I'm in the process of getting my broker's license but don't have any intention of opening my own office yet. From a broker's point of view, what would go through you head if you found out that one of your agents just got their brokers' license. Would you see them as a threat?

That might make "some" of them more of a contributor rather than someone I have to carry. A Broker can and SHOULD be held to a higher standard; and should not a threat. Maybe it demonstrates more of a commitment to the business than anything else.

But being a Broker DOES NOT necessarily make a Licensee a "better" Salesperson . . . . it may actually slow them down in their sales as they are now more aware of the consequences of some of their actions, and the overall complexity of the business.

Most Brokers don't cut the cord and run off on their own, EVER. That License alone will not instill the confidence in someone to go it alone . . . . nor give them the necessary resources to do so. Not all good SalesPeople will make good Brokers. Many don't have the patience or ability to attend to the detail associated with running a business.

I was a Broker for nearly 6 years before events caused me to go on my own, as the Company left me (I didn't leave the Company). I've written about it elsewhere. Knowing myself . . . . there probably never would have been an appropriate time to "jump ship" !

I consulted with my broker when I was making the decision to get my license. He was excited and encouraged me. He ended up using me to supervise a few times when he went on vacation. I think he uses it to help recruit other brokers or established agents into the company. I am one of about 8 associate brokers in our company, so I think that says alot to prosective agents. We have a total of about 25-30 agents.

My broker has also encouraged me to get my broker's license. I can't imagine working for someone that would see this as a threat.

In Colorado we are all broker associates. Which means after two years any broker associate can become an independant broker with their own office if they want. But to employ other broker associates they have to take a 24 hour class to become managing brokers. So in Colorado the managing brokers wouldn't be threatened with anyone becoming a broker as we already all are. And there is no reason for a broker associate to become a managing broker unless they planned to start their own company with agents under them. As there cannot be two managing brokers in a company.

At one time before appraisers were licensed separately, a broker license was used for appraisals, so many older associates in this state have a broker's license but work as broker-associates.

I haven't taken on more agents for 8 months. I have so many deals I just don't have time for it.

For example if one agent caps out at 20k in fees a year then for each agent I bring on I would have to spend xx amount of time with them.

Most agents will not hit the 20k cap in fees per say.My average closing is much higher than 20k to me.So between that and my investments I don't have time. I someone wanted a 50/50 split and a meeting once a week online for 30 minutes or so then I might consider it.

Anything else is to time intensive and takes away from my ROI per hour.I wouldn't be threatened about an agent becoming a broker as even if you show them how to do it most can't.

I would be thrilled to have a broker-associate on board. The three classes you take to get your salesperson's license in California are a joke. In my view the extra education really helps make you a better agent--AND it makes you more likely to appreciate 1) how much a headache running a brokerage is, and 2) how much added liability a broker has.

Anecdotally, I know several agents who got their broker's licenses for the sole purpose of being able to tout that additional training as an advantage over other agents, and who would never in a million years want to actually start up their own shops.

As a broker, would I see them as a threat? Not at all. Any licensed salesperson can jump ship at any time as it is.

I would not view him or her as a threat. If anything, I agree that it shows a certain amount of commitment on the agent's part. As long as they are contributing to your business, there is no reason to not keep that person around, or to evaluate him or her any differently. If the person has plans to "cut and run" in an unethical manner, this is out of your control, and is the reason contracts are as detailed and encompassing as they are.

As a broker, I would see this as nothing but a positive. If someone wants to improve their education and experience, that makes them a better agent and a stronger asset to my company.

If that person eventually ventures out on their own, there is nothing you can do about it, and it will happen every so often.

Any broker who sees it as a threat is probably a broker you shouldn't be working with.

The last time I checked the California stats over half of the licensed agents were brokers so most must be working under other brokers who apparently have no problem with it. I myself encouraged agents to acquire broker status. Yes some left, and some came back.

Those that left made it a point to work with us as often as possible, because they knew we were good to work with. I always wished them luck. It was kind of like a child leaving the nest. I did it, why shouldn't they?

With the real estate market the way it is, the total number of licensees in California is shrinking--but the number of licensed salespeople is decreasing at a faster rate than the number of licensed brokers. I think that alone does speak in support of the idea that brokers might be more committed to real estate as a career.

Brian, I checked the current stats, and according to the DRE, only a little over 30% of licensees in California are brokers (147,241 out of 462,809, as of January 2011). I do find the sheer number of licensed brokers to be odd, since the overwhelming majority of agents I deal with are licensed as salespeople. I did just handle a transaction where both the buyer and seller were licensed brokers, but neither of them were practicing...so perhaps there are still plenty of "dormant" brokers out there as well.

You shouldn't see this as a threat. You should take this opportunity to be grateful to have a more educated associate to work with and also be proud of the fact that you are their broker who has helped bring them to this accomplishment in their career.

Andy

Thanks for the update.

As I said last time I checked. I can't even remember the year.

I find the current 30% figure even more interesting. That seems to indicate agents are not pursuing broker status at the level they used to, for whatever their reasons. I know it sure isn't a flood of new agents because of the hot market and easy money.

Wow, 462,809 Licensees in California !

The population of Vermont is barely over 600,000 as of 2010.

I'm not feelin' too lonely; hope they stay over there.

(How come NAR has only 1,300,000 Members ?)

Not to worry...most of us freak out at the first sign of drizzle. Very few of us have any interest in wintering in Nor'Easter country!