Yes, in most states you can’t become a broker without first being a licensed real estate agent. A few states offer limited exceptions for attorneys or experienced professionals, but agent experience is typically required before you can qualify for a broker license.
In this guide, we’ll break down exactly what it takes to become a broker, where agent experience is required (and where it’s not), and the risks that come with bypassing that stage.
Here’s what you’ll find:
- What qualifies you as a broker, state by state
- Whether it’s realistic (or wise) to bypass being an agent
- What daily life as a broker actually looks like
- How much money brokers make, and what it costs to get there
- Step-by-step actions if you’re ready to make the leap
If your goal is to own your business, cut the overhead, and skip the fluff, this guide is for you. Let’s get into it.
Agent vs. Broker: What’s the Difference, Really?
Real estate job titles can blur together, especially if you’re new to the industry or come from a different business background. Let’s make it clear:
- A real estate agent is licensed to help clients buy and sell property, but they must operate under a licensed broker. They can’t work independently or manage other agents.
- A real estate broker holds a higher-level license and can operate solo. They can also supervise agents, manage compliance, and open their own brokerage. But here’s where the confusion often starts.
Not All Brokers Manage Teams
Earning a broker license doesn’t automatically make you the boss of a big firm. Many brokers operate independently or as “associate brokers”, licensed brokers who still work under another brokerage.
At the top of the hierarchy, managing and principal brokers take on legal oversight, recruit agents, and handle the brokerage’s compliance. That’s where the real responsibility, and liability, comes in.
Quick Breakdown:
| Role | Can Work Independently? | Can Manage Agents? | Required Experience |
| Real Estate Agent | No | No | 0–0.5 years |
| Associate Broker | Yes | No | 1–3 years (varies by state) |
| Managing Broker | Yes | Yes | 2–5 years (typical) |
This distinction matters if you’re deciding how to structure your real estate career, or whether you’re ready to step into a broker role.
Can You Become a Broker Without Being an Agent First?
This is one of the most searched, and misunderstood, questions in the licensing process. The short answer? Usually not. But let’s unpack it.
What Most States Require
- 1 to 3 years of active experience as a licensed real estate agent
- Proof of transactions or logged deals under a sponsoring broker
- Completion of a broker-specific education program
- A passing score on your state’s broker exam
States like Florida, California, and Texas don’t make exceptions here. Without verified agent experience, you won’t even be allowed to register for the exam.
And that experience gives you the reps you need to handle negotiations, contracts, and client issues with confidence.
Rare Exceptions That Exist
There are some outliers. If you’re a licensed attorney in states like Missouri, you might qualify to take the broker exam directly. Similarly, some states offer accelerated paths for professionals with appraisal or property management experience.
But even in these cases, the learning curve is steep. You’re jumping into the deep end without the benefit of hands-on deal exposure.
Also worth noting: Some people become licensed just to handle their own investment deals or access the MLS. In most cases, they still get an agent license first, not a broker’s.
What Qualifies You to Become a Broker?
Every state sets its own rules, but most follow a similar path. Here’s what typically qualifies someone for broker licensure:
- A valid real estate license in your state
- 1–3 years of experience working as an agent
- A minimum number of closed transactions (varies by state)
- Completion of 60 to 150 hours of broker-specific pre-licensing education
- A passing score on the broker exam, which often includes legal, financial, and management scenarios
- Fingerprinting and a background check, especially in states with stricter compliance
If you’re planning to operate across multiple states, keep in mind that licensure requirements don’t always transfer seamlessly. Always check with your state’s real estate commission.
Pros and Cons of Skipping the Agent Experience
Skipping the agent step may sound like a shortcut, but it’s not a decision to take lightly.
Why Some People Want to Skip It
- You only want to handle your own deals or manage your investments
- You’re aiming to open your own brokerage and recruit a team
- You want to avoid commission splits and keep full control
- You’re primarily seeking MLS access for your own portfolio
For highly motivated professionals, especially those with legal or business backgrounds, this may sound logical. But there are serious risks.
The Real Risks of Skipping Experience
- Without real transaction experience, you lack the context to handle client issues, legal disputes, or audit triggers
- As a broker, you take on full legal liability for every transaction, yours and your agents’
- Recruiting experienced agents is tough when you haven’t closed deals yourself
- Perhaps most concerning: You may not even realize what you don’t know
We’ve seen new brokers who passed the exam but froze when a deal went sideways. No amount of coursework substitutes for the pressure of a real negotiation, or the fallout of a contract mistake.
If you’re serious about being the go-to expert in your market, experience matters.
What Do Brokers Actually Do All Day?
The broker title might sound like a graduation cap on your real estate career, but it comes with daily responsibilities that go far beyond closing deals. Depending on your setup, whether you’re solo or managing a team, your day-to-day could vary drastically.
Core Responsibilities of a Broker
- Overseeing Transactions: Every contract, disclosure, and escrow activity needs to meet state compliance. You’re responsible for making sure nothing slips through the cracks.
- Managing Risk and Liability: If you’re the managing broker, your name is on every transaction. That includes handling disputes, legal issues, and regulatory inquiries.
- Agent Supervision: If you operate a team or brokerage, you’re legally accountable for training, supporting, and auditing the work of your agents.
- Maintaining Your License: That means staying current on continuing education, keeping E&O insurance active, and responding to any state audits or complaints.
