Are you thinking of investing in real estate or planning to sell your property? Or are you getting ready to enter the sector as a professional yourself? Regardless, knowing the difference between a real estate agent and a real estate broker is key to getting a better idea of the roles of different professionals in this sector.
While both are licensed and often thought to be the same, their qualifications differ, and therefore, their role responsibilities are also different.
Stick with us as we highlight all the differences between a real estate agent and a real estate broker.
Real Estate Agent and Real Estate Broker: What’s the Difference?
The real estate agent and broker both have their licenses to assist clients in the purchasing or selling of property. However, a real estate agent acts on behalf of the seller or the buyer. They deal with their clients one-on-one. In fact, a real estate agent is the connecting link between buyers and sellers.
Real estate agents earn commissions through real estate transactions and are employed by a brokerage.
The real estate broker does the same thing as an agent except a broker has much more of an independent role and instead has other agents working under them. They receive commissions from the sales their agents make as well.
Real estate agents usually have to undergo a licensing exam and then go on to join a brokerage. Their position is much more basic while a real estate broker is a lot more experienced and usually establishes their own brokerage where they can form a team of agents that they offer training to.
This team of agents depends on the brokerage for skill-building as well as guidance while the brokerage can then receive commission for their sales.
Types of Real Estate Agents and Real Estate Brokers
Let’s find out all the types of real estate agents and brokers to better understand their responsibilities.
Types of Real Estate Agents
Seller’s agents are one type who are at times also called Listing agents as they act on behalf of the seller. Their responsibilities are also designed to accommodate the home sellers, which include property pricing, inspection, suggestions for the improvement of the property, leading the negotiations, and more.
The second type includes the Buyer’s agents who, as the name suggests, act on the buyer’s behalf. These types of agents cater to the buyer’s every need to ensure they make a worthwhile investment. This includes helping them hunt for the perfect home, putting in an offer, connecting the clients with other professionals when needed, and aiding in tackling any problem that may arise.
The third type is a Dual agent who assists clients by performing both of the roles mentioned above. They work with both the seller and the buyer and act as a mediator between both parties. Their job is to oversee the transaction, make sure no paperwork is missing, and close the sale.
Types of Real Estate Brokers
The first type includes Associate brokers who work under a brokerage and assist in its routine tasks.
The second type is Managing brokers whose job is to ensure the smooth running of the brokerage as they handle everything from onboarding and training new agents to even supervising their performance.
Lastly, the Principal/designated broker is the third type, and they are at the top of the brokerage firm. They have a plethora of crucial responsibilities and enjoy more authority than anyone else at the firm. Their job is to make sure that all transactions are transparent and in line with the local laws so there are no issues of legality later on.
Wrapping It Up
The distinction between a real estate agent and a real estate broker primarily depends on their responsibilities. Once real estate agents gain experience, they can then move on to train and qualify to work as brokers by acquiring their licenses.
Compared to agents, real estate brokers don’t just have more experience, but they also benefit from having a higher level of authority and flexibility and the potential to earn a much higher income.
We hope our blog helped you better understand the vital responsibilities of both professionals in the property sector.
