Associate brokers play an important role in real estate firms’ major operations. Using previous experience and knowledge as a real estate agent, an associate broker can provide firms and their clients with impressive property management skills as well as a strong understanding of real estate law. In this article, we will discuss what an associate broker does in real estate, how to obtain a license, the skills required for the job, the salary, and the steps to becoming one.
What is a Broker Associate?
A real estate broker associate holds the same license as a broker but works as a salesperson for another broker. While being a broker has its benefits, it also comes with all the associated risks.
When you work as a broker on your own, you are solely responsible. This includes dealing with all the costs associated with lawsuits, compliance, and insurance. This is why some brokers prefer to work for a traditional brokerage firm. When a broker decides to hang their license with an office, they are referred to as “broker associates.”
While being a broker associate does not give you the same freedom as being a broker, there are some advantages to working for a brokerage. When a broker associate encounters a problem with a transaction, the brokerage firm provides resources to assist in resolving the problem.
Any contract questions will be answered by a broker of record in a traditional brokerage. They also use a risk management company that agents can contact for legal advice. In the event of an audit, a compliance officer reviews their transaction files to ensure they are in order. Broker associates may also benefit from a higher commission split due to their experience.
What Does an Associate Broker Do?
An associate broker, also known as a broker-salesperson or affiliate broker, is a real estate professional who assists a firm’s principal broker in supervising real estate agents and ensuring compliance with local and national real estate laws. Associate brokers frequently have the same level of education as principal brokers and managing brokers, but they help with more day-to-day operations rather than managerial duties. An associate broker is responsible for a variety of tasks during their day, including:
- Contract document preparation
- Locating new properties to list
- Collecting client payments
- Managing the firm’s finances and spending
- Participating in buyer-seller meetings
Associate Broker Skills
To perform their job duties effectively, associate brokers must possess a number of important skills. These abilities may include:
#1. Written and verbal communication:
An associate broker may discover that each client prefers a different mode of communication. Associate brokers must be able to adapt to a client’s needs at any time, whether through text, email, phone calls, or in-person meetings.
#2. Time management:
Associate brokers may be required to attend multiple meetings and complete projects or contracts by specific deadlines during the course of their workday. That is why it is critical for them to have strong time-management skills.
#3. Problem-solving abilities:
Problem-solving abilities are important for associate brokers because they face many challenges during the course of their workday, such as finding properties that match client requests and discovering new negotiating tactics.
#4. Market knowledge:
Understanding industry trends and determining which properties are most likely to sell are two strategies that can help you improve your market knowledge and skills. To do their job more effectively, associate brokers must be knowledgeable in this area.
Broker Associate Salary
The average annual salary for a real estate broker associate in the United States is $119,870 as of September 3, 2022. If you need a quick salary calculator, that works out to be around $57.63 per hour. This equates to $2,305 per week or $9,989 per month.
While ZipRecruiter reports annual salaries as high as $128,000 and as low as $23,500, the salary of the majority of real estate broker associate in the United States currently ranges between $110,000 (25th percentile) and $120,000 (75th percentile), with top earners (90th percentile) earning $125,000. The average salary range for a real estate broker associate varies little (around $10,000), implying that there are few opportunities for increased pay or advancement, even with several years of experience, regardless of location.
According to recent ZipRecruiter job postings, the real estate broker associate job market in New York, NY, and the surrounding area is very active. In your area, a real estate broker associate earns an average of $131,858 per year, which is $11,988 (10%) more than the national average annual salary of $119,870. In terms of Real Estate Broker Associate salaries, New York ranks second out of 50 states.
Broker Associate License
An associate broker is authorized to assist people in the sale and purchase of the real estate. Your job is to show properties to prospective buyers and make offers to sellers. An associate broker can also assist interested buyers in locating properties that meet their requirements. Other responsibilities of an associate broker include assisting your clients with sale negotiations and purchasing processes. You also keep regulations up to date, manage inventories, and write regular reports. An associate broker will also consult with community resources to determine your client base’s eligibility.
