Whats the Difference Between a Real Estate Agent and a Broker?
The real estate industry is filled with a lot of different types of professionals, and theres a lot to consider when choosing the right one for you. Thats why it is important to understand whats the difference between a real estate agent and a broker before you begin looking for an agent to help you buy or sell a home.
The National Association of Realtors (NAR) is the largest trade association in the United States. It is federally registered and all NAR members pledge to uphold its strict code of ethics.
NAR is also the governing body for all real estate agents and brokers. A real estate agent who is a member of NAR typically has more experience than an independent contractor who does not belong to NAR, and they usually earn higher commissions for their services.
There are many different types of real estate agents, and the distinctions between them vary by state. However, the majority of agents work for a brokerage firm and can be either a buyer’s or a seller’s agent.
A buyer’s real estate agent looks for homes matching the criteria of their clients, conducts negotiations, and helps them with all aspects of the purchase process. A listing real estate agent, on the other hand, represents sellers by determining market values of their properties, showing properties, and responding to inquiries from potential buyers. A listing real estate agent is paid by the property seller once they have successfully sold a home.
Associate Real Estate Brokers
Associates are licensed real estate brokers who choose to work under another broker instead of running their own brokerage business. They are often referred to as managing brokers and oversee the daily operations of a real estate brokerage firm.
They also hire new agents and train them to be successful at the job. They are responsible for ensuring all of the legalities of the real estate industry are followed and that the firm is in compliance with all state laws and regulations.
Managing brokers are the CEOs of real estate firms and run every aspect of their companies. They oversee transactions, employee management, marketing, and more.
There are several different license types for real estate brokers, and the qualifications needed to become a broker vary by state. In general, brokers need to pass a separate licensing exam and complete additional courses.
A broker can also choose to open a real estate company and supervise agents, or they can simply work independently as an agent. Some real estate brokers are also able to specialize in particular areas, like property management.
The primary difference between a real estate agent and s broker is that brokers can own their own businesses or manage others, while an agent is usually working under a sponsoring broker who will oversee their day-to-day activities.
While the difference between a real estate agent and broker can be confusing, it’s worth remembering that the terms don’t have an exact legal definition and are usually used interchangeably. The best way to decide between these two professionals is to look at how many listings each has and how much they charge for their services.