What’s the Difference Between Real Estate Agents and Brokers?

When it comes to buying or selling a home, you will likely come across the terms “real estate agent” and “broker.” But what does that mean? And which one should you work with? In this blog post, we will discuss the difference between real estate agents and brokers, and help you decide which one is right for you!

Real Estate Agent vs. Broker

Real estate agents are licensed professionals representing buyers and sellers in real estate transactions. They work with their clients to help them find the right property, negotiate the price, and manage all the paperwork involved in the transaction.

Brokers, on the other hand, are also licensed professionals with additional training and experience. In most states, brokers must have at least two years of experience working as an agent before becoming a broker. In addition to representing buyers and sellers, brokers can also work independently to buy or sell properties.

Tasks of a Real Estate Agent

Real estate agents organize the interactions between purchasers and sellers, as well as those between owners and renters. Agents are in charge of passing on offers and counteroffers, as well as any questions they may have, between all parties. When a request is tolerated, an agent will cooperate with another agent to help clients fill out paperwork.

Listing agents are real estate professionals who act on behalf of sellers. These agents assist in setting listing prices, suggesting home modifications that will improve the property’s value (and the likelihood of a successful sale), and marketing the home using local Multiple Listing Service (MLS) and other channels.

Payment Method

Real estate agents are paid via commission and operate for brokers or agencies. They get a percentage of the sale price of a property, which means the higher the sale price, the bigger their commission. Commissions are sometimes negotiable, ranging from 5% to 6% of the purchase price.

Tasks of a Real Estate Broker

Real Estate Brokers carry out many activities as real estate agents. Brokers who work with purchasers seek houses that fit their clients’ requirements, negotiate deals, prepare bids, and assist buyers with any other concerns up to the closing date.

There are three primary classifications of real estate brokers, each with its own set of duties and responsibilities:

• Associate brokers are licensed, but they work for another broker. Associate brokers do not usually supervise other agents in general.
• Managing brokers oversee commercial operations, including transactions and day-to-day activities. They also recruit agents, educate new hires, and manage administrative staff.
• Real estate agents are supervised by their principal/designated brokers, who ensure they follow all state and national real estate regulations. Each real estate firm has only one designated broker.

Payment Method

Real estate brokers make money by getting a cut of the commissions paid to real estate agents who work under them. They also earn commissions on their transactions, unlike real estate agents, who are not required to share their compensation with “the office.”

Conclusion

Now that you’ve learned the difference between a real estate agent and a broker, you can decide which one is right for you. If you want to buy or sell a property, an agent can help you with the process. If you’re interested in working independently or want more control over your transactions, then becoming a broker may be the right path.

Looking to buy or sell a home in the Southern Georgian Bay area? Contact Hawkins/Ryerse Real Estate Group today to see how we can help!