Real Estate Agents vs Real Estate Brokers

If you'd like to know the difference between agents and brokers, the following information can help. 

What is a Real Estate Agent?

A real estate agent is an individual who is licensed to help people buy and sell their homes. They can also be known as real estate salespeople. Becoming a real estate agent varies by state as there is no federal license for this field of work. Depending on the state, to become a real estate agent, you may not even need to have graduated high school or obtained a GED. There are classes to be completed then you can begin your search for a sponsorship from a real estate broker.

Real estate agents are responsible for supporting their client through the home buying or selling process. This can involve:

• Showing the home
• Filing paperwork
• Submitting bids
• Walking through the closing process
• Listing the home

What is a Real Estate Broker?

Real estate brokers are similar to real estate agents but they have further education in the field than a real estate agent would have. There are three types of real estate brokers you could work with. 

1. Principal Broker: A principal broker is the big boss. They are in charge of ensuring all real estate agents in their brokerage are obeying all real estate laws. Some principal brokers can receive an annual salary, but a lot of them will receive a percentage of the commission the agents they oversee earn. 

2. Managing Broker: The managing broker is in charge of a lot of tasks. They will be the ones to hire and fire agents within the firm. They will then be in charge of training any agents, as well as administrative employees. They are critical in keeping the daily operations going. 

3. Associate Broker: The associate broker can oversee other agents, but these brokers are usually looking to stay out of supervisory position. They will work under other brokers. They will help in the buying and selling process like showing houses, helping with paperwork, create listings, etc. 

Real estate brokers can perform the same tasks as a real estate agent, but they can also just be the behind the scenes person. Home buyers and sellers oftentimes won't even meet the real estate broker in person. 

So What's the Difference?

The difference between the real estate broker and the real estate agent comes down to the licensing. Real estate brokers take more tests and classes and are, therefore, licensed higher than a real estate agent. The real estate agent will be the one out interacting with the client, while working under a real estate broker. 

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