Real Estate Agent vs. Broker – What’s the Difference?

What is a broker?

What is a real estate broker?

What do real estate brokers do?

What is a realtor?

What does a real estate agent do?

What is a real estate agency?

What’s the difference between real estate agent and broker?

Who makes more real estate broker or agent?

Does a real estate agent need a broker?

What is an agent vs broker?

Can you sell a house without a broker?

Can a broker sell his own house?

What is a broker?

A broker is essentially an intermediary in exchanges. They can either be a part of a company, as a broker agency, or they can be acting out as an independent brokerage agent. In a way, a broker is there to make sure that both parties in an exchange are treated fairly and are receiving the assistance that they require for the closing of the deal. 

What is a real estate broker?

A real estate broker is normally an agent who pursued their real estate education further and received a real estate broker license from their state. This licensing allows them to work as independent brokerage agents that can assist throughout the sale of a property. 

What do real estate brokers do?

A real estate broker can carry out many of the same tasks that agents carry out. This means that brokers can assist buyers with finding them a property, help them in the offers and negotiations process and assist in the closing of the deal. For sellers, a broker will also be able to advise on the correct pricing for the house based on the market value and will assist in the preparation of the listing and in showing the property to potential buyers. Apart from these tasks, the job of a real estate broker will vary depending on the position that they hold. The three most common positions for real estate brokers are the following. 

1. Associate broker

A broker associate normally works under a broker agency and is not in a position to supervise other real estate agents. Their tasks are normally limited to the ones outlined above, this is because while they are licensed brokers, they are still working a fairly entry-level position within the real estate firm that they are employed in. 

2. Managing broker

A managing broker, by contrast to a broker associate, is responsible for the operations of the real estate firm. Not only are they in a position to oversee the transaction, but they are able to manage other real estate agents and to hire and fire people accordingly. 

3. Principal/ designated broker

The principal/ designated broker is normally a broker that is there to supervise the tasks carried out by broker associates and other real estate agents. Normally, every real estate firm will have at least one designated broker that is responsible for ensuring that all the business carried out by the firm is following the laws on both a state and a national level. 

What is a realtor?

A realtor is an individual that usually works within a real estate firm and is licensed to assist with the sale, the purchase, and the renting out of a property. A realtor must be a member of the National Association of Realtors and can either be a real estate agent or a real estate broker. 

Realtors are required to abide by the association’s code of ethics. 

What does a real estate agent do?

The tasks carried out by the real estate buyer’s agent are usually different than the tasks carried out by the seller’s real estate agent. Therefore, to look at what a real estate agent does we need to differentiate between those two types of agents in real estate. 

Real Estate Buyers Agent Responsibilities: 

• Responsible for transactions: These transactions include both sale transactions and rental agreements
• Responsible for presenting offers and counteroffers to the two parties
• Guides buyers through acquiring the necessary paperwork for the sale
• Guides buyers through the tasks that need completion for the sale of a property: These could include home inspections, setting up dates for the closing of the deal, and setting the moving dates

Sellers Real Estate Agent often referred to as Listing agents, responsibilities:

• Help with setting up the listing for the house
• Advises seller on the market and what the selling price for their home should be
• Suggests renovations that will help increase the home’s value
• Assistance with staging the home
• Markets the property, arranges open house events, and uses multiple listing services
• Part of the offer and counteroffer, negotiations procedure
• Arranges for the closing of the deal, handles paperwork and fees
• Submits and files any documentation necessary 

What is a real estate agency?

A real estate agency is a firm that has under its employment licensed brokers and licensed real estate agents. Everyone in the firm can work in the world of real estate and they are in a position to represent both sellers and buyers in the property purchases or sales. In most states, real estate agencies are normally founded by a real estate broker, as brokers are the only ones who have the qualifications to hire other real estate agents. This is because as brokers they have gone through more specialized training and education and have thus acquired the necessary licensing that allows them to supervise other real estate agents. 

What’s the difference between real estate agent and broker?

The difference between a real estate agent and a real estate broker is mainly the license that the two hold. While both are licensed professionals and can be employed in real estate, a broker has pursued further education and licensing. This extra licensing means that they can conduct business independently outside of a real estate firm. If they so wish they are also able to create a real estate firm or to hire and supervise other real estate agents. By contrast, real estate agents are unable to work independently and under most state laws they are required to work under the supervision of a real estate broker. 

