If you’re planning to buy or sell a home, there’s a good chance you’ll be working with a real estate agent or broker. These terms are often used interchangeably, but they aren’t the same. Both positions are licensed professionals who will assist you in the home buying or selling process, but they have different expertise and help you with different parts of the process.
In this blog, we're here to explore the question: what’s the difference between a real estate agent vs. a real estate broker?
Real Estate Agents vs. Brokers
Let’s talk about the difference between real estate agents and brokers. We’ll review their varying qualifications and how they can help you.
What Are Real Estate Agents?
Real estate agents are licensed individuals who help people buy, sell, or rent real estate. They’re responsible for bringing the buyer and seller together and handle everything from helping the seller stage and show a home, to lining up open houses and tours for new home buyers. Real estate agents can represent either buyers or sellers.
Real estate agents work under brokers or real estate agencies. They are usually paid on a commission basis and get a percentage of the property's sale price. Although commission rates vary, they typically fall between 5% and 6% of the purchase price.
Requirements for Licensed Real Estate Agents:
The requirements to become a licensed real estate agent vary from state to state, but general guidelines include the following:
- At least 18 years of age
- Legal resident of the United States
- Complete the state’s required pre-licensing class
- Take and pass the state real estate licensing exam
- Pass background check
- Sponsored by a licensed real estate broker
Responsibilities of Licensed Real Estate Agents:
Here are some of the duties a real estate agent will be responsible for during the buying or selling process:
- Organize transactions between buyers and sellers
- Organize transactions between renters and owners
- Carry out offers and counteroffers between each party
- Guide clients through paperwork
- Assist client with home inspections and closing dates
- Assist sellers with home staging
- Assist buyers with home tours and open houses
- Market properties via the local Multiple Listing Service (MLS) and other channels
- Negotiate sale prices, closing costs, and additional fees
- Find properties that match the buyer’s criteria and price range
- Arrange home appraisals
What Are Real Estate Brokers?
Real estate brokers are agents who have continued their education and received their state real estate broker license. Brokers can work independently, start their own brokerage, and hire other real estate agents to work under them. They perform many of the same duties as agents, including working with buyers and sellers and helping them close deals.
Every real estate office has a designated broker. Let's maybe explain this a bit. The broker typically incurs the costs of the office, hires and trains administrative staff, oversee transactions for all of the agents under them, and more. Brokers also still sell houses and negotiate deals themselves, on top of the rest of it!
Real estate brokers earn their money by taking a share of commissions from real estate agents who work under them. They can also earn commissions from their own deals but don’t need to share any earnings “with the office.”
Requirements for Licensed Real Estate Brokers:
To become a real estate broker, you need to follow all the guidelines listed above for real estate agents, in addition to the following:
- Take a state-approved real estate sales course
- Take a state-approved real estate broker course
- Pass the real estate broker exam
Responsibilities of Licensed Real Estate Brokers:
Here are some of the duties a real estate broker will be responsible for during the buying or selling process (they have a lot of the same responsibilities as agents):
- Find properties that match the buyer’s criteria and price range
- Negotiate sale prices, closing costs, and other fees
- Carry out offers and counteroffers between each party
- Determine the market values of clients' properties
- List and show properties
- Advertise available properties
- Scheduling open houses and showings
Should You Work With a Real Estate Agent or Broker?
When buying or selling a house, one of the best things you can do is work with an experienced real estate professional – such as a real estate agent or broker. Both an agent or a broker can handle your transaction; it’s just a matter of finding the right person you can trust. In general, brokers tend to be more experienced, but they may also have less time than a real estate agent. And some real estate agents are just as experienced as brokers, but have more time to dedicate to your specific transaction. You really can't go wrong by choosing either real estate professional, it's just best that you choose one.
Some of the top reasons why you should work with an agent or broker include:
- Expertise working with real estate transactions through continuing education and working with clients on a day-to-day basis
- Access to the local multiple listing service (MLS)
- Marketing skills and strategy
- Ability to negotiate and get you the best deal possible
- Access to reliable home inspectors, contractors, stagers, and more
- Assistance with paperwork
- Knowledge of the market
The Real Estate Professionals at Bluewest Properties Are Here for You
Are you interested in buying or selling your home in Michigan? BlueWest Properties is here to help! Our team of experienced real estate agents live, work, and play right here in West Michigan. We also have a top-notch real estate broker on staff, Meghan Heritage, who always works hard to get her clients the deals they deserve. We're so excited to help you find the ideal property here on the lakeshore, and when you're ready to move on, we're here to get you the very best value for your home, too.
