People working in the real estate industry are well aware of the different terms and jargon they are using daily. For other people outside their space, these terms can be so confusing. This is particularly true in the case of the titles of real estate broker and real estate agent and their differences.
Though many people are using these terms interchangeably, they actually have different meanings. Each job title requires different responsibilities and skill sets. So, what makes them different from each other? Here we are going to discuss the differences to help you clarify everything, erase any confusion and know which one to look for.
Licensing and Experience
A real estate agent is licensed to sell properties in their state. Agents are responsible to meet with the clients, host open houses, and do tasks needed in selling properties. They have to take real estate classes and pass the final licensing examinations.
In order for an agent to legally sell a property, he or she must work under a licensed real estate broker. In other words, agents cannot operate independently. They earn money through commissions that are often based on the percentage of the price of a property they sell. Being an agent is a good opportunity to gain experience in the industry.
On the other hand, a real estate broker is someone who has taken real estate beyond what agents are capable of. A broker is licensed to own a real estate firm but must also take more education and take a different licensing examination. Once these requirements are satisfied, a broker can then sell properties independently and manage their own brokerage firm and hire agents.
To become a broker, an individual needs further education and must take a separate licensing exam. Once all the necessary licensing requirements are met, a broker can sell property independently or choose to open a brokerage firm where they manage and supervise other agents. Moreover, brokers have more freedom and flexibility as to how they take their real estate career. So, this what sets a broker apart from an agent of real estate.
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