There are different types of professionals involved in real estate, and when you're trying to buy or sell any real estate property for the first time, you'll be introduced to them sooner than later, namely real estate agents, brokers, and realtors.
Since most people don’t understand them, they think they are all the same. But actually, they aren't. There are some key differences between these three professionals in real estate and in this article, I'll give you a brief idea of each of these three professions.
Who Are Real Estate Agents, Brokers, and Realtors?
Real Estate Agent
Real estate agents are those professionals who have to attend classes and sit for the real estate licensing exam to become a real estate agent. This licensing exam is different for each state, and only after passing this licensing exam, one can officially represent a buyer or seller.
A real estate agent can work for both buyers and sellers. Sellers usually sign a contract with the real estate agent, and the agent gets paid. On the other hand, a buyer generally doesn’t sign any contract with a real estate agent. As a result, a real estate agent works for free for that buyer until the real estate agent finds the buyer his or her deal and gets paid a percentage.
The main responsibilities of a real estate agent are to find a suitable property and deal for his or her client while providing all the available information about the property.
Real Estate Broker
To become a real estate broker, he or she will have to sit for the real estate broker license exam. But before that, he or she will have to pass the real estate agent license exam. After passing the real estate broker license exam, he or she can independently work as an agent or recruit other real estate agents under him/her. A real estate broker signs a contract with his or her client, and in that contract, the real estate broker outlines the percentage he/she will receive after making the deal. Real estate brokers receive their payment as commission after making any sale like a real estate agent. The main responsibilities of a real estate broker are to conduct negotiations, value the property, prepare offers, manage legal issues, etc. Like a real estate agent, a real estate broker works with both the buyer and seller.
The main difference between a real estate broker and real estate agent is that a real estate broker is more qualified and can handle complex cases.
Realtor
A realtor is a professional in real estate who is a member of the National Association of Realtor or NAR. To become a member of the NAR, he/she will have to follow all the rules and ethics set by the NAR. As a member of this association, a realtor can use the realtor trademark as a part of his/her name. However, he/she cannot use it as a designation.
4 Key Takeaways
1. A real estate broker can work independently as an agent or recruit other real estate agents to work under him/her.
2. A real estate broker is more qualified and efficient in handling complex deals.
3. Both a real estate agent and a real estate broker get paid commission after completing a deal.
4. Realtor designation is open to real estate salespeople, property managers, real estate brokers, and appraisers.