A bachelor’s degree in real estate management or a related field is the minimum academic requirement for this position. Some companies hire people with only a high school diploma and a few years of work experience. You should be good with people and have excellent communication skills. The position requires an associate broker license. Associate brokers earn an annual salary of $61,333.
How to Become an Associate Broker
Here is a checklist of steps you can take to become an associate broker:
#1. Enroll in a real estate agent training course.
You must first become a real estate agent before you can become an associate broker. Real estate agents work with real estate firms to buy and sell properties on behalf of their clients. Often, becoming one necessitates completing a pre-licensing course at a state-approved school. Individuals will learn important information about real estate ethics, finances, and insurance during this course. Most of these courses last a predetermined number of hours set by the state and can vary from location to location.
#2. Obtain a real estate agent’s license.
Two steps are required to obtain a real estate agent license:
- Obtaining a real estate license
- Submitting an application for a real estate license to the state
The instructor of your real estate pre-licensing course will often tell you where to register and take your licensing exam, as well as other important information like how much the exam will cost. The state frequently divides the exam into two sections: one that covers state-specific regulations and practices, and another that discusses general real estate principles. After passing your exam, you must apply to the state of your choice, including your information, proof of real estate training, and exam scores. When the state approves your application, your license will be mailed to you.
#3. Gather relevant experience
Before becoming an associate broker, most states require real estate agents to work in the field for several years. This can include a few years of experience as a real estate salesperson or general real estate experience. However, in some states, such as New York, real estate agent experience can be measured using a point system instead. Agents frequently earn points for various accomplishments or achievements in their real estate careers, such as showing properties and closing sales.
#4. Enroll in a real estate broker course.
Real estate broker courses provide important information and knowledge that associate brokers require in order to obtain their state licenses and effectively perform their job duties. The course frequently revisits information learned in the real estate agent course, as well as teaches additional material on real estate law, investments, construction, property management, and other topics. States generally offer the courses either online or in-person, with different advantages:
- In-person course: In-person courses allow you to learn more quickly because peers and teachers are easily accessible. Taking an in-person class allows you to form professional relationships with other students and expand your real estate network.
- Online course: Online courses give you the freedom and flexibility to learn at your own pace. This type of class is frequently beneficial for individuals pursuing broker licenses while also working full-time jobs.
#5. Pass a broker examination
Depending on which state you work in, the real estate broker exam is very similar to the real estate agent exam. The test is frequently multiple choice and can last anywhere from two to five hours. The exam may include questions about property value, business law, and real estate terminology. Individuals will typically need a test score of 75% or higher to pass. If you want to take the broker exam, you can sometimes find study guides and practice tests online for your state of residence.
#6. Consider future possibilities
The only certification required to become an associate broker is a real estate broker license. It is, however, the only certification required to become a managing or principal broker. Most real estate firms have only one principal broker who oversees the company’s key goals and objectives, but the firm may also have several managing brokers and associate brokers. Earning your real estate broker license can help you position yourself for future opportunities in these management positions as you gain more experience.
Frequently Asked Questions
What is a broker associate in Florida?
A broker sales associate (BL) is someone who is qualified to be a broker but works as a sales associate for someone else. Despite their broker associate status with the department, the department still issues the license with a BK as the identifier.
What's the difference between broker and agent?
A real estate agent is a professional in the real estate industry who facilitates real estate transactions through a brokerage. A broker may work independently to facilitate real estate transactions, or they may establish their own brokerage and hire real estate agents to work for them.
How many hours do you need to be a broker in Texas?
270 classroom hours of qualifying real estate courses, including the mandatory courses listed below: Principles of Real Estate I (30 classroom hours) Principles of Real Estate II (30 classroom hours) (30 classroom hours)
How do I become a broker associate in Florida?
To obtain a Florida real estate broker license, you must first:
- Complete a 72-hour Pre-Licensing Course.
- Get your fingerprints taken.
- Fill out an application and send it to the state.
- Pass the real estate broker exam in Florida.