Broker vs. agent vs. Realtor

Brokers, agents and Realtors can all help you sell commercial real estate or buy space for your business, but there are differences between these types of real estate professionals. Here’s a quick definition of each job.

• Real estate sales agents: Real estate professionals who must typically work for a licensed real estate agency or broker

• Real estate brokers: Real estate professionals who can usually work independently and can run their own real estate offices or firms

• Realtors: Real estate professionals who acquire membership with the National Association of Realtors (NAR)

Key differences between an agent and a broker in real estate

To fully compare the details of broker vs. agent vs. Realtor job titles, it’s beneficial to first examine the key differences between an agent and a broker in real estate, as these are the two main categories of jobs in the industry. The following characteristics differentiate real estate agents from brokers.

Licensing

All 50 states require both real estate agents and brokers to gain a license to assist people with the buying and selling of real estate. Regulations vary from place to place, but generally, brokers have more requirements to fulfill before they gain licensing because their credentials will allow them to work independently.

For both roles, candidates must typically pass a written examination related to real estate laws, ethics and best practices. Generally, real estate brokers will need to take both the real estate agent and broker licensing exams over the course of their careers.

Education and training

States typically create different education and training requirements for real estate agents and brokers. Agents must usually complete a state-approved training course that lasts for a set number of hours. In some cases, a high school diploma or GED is necessary for admission to real estate agent training programs.

Real estate brokers typically participate in the required agent training early in their careers. When they’re ready to obtain their broker licenses, they must complete additional training. 

Training for both agents and brokers is usually ongoing. Most states require all licensed real estate professionals to complete continuing education training courses to maintain their credentials.

Experience

Real estate agents typically don’t need any experience to get hired by a real estate agency or brokerage. On the other hand, real estate brokers usually need real estate experience to obtain their broker licenses. In most states, a prospective broker must first work as a licensed real estate agent for a minimum number of years before they can apply for a license.

Duties

For their commercial clients, real estate agents and brokers provide the same basic services, such as:

• Facilitating the sale of commercial real estate

• Helping companies compare locations for their businesses

• Matching companies with commercial properties that will suit their needs

• Assisting companies interested in leasing office space with finding spaces and buildings that fit their needs

• Arranging tours of available properties

• Negotiating with sellers on behalf of buyers to close real estate deals

• Monitoring the sales process to ensure a successful closing

• Attending the closing to support their clients

In addition to performing these services, real estate brokers may have additional duties. Brokers have a responsibility to look over all necessary paperwork to ensure that all transactions comply with laws and regulations. Agents typically don’t perform this task and, instead, turn paperwork to brokers for review.

Brokers may also serve in leadership roles, supervising a team of real estate agents. If they own their own agencies, they may also be involved in marketing, HR, budgeting and other key business functions.

Read more: Real Estate Agent Duties, Skills & Responsibilities

Fees

Both real estate agents and brokers charge fees for their services. However, brokers’ fees may be slightly higher than agents’ fees due to the extra experience and education that they bring.

What’s the difference between a Realtor and a broker?

A Realtor is a real estate professional who belongs to the National Association of REALTORS®. This involves joining a local NAR real estate association.

In most cases, a real estate professional is only able to join if the principles at their brokerage or firm are members. Brokers who work independently or are the principals of their firms can join a local organization and become a REALTOR whenever they wish. As a result, a broker and a Realtor may be the same thing. Real estate agents may also be Realtors.

Becoming a Realtor gives a real estate professional access to continuing education courses and resources to help them assist clients. In addition, Realtors can attend events to network with other real estate professionals. Having a larger network can make it easier for a professional to find buying and selling opportunities for their clients.

Understanding the types of real estate agents

A sales agent in real estate may work in one of three roles:

• Buyer’s agent. This professional represents the buyer and helps them find real estate that meets their needs. They make offers on properties on behalf of buyers as well. In some cases, a buyer’s agent may be called a buying agent.

• Listing agent. This real estate professional represents the seller and provides advice about pricing, recommends updates to help the property sell, markets the property and negotiates with the buyer’s agent. They may also be referred to as selling agents.

• Dual agent. This professional represents both the buyer and seller in a transaction.

Whether a real estate professional is a buyer’s agent or listing agent depends on the transaction. A licensed real estate agent can serve in any of these roles.

How to choose between real estate agents and brokers

If you’re planning to buy, sell or lease commercial real estate in the near future, one of the first steps to take is to determine whether to hire a real estate broker or an agent to assist you. Here are a few things to consider:

• The complexity of the transaction. If you need to purchase or lease a specific type of industrial property, wish to buy or sell multiple properties or have another type of complex situation, a broker may be a better choice because they have additional training and experience.

• Your familiarity with the area. For businesses expanding to new regions or cities, a broker may possess more knowledge of the area due to their extensive experience. 

• Your timeline. If you need to expand, relocate, open or sell quickly, you should consider the schedules of brokers and agents and whether either interferes with your deadlines, special contingencies or contractual dates.

• Conditions in your area. In a highly competitive market, a broker or real estate agent with many years of experience may be a better choice.

• Budget. Because brokers may charge higher fees, organizations buying or leasing within strict budgetary constraints may prefer to hire agents.

Keep in mind that there is some variability to the above advice. Some real estate agents bring many years of experience and have pursued advanced education without ever applying for a broker license. These individuals may be able to provide the same level of service as brokers, making it important that you research the real estate professionals in your area before arriving at a decision.

FAQs about broker vs. Realtor vs. sales agent

How do real estate agents and brokers get paid?

Real estate agents and brokers receive most of their income from commission, which is a percentage of the sales price of home and commercial property transactions they facilitate. These commissions may be earned when they act as a buyer’s agent or listing agent or when they represent both the buyer and seller as a dual agent. In addition, they may earn bonuses when their agencies or brokerages achieve certain sales goals. Some real estate professionals might also earn a base salary.

What is the best way to choose a broker or agent?

When hiring a broker or an agent, consider the following:

• Commission and fees

• Level of experience

• Marketing techniques

• Communication skills

• Size of their network

• References from past clients

Do buyers or sellers pay real estate fees?

As previously mentioned, you’ll pay commissions and fees whether you’re working with a real estate agent, Realtor or real estate broker. Technically, the seller is responsible for covering those costs, but often, they’re added to the asking price of the property and passed on to the buyer.