well how brokerages have specific policies that at times don't sit right with you. For instance, many brokerages have partnerships with certain mortgage lenders. Because of this, the brokerage restricts their agents from recommending any other lenders to their clients. This can be frustrating for you, as a Realtor, especially if you know there are better options out there for your clients. Just like this rule, Realtors are often pressured to do things they don’t agree with simply because it’s company policy.
However, once you become a Broker and open your brokerage, you can set your own rules. You can create policies in your brokerage that align with your values and mission.
REASON #2 - You Can Make More Money as a Broker
Another benefit of being a real estate broker is that you’ll have the chance of earning a higher income than a Realtor. YES! As a Broker, you’ll not just be making money on the deals you close. But also on the deals closed by the Realtors who work under you. This means you’ll get a piece of every deal that goes through your real estate brokerage.
Brokers also get to decide how things run in their brokerage - marketing strategies and the office setup. This flexibility and authority can make a big difference in how much you can earn and how quickly your business grows.
REASON #3 - You Can Truly Pick Your Working Hours, No Hidden Catches
We’re sure you read or heard about this perk before becoming a real estate agent. But once you started working in a brokerage, you might have noticed that there are some limitations on that flexibility. For instance, you may have to attend mandatory team meetings or follow your Broker’s schedule.
However, being a real estate broker means you can truly pick your working hours (no strings attached). If you want to start your day early or from noon, that would be completely up to you. In case you need to take a day off to recharge or handle personal matters, you’ll have that freedom without needing anyone’s approval.
Of course, as a Broker, some days will be busier than others, especially during peak seasons or early days of starting the business. But because you can set your own hours, you’ll have the flexibility to work when it’s most productive for you.
REASON #4 - You Will Pick Up More Knowledge and Information on Real Estate
To become a real estate broker in Ontario, you’ll have to go through advanced training and a licensing program. Thanks to this, you’ll have more know-how about the home-buying and selling process and the housing market in general. This means you can train and mentor other real estate agents from your brokerage. You can also host workshops for other Realtors in your area. By sharing your knowledge with other Realtors in this way, you’ll be basically building your own reputation as an expert in the industry.
Plus, this extra knowledge can be a big perk in marketing yourself to your clients. Clients would certainly prefer to work with you over a newbie Realtor, especially if you have a good reputation.
What Are the Potential Downsides of Being a Real Estate Broker?
You Will Have More Work to Take Care Of
As a Broker, you’ll have to take on a whole new level of responsibility and extra tasks. The first big task you’ll have to handle is, of course, hiring and overseeing a team of Realtors. You’ll have to find the best Realtors for your brokerage, guide, train, and supervise them. Trust us, this task will require a LOT of patience and solid management skills.
Secondly, you’ll have a lot more paperwork to take care of as a Broker. You’ll be responsible for managing contracts, reviewing transactions, and ensuring every document is in order. This might not sound like a big deal to you now, but it can be time-consuming and detail-oriented. If anything slips through the cracks, you could face fines or even risk losing your Broker’s license.
You Will Be In Charge of Everything That Goes Right and Wrong
When you step into this role, keep in mind that the success or failure of your business will rest squarely on your shoulders. If your brokerage doesn't grow as you’re expecting, you won’t be able to point fingers at anyone else. Being a real estate broker, you’ll have to take the blame and mend things on your own.
You Need to Pay for the Initial Costs of Setting Up the Business
Another thing you need to remember is that it’ll take a lot of money upfront to start and run your business. You’ll need to invest in the office space of your real estate brokerage. Whether you’ll be renting a small office space or setting up a larger working space, this office rent can be quite expensive.
Next, you’ll have to put in money to get your brokerage’s name out there. You’ll need to spend on things such as signage, business cards, and other online ad expenses. Then, you’ll need a good website, CRM software, and other tools and technology for your brokerage. All these upfront expenses can feel overwhelming, especially when you’ll have no money coming in initially.
Getting to the Top of the Real Estate Career Takes Hard Work and Patience
Now ask yourself again: do you really want to become a Broker one day? Or you’re okay with the limited income and growth potential of a Realtor? If you’re indeed serious about being a real estate broker, you need to brace up for some extra responsibilities and a bit of stress. However, the many perks that you’ll get as a Broker will make this struggle all worth it.
Working in a supportive real estate brokerage from now on can make a world of difference in this journey towards becoming a broker. A reputed brokerage will provide you with the resources and support to boost your confidence and skills. This can make your path to becoming a successful Broker much smoother and easier. Best wishes for your career, passionate Realtor!