When buying or selling a home, you’ll likely encounter both real estate agents and brokers. Although these terms are often used interchangeably, they represent two distinct roles in the real estate world. Both professionals are licensed and assist in the buying or selling process, but they differ in qualifications, responsibilities, and authority. Let’s break down the differences between a real estate agent and a broker.

What is a Real Estate Agent?

A real estate agent is a licensed professional who helps individuals buy, sell, or rent properties. Their primary role is to facilitate transactions by bringing buyers and sellers together. They assist with a variety of tasks such as organizing home tours, staging homes for sale, and hosting open houses. Real estate agents can represent either the buyer or the seller, but they typically work under the supervision of a broker or real estate agency.

Agents earn a commission, usually ranging between 5% and 6% of the sale price, though rates can vary. They handle much of the groundwork for the transaction, ensuring everything runs smoothly.

Requirements for Becoming a Real Estate Agent

To become a licensed real estate agent, you need to meet specific requirements, which can vary depending on your state. Typically, you’ll need to:

• Be at least 18 years old
• Be a legal resident of the U.S.
• Complete the state’s pre-licensing course
• Pass the real estate licensing exam
• Clear a background check
• Be sponsored by a licensed broker

Key Responsibilities of a Real Estate Agent

A real estate agent’s responsibilities include:

• Assisting buyers and sellers through the transaction process
• Organizing open houses and property tours
• Helping with negotiations and making offers/counteroffers
• Guiding clients through the paperwork
• Assisting with inspections, appraisals, and closing
• Marketing properties through the MLS and other channels
• Providing advice on home staging

What is a Real Estate Broker?

A real estate broker is a more advanced level of real estate agent. Brokers have additional education and training, allowing them to work independently, open their own brokerage, and hire agents to work under them. They perform many of the same duties as agents but also oversee the operations of their business, ensuring that all transactions are properly handled and compliant with the law.

Brokers earn money by taking a portion of the commission earned by the agents they supervise. They can also earn commissions from their own deals, but they do not need to share those earnings.

Requirements for Becoming a Real Estate Broker

To become a broker, in addition to meeting the requirements for becoming a real estate agent, you must also:

• Complete a state-approved real estate broker course
• Pass the real estate broker exam

Responsibilities of a Real Estate Broker

Real estate brokers share many of the same duties as agents, but with additional responsibilities, such as:

• Overseeing the work of real estate agents
• Ensuring transactions comply with state laws and regulations
• Listing and showing properties
• Negotiating prices and closing costs
• Determining the market value of properties

Should You Work With an Agent or a Broker?

Choosing between a real estate agent and a broker depends on your needs. Both professionals are capable of helping you buy or sell a home, but brokers generally have more experience and knowledge. However, because brokers often juggle multiple agents and responsibilities, they might have less time to dedicate to individual transactions. In contrast, agents might be able to offer more personalized attention.

Regardless of whether you choose an agent or a broker, working with a licensed real estate professional is essential. They bring valuable expertise to the table, including:

• In-depth market knowledge and negotiation skills
• Access to the MLS for property listings
• Expert marketing and strategy advice
• Assistance with paperwork and closing processes
• Reliable connections to contractors, inspectors, and other professionals

Ultimately, whether you choose an agent or a broker, selecting the right professional for your transaction will ensure a smoother, more successful experience.