There are over three million active real estate licensees in the U.S. as reported by the National Association of Realtors.
However, did you know that not all those licensed can buy or sell a property on your behalf?
Legally, agents and brokers are different licensees in the real estate market. Whether you’re selling a property or starting a career, you need to know what is the difference between a broker and a realtor. We’re here to share the details on how these two roles are distinct.
Continue reading below to figure out whether a broker or agent is the right path for you.
What Is The Difference Between A Broker And A Realtor?
A real estate agent and broker may work in the same industry and with the primary goal of supporting property sales. However, a realtor and broker differ greatly in their ownership and responsibilities.
A real estate agent is anyone who has acquired a real estate license. This license is attached to a brokerage, making an agent dependent on the brokerage to work with clients.
A real estate broker is an agent who has obtained their broker license, meaning they can work autonomously. This individual can build a brokerage with agents working for them, welcoming in a broader clientele.
For example, a property owner looking into Skender-Newton Realty will work through a brokerage. Hiring a real estate agent via a brokerage gives the agent more credibility and builds the agent’s and broker’s portfolio.
How Training And Benefits Differ
Agents work on commission as opposed to a salary, making less than a real estate broker would. Being an agent takes less training and licenses, so this can be a great first step into the market!
Brokers work for a salary plus receive a percentage of agents’ commissions who work under them. There is more licensing and training needed to be a broker, representing a top of the ladder position in the industry.
Real Estate Agent Types
Answering the question of what is a real estate agent means identifying the different types of agents there are. An agent’s focus is working with clients to buy or sell properties, but each type has different responsibilities.
The major types of real estate agents are:
Buyer agent works with homebuyers to help look for properties like the apartments near Charleston, finalize offers, and go on walkthroughs
- The listing agent works with sellers to recommend prices, find buyers, and host open houses
- Dual agent represents both buyer and seller in a single transaction, though certain states may prohibit this real estate agent type
Real Estate Broker Types
Real estate brokers all arrange transactions and manage different agents, but the type of broker adds additional responsibilities. The main types include:
- Designated broker owns the license for the firm, oversees all agents, and ensures compliance
- Managing broker oversees daily operations in the brokerage, including record keeping and hiring
- Associate broker represents buyers and sellers, like a real estate agent, but can do so independently
Get Involved In The Real Estate Market Today
Maybe you’re interested to start a career or are looking for someone to support a home sale. No matter the case, you should be knowledgeable of what is the difference between a broker and a realtor. It all comes down to the authority and independence the licensee has in overseeing a property sale.
Want to learn more about what it takes to make it in the property world? Check out our other articles for the opportunity to continue growing your real estate knowledge.
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