Real estate brokers play a critical role in the real estate industry, acting as leaders, mentors, and key decision-makers in transactions. If you’re a real estate agent thinking about taking the next step in your career, or if you’re entirely new and looking to understand the broader opportunities in real estate, this guide is for you.
This post will give you a step-by-step roadmap on how to become a real estate broker, covering licensing requirements, educational prerequisites, the examination process, career opportunities, and much more. By the end, you’ll understand exactly what it takes to make the leap and elevate your real estate career.
Understanding the Role of a Real Estate Broker
Before we provide instructions on how to become a real estate broker, it’s worth noting the following:
- Each state has its own real estate licensing process.
- There’s a difference between real estate agents, brokers, and REALTORS®.
- In most cases, the entry-level real estate professional is called an “agent,” and those with additional experience and an advanced license are called brokers. However, in some states (including North Carolina, Washington, and Illinois), entry-level agents are called “brokers” or “provisional brokers.”
If you’re new to the industry, it’s critical that you learn your state’s terminology and licensing process.
Differences between real estate agents and brokers
While real estate agents and brokers are both licensed professionals involved in transactions, there are key distinctions between the two roles. A real estate agent works under a broker’s supervision, facilitating property sales and rentals. On the other hand, brokers hold advanced licenses that allow them to operate independently and manage their own real estate operations.
Brokers can
- Open and manage their own brokerage firms
- Supervise a team of agents
- Negotiate commissions and set company policies
- Handle more complex transactions
Key responsibilities of a broker
A broker’s daily activities may go beyond those of a real estate agent. Responsibilities include:
- Overseeing legal compliance in transactions
- Training and mentoring real estate agents
- Analyzing market trends and strategies
- Managing contracts and ensuring accuracy in documentation
These expanded responsibilities also come with increased earning potential, career flexibility, and the opportunity to build your own team. However, some brokers choose to work independently after earning their licenses.
Broker Licensing Requirements Pre-Requisites
You can’t work as an agent without earning your state-specific real estate license. This is also the first step to becoming a broker.
1. Earn your real estate salesperson license
Becoming a broker starts with getting your real estate salesperson license. This is the entry point into a real estate career. State-specific requirements differ, but most involve completing pre-licensing courses and passing an exam.
2. Gain required work experience as a salesperson
Most states require real estate professionals to gain practical experience as agents before applying for a broker’s license. Typically, you need two to five years of full-time experience. Some states, such as California, require you to complete at least two years in a licensed capacity before you’re eligible to apply for a brokerage license.
3. Build a portfolio of transactions
Document your successful transactions during your time as an agent. Many licensing boards will request proof of completed deals as part of your application.
Summary of Broker Licensing Process
Once you have met your state’s prerequisites for broker licensing, you can begin the process of earning your license. Again, the process and requirements vary from state to state. However, here’s a basic overview.
- Complete broker-specific pre-licensing education.
- Pass your state’s real estate broker examination.
- Submit information for a background check.
- Submit your application.
FAQ: What qualifications do you need to be a real estate broker?
You need a valid salesperson license, pre-licensing education, professional experience, a clean background check, and a passing score on your state’s broker exam.
Pre-Licensing Education Requirements
Broker candidates must complete specific educational prerequisites beyond their salesperson licensing. The number of hours required varies by state.
Broker education typically includes courses in advanced real estate law, property management, investment, and business ethics. Many states require anywhere from 60 to 270 hours of pre-licensing education from an approved real estate school. For example:
- Florida mandates 72 hours of broker-specific coursework.
- Texas requires 270 hours, which include mandatory legal and brokerage law classes.
Some real estate schools offer in-person or livestream courses. However, many aspiring brokers choose at-your-own-pace online classes, which allow them to complete the educational requirements while hosting open houses or waiting at their kids’ soccer practice.
FAQ: Is a degree required to become a real estate broker?
Generally, a college degree is not required, though some states may count a degree in real estate or related fields as credit toward education requirements.
Examination Details
The broker licensing exam tests your knowledge of advanced real estate principles, laws, and practices. It generally includes state-specific and national sections. Most broker exams must be completed at testing centers located in metro areas. However, some testing companies now allow candidates to test at home while in view of a camera.
Many state real estate commissions, such as those in New York and Illinois, publish practice guides and recommended reading materials to help candidates prepare. However, most students achieve success by utilizing exam prep materials and courses offered by real estate schools.
Passing scores vary but generally require correct answers to 70-75% of the exam questions.
Application Procedures and Background Checks
At some point in the process, you’ll need to submit an application for your broker license. Most of these applications are completed online through the state’s professional licensing portal.
Be prepared to provide the following when completing your application:
- Background check: Real estate professionals typically must complete background checks for licensure. The process usually includes fingerprinting, and there’s an additional fee for this process.
- Proof of education and experience: You must prove you have the experience and education to become a broker in your state.
- Licensing fee: In addition to paying for pre-licensing coursework, exam prep materials, the exam, and a background check, you’ll need to pay an application or licensing fee, which varies from $150 to $300, depending on the state.
FAQ: How long does it take to become a real estate broker?
