Would you like to work in real estate? Do you have a sense of service, good negotiation skills and want to help people become the owners of their dream home? What if you became a real estate broker?
What does the profession of a real estate broker consist of?
The broker is a key player in the real estate market. He acts as an intermediary between his clients, buyers and banks, with whom he negotiates the price of the property at the best rate. But not only! A real estate broker is not just a negotiator, he accompanies his clients throughout the entire acquisition process, from preparing a loan application file to obtaining a loan. This is a multi-skill job, which makes it particularly challenging. It is also a responsible job that allows you to demand decent rewards.
What training does it take to become a broker?
To be able to practice their profession, a real estate broker must:
• be authorized as an intermediary in banking and payment services (IOBSP)
• be registered with the Organization of the Register of Intermediaries in Banking and Financial Insurance (ORIAS)
There is no typical path or unique training to become a real estate broker: thus, IOBSP accreditation can be obtained in a variety of ways.
Get a bachelor’s degree + 2 levels
In the case of initial training, a Bac + 2 level diploma in a field related to brokerage (finance, banking, insurance) allows you to obtain an IOBSP qualification: BTS Insurance or Real Estate Professions, DUT Legal Career …
These short courses allow you to practice the broker profession, but they will not be enough to become an independent broker or gain access to positions of responsibility in the firm. To do this, it is better to prefer a diploma at the level Bac + 3 (professional license in the field of banking, insurance or finance) or Bac + 5 (Graduate School of Trade and Management, National School of Insurance, professional master of law, insurance or finance). …)
Get proof of your experience
For people who already have professional experience and do not want to resume their studies, proof of previous experience is a good way to become a real estate broker. You must have significant professional experience in broker-related functions (banking).
Therefore, you must have worked for at least 2 years as an executive director in the 3 years prior to filing an application to register with ORIAS, or at least 4 years as a non-executive director in the last 5 years.
Get professional training
Various vocational training courses delivered by approved institutions (IFIB, IFCM, ENFI) allow you to obtain IOBSP approval. These 150 hour training courses, approved by the Ministry of Economy, are developed by organizations providing training for real estate brokers. By certifying and developing professionalism, they provide the skills needed to complete this versatile profession.
What skills are required to practice as a broker?
The profession of a real estate broker is a complete profession that requires a lot of skills.
Finding and negotiating the best loan offer remains the main business of a real estate broker. Therefore, it is necessary to have excellent commercial skills in order to be able to develop in this profession. This obviously implies good negotiation and communication skills, whether with clients (buyers) or between professionals (banks). Of course, you should feel comfortable writing and speaking.
In the world of work, interpersonal skills are as valuable as know-how. And the brokerage profession is no exception! The broker must be able to listen and reassure his clients who are urging him to complete one of the most important projects in their life. Amounts, emotional involvement and perceived stress are very important, so the broker should take a compassionate and pedagogical approach to their clients, who often apply for a mortgage for the first time in their life.
The brokerage profession is also a very technical profession as mortgages are a complex financial product in an ever changing market. The banking sector is in fact subject to numerous fluctuations, which can be caused by both economic and political context. Therefore, you must be aware of all developments in the sector and be able to advise clients under all circumstances.
What is the structure of the broker?
A real estate broker can practice his profession in different companies.
Within the firm, the broker receives a stable and guaranteed remuneration, management support and access to a solid client portfolio. He can hope for important development, both in terms of reward and in terms of responsibility. This is the best context for a beginner broker.
As an independent real estate broker, takes on all the responsibilities. He then needs to build a good portfolio of clients to ensure a steady income. Less encouraging, however, is that this position generates more revenue than within the firm.
The Freelance Franchisee takes the best of both worlds. As a self-employed person, he can generate significant income. As a franchisee, he can benefit from a large network to support specific tasks (file monitoring, monitoring, administrative tasks). He remains independent while ensuring his activities. For a young broker, this is the best way to learn without taking too much risk.
What is the broker’s reward?
Brokerage fees traditionally come from two sources:
• brokerage fees, which are paid by the client in exchange for the work on setting up and analyzing the file;
• Commissions to business seekers paid by banks upon acceptance of a loan offer.
Brokerage fees tend to disappear today, especially with brokers doing business online. Indeed, the vast majority of digital brokers do not charge their clients brokerage fees. Basically, they are based on a commission of business representatives in the amount of 0.7 to 1% of the funding amount.
Traditional brokers who work for an agency are charged a brokerage fee. They can then be fixed or calculated based on the funding amount. In this way, agent brokers accumulate brokerage fees and commission on business presentation.