What is the difference between a real estate agent and a broker? Real estate agents are qualified to represent buyers and sellers, but must work under a supervising broker. Real estate agents complete advanced education and licensing requirements, allowing them to work independently, run their own companies, and hire agents. This Redfin real estate article explains the differences so you can make an informed decision when selling a home in Salt Lake City or buying a home in Evanston.
What is a real estate agent?
Real estate agents are professionals who have passed the national training and licensing exam. This license allows you to assist your clients in buying and selling real estate. However, this basic license requires agents to work with and under a licensed broker.
Their core responsibilities typically include:
I’m showing you the house. Handles market research and comparative sales data. We will negotiate on your behalf. Prepare and submit formal documents such as offers and counteroffers.
Your agent will be in touch with you on a daily basis to ensure your transaction is smooth and successful.
Type of real estate agent:
Real estate agents typically specialize in specific roles and client needs. Understanding the different types of agents can help buyers and sellers choose the right professional for their situation.
Buyer’s Agent: Helps clients search for properties, schedule viewings, make competitive offers, and negotiate contract terms. A buyer’s agent has a legal obligation to act in the buyer’s best interests throughout the transaction. Seller’s Agent (Listing Agent): Their responsibilities include pricing the home, marketing it to potential buyers, arranging showings, and negotiating offers. Listing agents aim to secure the best possible price and terms for sellers. Dual Agent: A dual agent represents both the buyer and seller in the same transaction. Agents must remain neutral and cannot fully advocate for either party. Although dual agency is legal in some states, it is restricted or prohibited in others due to potential conflicts of interest.
What is a real estate agent?
Real estate brokers are agents who have received further education, work experience, and passed a separate, more rigorous brokerage licensing exam. This advanced license is essential for anyone who wants to start their own brokerage firm or work without a supervising principal.
A broker’s license indicates a higher level of training and expertise, so the broker has more capabilities.
Supervision: They are legally responsible for the actions and transactions of all agents working under them. Independence: You can run your own brokerage or real estate office. Advanced knowledge: Additional training includes legal and ethical requirements for managing a real estate business.
All real estate transactions are legally handled through a broker, whether the client deals directly with the broker or one of the brokers.
Types of real estate agents:
Real estate agents have additional licenses and responsibilities beyond that of an agent. Some brokers operate independently, while others oversee teams of agents.
Managing Broker: A managing broker oversees the day-to-day operations of a real estate office. They are responsible for overseeing the agency, ensuring legal compliance, handling contracts, and resolving disputes. The managing broker may also hire and train new agents.
Lead Broker: The lead broker is legally responsible for all real estate activities that occur under the brokerage. This includes transactions, escrow processing, and compliance with state laws. All real estate agents must have a designated lead agent.
Associate Broker: An associate broker holds a broker’s license but chooses to work for another broker rather than operate their own brokerage. They often have more experience than agents and may hold leadership or leadership roles within the company.
How to choose between using an agent or broker
Home buyers or sellers should consider the differences between real estate agents and brokers. Although they share responsibilities, there are differences that you should consider to best suit your goals. You’ll probably start by choosing a real estate agent. Hiring an agent automatically gives you access to the expertise of that supervising broker, as the agent’s work is the responsibility of the brokerage firm.
If you want hands-on support, strong negotiation skills, and experts who specialize in your local market, work with an agent. Agents typically focus on client service. If you want to hire a managing partner or specifically want to work with the president of the company, work with a broker. Some experienced brokers choose to deal directly with clients.
The most important step is to find a professional, regardless of title, who has a proven track record, understands your goals, and puts your best interests first.
FAQ
Do brokers make more money than agents?
In addition to commissions from their own sales, brokers can earn a portion of the commissions from the trades of every agent they supervise, so their income potential can be high.
Can a real estate agent also act as a broker?
yes. Professionals who hold a broker’s license can choose to work for another brokerage firm as a real estate agent, or they can choose to use their broker’s license to open and operate their own office.
Is one title better than the other for your client?
Neither title is inherently “better” for the client. Brokers have more advanced training, but experienced and successful agents can provide just as effective service. The quality of the individual professional is more important than the level of license.
