July 12, 2024

Understanding the Role of a Real Estate Broker

Real estate agents play a crucial role in the buying and selling process, but many may wonder if they have to work under a broker. To answer this question, it is important to understand the role of a real estate broker. In the real estate industry, a broker is a licensed professional who has undergone additional training and education to obtain a broker’s license. Brokers have the authority to run their own real estate businesses and can hire agents to work under them.

The Importance of Working Under a Broker

Working under a broker is typically a requirement for real estate agents, especially those who are just starting their careers. There are several reasons why this is important. First and foremost, working under a broker provides agents with the necessary guidance and support. A broker can offer valuable insights, advice, and mentorship to help agents navigate the complexities of the real estate industry.

The Benefits of Working Under a Broker

Working under a broker offers numerous benefits for real estate agents. One of the main advantages is access to the broker’s established network and reputation. Brokers often have a wide range of contacts and connections in the industry, which can help agents generate leads and find potential clients. Additionally, brokers typically provide agents with resources such as office space, administrative support, and access to marketing materials.

Exceptions to Working Under a Broker

While working under a broker is the norm for most real estate agents, there are some exceptions to this rule. In certain states, agents may have the option to work as a broker associate or a designated broker. This allows them to operate independently without being directly supervised by a broker. However, it is important to note that even in these cases, agents are still required to have a broker’s license.

Advancing to Becoming a Broker

For those who aspire to run their own real estate businesses or have more control over their careers, becoming a broker is a natural progression. Agents can choose to obtain a broker’s license by fulfilling specific requirements, such as completing additional education, gaining a certain amount of experience, and passing a broker’s exam. Once licensed as a broker, agents can then choose to work independently or hire other agents to work under them.

The Relationship Between Agents and Brokers

Working under a broker does not mean that agents are employees of the broker. Instead, agents are typically considered independent contractors. This means that they have more flexibility and control over their schedules and work arrangements. Agents are often responsible for their own expenses, such as licensing fees, marketing costs, and insurance. In return, they receive a portion of the commission from each transaction they successfully close.

The Importance of Choosing the Right Broker

Choosing the right broker to work under is crucial for the success of real estate agents. Agents should consider factors such as the broker’s reputation, experience, training opportunities, and support provided. It is important to find a broker who aligns with the agent’s goals, values, and work style. Working with the right broker can make a significant difference in an agent’s career trajectory and potential for growth.


While real estate agents are typically required to work under a broker, this relationship offers numerous benefits and opportunities for growth. Working under a broker provides agents with guidance, support, and access to resources that can help them succeed in the industry. However, there are exceptions to this rule, and agents who aspire to run their own businesses can pursue becoming a broker. Ultimately, choosing the right broker is crucial for agents to thrive in their real estate careers.