Realtor vs Agent vs Broker: What’s the Difference?
When considering whether to hire a real estate agent, it’s essential to understand the distinction between Realtor vs Agent vs Broker. A Realtor is someone who’s licensed by the National Association of Realtors (NAR) and subscribes to their code of ethics as they assist in buying or selling a home; in short, they’re trained experts in real estate.
The similarities (Realtor vs Agent vs Broker)
Realtors, agents, and brokers all help buyers and sellers of real estate complete transactions on behalf of their clients. But, just as there are different kinds of doctors—paediatricians, cardiologists, dermatologists—there are different kinds of real estate professionals. Generally, a real estate agent works for one or several real estate brokerages and gets paid on commission; a broker may own their brokerage or be an employee at another firm; a Realtor® is a member of NAR (the National Association of Realtors). Real estate agents can also belong to local boards affiliated with Realtors®. The bottom line is that while they all have similar roles, they’re not exactly interchangeable. Here’s what you need to know about each professional Realtor vs Agent vs Broker so you can decide which one might be right for you.
While Realtors®, real estate agents, and brokers work in real estate, there are important distinctions between them. It pays to understand these differences if you’re considering hiring any of them as your trusted adviser in buying or selling your home. For example, a broker may not be able to provide legal advice (but can refer you to an attorney), while a real estate agent might not be able to help with construction issues (but can refer you to a contractor). And even though both brokers and agents can negotiate on your behalf, only one type—the Realtor®—is required by law to adhere to strict ethical standards set forth by NAR. So how do you know which one is right for you?
The differences (Realtor vs Agent vs Broker)
A Realtor is a person licensed to do real estate deals on behalf of another in exchange for a fee. Realtors can also be brokers or agents. A broker is an independent contractor whose job is to match buyers and sellers. Those working with a broker are working with that broker’s agent but don’t always realize it. An agent works for only one party, and their role in negotiating a real estate deal depends on whether they are selling or buying—the main difference between them being when they represent you as a buyer versus representing you as a seller.
The idea behind having different titles is to ensure everyone knows who they are talking to and their role. In practice, however, there’s quite a bit of overlap between these roles. For example, some agents will also serve as your broker if you want more guidance than just finding your listings. If you want more information about how these terms Realtor vs Agent vs Broker differ from state to state (and internationally), check out the National Association of Realtor’s website.
Breaking it down further (Realtor vs Agent vs Broker)
There are two types of real estate agents: broker and sales associate. A broker is a real estate agent who can represent you in buying or selling property. In contrast, a sales associate does not have that ability without an additional real estate license known as a broker’s license. (or, more accurately, an associate broker’s license). If you want to buy and sell the property. It’s best to work with an experienced real estate professional licensed agent with purchasing power. Realtor vs Agent vs Broker.
Which means working with a broker. Agents with limited purchasing power have to go through their offices every time. They want to make a deal on behalf of their clients. Which will hurt your ability to get a reasonable price on your home or theirs if you’re selling.
Also, brokers tend to be better versed in local market conditions than non-brokers. Because they keep up with trends and changes in legislation. You don’t need to worry about whether or not a real estate agent is a broker. Realtor vs Agent vs Broker, Look for someone who has the experience and has been around for a while. The last thing you want is someone new trying to navigate you through one of life’s most significant financial decisions!