Principal Real Estate Broker

Jobs : Real Estate

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Principal Real Estate Broker

Regardless if you are a new real estate agent or an established real estate salesperson there are opportunities to further your career in the real estate profession. One way to do that is to become a licensed principal real estate broker. Typically the process to become a principal broker requires additional classroom courses in addition to those required to be a real estate agent. These courses may include topics related to Financial Management, Human Resources Management and/or Business Law to mention a few. It's important that you check with your local state agency to determine the criteria for your state. Each state regulates how principal licenses are issued and the requirements to obtain one in that state. See below for a link to your local licensing agency.

Often an agent looking to take the next step to become a principal real estate broker has some experience as an agent. While not always required by the state in which you are licensed in, experience in the profession can go a long way in preparing you for a principal role. As a principal broker you have the option to continue to work for a brokerage as an agent or you can start your own real estate agency.

If you pursue forming your real estate company, your responsibilities will change dramatically. You now become the person employing the real estate agents. Your duties are to supervise the real estate transactions of your salespeople. In most cases a principal will receive 50% of the agent's commission for every property sold. In addition many brokerages will charge their agents a monthly flat fee. Just as with being a real estate salesperson you don't have a set salary and income can fluctuate based on the housing market. Currently the national average income for a principal real estate broker is $76k annually. Depending on your market, properties sold and the number or agents working for you, the income range for this position can be substantially higher. Remember that efficiently running your business operations is important to keep your operating cost at a minimum. With that being said, smart investments in your sales team can increase overall business income.

As a principal real estate broker, building a team or professional, honest and well-rounded agents is key. Establishing your real estate company as a trusted resource for buyers and sellers is critical. Real estate agents often get referrals yet a bad reputation can spread faster than a good one. Be sure to surround yourself with reliable real estate agents. Provide insight and additional training for your agents as well. By helping your salespeople become better agents you are also helping to increase your business revenue and reputation within the community.

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