The Difference Between a Real Estate Broker and an Agent
If you’re in the market to buy or sell property, you may have come across the terms “real estate agent” and “real estate broker.” While the two are often used interchangeably, they’re not the same thing. In fact, there are significant differences between the two. In this article, we’ll explore the roles of a real estate broker and an agent and highlight what sets them apart.
What is a Real Estate Agent?
A real estate agent is an individual who holds a license to help people buy and sell property. These agents work for real estate brokers or firms and are responsible for finding potential buyers and sellers, showing homes, negotiating deals, and handling paperwork.
A real estate agent has to undergo pre-licensing courses and pass a state real estate exam before receiving their license. They have to work under the supervision of a licensed broker to ensure they’re following ethical and legal standards.
What is a Real Estate Broker?
Like real estate agents, brokers are licensed to help people buy and sell property. However, brokers have more education and training than agents and are responsible for supervising other agents.
Brokers have to take additional courses beyond the pre-licensing courses required for agents. They also need to pass a more challenging real estate exam to achieve their license. This education and training allow brokers to work independently or own their own brokerage firms.
The Main Differences Between a Real Estate Broker and an Agent
While agents and brokers share some similarities in their responsibilities, there are specific differences between the two. Here are some of the primary differences:
- Brokers have more education and training than agents
- Brokers can work independently without supervision, while agents must work under a broker’s supervision
- Brokers can own and operate their own brokerage firms, while agents cannot
- Brokers can hire and manage agents, while agents cannot
Which One Do I Need?
When buying or selling property, both brokers and agents can be helpful to have on your side. However, which one you need will depend on your specific situation. If you’re just starting in the property market and are still learning the ropes, working with an agent may be a better fit.
On the other hand, if you’re an experienced investor and would like more control over the buying or selling process, working with a broker may be the better option.
Conclusion
In summary, real estate brokers are more qualified and have more training and education than agents. They can work independently and own their own brokerage firms. However, agents are also important in the industry, and many people find their services invaluable when buying or selling property. Understanding the difference between the two can help you make an informed decision about which professional to work with for your specific needs.
Table difference between a real estate broker and an agent
| Real Estate Broker | Real Estate Agent |
|---|---|
| A licensed professional who has completed additional education and experience requirements to become a broker. | A licensed professional who has completed the required education and passed the licensing exam to become an agent. |
| Can work independently or hire agents to work under their supervision. | Works under the supervision of a broker and may be part of a larger real estate agency. |
| Can legally perform all duties of a real estate agent, including representing clients in transactions and negotiating deals. | Can legally represent clients in transactions and negotiate deals, but must do so under the supervision of a broker. |
| May have a higher level of knowledge and expertise in real estate, due to additional education and experience requirements. | May have less experience and knowledge than a broker, but still has completed the required education and licensing exam. |
| May have the ability to open their own real estate brokerage firm and hire agents to work under their supervision. | Does not have the ability to open a brokerage firm, but can work as an agent for a brokerage or as an independent agent. |