If you have ever wondered what the difference between a broker and a salesperson are, you could say it is the difference between getting an associate’s degree and a bachelor’s degree.
Using a broker rather than an agent can benefit you in a few ways; brokers can sign their own contracts, whereas real estate agents must submit theirs to a broker. Since brokers are required to have more education than a real estate agent, they have a broader understanding of the business.
In the state of Arkansas, in order to become a broker, you must practice as an active agent for at least two years. You must also take another 60 hours of classroom education on top of the 78 hours required to become a salesperson.
So, what types of brokers are there?
There are Principal Brokers, Executive Brokers, and Associate Brokers.
Typically, principal brokers are running an office. They oversee the hiring of agents and they sign off on contracts. They can provide mentorship and guidance for their team. Depending on the principal broker, some are more active than others. Not every principal broker is actively selling, but still does their part on keeping their license up to date with continuing education. Principal brokers might make a salary, or the get commission from the sales of their office, and if they are actively selling they still make commission from their own sales.
These brokers work under a principal broker but have all of the same qualifications and abilities. They can sign their own contracts and the contracts of other agents, but they are not offered salary. Executive Brokers can provide guidance and mentorship to other agents as assigned by the principal broker.
Associate Brokers can sign their own contracts, but they cannot sign other agent’s contracts. They only make their own commission. Typically, they would not be asked to act as a mentor for other agents but can give advice when asked.
As an Executive Broker myself, I have put in the time and effort to provide the best quality service for my clients. If you have any questions about the market, or what it takes to become a Broker, ask me today!