Did you know there are over 1.4 million active real estate agents in the United States?
If you have ever looked into the real estate industry as a career or to buy or sell a home, then you must have come up with the terms real estate agent and a broker.
Although the jobs of real estate agents and brokers overlap, they have different responsibilities.
Read on to learn the difference between real estate agents vs brokers.
What is the Main Difference Between a Real Estate Agent and a Broker?
If you want the short answer, you must know that the difference between a real estate agent and a broker is the level of education and expertise. A real estate agent is the person who facilitates real estate transactions.
Real estate agents bring either buyers or sellers and get paid a commission once they sell the property. On average, real estate agents receive a 6% commission of the total price of the home. However, homeowners who don’t want to pay the high commission price can still find a low commission real estate agent.
On the other hand, a real estate broker is the person who owns a brokerage firm and employs real estate agents. A broke is also responsible for handling the more technical and financial sides of the transaction.
Deeper Look Into a Real Estate Agent
As we mentioned, a real estate agent is the person who either represents the seller or the buyer in the transaction.
To become a licensed real estate agent, the person interested must study and pass the state’s real estate exam. Once they pass the exam, they can begin their careers as real estate agents.
As a buyer’s agent, they will help their clients find their dream home based on their specifications. When they represent the seller, their responsibility is to helps the seller find a buyer.
Agents also act as a middle man to bring offers and counter-offers to their clients.
Deeper Look Into a Real Estate Broker
Aside from completing their real estate agent licensing, a real estate broker takes their education one step further. After taking the real estate agent exam, they need to study and pass the broker license exam.
Because they have a more knowledgable understanding of the industry, brokers can either work independently or have agents under their supervision. However, those who have their broker’s license but choose to work under a brokerage firm are known as associate brokers.
Brokers have more extensive responsibilities that include conduct negotiations, issues with the contract, prepare offers, closing dates, and more.
Similar to real estate agents, brokers also get paid a commission when the sale goes through. In the listing agreement, all parties will state how the commission will be divided between the real estate agent and the broker.
Now You Know the Difference Between Real Estate Agents vs. Brokers
As you know, there are a few differences between real estate agents vs brokers, but their goals are the same in the end. Real estate agents have to pass their real estate licensing exam, and they can represent either the seller or the buyer.
Aside from passing their real estate licensing exam, brokers also have to take the broker’s exam. Brokers can either work independently or manage real estate agents.
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