Often times the terms “real estate agent” and “real estate broker” are used correspondingly. Although both agents and brokers work in the same industry, there are some key differences between the two.
A real estate agent is licensed by the state after passing the real estate salesperson exam. In order to be authorized to take this exam, you usually have to complete a certain amount of credits, but these requirements differ from state to state. An agent’s job description involves finding and showing properties for clients to sell, buy or rent as well as writing real estate contracts in order to make the deal between buyer and seller official.
Suppose you are looking to buy a house. You can hire an agent to help you find the ideal house in the ideal neighborhood. He or she will take a look at different properties that match your needs and advise you in terms of price negotiation. However, here is where you start to notice the difference between an agent and a broker: an agent has to work for a broker. Even when an agent is handling a certain listing, that listing is actually under the name of the broker the agent works for.
This brings us to real estate brokers. Brokers need to pass another exam in order to obtain their broker license. Upon acquiring this license, they can start their own real estate firm and employ agents rather than work for another broker. A broker’s job is similar to that of an agent. However, they also have to oversee their employees and be involved in all of the real estate transactions that take place at their brokerage. There is more responsibility as now they are not only accountable for their own actions, but their agents’ actions as well.
Though brokers are permitted to open their own real estate firms, they do not have to; this is another difference between a real estate agent and a real estate broker. Unlike real estate agents, who have to work for a real estate broker, brokers can either open their own firm or continue working for another broker. If they continue to work for another broker, they are referred to as a real estate associate broker.
Real estate professionals are the backbone of the housing market. Contour mortgage is proud to support and work with so many treasured real estate agents and rea estate brokers who are instrumenal in putting together deals and helping clients find the perfect properties.
