The terms Real Estate Agent and Real Estate Broker sound like synonyms and, most of the time, are used interchangeably.
Real Estate is simply a property that is connected to the land. Real Estate Agents and Real Estate Brokers are persons involved in the purchase and sale of Real Estate. But due to the similarities between these two, it is wrong to think that both mean the same.
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Key Differences –
Real Estate Agent –
- A Real Estate Agent is someone who indulges in Real Estate deals to make sure the demands of buyers and sellers are met. A Real Estate Agent works under a Real Estate Broker.
- Real Estate Agents are less qualified than Real Estate Brokers.
- Real Estate Agents earn less than Real Estate Brokers.
- A Real Estate Agent is dependent on a Real Estate Broker.
Real Estate Broker –
- A Real Estate Broker guides Real Estate Agents and Clients for Real Estate transactions.
- Real Estate Agents work under a Real Estate Broker.
- Real Estate Brokers are more qualified than Real Estate Agents.
- Real Estate Brokers earn more than Real Estate Agents.
- A Real Estate Broker is entirely independent.
Comparison Between Real Estate Agent And Real Estate Broker
| Parameter | Real Estate Agent | Real Estate Broker |
|---|---|---|
| License | These agents are licensed, executives. | These brokers are also licensed, executives. |
| Types | Real Estate Agents are of 4 types: Listing Agents, Buyer’s agents, Referral Agents, and Dual Agents. | Real Estate Brokers are of 3 types: Associated Brokers, Designated Brokers, and Managing Brokers. |
| Independence | These agents are dependent on Real Estate Brokers. | These brokers are completely independent. |
| Superior/ subordinate | These agents are subordinates to Real Estate Brokers. | These brokers are superiors to Real Estate Agents. |
| Qualifications | These agents are less qualified than Real Estate Brokers. | These brokers are more qualified than Real Estate Agents. |
| Income | These Agents earn lesser than Real Estate Brokers. | These brokers earn more than Real Estate Agents. |
| Income source | These agents earn commissions gained from deals. | These brokers also earn commissions gained from deals. |
| Experience | These agents have a lesser experience than Real Estate Brokers. | These brokers have more experience than Real Estate Agents. |
| Independence | These agents are dependent on Real Estate Brokers. | These brokers are independent. |
| Responsibilities | The main responsibilities include producing leads, doing paperwork, conducting market research, representing clients, etc., | The main responsibilities include guiding & leading agents, finalizing deals, etc. |
Major Differences Between Real Estate Agent And Real Estate Broker
To Understand the difference between a Real Estate Agent and a broker, first, it is essential to understand what Real Estate is.
What Exactly Is Real Estate?
Any property that somehow is connected to the land is known as Real Estate.
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What Real Estate is –
- A building
- A piece of land
- An apartment in a building
- A single house, etc.
What Real Estate is not –
- Furniture
- Cars
- Jewelry
- Television, AC, Fans, etc.
Who Exactly Is a Real Estate Agent?
Real Estate Agents work under Real Estate Brokers and deal in Real Estate transactions. Real Estate Agents work under Real Estate Brokers.
When clients want to sell or buy properties, they contact Real Estate Agents, and these agents guide them to deals that benefit the clients in the best ways.
Real Estate Agents conduct thorough market research, find interested buyers and sellers, interview those buyers and sellers, learn the demands of both sides, do all the paperwork, and try to make the buyer’s and seller’s ends meet.
Real Estate Agents are licensed but less qualified than Real Estate Brokers. Real Estate Agents make money through the commissions they earn on Real Estate Agents.
It should be noted that all the commissions do not go to Real Estate Agents, but most go to Real Estate Brokers. Thus, Real Estate Agents earn lesser than Real Estate Brokers.
Who Exactly Is a Real Estate Broker?
Real Estate Brokers are those people who supervise Real Estate Agents and their clients. Real Estate Brokers are more qualified, have more experience, and are independent. These brokers ensure a transaction is done smoothly, benefiting sellers, buyers, and themselves.
Real Estate Agents train, guide Real Estate Agents & check their performance, finalize deals, verify everything that needs a license, providing all the necessary help that a buyer and seller desire.
Like Real Estate Agents, Real Estate Brokers also have licensed individuals who are more qualified than Real Estate Agents.
These Brokers have more expertise and experience than the Real Estate Agents. Most of the commissions gained by real estate deals go to Real Estate Brokers.
Contrast Between Real Estate Agent And Real Estate Broker
Meaning
- Real Estate Agents – Real Estate Agents are those people who are first contacted by buyers & sellers and represent their clients in real estate transactions. These agents work under Real Estate Brokers and arrange real estate deals.
- Real Estate Brokers – Real Estate Brokers are those people who train Real Estate Agents and finalize all the real estate deals.
License
- Real Estate Agents – Real Estate Agents are licensed, executives.
- Real Estate Brokers – Just like Real Estate Agents, Real Estate Brokers are also licensed, executives.
