A lot of buyers and sellers use the terms loosely, but there is a difference between the two: one has a real estate license, the other has a broker’s license. Knowing the real estate agent vs broker difference makes it easier to select the right professional for you and can also prevent misunderstandings during a transaction.
Both positions facilitate real estate transactions, but they are not the same in terms of power and duties.
What a Real Estate Agent Does
A real estate agent is a professional licensed to assist with buying, selling, or renting property. Agents interact directly with clients, and they take care of all the day-to-day stuff.
Typical responsibilities include:
- Showing properties
- Marketing listings
- Preparing offers and paperwork
- Communicating with other parties
Agents have to work under a licensed broker. They cannot operate independently.
What a Real Estate Broker Does
A broker has undergone extra education and passed a more rigorous licensing exam. Brokers can be independent or directly manage agents.
Between real estate agent vs broker, brokers have more power. They can:
- Operate as an independent brokerage
- Supervise agents
- Handle trust accounts
- Resolve transaction issues
Still other brokers work directly with clients, much the way agents do.
Education and Licensing Differences
It just takes longer to become a broker. Agents undergo basic training and apply for licensing. Brokers take advanced courses and sign up for practical experience.
This difference affects responsibility. Whoever it is that you are referring to is responsible for actions taken by their agents on their behalf.
Who Should You Hire?
The response to the question is actually based on your situation. Agents and brokers both can deliver excellent service.
Consider working with:
- An agent for straightforward transactions
- Complex deal or special property brokerage
In a lot of cases the experience of the agent is more important than the title.
How Compensation Works
Commission structures are similar. Typically, clients pay a single commission, which is divided up internally.
Difference between real estate agent vs broker:
- Making commissions − Agents split the commission with their brokerage house
- Brokers may retain more, or all of it
This does not generally affect what clients pay.
See also: How to Improve Inventory Management for Small Businesses
Pros and Cons at a Glance
Why it’s no longer a real estate agent vs broker battle:
- Agents provide personal service and availability
- Brokers provide a greater degree of oversight and an increased level of legal accountability
Either can successfully negotiate, advise, and counsel clients.
Final Thoughts
Knowing the real estate agent vs broker difference helps manage expectations. The best choice hinges on experience, aptitude for communication, and trust − not simply the level of licensing.
Select the person who you feel knows what you are looking for and can easily lead you through the process.
