Are you the kind of person that wants to be in charge of your life, your work, your income and your future? Maybe you even like to be “the boss” or just not have a boss. If you’ve been a top performing agent for a minimum of 2 years and and want to achieve more in the real estate industry, the next logical step is for you to get your Broker’s License. As a Broker, you can work for a corporation, other brokerages, developers and builders. Or, you can open your own brokerage and enjoy the benefits of being a business owner. Regardless of your preference, having a Broker’s License expands your scope of business and can substantially increase your income.
What Are The Qualifications To Get A Real Estate Broker’s License?
Real Estate Brokers are at the core of the business. Without them deals cannot happen.
In order to qualify for licensure in New York as a real estate Broker, an applicant must:
- be 20 years old or older
- have a minimum of two years of experience as a licensed real estate salesperson or at least three years of experience in the general real estate field (e.g., buying and selling your own property, managing property owned by your employer)
- have accrued 3500 points in sales/rentals within the 2-year period of their salesperson license (see below)
- have satisfactorily completed 120-hours of NYS DOS approved qualifying education, which includes passing the school’s pre-qualifying Broker’s exam
- have passed a qualifying examination administered by the Department of State
- be current in any child support responsibilities, and report any previous felonies or criminal history
Once these requirements are all met, then you can submit your Broker’s License application along with a $150 fee for your 2-year license. For more detailed information on how to get your New York Broker’s License, read our previous post “How to Become a Real Estate Broker.”
The Point System Used to Qualify for Your Broker’s License
NYS Department of State (DOS) has implemented a point system to evaluate qualifying levels of experience for licensure in a fair and consistent method. Each qualifying activity is assigned a point value that is multiplied by the number of transactions performed. For example, within residential sales, you can receive 250 points for selling a single family home, condo, or co-op. You can meet your minimum qualifying points through one type of category (i.e. residential sales) or via a variety of categories, such as combination of residential sales or rentals, and commercial sales or leasing.
You must complete 1 of the 3 experience supplements to the Broker’s License application:
- Licensed Real Estate Salesperson: minimum of 3500 points AND you must have been licensed for a minimum period of 2 years
- Equivalent Experience in Real Estate: minimum of 5250 points AND possess at least 3 years of experience in the real estate business equivalent to that of an active real estate salesperson
- Combined Experience: minimum of 5250 points – based on combined experience in general real estate business (minimum of 3 years experience equivalent to that of an active real estate salesperson) AND licensed real estate salesperson experience
The Benefits of Becoming A Real Estate Broker
Real Estate contracts are the glue of the industry. It is important to make sure they are done right.
There are many professional and personal advantages to receiving your Broker’s License, including having direct access to your local Multiple Listing Service (MLS), becoming a property manager, being your own boss with your own schedule, and growing your business into a marketable retirement asset. Since real estate agents legally require the sponsorship of a Licensed Broker, you can carefully hire ambitious, professional and reputable agents to grow your business and revenues.
Demand for Real Estate Brokers is expected to go up, with an expected 92,790 new jobs filled by 2018. This represents an annual increase of 28.15 percent over the next few years. Also, Brokers in New York make the highest income in comparison to their nationwide peers, with an average job salary of near $137,480. Of course, owning your own brokerage can yield much more substantial income depending on how large you choose to grow your business.
Choosing Your New York State Approved Education Provider
Obtaining a Broker’s License involves a time and financial commitment, and it is important to find a NYS Department of State approved school that can provide the most impactful and useful educational experience. It isn’t just about the learning materials. A solid education involves effective teachers who can provide life experiences and guidance to real situations you may encounter as a Licensed Broker, flexibility in scheduling of classes to fit your busy lifestyle, and a supportive community to help you through the learning, testing and application processes. And remember, to renew your broker’s license, you will need to complete 22.5 hours of continuing education. Hopefully, the school you began your career with will be the same school that keeps providing you with the beneficial education you need to progress and succeed in that career.
For nearly 30 years, the Real Estate Education Center (REEDC) has provided New York real estate licensing classes and continuing education to NY real estate agents, brokers, and individuals seeking real estate careers. Visit our Broker Licensing Course page for more information about licensing, packages, schedules and resources. You can also contact REEDC at 800-547-6020 to speak to our career advisors if you have specific questions or need more information.