- Business Infrastructure: From trust accounts to transaction software, the systems fall on your shoulders.
Yes, brokers make more per transaction. But with that comes compliance oversight, conflict resolution, and often, more late-night texts when things go wrong.
How Much Can You Make as a Broker?
There’s no ceiling on broker income, but there’s also no floor. Your earnings depend almost entirely on how you build your business and the model you choose to operate under.
Income Models for Brokers
- Solo Broker: If you do your own deals, you keep 100% of the commission. Your revenue is tied directly to your production.
- Team Leader: Leading a brokerage or team means earning override commissions or splits from your agents, but also requires infrastructure, training, and recruiting.
- Referral-Only Broker: A leaner model. You send referrals and collect commission cuts without managing agents or handling deals yourself. It’s low-volume, low-overhead, and fully legal in most states.
- Investor-Broker Hybrid: Some get licensed purely to manage their own flips or rental deals, keeping margins in-house.
Overhead to Consider
Even without an office, brokers carry costs:
- E&O insurance
- Licensing renewals
- Transaction tools
- Legal setup (LLC, contracts, compliance systems)
Should You Start a Brokerage?
The dream of “being your own boss” can quickly turn into compliance forms, recruiting headaches, and six-hour Zoom calls with escrow officers, unless you choose the right model.
Starting from scratch can be rewarding, but it’s not simple. You’ll need:
- A registered business (LLC or corporation)
- Active broker license and E&O insurance
- Transaction software, checklists, and auditing systems
- Agent recruiting, training, and supervision protocols
It’s all doable, but it takes time, capital, and a steep learning curve.
And if you’re skipping the agent phase? Expect to hit even more friction when trying to onboard experienced professionals who’ve never seen you close a deal.
Can You Be a Broker Without Doing Deals?
Absolutely. You don’t need to be out showing homes every weekend to maintain your broker license. In fact, there are several paths where brokers legally operate without closing traditional transactions.
Alternative Broker Roles
- Referral-Only Broker: Legally licensed but only sends referrals to active agents in exchange for a commission cut.
- Compliance Broker: Handles back-office compliance, document review, and risk management, especially in larger brokerages.
- Broker-Owner (Hands-Off): Hires agents or associate brokers to do the selling while focusing on strategy and operations.
And then there are the hybrid professionals.
Many Realty Hub brokers maintain their license purely for personal deals, investment flips, or passive income opportunities. They don’t manage agents or recruit a team. They just stay licensed, compliant, and ready to monetize real estate opportunities when they come up.
FAQs About Becoming a Broker Without Agent Experience
- Can I become a broker without working as an agent? Technically yes in rare states, but in most, no. And even where it’s allowed, it’s rarely a good idea without real-world experience.
- Do I need to join the REALTOR® association? Not at all. Many brokerages, including Realty Hub, don’t require it. You can operate legally without the dues and politics.
- What’s the difference between an agent and an associate broker? Associate brokers hold a broker license but work under another broker’s supervision. They can’t run a brokerage or manage agents unless elevated to managing broker.
- Is mentorship available if I skip the agent phase? In most cases, no. Brokers are expected to know how to operate independently. If you skip the agent stage, you also skip the learning curve that mentorship often provides.
Should You Try to Bypass Being an Agent?
There’s no one-size-fits-all answer, but there is a smart path forward based on your goals.
- If your aim is to run a brokerage, hire agents, or stay legally protected for investment deals, becoming a broker makes sense.
- If you’re new to real estate or lack transaction experience, becoming an agent first is the better move. The lessons you’ll learn from a few real-world closings are worth more than any textbook.
- If your goal is maximum autonomy without heavy overhead, joining a flat-fee brokerage like Realty Hub gives you the freedom of a broker without the pressure of building a company from scratch.
Step-by-Step Checklist to Become a Broker the Right Way
✅ Get licensed as a real estate agent in your state
✅ Complete 1–3 years of active experience (log your transactions)
✅ Complete broker-specific pre-licensing education (60–150 hours)
✅ Pass your state’s broker licensing exam
✅ Apply for your broker license with your state’s real estate commission
✅ Choose your next move: open a brokerage, join one, or work referral-only
✅ Stay compliant with CE, insurance, and state-specific requirements
At Realty Hub, we’re proof that a lean model can deliver real autonomy without the baggage.
Thinking About Becoming a Broker? Realty Hub Is Built for Your Next Move
So you’ve run the numbers. You’re serious about building autonomy into your real estate career. But starting a traditional brokerage from scratch? Overkill. Staying on a 70/30 split forever? Not happening.
If you’re looking for freedom without the franchise overhead, here’s how Realty Hub can help you take the next step:
- Flat-Fee Simplicity: Keep 100% of your commission with just $100/year and $100 per transaction. No desk fees. No splits. No hidden nonsense.
- Operate Like a Broker Without the Risk: You’ll work independently under our license in Florida, Georgia, or Alabama, with access to the tools, systems, and broker support you need, on your terms.
- Grow Your Real Estate Business, Not Someone Else’s: Whether you’re flipping properties, working part-time, or setting up a referral network, Realty Hub gives you the infrastructure to work lean and legally, with no quotas, no meetings, and no micromanagement.
If you’re ready to stop splitting your commission and start operating with full control, it’s time to rethink how you broker.