Realtor, Real Estate Agent, Real Estate Broker; What’s the Difference?

Are there any differences between this term?

You most likely thought they meant the same thing, and often, they are used interchangeably. But, a realtor, a real estate agent and a real estate broker are different.

In this blog post, we will explain all three of them so that you can understand the difference, and if you wanted to be a real estate personnel, but did not know the correct term for it, this will help.

All three of these personnel are real estate professionals, they will all help you rent, sell or buy property, so how are they different?

Realtor

A realtor is a professional in the real estate industry belonging to the NAR (National Association of Realtors). Technically, every realtor is an agent, even though every real estate agent is not a realtor.

A real estate agent will have to abide by the standards and ethics of NAR to become a realtor. A realtor may also, like a real estate broker, own a real estate firm. Within the realtor’s community, there are in fact, a variety of professions like:

• Appraisers
• Residential/commercial brokers
• Property managers
• Salespeople

To become a realtor, you will need to be have an active and valid real estate license, have no files for pending or recent bankruptcy, be active in real estate and have no records involving unprofessional conduct. Next, you will need to find a local NAR association, pay an application fee, pay annual membership dues and finally abide by the stringent code of ethics.

Real Estate Agent

A real estate agent is a professional that facilitates real estate transactions; they connect buyers and sellers, and usually work for the real estate brokers.

The earnings of agents are commission based, this means that for every property they sell successfully, they earn commissions. Simply put, more sales, more earning.

There are different kinds of real estate agents, including the buyer’s agents, and listing agents. The listing agents help sellers get the best deals and the buyer’s agents help buyers to get the best possible deals.
Another name for the real estate agents is real estate salespeople.

Real Estate Broker

A real estate broker is also a real estate agent but this real estate personnel has passed the broker license exam -which gives them the right to hire agents and own their real estate firm. Simply, a real estate broker is a real estate agent that can own a firm, probably the highest level among all three.

There are three kinds of brokers; the associate real estate brokers, designated real estate brokers and managing real estate brokers.

An associate real estate broker is an agent that has met requirements of the state and is thus licensed. A designated real estate broker has a firm that manages the activities of real estate agents. A managing broker manages a group of associate brokers or real estate agents.

So, having understood the differences between these, note that any of these professionals can assist you in buying or selling your property, no matter their professional level.

If you intend to have a real estate career, by now, you already see that you may need to start from being a real estate agent, and work your way up to becoming a realtor and then a real estate broker. We’re rooting for you!

And if you need some help to start your real estate career, contact us. If this blogpost was helpful, don’t forget to share with others, and subscribe to our newsletters.