Real estate transaction brokers are licensed professionals who can complete real estate transactions. These professionals are licensed by the state. Licensing requirements include completion of formal training and passing an exam.
Real estate transaction brokers are licensed professionals who assist buyers and sellers during a real estate sale. Transaction brokers act only as a mediator and do not represent either party during the sale of a residential or commercial property. They either work for a brokerage firm or manage their own real estate business.
|Required Education||High school diploma or equivalent; some employers prefer postsecondary training|
|Other Requirements||Broker's license|
|Projected Job Growth* (2019-2029)||2% for real estate brokers and sales agents|
|Average Salary* (2020)||$81,630 annually for real estate brokers|
Source: *U.S. Bureau of Labor Statistics (BLS)
The main responsibility of a real estate transaction broker is to help the buyer and seller come to a mutual agreement on the contractual terms during a real estate closing. They accomplish this by informing the parties of all monetary offers, ensuring that both parties agree on the final sale price, verifying ownership of the property by producing a title, and assisting both parties with filling out contracts. During the closing, the transaction broker also discloses any repairs or problems with the property and if the buyer can financially afford to comply with the terms of the sale. At no time during the closing can the transaction broker favor one party over another or negotiate on any aspects of the sale. If both parties agree to the terms of the contract, then the new owners can take possession of the property.
Real estate broker training can include completing either an associate degree or bachelor's degree in real estate through a community college or university. Coursework includes real estate law, business law, finance, and statistics. Brokers interested in opening their own firm usually take additional courses in small business management, bookkeeping, marketing, and advertising. Many brokerage firms also offer on-the-job training programs under the supervision of a licensed broker.
After completion of a degree program, graduates are required to obtain a broker's license from their state's real estate licensing board or commission. Licensure is accomplished by completing a written exam, which covers such areas as real estate transactions and property law. According to the U.S. Bureau of Labor Statistics (BLS), applicants can apply for a license when they have completed 60-90 hours of formal training. Applicants maintain their license by completing Continuing Education Units (CEUs) and renewing their license every one to two years.
Salary Info and Job Outlook
According to the U.S. Bureau of Labor Statistics (BLS), the average annual salary earned by real estate brokers was $81,630 in 2020. Those working for other investment pools and funds earned the most, averaging $106,160 a year in 2020. The BLS projects that the employment of real estate brokers and sales agents will grow by 2% between 2019 and 2029, which is slower than average for growth among all occupations.
Real estate transaction brokers typically require an associate's or bachelor's degree. The growth rate for this profession is expected to be slower than average. These positions have an average annual salary of about $81,630.