The timeline depends on your state and individual circumstances, but most candidates take 3-5 years from obtaining their salesperson license to becoming a broker. Remember that most of that time is dedicated to achieving the professional experience required for licensure.
Continuing Education and Professional Development
Even after earning your broker’s license, ongoing professional development is essential. Many states require brokers to complete continuing education credits every renewal period to stay updated on laws and best practices. Failure to complete your state’s continuing education requirements means your license will be suspended.
Advanced Certifications and Designations
Consider pursuing advanced certifications, such as the following:
- Certified Luxury Home Marketing Specialist (CLHMS): This designation will help you secure high-end listings, establish yourself as a trusted authority in luxury properties, and effectively market upscale homes.
- Certified Negotiation Expert (CNE): This training will help you become a master negotiator throughout all phases of the transaction lifecycle, from acquiring clients to closing the real estate deal.
- Certified Buyer Agent Expert (CBAE): Learn how to define and convey your unique strengths as a buyer’s agent, ensuring you stand out in the market and become the preferred choice for buyers.
These designations not only enhance your skills but also set you apart in the competitive real estate market.
Career Opportunities for Brokers
Obtaining your broker’s license unlocks a world of possibilities, offering several rewarding career paths. Whether you open your own brokerage, grow into a leadership role within your current brokerage, or specialize in a niche area, each route has unique opportunities and advantages. Here’s a closer look at these three distinct paths to help you plan your next move.
Open your own brokerage
Becoming your own boss is a common goal for many brokers, and a broker’s license lays the groundwork for this entrepreneurial venture. Starting your own brokerage gives you the freedom to build something from scratch. You’ll have the authority to establish company policies, recruit and manage a team of agents, and shape the culture of your business.
This path requires a blend of vision, leadership, and business acumen, as you’ll oversee everything from operational strategies to client services. While it can be challenging, owning a brokerage allows you to realize your unique vision for success, offering both professional fulfillment and significant financial potential.
Obtain leadership roles within your current brokerage
If starting your own company isn’t your immediate goal, pursuing leadership roles within an established brokerage is another rewarding avenue. Leadership positions, such as managing broker, training coordinator, or team leader, allow you to deepen your expertise while making a meaningful impact on your team.
Managing Broker
- Managing brokers oversee daily operations, enforce compliance, mentor agents, and influence policy that drives business growth. This is a high-level position that integrates leadership with strategic thinking.
Training Coordinator
- As a training coordinator, you’ll educate and empower new and existing agents by creating and delivering training programs. This is an ideal role for refining your skills in agent recruitment, development, and team building.
Team Leader
- This role is perfect for mastering hands-on problem-solving, interpersonal communication, and leadership in a dynamic environment.
By building leadership experience, you can strengthen your management skills, expand your industry network, and prepare for future opportunities, whether that means advancing further in your current brokerage or eventually opening your own.
Specialize in a niche area
Real estate agents often find success by specializing in a specific type of transaction or client. As a broker, you may consider specializing in a particular area of real estate to allow you to carve out your own space within the industry. By becoming an expert in niches like luxury real estate, commercial property sales, or property management, you position yourself as a leader in your chosen field.
For instance, commercial real estate brokers often handle large-scale, complex transactions with higher commissions, while luxury real estate brokers build relationships with high-net-worth clients. On the other hand, property management experts focus on maintaining and maximizing the value of rental properties.
Specialization helps you refine your skills and knowledge and enhances your marketability and income potential. It’s a great way to stand out in a crowded field and establish yourself as a trusted authority.
Additional Questions About Becoming a Broker
What are the costs associated with becoming a real estate broker?
Costs vary from state to state but include pre-licensing education, exam fees, application fees, and continuing education requirements, totaling $1,500–$3,000 on average. (Note: Colibri Real Estate School offers financing for broker courses!)
How does one maintain a real estate broker license?
Check the renewal requirements in your state. However, brokers are typically required to complete continuing education credits and renew their licenses in a timely manner.
What are the common challenges faced by new real estate brokers?
Challenges include building a client base, managing agents, and navigating complex transactions. Additionally, staying compliant with evolving state and federal regulations can be daunting, especially for those managing a team. Balancing time between administrative tasks and client-facing responsibilities also proves tricky, as both are essential to running a successful business.
How can a real estate broker build a successful business?
Success hinges on strong networking, mentorship, and consistently delivering outstanding client service.
How much do real estate brokers make?
Like real estate agents, brokers typically work on commission, so a broker’s income may vary depending on their sales and the sales of the agents they oversee. Glassdoor reports that the average broker salary is $158,773 (April 2025).
Take the Next Step Toward Becoming a Real Estate Broker
Becoming a real estate broker is a significant milestone that requires hard work, dedication, and perseverance. It’s more than just earning a license—it’s about advancing your expertise, leadership skills, and market impact.
Take your first step today by researching state-specific requirements and enrolling in pre-licensing education with Colibri Real Estate School. Colibri has been the real estate school of choice for over half a million professionals. With each online lesson you complete, you’ll be one step closer to leading the way in the real estate industry.
