Salesperson, Associate Broker…What’s in a Title?

Does it make a difference what kind of license an agent holds?  It depends on a few factors.

In Virginia, there are 2 primary licensing categories.  Licensing status can be a reasonable indication of experience (but not always), and not necessarily proficiency or expertise.  There are lots of long-time agents out there whose skills are dated and just don’t keep up with expanding their personal knowledge base, technology or the latest best-practices and hold both kinds of licenses, with many years in the business.  Likewise, there are lots of great salespeople who come into real estate with a solid grasp of the skills needed to be a success early in their careers.

SALESPERSON:  Agents that are new to real estate will have a Salesperson title.  Sometimes this will be reflected on a business card, but sometimes not.  Salespersons in Virginia have to pass a 60 hour course among a few other requirements.  Salespersons may be just starting, or have been in the business for many, many years.  For many young Salespersons, their first closing is on someone else’s home.

Fact:  About 80% of agents do not make it to their second year, nationwide.  Most agents don’t grasp the difficulty of running a successful small business, based on a commission-only model.  

ASSOCIATE BROKER:  In Virginia, Broker licensing is the highest level of agent training, and voluntary.  There are two branches of Brokers in Virginia.  The Associate Broker, and the Principal Broker.  Only Brokers who are responsible for an agency have the Pricipal title.  The rest are Associates.  Many agents do not update their license status to Associate Broker.  Additional classroom work (again), expense, time and continual, exclusive practicing for ”at least 40 hours per week during 36 of the last 48 months immediately preceding the date of application.”

In real estate, there is a real boom/bust cycle to the number of agents at any time.  When real estate is hot, more agents come into the business, convinced that they’re the next Donald Trump…likewise, when sales slow down or the economy sours, agents leave the business in droves. 

Have a salesperson vs. a broker-type license doesn’t necessarily indicate more experience…Broker have a minimum of three continuous years of working in real estate within the last 4 years (no part-time jobs), but that may pale compared to seasoned, busy agents that were too busy to upgrade. 

At Nest Realty Group,  all of our agents are requires to hold a broker license.  It’s a higher bar and we’re proud of that.  From our website:

Higher Standards

Our agents…

• Have a minimum of three years, full-time experience as a Realtor
• Work full-time as a Realtor
• Have earned their Broker’s License
• Are actively involved in the local Realtor Association
• Absolutely, positively do not practice dual agency