Growing Number of Agents Going For Broker License

More and more agents are upgrading their licenses from salesperson to broker. All it takes is completion of the 60-hour pre-license course with its in-class (not separately and independently administered) exam.

In the three years ending December 31, 2003 , the number of brokers has risen 11.7% versus a 17.7% drop in salespersons.

Brokers have lots of advantages in the practice and pursuit of business:

• Improved potential for greater earnings through the additional education taken to qualify for the broker license.
• Working without supervision, which is a requirement for agents holding a salesperson license.
• Ability to set up an entity such as a corporation, partnership or LLC to receive compensation.

Brokers-in-charge of offices with a high percentage of affiliated brokers have the advantages of:

• Better-educated agents who are more knowledgeable about many crucial aspects of real estate practice and better able to satisfy consumers and reduce company risk from negligence.

• Reduced supervisory responsibilities with fewer affiliated salespersons.

• Ability to better capitalize on the trend toward agents independently performing more functions outside the office through the use of modern communications and computer technology.

• Greater prestige of an office with a high level of broker licensure.

This article came from the March 2004-Vol34-3 edition of the bulletin.