Understanding the Role of a Real Estate Broker: What They Do and Why It Matters

Both real estate agents and brokers play a critical role in buying, selling, and managing properties. But what are the responsibilities of a real estate broker? Understanding the role of a broker is essential whether you're pursuing a career in real estate or considering upgrading to an Arizona broker license.

This article will help you answer the question, “What does a real estate broker do?” We’ll also discuss the different types of real estate brokers and the key responsibilities of this professional. Finally, we’ll guide you on how to become a real estate broker in Arizona.

Key Takeaways

• Real estate brokers oversee transactions, manage agents, ensure legal compliance, and offer expert guidance in property deals. Agents operate under a broker's supervision.
• Principal brokers manage the entire brokerage, managing brokers handle day-to-day operations, and associate brokers work under a principal without managing others.
• In Arizona, brokers need three years of active real estate experience as an agent before they can become licensed. They must also complete a 90-hour pre-licensing course and pass a broker exam.

What Is a Real Estate Broker?

In Arizona, a real estate broker is a licensed professional who oversees real estate transactions. Real estate agents must have at least three years of active, full-time experience as licensed agents within the last five years before they’re eligible to undergo the broker licensing process.

FAQ: What is the difference between a real estate agent and a broker in Arizona?

Brokers can operate independently, manage other agents, and oversee transactions, while agents must work under the supervision of a broker.

What Does a Real Estate Broker Do?

Real estate brokers perform a variety of tasks. Of course, their responsibilities depend on their specific role and career goals. Here’s a general list of the duties of a real estate broker.

• Oversees and manages real estate transactions
• Supervises real estate agents and ensures they comply with legal and ethical standards
• Assists with negotiations, contracts, and paperwork involved in property deals
• Manages and operates their real estate brokerage or team of agents
• Provides market expertise and guidance to clients for informed decision-making
• Develops and implements marketing strategies to grow the business and attract clients

Some real estate brokers operate independently and earn their broker licenses in order to oversee their own work. In this scenario, a real estate broker performs the same tasks as an agent.

FAQ: Do real estate brokers make more money than agents?

Yes, brokers typically earn more due to their additional responsibilities and ability to manage agents.

Learn how much brokers in Arizona make by downloading this free real estate salary guide.

Types of Real Estate Brokers

There are different categories of real estate brokers, each with specific roles and responsibilities. Here’s a brief overview of the different types.

Principal Broker

A principal broker, also known as the designated broker, is responsible for the entire real estate office. They ensure all agents and transactions comply with local, state, and federal laws.

Managing Broker

Managing brokers oversee the brokerage's day-to-day operations, including training agents, managing contracts, and handling administrative tasks.

Associate Broker

An associate broker holds the same qualifications as a principal broker but doesn’t manage other agents or the business. Instead, they work under a principal broker, handling transactions without the added responsibilities of managing a brokerage.

Key Responsibilities of a Real Estate Broker

Let’s dive deeper into the key responsibilities of real estate brokers in Arizona, keeping in mind that there are different types of broker jobs within the industry.

Supervising real estate agents

Brokers often manage real estate agents, ensuring they adhere to legal and ethical guidelines. Mentorship and oversight are essential functions, as brokers are ultimately responsible for the agents working under them.

Facilitating real estate transactions

Brokers assist in property transactions. They handle negotiations, prepare contracts, and ensure all legal paperwork is complete and accurate.

Marketing

Brokers are responsible for marketing properties for sale – as well as marketing their real estate business. They need to be adept at selling techniques and employ various strategies, including digital marketing, networking, and traditional advertising, to attract clients and close deals.

The Value of Working with a Real Estate Broker

Some real estate agents become brokers in order to attract more business or oversee more complex transactions.

Here’s how to show your value to clients after earning your real estate broker license.

• Brokers have an in-depth understanding of real estate laws and practices. They offer valuable insights and use their knowledge to guide clients through complex transactions.
• Brokers know their local markets. Their experience and knowledge are especially helpful in navigating competitive Arizona markets or unique property deals.
• Real estate brokers are experienced negotiators. They work to ensure their clients receive the best possible terms, whether it’s price negotiations or resolving contract disputes.
• Brokers offer legal and ethical guidance to agents and clients. Brokers ensure that all transactions comply with legal requirements and ethical standards. Their guidance helps protect clients from potential legal issues and ensures that every step of the transaction is transparent and fair.

FAQ: Is it better to work with a real estate broker or an agent?

Working with a broker offers the advantage of their expertise and ability to handle more complex transactions, but both can provide valuable assistance in real estate deals.

How to Become a Real Estate Broker in Arizona

Real estate agents and brokers in Arizona must complete a licensing process. Here’s what you need to know about becoming a real estate broker in AZ.

Step 1: Gain experience as a real estate agent.

To become a real estate broker in Arizona, you must have three years of active real estate experience within the last five years. Do you need to earn your real estate license? Click here to learn the steps to become an agent.

Gaining experience as a real estate agent is crucial. Working as an agent helps you understand the intricacies of real estate transactions and build a network of clients and industry contacts.

Step 2: Complete the broker licensing process for Arizona.

First, enroll in a 90-hour broker pre-licensing course from an approved real estate school. After passing the course exam, you must also pass the Arizona broker license exam, which consists of 195 questions and requires a score of 75% to pass. In addition, you’ll need to complete a background check and attend a Broker Management Clinic.

The licensing process can take as little as two to three months and costs approximately $1,000, but it offers increased earning potential and professional autonomy.

Related Article: How to Become a Real Estate Broker in Arizona

Step 3: Advance your career as a broker.

Opportunities abound once you've gained experience and earned your broker's license. You may choose to open your own brokerage, manage a team of agents, or specialize in a niche market, such as commercial real estate.

Step 4: Maintain your broker license by completing continuing education courses.

In Arizona, real estate brokers must maintain their licenses by completing 30 hours of continuing education every two years.

Becoming a broker is a logical step for those seeking to elevate their real estate career. If you're passionate about real estate and looking for a leadership role, consider pursuing your broker's license and exploring the advanced career opportunities it offers.

Enroll in your broker pre-licensing courses with the Arizona School of Real Estate & Business (ASREB). ASREB offers all the real estate education classes you need to thrive in the Arizona real estate industry.

Become a Broker