According to the National Association of Realtors, more than 100,000 registered real estate agents are licensed to work throughout the United States. These professionals helped sell more than five million preexisting homes in 2020 alone. So if you’re looking for assistance in buying or selling a home, a real estate agent can help.
A common question for home buyers or sellers is the differences between a real estate agent vs. a real estate broker. Continue reading to learn the key differences between these two real estate professionals.
What Is a Real Estate Agent?
Real estate agents must complete specific training, obtain licensing requirements, and pass exams. Licensing and exams will vary by state. Once obtained, these allow a real estate agent to sell, buy, or rent a home on behalf of either home buyers or sellers.
People who have a real estate license must work on behalf of a brokerage. The brokerage supports and supervises the agent. Although some agents can do both, many are split into two unique types of agents.
Buyer’s Real Estate Agents
Buyer’s agents work on behalf of people looking to purchase a new home. Their responsibilities generally include:
- Finding potential homes
- Providing home tours
- Making an offer
- Negotiating contracts
- Making referrals to mortgage lenders and home inspectors
Listing Real Estate Agents
Listing agents work on behalf of people looking to sell their current homes. Their responsibilities generally include:
- Listing properties at an appropriate price
- Finding interested buyers
- Setting up home tours
- Making sure the final contract represents the seller’s wishes
What Is a Real Estate Broker?
Real estate brokers usually need to have at least a few years of experience as a real estate agent working under the supervision of a brokerage. Afterward, they need to complete additional education that includes insurance, taxes, legal issues, ethical issues, and business management. Finally, they must pass additional licensing and exam requirements.
A broker must learn more to work as either a supervisor for other real estate agents or on their own as an independent contractor. Their duties include supervising other agents, negotiating contracts, and serving as an expert on real estate transactions.
Real Estate Agent vs. Real Estate Broker: Breakdown of Key Differences
Real estate brokers must receive additional training, education, and certifications than real estate agents. Additionally, they must pass a separate exam.
Brokers are generally supervisors to other real estate agents. While they don’t always interact directly with buyers or sellers, they help facilitate these purchases and sales.
Now You Understand the Differences Between Real Estate Agents vs. Brokers
Now you understand the key differences between real estate agents vs. real estate brokers. Primarily, a real estate agent must do their work under the supervision of a brokerage. On the other hand, a real estate broker completes additional training and isn’t required to be supervised.
If you still have questions about the differences between real estate agents and brokers, check out our other blogs. You’ll find articles on this and related topics to help you learn more on the matter.