Real Estate Broker vs Real Estate Agent: A Full Comparison

Buying or selling a home is a game of a great deal of money. Therefore, having the right real estate agent can help you make a big difference. When discussing professionals, the first two terms that come to mind are real estate broker and real estate agent. If you want to know which kind you need, then learning about real estate broker vs real estate agent is a must.

Brokers and agents possess specific credentials. Although these two titles sound alike, they refer to different licenses and jobs. A real estate agent needs to work under a broker, but the reverse isn’t true.

Aside from that, there are a few other considerable differences between these two. In this article, we aim to enlighten you on all those distinctions. By the end of this read, you will have a much easier time selecting a real estate professional.

What Is a Real Estate Agent?

Real estate agents are licensed representatives who assist their customers in selling or buying homes. A real estate agent must work for a real estate broker, and their compensation typically consists of commissions that they split with the broker. However, some agents may work on a flat-fee basis instead of a commission basis.

To become a real estate agent, aspirants have to complete classes and pass a test in their home state. Before they can work as agents, they have to practice with someone who already has a broker license.

Basically, there are two types of real estate agents:

1. Buyer’s agent: Buyer’s agents help people who want to buy a house. Their services include
a. Helping buyers find good homes in the areas they want
b. Showing them around
c. Helping them make and send in offers to buy a home

2. Listing agent: A listing agent, who is also known as a seller’s agent, helps people who want to resell their homes. Their services include
a. Setting the right price for the home
b. Putting it on the local Multiple Listing Service (MLS), a list of homes for sale
c. Advertising it to potential buyers through things like staging and open houses
d. Helping the homeowners negotiate offers

What Is a Real Estate Broker?

A real estate broker is someone who owns and runs real estate brokerages. These farms are sometimes called agencies. For real estate deals and managing real estate agents, these firms work with a title company and others.

To become a broker, aspirants need to take classes and pass a licensing exam, similar to real estate agents. Broker exams are usually harder than agent exams. Besides, they require more coursework. Due to more in-depth training, brokers are able to work alone more and oversee a team of real estate agents.

It’s worth mentioning that not all brokers are licensed real estate agents, but a lot of them are.

There are different types of real estate brokers. The following are examples of popular titles and what they signify:

Broker Associate

Broker associates are trained and licensed to handle real estate transactions. However, they also work as real estate agents most of the time. Real estate agents often take this first step to move up in their real estate career path. That’s because it can help them make more money by letting them handle their own transactions.

Designated Broker

Designated brokers usually run or own real estate companies. For buying and selling homes, they hire real estate agents and help those agents solve problems with clients. Additionally, they may create and provide training materials to help their agents learn skills. These enable the agents to make more sales.

Broker of Record

Different states have different rules about what brokers of record are supposed to do. In general, though, they are in charge of what agents and other employees (like office staff) do for the company. This entails-

Ensuring that every worker abides by real estate laws
Maintaining correct documentation
Overseeing escrow and trust accounts
Checking documentation
Allocating commissions

Managing Broker

Like brokers of record, managing brokers are in charge of running a real estate firm on a daily basis. They often teach and guide real estate agents and keep an eye on how homes are marketed and listed. Managing brokers also make sure that

The firm follows all state laws
All interactions and transactions with clients are properly recorded

Real Estate Broker vs Real Estate Agent: Key Differences

In a broad sense, a real estate agent and a real estate broker work in the same field but at different levels. While they both pertain to licensed real estate professionals, there are key differences to be aware of. Both job titles make it easy to facilitate real estate transactions. However, agents need to be supervised in order to do their job. Brokers don’t need that.

Here’s a table highlighting the main differences between a real estate broker and a real estate agent:

Aspect	Real Estate Broker	Real Estate Agent
Licensing	Must have a real estate license and additional certification; may require more classwork and a tougher exam.	Must have a state-issued real estate license to legally work; requirements vary by state.
Responsibilities	Can perform all the duties of an agent, oversee transactions, and manage agents.	Assist clients in buying or selling properties; work under the supervision of a broker.
Ownership	Can own a real estate firm or work independently.	Must work under a broker and cannot own a firm.
Supervision	Can supervise and guide agents; responsible for brokerage and agents.	Does not have supervisory responsibilities over other agents.

Which Should You Work With?

You can get super professional help from either a real estate broker or a licensed real estate agent. Which one you choose may depend on the services you need and how much real estate experience you want. You will usually work with a real estate agent or broker associate when you buy or sell a home.

That being said, do not assume anything about experience. Some agents may have been in the business for a long time but chose not to become brokers. In the same way, some brokers may only have been in the business for a few years. As a way to figure out who to work with, it might be smart to ask for references from past clients.

Conclusion

A real estate agent and broker might sound like two sides of a coin. However, that’s not always true. A real estate agent represents buyers or sellers in property transactions. To become a real estate agent, one must complete classes and pass a state exam. Moreover, there are different types of agents, including buyers and listing agents. Agents work under a real estate broker.

Conversely, real estate brokers can own firms and manage agents. To become a real estate broker, additional coursework and a tougher exam are required. The key difference between an agent and a broker lies in their level of supervision and ownership capabilities.

However, for a more comprehensive experience, it’s always preferable to go to a dedicated real estate company instead of singling out professionals. If you are looking for such a service near Lake Minnetonka, Excelsior Realty is ready to help. We provide a variety of real estate services, such as buying, selling, and investing. Contact us today to experience the difference.

Real Estate Broker vs Real Estate Agent: What’s the Difference?