Unlike other industries, terms used in the real estate industry are often complicated. If you’re familiar with real estate or someone looking to rent, sell or buy a property, you might have heard the terms, brokers, and real estate agents. Though the terms broker and agents are often used interchangeably, they represent distinct real estate professionals. Understanding the key differences between these two terms is essential to navigating the market quickly. Here is a blog about the difference between real estate agents and brokers.

What does a real estate agent do?

A real estate agent facilitates property transactions, encompassing commercial and residential property purchase, rental, and sale. Real estate agents earn their commission or living by catalyzing property deals between buyers and sellers. To become a licensed real estate agent in the US, one should complete the necessary courses and pre-licensing classes.

Classification of real estate agents.

Real estate agents carry out different operations between buyers and sellers. They are involved in the negotiation and processing of agreements. From their client’s end, they prepare, file and submit the required documents to ease the transactions. And based on these criteria, real estate agents have been classified into broadly two categories:

1. Listing Agents

Real estate agents representing the seller’s side are known as listing agents. Listing agents suggest home updates, set listing prices, and help with the local Multiple Listing Service.

2. Buyer’s Agent

Real estate agents representing the buyer’s side are called buyer’s agents. The buyer’s agent finds properties matching the buyer’s wishlist and price range.

What does a broker do?

Meanwhile, a real estate broker is also a real estate agent. But, unlike the latter, the broker owns a license. The broker’s license in the US requires specific education. The license gives brokers the right to start their brokerage and work independently. Simply put, real estate agents work with brokers while brokers hire agents.

Classification of real estate brokers.

Three primary tiers of real estate brokers are responsible for different responsibilities.

1. Associate brokers

Like agents, associate brokers work under another broker. Though they have a broker license, they choose not to supervise agents.

2. Managing brokers

As the name suggests managing brokers manage the transactions involved in property agreements. Besides managing office work, they also hire agents and train new hires.

3. Supervisors

Supervisors real estate agents, also called principal brokers, supervise and guide real estate agents. They also ensure the team complies with state and national real estate laws.

How do you become a broker in the US?

To become a broker in the US, you need to get a broker license first. You can get a broker license after qualifying for the same exam. Here are some criteria you need to meet to appear in the exam.

1. Should have a four-year college degree with a major or minor in real estate and also completed eight college-level real estate courses.
2. If you don’t have a four-year college degree, you can appear in an exam with two years of real estate sales experience and completed eight college-level real estate courses.

How is a broker different from a real estate agent?

One of the primary differences between real estate agents and brokers is that. As mentioned in the above section about associate brokers, a broker can work as a real estate agent. But an agent can never work as a broker without a license. Here is the tabular comparison between a broker and a real estate agent.

Real Estate Agents vs. Brokers: How to Make a right choice?

Are you wondering whom you should choose for your US real estate deals, agent or broker? It would be best if you choose a broker because of their versatile experience and expertise. Besides, the following factors help you compare a broker and a real estate agent to make the right choice.

1. Experience: Brokers generally have more experience and expertise in the real estate industry. Besides, they have completed and qualified for the broker license making them a more suitable choice.
2. Services: While real estate agents can only work as listing or buyer’s agents at a time, brokers can provide various services. They perform versatile roles like conducting market research, hiring and training agents, and offering investment advice.
3. Skill set: Typically, brokers are better skilled in their field. Also, they are better at negotiation and can provide comprehensive assistance. Besides, they have the authority to represent both buyers and sellers in real estate transactions. Thus, if you choose brokers, you enjoy a broader representation scope and don’t require specialized experts for different tasks.
4. Cost factor: Cost is another factor you should consider before making a choice. Usually, brokers demand a higher fee or commission because of their expertise and additional qualifications. Simply put, if your concern is the project’s budget, you may choose an agent as it will be more cost-efficient.
5. The complexity of the matter: You can choose a real estate agent if you have simple transactions and agreements like straightforward residential deals. But you should select a broker to hire someone for complex real estate transactions or investment options. Since brokers are experienced in the field, they are more trained in the technical and legal aspects of the matter.
6. Personal compatibility: Another factor you should consider while choosing between a broker and an agent is your compatibility and comfort zone. Always select the real estate professional who understands your point of view and mindset.

A way forward

Understanding the fundamental differences between real estate professionals is essential to navigating the industry. Besides, understanding the terms helps you realize industry experts’ roles. In conclusion, both real estate agents and brokers are the industry’s professionals. Brokers are more experienced and can work as real estate agents. On the other hand, real estate agents can only work as brokers if they have a broker license. While choosing between the two, you should compare their qualifications, portfolio, and pricing to make the right decision. Only a real estate professional can help you to unlock the full potential of a real estate deal. Thus, never hesitate to ask for expert help to maximize your profits.