If you’re in the market to buy or sell a property, you may be considering working with a real estate agent or broker. While these two professions may seem similar, key differences set them apart. Understanding these differences is crucial to making an informed decision about who to work with and how to achieve your real estate goals. In this blog, we will break down the key differences between a real estate agent and a broker and provide insight into each role in buying and selling. Whether you’re a first-time homebuyer or a seasoned real estate investor, this information will help you navigate the real estate industry with confidence.

Difference Between a Real Estate Agent And a Broker

When it comes to buying or selling property, it’s important to understand the role of the professional you’ll be working with. In the real estate industry, you’ll come across two main types of professionals: real estate agents and brokers. While these terms are often used interchangeably, there are some important differences between the two. 

What is a Real Estate Agent?

A real estate agent is a licensed professional representing buyers or sellers in real estate transactions. They assist clients in buying, selling, and renting properties. To become a real estate agent, an individual must complete a state-approved pre-licensing course and pass a licensing exam. Real estate agents must also be affiliated with a broker, who acts as their supervisor and provides support and guidance.

What is a Broker?

A broker is a more experienced and highly-skilled real estate professional who has completed additional education and passed a broker’s license exam. In addition to representing buyers and sellers, brokers can also work as independent contractors, hire and supervise real estate agents, and run their own real estate businesses.

Key Differences between Real Estate Agents and Brokers

Real estate agents and brokers play a crucial role in the buying and selling of properties. However, despite their similarities, these two professions have distinct differences that are important to understand. Whether you’re in the market to buy or sell a property, working with the right professional can make all the difference in achieving your real estate goals. 

Education and Training

Brokers have completed more education and training than real estate agents. In order to become a broker, an individual must complete additional education, pass a broker’s license exam, and have a certain amount of experience working as a licensed real estate agent.

Responsibilities

Brokers have more responsibilities and freedoms than real estate agents. For example, brokers can own and manage their own real estate businesses, hire and supervise real estate agents, and make decisions on behalf of their clients without prior approval.

Commission

Real estate agents and brokers both earn a commission for their services. However, brokers often earn a higher commission due to their higher level of education, experience, and responsibilities.

Legal Obligations

Brokers have additional legal obligations beyond those of real estate agents. For example, brokers are responsible for ensuring that all real estate transactions are conducted in accordance with state and federal law and must maintain trust accounts to hold clients’ funds during a transaction.

Scope of Practice

Brokers have a broader scope of practice than real estate agents. In addition to representing buyers and sellers in real estate transactions, brokers can also provide real estate services, such as property management, appraisal, and consulting.

Clarion Title: Your Partner In Real Estate

It’s important to understand the difference between a real estate agent and a broker when choosing a professional to assist with your real estate needs. While both professionals can assist with buying and selling property, brokers have completed additional education and training, have more responsibilities and freedoms, and have a broader scope of practice. If you have specific real estate needs, it may be beneficial to work with a broker, but if you’re looking for a more basic level of service, a real estate agent may be a good fit.

Contact Clarion Title for all your real estate title needs. Our team of professionals can assist you with all your real estate transaction needs from start to finish.