Buying a home is one of the most exciting benchmark moments in an individual’s or couple’s life. Once the opportunity has presented itself, there are a lot of things to consider, including finding the home you want to buy, the agent you want to hire, the loan you need to be approved for, and more.
Before you dive in head first, let’s explore the different people who will be a part of your home-buying journey, specifically exploring the question, what is the difference between a real estate agent and a broker?
We have listed some important distinctions below to uncover what the real difference is between a real estate broker vs an agent.
An Agent: An agent is a man or woman who has a license with the state in which they are operating within to represent either buyers or sellers in the home buying and selling process. The agent will work with or underneath a broker, who in turn is legally responsible for the agent.
A Broker: Brokers have taken their experience and training just a bit further than an agent. For example, more classes are required by a person who wants to get their broker license than an agent. Like real estate agents, a brokerage is licensed with the state from which they operate in.
A REALTOR: A realtor is a blend between an agent and a broker in the sense that he or she is licensed with the state and also a member of the National Association of Realtors. Each realtor is held to a higher standard of expectations.
As seen from the definitions above, brokers are the “boss” or the group of members whom the real estate agents work for. Both entities are able to sell a home, yet only a broker or a brokerage is able to independently sell homes without someone overseeing the process.
An agent must work under the umbrella or guidance of a brokerage in order to sell a home almost as if they are the salesperson for the broker, representing the broker.
Legally, a broker is obligated to tell the buyer what the difference is in the roles of buying or selling, as well as defining how they will represent the new homeowner based on a disclosure document called the Agency Relationships in Real Estate Transaction.
Knowing the difference between a broker and an agent is an important distinction to make when it is time to sell your home. It is truly personal preference whether an agent is chosen or a buyer will go through a broker, however, there are perks and benefits to both.
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