Real estate professionals can have a variety of titles, such as real estate agent and broker. Although people often use those terms interchangeably, and although those professionals provide some of the same services, there are important differences.
Real Estate Agent
A real estate agent can help clients buy, sell and rent properties. Agents facilitate communication and negotiations between the parties and guide them through all the steps required to complete a transaction. Some real estate agents represent sellers, some represent buyers, and some represent both, but generally not in the same transaction.
A listing agent helps a client sell a home. Listing agents can suggest repairs that will help a house sell, give advice on how to stage a property and help the seller figure out a reasonable asking price. A listing agent advertises a property via several channels, negotiates a sale price and makes sure that all the necessary documents are completed correctly and on time.
A buyer’s agent helps a client find a house that meets specific criteria, such as location, size, amenities and price. Buyer’s agents can help with negotiations, an appraisal, a home inspection and documents required for closing.
An individual who wants to become a real estate agent needs to obtain a state license. Specific requirements vary from one state to another.
A real estate agent is paid a commission, which is usually a percentage of a property’s sale price. A real estate agent works for a licensed broker or agency and shares the commission with the broker or agency.
Real Estate Broker
A broker is a real estate agent who has received additional education and obtained a state real estate broker license. Brokers can perform many of the same services that a real estate agent does, but without being supervised by another broker.
A real estate broker can work independently, start a brokerage, and recruit, train and manage real estate agents. Some brokers handle deals directly, while others are more involved in management, recruiting, training and handling administrative aspects of the business
A broker who personally handles a deal receives a commission and doesn’t have to split the earnings with an office the way that a real estate agent does. If a real estate agent who works under a broker closes a deal, the broker gets a portion of the commission.
Should You Work With a Real Estate Agent or a Broker?
A broker may have information on more properties than a real estate agent and may have more flexibility when it comes to fees, but those facts won’t necessarily influence your decision when you’re looking for someone to assist you with a transaction. If you’re interested in buying or selling a house, in most cases, it probably won’t matter whether you work with a real estate agent or a broker.
