<p>Can anyone share with me what the difference is between a real estate salesperson and a real estate broker? Are the exams for each similar? Are the licenses limited by state?</p>
<p>The broker is at a higher level than the salesperson. A salesperson must be supervised by a broker. The exam is harder and many states require some previous experience as a salesperson.</p>
<p>To expand on Barron’s answer, the broker actually holds the license to do business…a salesperson can’t go out and do it on their own…they have to be working under the broker’s umbrella.</p>
<p>My broker exam was actually easier than the sales exam. Perhaps it was having the experience under my belt. We had 25 in the sales class I took (at local CC), 12 passed the exam first time. It is difficult, but I am proof that it can be done. Good luck! </p>
<p>Another thing that folks need to realize. Once you get that sales license, while you are legal to sell, it doesn’t neccessarily mean that you “can” sell RE. The licensure class teaches, law, RE math, and state regulations, but in order to be an effective sales associate, I would also suggest some “sales” training. And a love for sales doesn’t hurt. :)</p>
<p>Ok, I see. Thank you all.</p>
<p>This may be a question that you can’t answer…but I appreciate your thoughts on it. </p>
<p>What if I owned a website where homes were shown for purposes other than sale…but, as an extension of that other business and the visibility of the homes on the site, sales took place. Now, as the owner of the site, I think I could better market the homes for the purpose of sale (maybe creating a portal just for sales)…where I get a very small % of the sale price becuase I facilitated the introduction between buyer and seller…and showcased the homes for the purposes of sale. </p>
<p>Would I need a license? Would I need a broker’s license or a seller’s license? Would a state license work, given that these homes are located all over the world?</p>
<p>Momsdream,
It sounds as if you’re describing your site as an effective marketing tool. But in order to actually step in and “broker” the sale, you would need the broker’s license. At least, that’s how it has been in the eastern states where I’ve lived and bought and sold real estate.</p>
<p>Driver-would I be “brokering” the sale if all i do is link a seller with a prospective buyer…and nothing else? I really don’t want to manage the sale, handle any paperwork, or be involved in any way beyond allowing the seller to use my website. Maybe it would be better/easier for me to just charge an upfront fee for web space.</p>
<p>If you’re simply making advertising web space available for owners who want to handle their own real estate transactions , then I can’t see why you would need any license at all.</p>
<p>“then I can’t see why you would need any license at all.”</p>
<p>I was wondering if I needed a license to legally take a portion of the sale. Either way, I guess I can get around it with the flat fee. Sometimes I just need to work things through in my mind…and with the help I receive here.</p>
<p>Each state has certain requirement. So, you might “represent” a property in NY and sell it to someone in Ohio or England? </p>
<p>Check on line for the real estate assignments in each state. </p>
<p>How does the sale actually transpire? There pretty much needs to be a broker somewhere, because of all the paperwork. That broker (I am guessing) would have some say in the percentage. And, there may be two brokers involved (smartest thing)-one representing buyer and seller-to look over property, get inspections, check on loans and credit…</p>
<p>Just some thoughts…</p>
<p>Godd Luck :)</p>
<p>If it shows up on the closing statement you better have a license. A flat fee upfront fee without regard to an actual sale would be legal in most states I think.</p>
<p>Ok, I think I need to market myself of more like an advertiser…not a broker. Maybe I could link up with an existing broker…and refer clients to her/him…and maybe he/she would cut me in for the referral. But, that’s another step and not what I was trying to do here.</p>
<p>Sounds like you would like to earn a referral fee-- if the site you own was to put a buyer in touch with a seller and result in a sale.</p>
<p>In Calif a referral fee can only be paid to someone who has a license, and whose license is active under the umbrella of a broker. </p>
<p>So, if an agent or other licensee refers a client to me, I pay a percentage of my commission to them as a referral fee. But if a friend refers business to me, I can’t pay them cash; I can only get them a really lavish present (and I do!) On the other hand, maybe you could be paid as an advertiser and have a contractual “bonus” if the sale was to result?</p>
<p>Check with your state dept of RE or a RE agent you know for the rules in your area.</p>
<p>I think you’d be better off and safer to charge a flat listing fee for the advertisement. You would get paid up front, whether or not the property sold - and you could charge extra for additional features (like more photos) for a particular home. You wouldn’t get as much as you potentially could from a referral fee … but you wouldn’t have to worry about legalities, and you wouldn’t have to worry about getting cheated either. I mean - how would you prove that the contact came through you? Many homes are listed via multiple services - real estate and buyers alike tend to check multiple listings. So you’d have a hard time collecting on some of those fees in any case.</p>
<p>Now here is a piece of advice worth its weight in gold: Consult a lawyer about your business plan and to get help with any contracts you plan to use. Yes - it will cost money to talk to the lawyer – but the lawyer can tell you what is legal, and what is not – and in the long run you will be much happier if you have a relationship with an attorney to go to in the event of any problems or disputes.</p>
<p>“but you wouldn’t have to worry about legalities, and you wouldn’t have to worry about getting cheated either. I mean - how would you prove that the contact came through you?”</p>
<p>SBmom and Calmom, thank you both. I’ve given this much thought over the past 24 hrs and have decided that the flat fee is the way to go. As Calmom points out, my concern was about tracking the referrals. The flat fee gives me the flexibility to let me link back to the seller’s site directly…which will reduce my need for bandwidth. I didn’t want to make this too complicated becase it isn’t the focus of the business plan, just a value add, and a way for me to dip my toe into a niche real estate market and learn a little about the business.</p>
<p>Thanks. Your advice was perfect because it validated my conclusion - flat fee and everyone is happy!</p>
<p>Momsdream, I just finished building a CRM database for a client in exactly this business. They have an award winning website, and they charge a significant advertising fee (up front, in advance) to persons to list properties. They also serve as the go-between for buyer and seller; however, once an offer is accepted, it is referred directly to the closing company. No commission is earned - it is not legal in my state for a person who is not a licensed broker to charge a commission on sale of real estate.</p>
<p>Long term, the company plans to add a broker to its staff so that it can actively sell properties (and charge the resultant commissions).</p>