Understanding the person who is working for you is the first step toward making sure you choose the right professionals for the job. Almost everyone who isn’t in the real estate industry uses the terms broker and agent synonymously. However, they are distinct, and you should know the difference before choosing a company with which to work.

How Is a Real Estate Broker Different From a Real Estate Agent?

dreamstime_8072361Any professional who has earned his or her real estate license through completing the required coursework and passing the test is a real estate agent. Anyone who is giving you real estate advice or showing you properties must have this license, and must be a registered agent. Because of this, you should be extremely wary of those who don’t claim to be agents or brokers, as they are probably operating without a license.

The essential difference between an agent and a broker is that a real estate broker must complete more schooling and pass a more rigorous test to earn their broker’s license in addition to their real estate license. Because of this, all real estate brokers are agents, but not all agents are brokers.

In addition to the added education and experience, brokers also have an advantage over agents in that only brokers are allowed to list properties in their name. Because of this, agents must work as consultants under a real estate broker or as part of a brokerage. Only real estate brokers can work alone.

What’s an Associate Broker?

An associate broker is a qualified real estate broker who, instead of choosing to work alone, is working under or with another real estate broker. They both have the same licensing and education.

Other Professional Real Estate Titles

There are several other professional titles in the real estate industry, including the following.

REALTOR® – A REALTOR is a real estate agent who is a part of the National Association of REALTORS®, and must adhere to their best practices as well as pay an annual fee.

Buyer’s Agent – Also known as a selling agent (not seller’s agent) or a buying agent, a buyer’s agent will only work exclusively with buyers.

Listing Agent – Also known as a seller’s agent (not selling agent), a listing agent only works with sellers.

Dual/Transaction Agent – These agents work with both buyers and sellers, but have different duties according to the state in which they practice.

At Reinvested Development, we are a real estate brokerage that deals with property investors, buyers, and sellers, so you have all the services and expertise you need under one roof. Learn more about what our title means by contacting our team today!