What to Know About Becoming a Real Estate Broker in North Carolina

What to Know About Becoming a Real Estate Broker in North Carolina

North Carolina has been an increasingly popular place to relocate over the last several years. In the first six months of 2021, more than 112,000 people made this state their home.

As most of us know, the housing market has been incredibly competitive. It’s a market that’s in favor of sellers, causing buyers to be on their toes while looking for the perfect home.

Fortunately for those who are looking to make a career shift into real estate, you couldn’t have picked a better time. Let’s take a look at what it means to become a real estate broker in North Carolina.

1. Know the Difference Between a Broker and an Agent

When people think of a broker, they typically assume a mortgage broker. However, there is a branch of real estate professionals called brokers that play a different role in the industry.

First, a real estate agent is a licensed professional who connects home buyers and sellers. They represent a party to help facilitate the showings and sales. The important thing to know is that a real estate agent will work for a broker.

A broker, on the other hand, has more licensing, education, and a few additional years as an agent under their belt. This allows them to own their own firm and hire agents to work for them. Brokers are responsible for handling the legal, tax, and insurance side of the business.

So if you have no previous experience or professional licensing as a real estate agent, you can’t become a broker. You’ll need to take the first entry-level step first.

2. Process for License and Application

The state of North Carolina requires you to take a 75-hour course. This can be either in person or through an accredited North Carolina Pre-License Broker Course online.

Once the course is complete, you’ll need to pass the final exam. This will allow you to take the next step toward submitting your license application and background check. The criminal record you provide must be no more than 6 months old from your application date.

After you’ve been approved for your license, you’ll have 180 days to schedule your state licensing exam. This is different from the course exam. It includes questions on both a national and state level.

It must be completed in person through a location provided by the PSI website. Once you’ve officially passed your exam, PSI will further look for any character issues they deem unfit for you to become a broker.

If there are no further issues, they’ll mail your official North Carolina brokers license certification within 10 days.

3. Decide on Career Approach

As a broker, you have two options for your career path. You can either get on board with a current brokerage or you can start your own.

Typically those who plan on becoming a broker are looking to start their own business. But before diving in, you really need to think long and hard if you’re ready for this kind of commitment.

As a business owner, you’ll have many more responsibilities including a massive amount of time and beginning expenses. It’ll take time before you can truly start seeing a profit for your business to scale.

This will also require you to develop a strategic business plan. It’ll help you plan out your overall business and financial goals in both the long and short term.

There are many other facets involved with starting your own business including, but not limited to:

• Starting an LLC or Sole-Proprietorship

• Creating a company name

• Developing a branding and marketing strategy

• Hiring and managing employees

• Manage finances and accounting

• Have an office location

So again, before you decide whether or not to start your own firm, think critically about the amount of responsibility it involves to start your own business.

Conclusion

While becoming a real estate broker is not a one-step process, the rewards can easily outweigh the work. Becoming your own boss and making six figures is just the start.

You’ll have financial and personal freedom while helping other individuals find their dream homes. If this sounds like the job for you, dive into a pre-licensing course today.