Whether you’re buying or selling a home, or considering a career in real estate, it’s important to understand the distinctions between real estate agents and brokers. These professionals play a crucial role in the real estate process, but their qualifications, responsibilities, and authority can vary. Here’s what you need to know as you navigate your real estate journey with Avanti Way Financial.
Real Estate Agent vs. Real Estate Broker: What’s the Difference?
The key difference between a real estate agent and a broker is the scope of their responsibilities. While both can help you buy or sell property, brokers have additional duties. Brokers can perform everything an agent does, but they are also responsible for overseeing real estate transactions, ensuring that all legal aspects are handled properly, and managing financial transactions.
What is a Real Estate Agent?
A real estate agent is a licensed professional who assists buyers and sellers in the real estate market. Agents are typically paid on commission and work under the supervision of a brokerage or another agent. If you’re buying or selling a home, your agent will guide you through the process and ensure things run smoothly.
Licensing Requirements for Real Estate Agents
To become a licensed real estate agent, an individual must complete a pre-licensing course, pass an exam, and activate their license by joining a brokerage. Licensing requirements can vary by state, so if you’re moving or relocating, it’s important to check the specifics in your new location.
If you’re looking to narrow down your search, certain certifications can help identify the right agent for your needs, such as:
- Military Relocation Professional (MRP)
- Green Designation for energy-efficient homes
- Senior Real Estate Specialist (SRES)
- Certified Residential Specialist (CRS)
- Accredited Buyer’s Representative (ABR)
What Real Estate Agents Do
Real estate agents provide a range of services to buyers and sellers, including:
- Offering insights on property values, local schools, and neighborhoods
- Connecting sellers with qualified buyers
- Sharing listings via the MLS (Multiple Listing Service)
- Helping buyers get pre-approved for mortgages
- Negotiating repairs or addressing requests from home inspectors or appraisers
- Assisting with paperwork and the closing process
It’s important to know what type of agent you’re working with, as their responsibilities will differ depending on whether you’re buying or selling.
Types of Real Estate Agents
There are several types of agents, each with a specific role:
- Listing Agent (Seller’s Agent): Represents the seller in the sale.
- Buyer’s Agent: Represents the buyer during the transaction.
- Dual Agent: Acts as both the listing and buyer’s agent in the same transaction.
How Real Estate Agents Get Paid
Real estate agents typically earn a commission, which is a percentage of the sale price. This commission is usually paid by the seller, and the buyer’s agent typically shares in the commission.
What is a Real Estate Broker?
A real estate broker is a professional who has passed a broker license exam after gaining experience as an agent. Brokers can do everything an agent does but have the additional ability to manage their own firm, oversee transactions, and ensure that everything is legally compliant.
Some brokers are also attorneys, called real estate attorney-brokers, who specialize in legal aspects of real estate transactions.
Licensing Requirements for Real Estate Brokers
To become a broker, an individual must first work as an agent for a set period, complete broker-level education, and pass a broker exam. Brokers can also hold specialized certifications, such as the Certified Real Estate Brokerage Manager (CRBM) program, which helps them manage real estate firms more effectively.
What Real Estate Brokers Do
Brokers perform the same tasks as agents but also have additional responsibilities, including:
- Managing escrow accounts and overseeing financial transactions
- Mediating legal disputes
- Managing a real estate firm and supervising agents
Types of Real Estate Brokers
There are several types of brokers, depending on their role:
- Principal/Designated Broker: Oversees all operations within a brokerage.
- Managing Broker: Handles daily operations and manages agents.
- Associate Broker: Often works within a larger brokerage to assist with transactions.
How Real Estate Brokers Get Paid
Brokers typically earn money in two ways:
- Through a percentage of the commission earned by agents they sponsor.
- By earning 100% of the commission on deals they personally close.
Brokers usually earn more than agents since they also receive a portion of their agents’ commissions.
Conclusion
Knowing the difference between a real estate agent and a broker is important when you’re navigating the home buying or selling process. Whether you’re looking for expert assistance in your real estate transaction or exploring a career in the industry, understanding the roles of these professionals can help you make informed decisions.
At Avanti Way Financial, we’re here to guide you every step of the way. If you have any questions or need expert advice, feel free to contact us at 888-509-9429. Let us help you make the best choices for your real estate needs.
