Broker vs. agent vs. Realtor: What’s the difference?

Buying or selling a home is a significant financial transaction, and having the right real estate professional by your side can make all the difference. With various types of real estate professionals available, it’s essential to understand who you need for your specific situation.

Real Estate Agent vs. Broker vs. Realtor

Real Estate Agent: A real estate agent is a licensed professional who assists clients in buying or selling properties. They work under a real estate broker and are compensated through commissions. There are two main types of agents:

• Buyer’s Agent: Helps individuals looking to purchase a home by finding suitable properties, guiding them through tours, and assisting in preparing and submitting offers.
• Listing Agent (Seller’s Agent): Aids those looking to sell their homes by pricing them appropriately, listing them on MLS databases, marketing to potential buyers, and negotiating offers.

Before starting their career, agents must undergo pre-license training and pass a licensing exam specific to their state.

Real Estate Broker:

Brokers own and manage real estate brokerages or agencies. They facilitate transactions, manage agents, and often hold additional qualifications beyond those required for agents. Types of brokers include:

• Broker Associate: Works as an agent but has the training and licensure to broker real estate transactions, potentially increasing their commissions.
• Designated Broker: Owns or manages real estate firms, hiring agents and helping them resolve client issues. They may also provide training materials to enhance their agents’ skills.
• Broker of Record: Oversees activities performed by the firm’s agents and employees, ensuring compliance with real estate laws, accurate record-keeping, and proper handling of trust and escrow accounts.
• Managing Broker: Supervises day-to-day operations, mentors agents, and ensures legal compliance while overseeing marketing and listing activities.

Becoming a licensed broker involves more rigorous training and exams compared to becoming an agent.

Realtor:

A Realtor can be either an agent or a broker who is a member of the National Association of Realtors (NAR), an industry trade organization. Being a Realtor signifies a commitment to NAR’s code of ethics. However, it’s important to note that all licensed agents and brokers, whether they are Realtors or not, must adhere to state standards.

Making Your Choice

Ultimately, your decision on whether to work with a real estate agent, broker, or Realtor should be based on the services you require and the level of experience you seek. It’s crucial not to make assumptions about experience levels. Some agents may have years of experience but chose not to become brokers, while some brokers may be relatively new to the field.

When making your decision, consider interviewing multiple candidates and asking for testimonials from past clients to assess their track record. Choose the professional with whom you feel the strongest connection and who best aligns with your specific needs.