When you are looking to buy or sell a home, there are a variety of professionals who can help you make the process easier. You may have heard the terms “agent,” “broker,” and “realtor” and wondered what the difference is between them. While these three terms are often used interchangeably, there are some distinct differences in their qualifications and roles. 

In this blog post, we will explain the differences between an agent, broker, and realtor, so you can choose the best professional to assist you in your real estate transaction.

What is an agent?

An agent, also known as a real estate salesperson, is a licensed professional who is hired by a client to assist them in buying or selling a property. They work under the supervision of a licensed broker and are typically responsible for the day-to-day tasks associated with a real estate transaction, such as scheduling showings, negotiating offers, and preparing contracts. 

In order to become an agent, individuals must complete pre-licensing education requirements, pass a state exam, and maintain their license through continuing education courses. Agents are paid through commission, which is typically a percentage of the final sale price of a property.

What is a broker?

A broker is a licensed professional who is responsible for managing and supervising a group of agents. Brokers have taken additional coursework and passed an exam beyond the licensing requirements for agents, which qualifies them to run their own real estate office. They can also provide more extensive guidance to their clients due to their additional education and training.

Brokers are often responsible for training their agents and ensuring they follow ethical standards and best practices. They also have access to a wider range of resources and technology to help them better serve their clients. In addition, brokers have the ability to work independently, representing both buyers and sellers in transactions.

If you're interested in working with a broker, it's important to note that they may charge a higher commission rate than an agent due to their additional expertise and resources. However, the higher rate may be worth it if you're looking for more guidance and support throughout the real estate process.

What is a Realtor?

A Realtor is a licensed real estate professional who is a member of the National Association of Realtors (NAR). While all Realtors are agents or brokers, not all agents or brokers are Realtors. The title "Realtor" is a trademarked term that only members of NAR can use.

To become a Realtor, an individual must first become a licensed real estate agent or broker in their state. Then, they must apply for membership to NAR and agree to adhere to their Code of Ethics, which outlines high standards of conduct and professionalism. This code includes duties to clients, duties to the public, and duties to other Realtors.

Realtors are held to a higher standard than non-member agents or brokers. This is because they have made a commitment to follow the ethical standards and best practices set by NAR. Additionally, Realtors have access to a wide range of resources and education that non-member agents may not have.

If you're looking for a real estate professional to help you buy or sell a home, choosing a Realtor may be a good choice. However, it's important to remember that there are many qualified non-member agents and brokers out there as well. Ultimately, it's important to find someone who you trust and feel comfortable working with.

Key Differences Between Agent, Broker, and Realtor

When it comes to buying or selling a home, you might encounter several terms that refer to real estate professionals. Some of these terms are used interchangeably, while others have specific meanings. In this section, we’ll highlight the key differences between an agent, a broker, and a Realtor.

One of the most significant differences between agents, brokers, and Realtors is the level of licensing required. A real estate agent typically needs to complete a certain number of pre-licensing courses and pass a state exam to become licensed. A broker, on the other hand, typically needs to have more experience in the field and pass an additional exam to obtain a broker’s license. Finally, a realtor is a licensed real estate agent who is also a member of the National Association of Realtors (NAR) and abides by their Code of Ethics.

Another key difference is the services provided by each professional. Real estate agents are often the front-line workers when it comes to buying and selling properties. They work with clients to find homes that fit their needs, negotiate offers, and guide them through the closing process. Brokers typically have more responsibilities and may oversee agents, manage their own brokerage firm, or handle larger transactions. Realtors can be either agents or brokers, but they also commit to the NAR Code of Ethics, which includes duties like loyalty, confidentiality, and disclosure.

Finally, the fees associated with each type of real estate professional can vary. Real estate agents and brokers typically earn a commission on the sale of a property, which is usually a percentage of the final sale price. The commission is split between the buyer’s and seller’s agents, and it can vary based on the type of property, location, and other factors. Realtors may charge similar commissions but also pay annual dues to be a part of the NAR and access exclusive benefits and resources.

Summary

In summary, while agents, brokers, and Realtors all work in the real estate industry, they differ in terms of licensing, services, and fees. Knowing the difference between them can help you choose the right professional to guide you through your home buying or selling journey.