Real Estate Agent vs. Broker vs. Realtor?
You’ll need assistance whether you want to buy or sell a home. So, who should you employ? Real estate professionals are known by a variety of titles, such as real estate agent, real estate broker, or Realtor.
So, what exactly is the distinction between a Realtor, a real estate agent, and a broker? These titles are sometimes used interchangeably in the context of a real estate career, but there are some significant differences, as well as varying requirements for using specific titles.
Agent vs. Broker
A real estate agent is someone who has a professional real estate license and can assist people in buying, selling, or renting various types of housing and real estate.
States generally have education requirements, which include prelicensing training, to obtain that license. The number of training hours required varies greatly by jurisdiction. Real estate agents in Virginia, for example, must complete 60 hours of prelicensing training, whereas California requires 135 hours of license coursework.
Following that, aspiring agents must pass a written licensing exam. This exam is usually divided into two parts: one on federal real estate laws and general real estate principles, and the other on state-specific laws.
They will have earned a license, the title of “real estate agent,” after passing their exam, and they may join a brokerage where they will begin working with home buyers, sellers, and renters and completing real estate transactions.
The three types of agents are as follows.
1. Listing Agent
A listing agent is a real estate agent who works on behalf of a home seller. These professionals assist sellers with a variety of tasks, such as pricing their home, recommending home improvements or staging, marketing their home on listing services, holding open houses, coordinating showings with home buyers, negotiating with buyers, and supervising the home inspection and closing procedures.
2. Buyer’s Agent
Buyer’s agents, as the name implies, represent home buyers and help them through every step of the home-buying process, including navigating the housing market, finding the right home, negotiating an offer, and recommending other professionals.
3. Rental Agent
Many real estate professionals assist consumers in finding rental properties in addition to helping them buy and sell homes. But what these agents do depends on where they are.
Broker vs. Realtor
A real estate broker is someone who has completed the additional education required by state law and passed the broker’s license exam.
Each state establishes its own broker education and exam requirements, similar to real estate agent exams. The additional coursework covers topics like ethics, contracts, taxes, and insurance in greater depth than what is taught in a real estate agent pre-licensing course.
Prospective brokers also learn about real estate legal issues and how the law applies to running a brokerage, investing in real estate, building, and managing property.
Brokers are well-versed in the real estate industry.
Real estate agents must have a certain level of experience under their belt to sit for the broker’s exam and a obtain license, typically, three years as a licensed real estate agent.
There are three types of real estate brokers, each with a slightly different role to play:
- A principal broker: He is assigned to each real estate firm. This person supervises all licensed real estate agents at the firm and ensures that they are following state and national real estate laws.
- Managing broker: This person is in charge of the day-to-day operations and transactions of the office and is typically hands-on when it comes to hiring agents, training new agents, and managing administrative staff.
- Associate broker: This real estate professional, also known as a broker associate, broker-salesperson, or affiliate broker, holds a broker’s license but works under the supervision of a managing broker. This person is usually not in charge of supervising other agents.
Bottom Line
To become a Realtor, a licensed agent with the ability to use that widely respected title, in the real estate industry, an agent must be a member of the National Association of Realtors.
As a member, you agree to the association’s standards and its code of ethics. The NAR essentially holds Realtors to a higher standard. Membership in the NAR includes, among other things, access to real estate market data and transaction management services.
