Are you stuck on what is a real estate broker vs agent? As part of your homebuying or selling experience, or when considering entering the real estate industry. It is vital to gain an understanding of how various real estate professionals such as an estate agent and broker differ.
What Is A Real Estate Broker vs Agent?
The main distinction between an agent and a broker resides in their responsibilities; an agent typically performs all tasks assigned, while brokers take on additional responsibilities to ensure all real estate transactions comply with the law, paperwork is filed correctly, finances are accounted for correctly, etc.
Let’s examine more closely the tasks, types, and income of these roles to gain a clearer picture of what is a real estate broker vs agent.
What Is A Real Estate Agent?
A licensed real estate agent provides services related to real estate transactions. In general, real estate agents work for another agent or brokerage and typically charge a commission for their work.
What A Real Estate Agent Do?
Real estate agents can be invaluable assets when purchasing or selling property. Some of their responsibilities may include:
- Connecting buyers and sellers,
- Connecting qualified home buyers via multiple listing services (MLS),
- Sharing listings via multiple listing services (MLS),
- Connecting home buyers with mortgage lenders to obtain preapproved loans,
- Negotiate repairs and replacements requested by home inspectors or appraisers.
- Assist buyers and sellers with paperwork and the closing process
Types Of Real Estate Agents
- Listing Agent: A listing agent represents both parties involved in real estate transactions; typically this will include representing both sellers and buyers during an exchange.
- Buyer’s Agent: These real estate agents work on behalf of homebuyers during transactions.
- Dual Agent: When dealing with real estate transactions simultaneously, dual agents act both as listing agents and buyer’s agents for both sides.
How Real Estate Agents Get Paid?
Real estate agents typically are paid on commission rather than through salary payments, meaning they take home a percentage of any sale they help facilitate when helping someone buy or sell real estate.
What Is A Real Estate Broker?
A real estate broker is defined as any agent who has successfully taken and passed their broker license exam. If working with one directly it’s important to remember they may previously worked under another broker before becoming one themselves.
Real estate brokerage professionals possess additional responsibilities than real estate agents: managing their firm and overseeing real estate transactions conducted by agents under them.
What Real Estate Brokers Do?
Brokers perform all the functions that real estate agents would, but thanks to their broker license they also possess additional abilities such as:
- Moving money between an escrow account and their account;
- Mediating conflicts over legal disputes;
- Hiring agents as subordinates to work under them, etc.
Types Of Real Estate Brokers
- Principal/Designated Broker (PDB): An agent responsible for overseeing all operations and transactions within their brokerage firm.
- Managing Broker: (Mgmt Broker) overseeing day-to-day management duties of their firm.
- Associate broker: Associate brokers are most often contracted out by larger brokerages to ease their workload and alleviate some stress.
How Real Estate Brokers Get Paid?
They Earn Their Pay Real estate brokers make money two ways; by taking a percentage of any commission earned by agents they sponsor, or keeping all commission from deals they close themselves.
The seller pays the commission, typically 6% of the sales price, to their listing agent or broker who then shares that commission 50-50 with the buyer’s agent.
What is a real estate broker vs agent boils down to what each is capable of!
A real estate broker can do everything an agent can do plus manage a brokerage firm and oversee agents working under them, while agents may work towards becoming brokers by accruing experience and passing the broker license exam. Get ahead by applying for a mortgage through Las Vegas Real Estate Sales.
