You probably have heard the term real estate broker used synonymously with a real estate agent but they’re actually two different things. What is the difference between a real estate broker in a real estate agent? And… You’ve probably heard the term Realtor as well, which is a completely different title. Yes, all three are licensed for their area to buy and sell real estate property and can conduct a transaction but that’s where the similarities pretty much end.
In the most basic definition, a real estate broker’s license to own his or her own firm such as a brokerage and a real estate agent is licensed to work under that broker as a licensed representative of that broker. Real estate brokers and brokerages such as Windemere, Keller Williams, RE/MAX, and some of the other big real estate players are their own brokers with licensed real estate agents underneath them representing the broker. However, these agents can go on to further their education after two years of being a licensed agent and obtain their own brokerage license.
This doesn’t necessarily mean that these brokers need to break away from the parent brokerage and create their own, which attaches a lot of taxes and fees onto the brokerage, but they have the added experience and education that a broker would have. Real estate brokers have more educational courses completed, have more experience, and must have passed an extremely difficult state broker license exam. So, all in all, brokers tend to have more experience overall and must put in a certain amount of time before they can even apply for their broker’s license.
What is a Realtor?
A realtor is a broker or a licensed agent who has officially become a member of the National Association of Realtors. This association can provide a lot of additional education, forms, support, and information for agents and brokers. Some brokerages require all their agents and brokers to be a part of the National Association of Realtors but not all.
REALTORS are agents or brokers but not all agents or brokers are Realtors. This additional membership has an extensive code of ethics and members pay annual dues. However, Realtors say that they adhere to these extensive moral codes but if the brokerage requires them to be members, it all comes back to a case-by-case basis. All real estate agents, brokers, and Realtors should stick to an ethical code of conduct when representing buyers or sellers regardless of their specific membership.
What is a Listing Agent – What is a Buyers Agent?
The term ‘listing agent’, ‘selling agent’, and ‘buyer’s agent’ all can either be a licensed broker or a licensed agent, and either can be a Realtor. The listing agent means that the agent is representing the seller or the homeowner in the transaction. The buyer’s agent or also known as the selling agent represents the buyer. Both agents come together and mediate for their clients over the transaction of a property. They represent the buyer or the seller and conduct their due diligence and fiduciary duty for both.
Related: The Difference Between a Listing Agent and a Buyer’s Agent
As a California real estate licensed broker I have the experience and the education to back up buyers and sellers regardless of the type of property or situation. For more information or to get started buying or selling in Sherman Oaks or Woodland Hills, contact my office below at any time.
