What Is A Broker In Real Estate? (Types, Duties And Salary)

Updated 20 March 2023

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The real estate industry offers many career opportunities in property management, buying and selling of homes, mortgage banking and land development. As a real estate professional, you have the freedom to choose from multiple career paths and job titles, such as listing agent, real estate broker and real estate agent. If you want to pursue a career as a real estate broker, you can benefit from knowing more about the unique requirements and benefits of this profession. In this article, we answer, 'What is a broker in real estate?' and explore the types, duties, salaries and skills of these professionals.

What is a broker in real estate?

The answer to the question, 'What is a broker in real estate?', is that they are licensed professionals with expertise in helping clients with real estate transactions. Real estate brokers can provide assistance in selling, buying or transferring a property. They can work individually or for a real estate firm.

Real estate brokers often supervise a team of other real estate professionals and help them write, edit and submit property contracts and purchase offers. They work to ensure all their clients have a positive buying or selling experience and that they receive quality customer service. Real estate brokers use their knowledge of the real estate industry to assist clients with paperwork, decision-making and legal compliance.

What are the responsibilities of a real estate broker?

A broker has an important role in the real estate industry, which includes monitoring paperwork approval and managing compliance, lead generation and new agent training. They take care of the overall health of the brokerage and its agents. Here are some duties and responsibilities of a real estate broker:

Analysing client's requirements

Real estate brokers analyse their client's requirements so that they can answer their questions accurately. This also allows them to suggest the right locality and property for the right client depending on the client's individual requirements. Real estate brokers keep themselves up to date with the latest market trends and norms, which help them provide relevant data according to client requests.

Monitoring sites

Visiting sites and coordinating with the onsite team are also important responsibilities of real estate brokers. They suggest the right sites to the clients and arrange site visits. Real estate brokers also provide clients with all the necessary information about the location and site measurements.

Negotiating deals

Real estate brokers are responsible for offering sales and negotiating prices with clients. After the finalisation of the property, real estate brokers bring both parties together and help them negotiate the transaction terms. It is their responsibility to provide complete assistance and guidance to their client from the beginning to the closing of the deal.

Preparing documentation

After finalising the deal, it is the responsibility of the broker to complete the necessary paperwork for the transaction. Preparing legal documents may require the brokers to have expert knowledge of the state and central laws, tax rules, home loan application procedures and registration fees. Brokers usually charge a fee for the documentation work.

Types of brokers in the real estate industry

Here are the different types of brokers in the real estate industry:

Listing agent

Real estate agents who represent the sellers are called listing agents or seller's agents. A listing agent can be both a real estate agent and a real estate broker. Their job is to do marketing of the property to generate the maximum selling price possible. A listing agent can accept a small fixed fee for the entire process of selling the property.

They can also work as a dual agent. Listing agents can serve as the seller's marketing expert during the selling process. They handle the advertising of the property and reach out to potential customers. Listing agents are experts in market analysis and networking.

Buyer's agent

Real estate agents who specialise in searching for properties and recommend the appropriate ones depending on the preferences of their clients are known as buyer's agents. A buyer's agent evaluates the property on behalf of their clients and does negotiations or bidding at the auctions. Their client can be both someone who invests in property more frequently or someone who is buying a home for the first time.

They also collect details such as the number of bedrooms, transportation facilities, nearby schools and hospitals and other amenities. After gathering this information, they use them to narrow down their search for the property that fits the requirements of clients. Buyer's agents analyse the kind of property their clients want to buy and give the options accordingly. Once the client selects a particular property, the buyer's agent negotiates the price with the seller. Then they assist the clients with the legal paperwork and documentation.

Transaction agents

Professionals who offer real estate services to buyers and sellers are known as transaction agents. They can work as a mediator between both parties and assist them in finalising the deal. The main responsibilities of transaction agents include helping the buyer prepare an offer on the property.

They also help the clients in determining a competitive price list for suitable properties. Transaction agents also facilitate buyer and seller communication and write the contract for both parties. From accepting the offer to closing, they oversee the entire transaction process. They assist both parties throughout the transaction without being an advocate for any of them.

Ways to get a real estate broker licence

The registration process for becoming a real estate broker may vary from state to state. Individuals who have expert knowledge of the real estate market can apply for the licence. The licensing fee can be different for individual applicants and real estate firms. The state government or the authority grants the licence to the applicants or the agent within 30 days of the application.

Gaining a licence can allow real estate professionals to create a credible image and offer services to a higher number of clients. There are real estate associations in many districts that work under the legislation of the state government and grant licences to the real estate brokers. Here are the basic documentations essential for getting a real estate broker licence:

income tax return of the past three years
address proof's authenticated copies
particulars of the applicants
copies o f the permanent account number (PAN) card
registration details in any other state

How has RERA changed India's real estate sector?

The Indian real estate market has always been unorganised, but the introduction of RERA in 2016 helped make the sector more organised. RERA is the acronym for Real Estate Regulation and Development Act. According to this act, every state in the country is obliged to have a RERA authority. RERA introduced norms for building and development of real estate where builders are responsible to compensate buyers for failed or stagnant projects. It also helped enhance the transparency in real estate transactions.

RERA also introduced a stage-wise payment system that is beneficial to both sellers and buyers. Here is how the RERA is helping homebuyers:

helps to scrutinise the paperwork and investigate the project
brings transparency for both buyers and investors
helps sellers get adequately compensated

Average salary of a real estate broker

The average salary of a real estate broker is ₹21,834 per month. Your salary as a real estate broker may vary depending on your skills, experience and other factors. Working on your negotiation and networking skills can help you increase your salary. The salary may also vary depending on your location. For example, the average salary of real estate brokers in Hyderabad is ₹29,985 per month, while the average salary of a real estate broker in New Delhi is ₹20,749 per month.

Essential skills to become a real estate professional

Here are the essential skills that can help you become a real estate professional:

Communication skills: Strong communication skills can help real estate professionals develop good relationships with sellers and buyers.
Sales skills: Real estate brokers require sales skills to convince buyers and sell properties at a suitable price.
Analytical skills: Real estate professionals can use their analytical skills to develop effective strategies for presenting offers and negotiating contract terms.
Business skills: With the help of business skills, real estate brokers can effectively manage their own brokerage office.

Salary figures reflect data listed on Indeed Salaries at time of writing. Salaries may vary depending on the hiring organisation and a candidate's experience, academic background and location.