Do you ever think that new brokers are under educated, or ill prepared for their new role?
There are some pressing for increased education for Brokers in Utah. Mark Fagergren, the Director of Education and Licensing, proposed that idea in a recent meeting with the Real Estate Commission. He proposed that the state require a New Broker Course, similar in purpose to the New Agent Course currently required of new agents. The New Broker Course would provide additional instruction on trust accounts, how to supervise agents, and other responsibilities that brokers face.
When a new agent begins their career in real estate, the knowledge required about laws, sales, market conditions, financing, and everything else can be intimidating. Many agents come out of school with their heads abuzz with principles and practices and unfamiliar with how to put it all into action. About ten years ago, it was decided that new real estate agents needed some additional education during their first license term to help them remember the important laws about agency, ethics, and accountability. This was put into practice with the New Agent Course.
What about new brokers? Brokers are required to have a certain amount of experience based on transactions that they worked on. They are also required to have three years of experience. However, the role of broker is very distinct from that of agent. In many ways they are the same, because you are representing clients in transactions, but with a distinct difference. As a principle broker, you are now the person directly responsible. You no longer have anybody to go to directly for guidance or assistance when a situation arises that you weren’t prepared for. As a broker, you are the one that the agents will be turning to when those things arise. Is a little experience enough to prepare you for that?
Brokers often become the owner or managing owner of their brokerage as well. There are many facets of operating a business that you don’t learn anything about by selling real estate. Should a broker candidate be educated in business operation, as well as supervising of agents?
What do you think? Do we need to provide better education for brokers?