The vast majority of commercial real estate agents have their agent’s license to sell and lease real estate within their own individual state, but they usually don’t have a broker’s license. So let me tell you why, in my opinion, if you don’t already have a broker’s license, that you might want to consider getting one…
Years ago I decided that I wanted to manage a commercial real estate brokerage office, instead of only working as an agent within an office. So an opportunity came up to interview for the manager’s position within an office of a nationally-well-known brokerage company, and as part of the requirement to get hired, the candidate needed to have their own broker’s license.
So immediately, many of the other interested candidates were eliminated from being considered for this position, because they didn’t have their broker’s license, and I ended up getting the job.
And having my broker’s license was an important component in making this happen.
So if you may have any potential desire to one day manage a commercial real estate brokerage office, it will be a good idea to already have your broker’s license in place.
In addition, having your brokerage license gives you total flexibility to work on your own one day if you want to, while not needing to work under another person’s broker’s license. So then if you decide one day that you’d like to work on your own, you’ll then pocket 100% of the commissions that you’ll be earning, instead of needing to divide your commissions along with a commercial real estate brokerage company.
In addition to this, if you ever want to open your own commercial real estate brokerage company, and hire other agents, and have them working along with you in your company, you’re going to need to have your own broker’s license in order to do this, too.
So in keeping this in mind, I find it interesting that on the residential side of the business, agents can work for well-known national brokerage companies, and pocket 85% or more of their commissions. But on the commercial side, with rare exception, the commission split when you’re working for a major, nationally-well-known brokerage company, tends to be in the 50-50 range, and if you’re fortunate, it may even go up to 60-40, in your favor.
So when you go from a 50-50 split to a 60-40 split, you’re now making 20% more money, if you’re closing the exact same transactions.
But then if you go from a 50-50 split, up to a 70-30 split, now you’re making 40% more money, if you’re closing the exact same transactions.
Now granted, when you’re working in a brokerage office surrounded by other commercial real estate agents, you will likely close transactions that you wouldn’t have closed working on your own, because of the networking, and the additional opportunities that you’re hearing about from the other brokers within your office. But still, as you progress throughout your career, having the option of working on your own, and getting 100% of the commission on your transactions, will definitely appeal to some people.
So if you want to maximize your options in moving forward, and have the greatest amount of flexibility right in the moment throughout your brokerage career, securing your real estate broker’s license can definitely be a good idea for you.
_______________
If you’re interested in becoming more effective with your prospecting, and in getting more listings, closing more deals, and transforming your brokerage business with the latest AI technology, and you’d consider doing one-on-one coaching together to make it all happen, send me an Email or give me a call!
“I began working with Jim in a tough market, when I was having a difficult time generating any activity. And now, just weeks later, I’m excited to be totally immersed in a ton of great new activity, with deals that I’m excited about closing!”
Eric Blumenthal
Newmark