Real Estate Agents vs Brokers: What's the Difference?
Read this post to find out more about the differences between real estate agents and brokers.
When it comes to buying or selling a property, you might have heard the terms real estate agent and broker being thrown around. Although these terms are often used interchangeably, they are not the same thing. In this blog post, we will discuss what it means to be a broker vs real estate agent and how they can help you with your real estate needs. Let’s start with some definitions.
What Is a Real Estate Agent?
Real estate agents are licensed professionals who help clients buy, sell, or rent properties. They are the front-line workers in the real estate industry, working with clients to understand their needs and desires, and then helping them find a property that meets those needs. Real estate agents typically work for a brokerage and earn a commission on the sale or rental of a property.
What Is a Real Estate Broker?
Brokers, on the other hand, are experienced real estate professionals who have completed additional education and exams to become licensed as a broker. In addition to the duties of a real estate agent, brokers can also own and manage their own brokerage and supervise other real estate agents. They can also handle more complex transactions and provide additional services to clients, such as conducting property evaluations and negotiating deals.
What Are the Key Differences Between Real Estate Agents and Brokers?
There are four main differences between a real estate agent and a real estate broker. Let’s break them down.
- Education. To become a real estate agent, you need to complete a pre-licensing course and pass an exam. To become a broker, you need to have additional education and experience, and pass a broker's exam.
- Supervision. Real estate agents typically work under the supervision of a broker, while brokers can own and manage their own brokerage and supervise other real estate agents.
- Services. Real estate agents help clients buy, sell, or rent properties, while brokers can provide additional services, such as property evaluations and negotiations.
- Commission. Both real estate agents and brokers typically earn a commission on the sale or rental of a property, but the amount may vary based on the brokerage and individual agreement.
What Do Real Estate Agents and Brokers Have in Common?
Real estate agents and brokers both play important roles in the real estate industry, and there are several similarities between them.
Real estate agents and brokers both:
- Are licensed professionals who can help clients buy, sell, or rent properties.
- Are knowledgeable about the real estate market and have access to resources such as property listings and market data to assist clients.
- Typically earn a commission on the sale or rental of a property, and they both have a responsibility to act in the best interests of their clients.
- Must adhere to strict ethical standards and comply with state and federal laws related to real estate transactions.
Is There Ever a Time When I Should Use a Real Estate Agent Over a Broker?
This is a tough question to answer, because it really comes down to the individual. While brokers are more often the more experienced of the two groups, that doesn’t necessarily mean that they’ll be the best to work with. In fact, you’ll probably work with both brokers and agents throughout the process of purchasing your home. The most important thing is to make sure that whoever you decide to work with can prove that they’re a knowledgeable and legitimate real estate professional.
Real estate agents and brokers both play important roles in the real estate industry, and the choice between them will depend on your individual needs and preferences. If you are looking for a trusted professional to help you with your Edmonton real estate needs, I’m here to help.