Who makes more real estate broker or agent?

The amount that any real estate agent or any real estate broker will make will depend on a number of factors, including the position they hold. Still, in most cases as real estate agents are not able to work independently or to hire other real estate agents to work with them, they are usually making less money annually than brokers do. In general, the median annual salary of a broker is more than twice the amount than the salary of a real estate agent. Depending on the position that disparity could become even higher if the broker is running their own brokerage or real estate firm. 

Does a real estate agent need a broker?

A real estate agent is required by law in most states to work under the supervision of a real estate broker or a real estate firm. In that regard, a real estate agent is entirely dependent on the existence of a broker with whom they can associate. However, outside of the legal requirement for supervision, a real estate agent is in most cases able to handle all of the required work for the sale, purchase, or renting of a property. 

What is an agent vs broker?

A real estate broker is a licensed professional that pursued further education and broker licensing. This specialized licensing allows them to work independently and to carry out all broker negotiations and real estate transactions deemed necessary for the sale, purchase, or renting out of a property. What’s more, brokers can establish their own real estate firms and they can supervise other real estate agents. 

Tasks that can be carried out by brokers: 

• Listing of properties
• Assistance to buyers looking for properties
• Negotiations, offers, and counteroffers
• Preparation of Paperwork
• Preparation of marketing material for the sale of a property
• Arrangement of real estate transactions
• Supervision of other real estate agents
• Supervision of the daily operations of a real estate firm

Real Estate agents are licensed professionals that have not undergone the necessary training to be able to receive and qualify for a broker’s license. While real estate agents can assist both buyers and sellers with the necessary transactions, they need to do so under the supervision of a real estate broker. This means that real estate agents depend on brokers to find employment in their chosen field. 

 Tasks that can be undertaken by a real estate agent under the supervision of a real estate broker:

• Preparation of listings for sellers
• Finding properties for buyers
• Paperwork preparation
• Handling of offers, counteroffers, and negotiations
• Arrangement of transactions relating to the sale, purchase, or rental agreement for a house
• Marketing of the property, open houses, arranging house viewings

Can you sell a house without a broker?

It is possible to sell a house without a broker. In fact, sales of houses put up by owners are known as, for sale by owner (FSBO) sales. Selling without a real estate broker means that the owner is responsible for arranging all the paperwork for the house. What’s more, they will need to stage the house, take photos of the house for a listing, market it and arrange viewings with potential buyers. Sellers trying to sell a property on their own will also need to complete the entire negotiations process on their own, meaning that they will are solely responsible for replying to offers and sending out counteroffers. While these are all aspects of the sale that the owner can handle on their own, an owner is not able to close on the deal or draw up the contracts without a real estate lawyer or broker. Oftentimes, a real estate buyer’s agent may be able to assist in those closing steps of finalizing the sale of a property, but even in those cases, the costs for drawing up the paperwork fall completely with the owner. 

Responsibilities of the owner if they are selling independently: 

• Listing the property
• Arranging for the house staging and photography of the home
• Gathering all the required paperwork for the sale
• Arranging viewings for potential buyers
• Negotiating the sale
• Arranging and paying for a lawyer or agent to draw up the closing paperwork

Can a broker sell his own house?

In most states, there is no legislation that forbids a broker from selling their own house. This means that real estate brokers are completely capable of arranging every part of the sale, including drawing up the closing documentation for the house that they are selling on their own. Especially because brokers can be real estate brokers and do not need to be a part of a real estate firm, the possibility of them arranging the sale of their house on their own is quite large as there are no legal limitations that could potentially stop them from making the final arrangements and selling their house. The one caveat to all of this is that according to the code of ethics of the National Association of Realtors, which is a code that all realtors who are members of the association must abide by, they will need to disclose to potential buyers that they are the owners of the house that they are trying to sell. 

Arranging the sale of a property can oftentimes require professional assistance from a broker or a real estate agent. While both may appear to be able to carry out similar tasks the reality is that real estate brokers have undergone more training and have received extra licensing that allows them to work independently, by contrast, real estate agents need the supervision of a broker. As a buyer or a seller, this may not have a direct effect on you, but it is always something to consider when checking if the professional that you are employing is licensed to complete the job necessary.