Superior/ Subordinate
- Real Estate Agents – Real Estate Agents are subordinates.
- Real Estate Brokers – Real Estate Brokers are superiors.
Types
- Real Estate Agents – Real Estate Agents are of 4 types: buyer’s agents, referral agents, dual agents, and listing agents.
- Real Estate Brokers – Real Estate Brokers are of 3 types: Associate Brokers, Designated Brokers, and Managing Brokers.
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Types of Real Estate Agents and Brokers –
Real Estate Agents –
- Buyer’s Agents – Buyer’s Agents are those who represent a buyer in a real estate deal. They make sure they find a seller and Real Estate that suits the best interest of their buyer.
- Referral Agents – Referral Agents are unlicensed Real Estate agents who send leads to other licensed Real Estate agents.
- Dual Agents – Dual Agents are those agents who represent both seller and a buyer. Dual agents are also known as Transactional agents.
- Listing Agents – Listing Agents are those agents who represent a seller in a real estate deal. They make sure they find a suitable buyer that fulfills their interests.
Real Estate Brokers –
- Associate Brokers – Associate Brokers are somewhat similar to Real Estate Agents who represent a buyer and a seller, but they can do so without any superior.
- Designated Brokers – A Designated Broker has the license of a Real Estate firm. He ensures all the Real Estate Agents are working as they are supposed to.
- Managing Brokers – A Managing Broker is someone whose job is to inspect the day-to-day operations of a real estate firm.
Qualifications
- Real Estate Agents – Real Estate Agents are less qualified than Real Estate Brokers.
- Real Estate Brokers – Real Estate Brokers are more qualified than Real Estate Agents.
Experience
- Real Estate Agents – Real Estate Agents have lesser experience as compared with Real Estate Brokers.
- Real Estate Brokers – Real Estate Brokers have more experience as compared with Real Estate Agents.
Independence
- Real Estate Agents – Real Estate Agents are dependent on Real Estate Brokers as they work under Brokers and share commissions with them.
- Real Estate Brokers – Real Estate Brokers are completely independent as they have Agents working under them.
Responsibilities
- Real Estate Agents – The Responsibilities of Real Estate Agents mainly include finding clients, helping and representing them in real estate deals, conducting market research, doing the paperwork, etc.
- Real Estate Brokers – The Responsibilities of Real Estate Brokers mainly include training & supervising clients, finalizing deals, helping clients with paperwork, etc.
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Responsibilities of Real Estate Agents and Brokers –
Real Estate Agents –
- Producing and bringing leads.
- Doing all the paperwork.
- Conducting regular market research.
- Finding properties that suit the best interest of their clients.
- Representing clients in real estate deals.
- Showing Real Estate to clients.
- Making the ends of buyers and sellers meet.
Real Estate Brokers –
- Training and supervising Real Estate Agents.
- Coordinating Agents’ goals with the firm’s goals.
- Make sure all the paperwork done by agents is correct and legal.
- Explaining all the paperwork to the clients.
- Convincing clients to see properties.
- Making both ends meet and finalizing deals.
Earning
- Real Estate Agents – Real Estate Agents earn through the commissions gained from clients. They get their share of commissions from their superiors, i.e., Real Estate Brokers.
- Real Estate Brokers – Real Estate Brokers earn through the commissions received. The major share of commissions goes to the Real Estate Brokers.
Conclusion
Real Estate Agents and Brokers are the most important part of the Real Estate and Real Estate sector. It is nearly impossible to indulge in a Real Estate transaction without Real Estate Agents and Brokers.
The major difference between a Real Estate Agent and a Real Estate Broker is that the former is less qualified, earns less, has lesser experience, and works under Real Estate Broker.
While the latter is more qualified, earns less, has more experience, and has Agents working under him.
Frequently Asked Questions (FAQs)
Q1. What is the difference between a Buyer’s agent and a Listing agent?
The main difference between a Buyer’s agent and a Listing agent is that the former represents buyers in a real estate deal while the latter represents sellers in a real estate deal. Listing agents are also called seller’s agents.
Q2. Is it mandatory to be licensed to become a Real Estate agent or a Broker?
Yes, it is generally mandatory to be licensed to become a Real Estate agent or a Broker in order to engage in real estate business deals. However, it may differ from country to country.
Q3. What is the difference between Real Estate Agent and an Associate Broker?
Associate Brokers are many a time confused with Real Estate Agents. The main difference between the two is that a Real Estate Agent typically requires the supervision of Real Estate Brokers when representing a client.
But an Associate Broker does not need to have any supervision.
Q4. What are the major differences between a Real Estate Agent and a Real Estate broker?
The significant differences between a Real Estate Agent and a Real Estate Broker are –
1. Real Estate agents work under Real Estate brokers, whereas the brokers work independently.
2. Real Estate agents are less qualified than Real Estate Brokers.
3. Real Estate agents have lesser experience than Real Estate Brokers.
4. Real Estate agents earn less than Real Estate Brokers.
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