What is the difference between a real estate agent and broker?
Although the terms may vary by state, there are two principal categories of real estate brokerage professionals: "agents" and "brokers". Generally speaking, agents work directly with consumers and brokers supervise agents.
Typically, agents solicit listings, work with homeowners to sell their homes, and show buyers homes that are likely to match their preferences.
Instead of working with customers directly, brokers often provide agents with branding, advertising, and other services that help them complete transactions.
In terms of branding, the broker may invest in and create a brand or affiliate with a national or regional franchisor that provides a brand with certain reputational value and an advertising campaign.
As for services, brokers may provide agents with computers, website hosting, office space, training, and marketing.
All states require real estate brokers and agents to be licensed. These licensing statutes form the framework for state regulation and oversight of the profession by establishing requirements for licensure (such as minimum age, education, and experience) and various requirements and prohibitions regarding business practices and conduct. State commissions, frequently composed of real estate brokers, oversee drafting of and compliance with these laws and regulations.
Brokers and agents usually are more informed about the local real estate market and the process of a real estate transaction than most home buyers and sellers. This informational advantage derives from two (2) sources.
- First, only brokers have direct access to the MLS, which is a local or regional joint venture of real estate brokers who pool and disseminate information on homes available for sale in their particular geographic areas.
- Second, most brokers have been involved in many more real estate transactions than their clients. This experience builds expertise in gauging market conditions and knowledge of the details involved in completing a real estate transaction.