What’s the Difference Between a Real Estate Agent and a Real Estate Broker?

There are many differences between a real estate agent and a real estate broker; Real Estate Classes HQ will break it down for you, so you can choose which career path you want to go down.

It takes longer to become a Broker

The main differences between a real estate broker and an agent are experience, education, and licensing. Brokers and agents have a license requirement in the state where they work. However, the requirements vary considerably. Basically, real estate brokers must undergo more rigorous training than real estate agents.

Real estate brokers are licensed by their state to act as an intermediary between buyers and sellers. Real estate brokers receive a license from their state to manage their own business. On the other hand, real estate agents are also authorized by the state in which they work, but they work for real estate brokers. Agents cannot supervise other agents, and they must have a sponsored broker for them to be in business.

Real estate brokers have a license that allows them to open their own office. Agents must work with a broker. An agent can get a broker’s license, but they need to pass the exam after years of experience as an agent.

Real Estate Brokers must manage their agents

In addition to the normal tasks of an agent, a real estate broker also needs to think about the agents that they manage. Brokers are also responsible for other transactions, such as evaluations and building their firm.

Both professionals have legal and financial responsibility for those they work with. If a client and an agent experience difficulties or have issues that cannot be solved,  the issue is presented to a broker who will help in resolving the problem. The broker will act as an intermediary and can assign other resources to help the client if necessary.

Finally, for each sale closed by an agent working for a broker, the broker will take a portion of the commission. Therefore, a broker will get a commission for each sale of an agent working for them.

Conclusion

Long story short, a broker is a more-advanced agent. You have to take more classes, more tests, and work harder to become a broker; however, you can also have more responsibility and get paid more.  Either way, the first place to start is to take real estate prelicensing courses.

109 thoughts on “What’s the Difference Between a Real Estate Agent and a Real Estate Broker?”

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