Real Estate Broker Vs. Real Estate Agent. Is there a difference?
There’s been a discrepancy for years around the differences between real estate brokers and real estate agents even though, most of us that have been in the business for some time definitely know the difference. However, to new agents or to even customers and clients, the difference between a broker and an agent maybe a little bit blurry.
The biggest difference between a real estate broker and an agent
Both a broker and an agent are licensed individuals that can help buyers and sellers with a home sale or purchase. However, brokers have an additional certification even though the term is often used interchangeably. In some states, real estate brokers must have a real estate license for a minimum of two years and then pass an additional brokers exam to technically use the term broker. But in some states, a broker is at the same level as a licensed real estate agent but for most states, brokers will need additional education and testing to be qualified as a broker.
Real estate brokers are licensed to do everything a licensed agent does including negotiating and writing property purchase and sale transactions but, brokers can offer assistance to licensed agents and provide mentoring services as well. Brokers typically have a higher level of licensing which requires more continuing education and stricter exams and testing.
In today’s real estate world, many brokers actually oversee agents and verify or checkup work, offer assistance and mentoring programs even though they technically can provide all the same services to clients as a real estate agent.
Real estate brokers may be called principal brokers, broker associates, or managing brokers as they will typically oversee all the other agents within the office.
What can a real estate agent do?
There are several different terms for agents including a listing agent which represents the seller, the buyer’s agent which represents the buyer, a dual agent which can represent both buyer and seller in the same transaction, and then there is a transaction agent. A transaction agent typically works when a dual agency is not legal in a particular state. This agent oversees the entire transaction timelines for both parties but doesn’t necessarily offer advice or represent either side.
All of these licensed real estate agents can facilitate a transaction from start to finish but will typically be signing for the brokerage such as eXp Realty with the assistance of an overseeing broker.
Is it better to be a broker or an agent?
One of the biggest decisions for real estate agents coming into the industry is if it’s better to become a broker or state and agent. One of the biggest benefits of a broker is earning potential. Every agent can sell more but by becoming a broker, many brokers automatically earn higher commission because they are a broker and have more earning potential by mentoring others, assisting in transactions, and even sharing in certain commissions, splits, and stock options.
A broker is not necessarily better than an agent but a broker can work on their own where is an agent must be under a licensed broker.
So brokers make more than real estate agents?
Generally speaking, most real estate brokers have more experience, undergo more training and testing, and typically make more money than real estate agents. They are the only real estate professionals who can actually open their own brokerage, property management firm, and manage other licensed agents.
Every agent at eXp Realty has a split of 80/20 until a cap of $16,000 is met. The great thing about being an eXp Broker is that brokers can have a brokerage inside of a brokerage and are not limited on one area but can literally build an international real estate business.
More education, experience and the possibility of expanse in your own business, that’s the real difference between a broker and an agent. If you’re ready to launch your career farther than ever before, consider upgrading to a broker.
Ready to get started? Contact my office at any time.
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