A real estate agency is a firm managed by a licensed broker with a team of licensed real estate agents. A real estate broker or real estate salesperson aka a real estate agent is a professional who serves as a middleman between a seller and a buyer of a real estate property.
In simple terms, a real estate agent or broker helps buyers of real estate look for sellers of real estate, and when a deal is closed, the agent earns their commissions.
History of Real Estate Agencies
As far as the history of real estate brokerage is concerned, the relationship started based on the English common law of agency. According to this law, there is a fiduciary relationship between a broker and their clients.
In the US, real estate brokers or agents who help owners of real estate market sell or lease properties are known as listing brokers or listing agents.
Other agents or broker may work on behalf of buyers or tenants. But a licensed broker or salesperson have the authority to work on behalf of either a buyer or a seller. This depends on the type of license they get.
In the United States, real estate broker receive their licenses from the state, not the federal government. The relationship types and the duties of real estate agents may vary in each state.
Requirements To Start A Real Estate Agency
If you want to start your own real estate agency or brokerage firm, you need to follow certain requirements set by your state.
First off, you need to take some pre-licensing courses consisting of 2 to 3 courses at college-level. After that, you may have to be a member of a real estate agency, which may require you to take more courses. After that, you will become a real estate agent.
Finally, to start your own firm, you may need to get more training and courses to apply for and receive an agency license. Once you have got the license, you can open up your office and hire licensed real estate agents to work with you.
Common Traits of Successful Real Estate Brokers
Just because you have become a licensed broker and you manage your own agency doesn’t mean you will get a steady stream of clients. Just like any business, you have to have some special traits to attract and impress clients so that they could choose you over the other brokers in your state. If you want to set yourself apart in your industry, make sure you develop the following traits.
Problem solving mindset
While you are looking for a buyer or seller for your client, make sure you deal with the problems that may arise with creative solutions.
You have to come up with creative ways to showcase a property. Make sure your MLS listings are creative to grab the attention of as many potential buyers or sellers as possible.
If you are honest, your clients will know it. But there is another way to manifest your honesty and integrity: you can become a member of the National Association of REALTORS.
Joining the NAR will set you apart from other agents who may not be members of the association.
Interest in real estate
Another way to have an edge over your competitors is to develop a genuine interest in the real estate. Show your interest in your business while you talk to your prospective clients. Let them feel that you care about what you do.
You and all of other agents at your agency should have engaging personalities. Real estate is not about selling properties; you, as a real estate broker, will sell yourself.
With an impressive attitude and a high level of honesty and confidence, you can engage your clients and they may become returning customers.
When you are with your clients, pay close attention to what they are saying, and try to meet their needs. In fact, if you are well organized, communicate well and follow up with leads, chances are that you will close a lot more leads than other agencies.
Network of connections
Ideally, you may have a huge network of contacts that may include other agents and brokers, mortgage loan officers, home inspectors, appraisers, and prospective buyers and sellers of real estate in your market.
In short, you will get out what you put into your business. You need to invest a lot of time, effort and money in your business to make it successful. If you have the traits mentioned above and a passion to get ahead, you will be more likely to have a successful career as a real estate broker.