When it comes to the journey of buying, renting, or selling a home it can be tricky because there are so many circulating parts. Every person involved in the process has a very important role to play. Everyone is needed to make the process as smooth as possible. There are, however, two key players in the world of reality that have similar roles and those are the Real Estate Agent and the Broker. Let Crestline Title Company explain the difference between the two.
Difference Between A Real Estate Agent And A Broker
The real estate agent and the broker are both specialists in what they do. They help their clients navigate the buying, selling, and renting process. The terms real estate agent and real estate broker are often used interchangeably since the foundation of the roles are the same, however, they do two completely different things. But they require a similar skill set. Because of the similarity this can lead clients to be confused in knowing what the actual role is. If a client is knowledgeable about the difference that can make the process flow smoothly. Regardless, it’s important to work with both specialists in the correct way and understand their unique roles in the home buying, selling, or renting process.
Requirements Of A Real Estate Agent
One of the best ways to make educated decisions in your home buying, renting, or selling process is to really understand the role of a real estate agent. First to become a real estate agent the prospective agent must complete certain licensing requirements and pass an exam in their state. Yes, this means that for every state a real estate agent practices they must complete the requirements of that state. Every state has its own different set of requirements, but the general process is as follows:
- The prospective agent must have legal U.S. residency
- Meet an age requirement of being at least 18 years old
- Take specific courses
- Pass the licensing exam
- Find a brokerage that will sponsor them, as a newly licensed agent
Once this is done the agent is now allowed to represent a client in the home buying, selling, or renting process.
What A Real Estate Agent Does
There are different types of real estate agents. There are buyer’s agents and seller’s agents also known as listing agents. The listing agent represents the seller and works with them to list the home at the right price. They are also responsible for finding interested buyers and setting up home tours. Lastly, they make sure contracts are finalized and keep the interest of the seller upfront. As for the buyer’s agent, they work with the homebuyer to find and tour homes. They also represent them when making offers on homes. They negotiate contracts and make referrals to mortgage lenders and home inspectors. Then there are some agents that represent both the seller and the buyer. This job has so many moving parts since it combines the two.
Requirements Of A Real Estate Broker
On the other hand, a real estate broker must have experience as a real estate agent before they can even begin the training of being a broker. The potential broker must take additional educational courses as well as pass a separate licensing exam. This makes their requirements deeper and more intense than that of a real estate agent. Brokers have to learn about things such as:
- Insurance
- Taxes
- Legal Issues
- Ethical Issues
- Business Management
This allows for the broker to accurately oversee their business since they work with many different moving parts. However, unlike real estate agents, once they are trained they can work on their own without a sponsorship.
What A Real Estate Broker Does
There are three main types of brokers, the first being an associate broker. These brokers have similar tasks and duties as real estate agents but they receive a higher commission. Managing brokers work on a supervisory level at the brokerage. They may also work directly with clients when it comes to a sale or a purchase. Lastly, there are the principal brokers, these brokers apply for and hold the brokerage’s state license. They are at the top and they supervise all the agents at the brokerage.
Everyone Works Together
As you can see, the real estate agent and the broker have very similar roles, and both work with clients. However, they are also very different because they each require a unique skill set that must be obtained through schooling, exams, and sponsorship. This enables each role to perform its duties while keeping all parts of the home buying, selling, or renting process moving as it should. Let Crest Title Company help you with all of your real estate needs.