You’ve been an agent for a few years. You’ve become pretty good at what you do. You’re wondering what the next step is. Should you become a broker? There are pros and cons to starting your own brokerage, but before you weigh those, here are some boxes you should be able to check before you consider making that jump.
You’re legally eligible
This one is obvious, but just in case you forgot, you need to make sure that you’ve completed the necessary coursework and operated as an agent for long enough to qualify for a broker license in your state.
You have a deep understanding of your local market
In the time you’ve spent as an agent, you’ve learned the housing market in which you operate inside out. You have a good sense of the trends that are shaping prices for different types of real estate, particularly the local economy. You know what areas of town are hot and which ones are cold. You know where the best schools are and where new development is taking place.
You have a vision
Starting a successful business is not something you can do passively. It’s a major project that carries risks and requires your total commitment. Have you thought about what it would take to start a business and assemble and oversee a team? Have you carefully thought out a plan that you’re excited to put in place? If so, you just might be ready to go for it.
Other agents value your judgment
How do you interact with other agents? Are you able to get along well with colleagues? Do they seek or appreciate your feedback? Would they be willing to work for you?
You’ve got a lot of leads
You can’t just start a brokerage and hope that everybody else is bringing in leads. You have to have a steady stream of business that your brokerage will be able to build upon. If you’re so busy that you find yourself having to turn away business, you’re probably in a good position to start your own business.
You’re a skilled administrator
You might be the world’s greatest agent, with more leads than you can handle, but that won’t do much good if you’re not up to the day-to-day duties of running a business. Your job is no longer simply to generate commissions, but to figure out how to most wisely invest them. You have to manage a budget for a whole team of agents, including payroll, marketing, insurance, rent for office space and a variety of miscellaneous expenses. Top-notch organization skills are a must.
You like working with people
Some salespeople thrive in the profession because they enjoy working independently. If you want to become a broker, you need to be able to operate well in an office environment with colleagues who depend on you and look up to you. If you want to be a broker, you should look forward to that.
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