REAL ESTATE AGENT VS BROKER: What’s the Difference?

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Want to purchase a house? Real estate agents and brokers can make the house-hunting experience a lot easier by providing you with the information you need. Realtors may be able to help as well. As part of this study, you will also learn about their pay (salary) and the difference between a commercial real estate agent vs a broker vs a realtor.

Real Estate Agent Vs Broker Vs Realtor: The Real Estate Agent

A real estate agent is an individual with a license to help customers purchase or rent real estate or houses. As a reward, they are paid a commission, typically a percentage of the estate’s sale price, which they use to connect purchasers and vendors. 

What Is the Duty of a Real Estate Agent?

The following are the duties or responsibilities of a real estate agent:

#1. Transactions

Transactions between purchasers and vendors, as well as those between landlords and tenants, are handled by real estate agents. A real estate agent’s duties include facilitating the exchange of proposals and negotiating between the parties, as well as answering any questions they may have. As soon as an offer is made, an agent will work with another agent to help customers fill out paperwork. It is their responsibility to inform their customers of any additional criteria, including house inspections, relocation, and closing dates.

#2. Listing Agents

Listing agents are those who represent sellers. There are a number of things these agents can do for you when it comes to selling your home, including advising you on how to price it, recommending improvements to the property that will raise its value and the likelihood of a successful sale, and helping you stage and promote it. In addition, they assist in the preparation, submission, and filing of paperwork and in the negotiation of sales prices, closing expenses, and other fees.

#3. Buyer’s Agent

The term “buyer’s agent” refers to an agent who exclusively represents the interests of the buyer. There are real estate agents who work with buyers to identify residences that meet their specific needs (called the “wish list”) at a price they can afford. When it comes to negotiating the conditions of a deal, buyer’s agents are just like listing agents.

Real Estate Agent Vs Broker Vs Realtor: Broker

In order to become a licensed broker, a real estate agent must complete further training and pass a state exam. A broker, unlike real estate agents, has the option of working independently and starting their own firm, and employing other agents.

The Duty of a Broker

Almost all of these tasks that a real estate agent does are done by a broker. Brokers that work with purchasers typically search for properties that meet their customers’ specifications, negotiate, prepare offers, and assist the buyers with any other problems that arise prior to the deadline date. They may also assist buyers with financing issues. For their part, seller’s brokers do everything from finding fair market value for their clients’ houses to listing and showing them, all while keeping in close contact with the vendors to keep them informed of any bids they receive.

Real Estate Agent Vs Broker Vs Realtor: Realtor

The National Association of Realtors (NAR) is the major trade organization in the United States, and Realtors are members of the NAR. It is typical for the term “realtor” to be misunderstood as “real estate agent,” but it is actually a classification that can be used by anyone working in the real estate sector. Other classifications include brokers of both residential and commercial properties available, salespeople, managers of real estate, and appraisers. 

How To Become a Realtor

To become a Realtor, you must complete the following requirements:

  • Keep your real estate license up to date and active at all times.
  • Make an effort to be part of the real estate market.
  • Never be the subject of any formal disciplinary action because of unprofessional behavior.
  • Have not filed for bankruptcy in the past or in the future.
  • If you want to become an actual Realtor, you’ll have to pay a one-time enrollment fee and yearly membership fees to the National Association of Realtors. The stringent Code of Ethics of the National Association of Realtors applies to all real estate agents and brokers in the United States.

Real Estate Agent Vs Broker Vs Realtor Salary (How they get paid)

Real Estate Agent vs Broker Salary (How they get paid)       

A broker and agencies employ real estate agents who get their compensation on a commission-only basis. Essentially, this means that their salary is a commission based on how much a property sells. It’s possible to negotiate commissions, although they normally range from 5 to 6 percent of the sale price.
The real estate agent doesn’t get to keep all the salary they earn from a transaction. When it comes to commissions, they share them between the buyer’s agent, the seller’s agent, and their respective companies. Here’s an example:

The listing agent receives 1.5% ($3,000) of the sale price and a 1.5 percent ($3,000) fee charged by the buyer’s agent to the listing agent’s broker. The fee is 1.5% ($3,000). Brokerage fees for the buyer’s agent: 1.5 percent ($3,000) of the purchase price

Real Estate Agent Vs Broker Vs Realtor Salary: How They Get Paid

A Broker salary

A broker in the real estate industry makes money by taking a cut of the commissions that their agents generate. Their own transactions generate commissions for them, but a real estate agent has the liberty to keep all the profits.

Real Estate Agent vs Broker vs Realtor Salary: How to Get Paid

Realtor Salary

In the United States, a realtor may expect to make $49,000 on average in 2020. The lowest salary earners made less than $25,000, while the wealthiest earners made more than $112,000 throughout the year.

 It is common for real estate brokers to receive a higher salary than a typical realtor. For a realtor in 2020, the average annual salary was around $60,000.

A realtor is almost the same as a real estate agent, so how their salary is equally the same.

Commercial Real Estate Agent Vs Residential Real Estate Broker: What’s the Difference?

Commercial real estate agent vs residential real estate broker: These are the two most common types of property agents. And the only thing that separates the two is the agent’s area of expertise.

Commercial real estate agents specialize in the acquisition and disposal of commercial properties. When it comes to purchasing or selling a property, a residential real estate professional is your best bet.

Both agents must get the same foundational training and credentials. To be productive in commercial or residential real estate, an agent needs a higher level of education and training.

A career in commercial real estate differs significantly from a career in a residential real estate broker in four key ways. Among them are the following:

#1. Salary

A commercial real estate agent’s salary tends to be significantly higher than that of a residential real estate agent. As a result, commissions tend to be greater and the residential real estate industry more volatile.

#2. Duration

Regular 9-5, 40-hour-per-week business hours are the norm for commercial agents. There is a lot of after-hours work done by a residential broker. 

#3. Education

Training for commercial and residential agents might appear very different. Typically, a commercial real estate agent works for business brokerages and has more specialized training than other types of real estate agents. Many business concepts such as Net Operating Income (NOI), profit margins (profit/loss), tax planning (ROI), return on investment (ROI), and internal rate of return (IRR) are all part of their job description.

#4. Number of properties 

The number of residential properties is significantly greater than the number of business properties. As a result, there are considerably fewer commercial real estate transactions.

#5. Transaction

Residential property transactions are relatively short in length. The average closing time is between 30 and 45 days. It is rare to complete a commercial deal in less than 60 days.

#6. Commissions

Because commercial properties typically sell for a higher price than normal residential properties, the charges on a commercial sale are typically substantially higher.

#7. Criteria for hiring

Commercial brokerages, on the other hand, tend to have more stringent hiring rules, making it more difficult to join. Residential offices tend to have a more laid-back atmosphere than their commercial counterparts.

Is it Possible to Hire a Real Estate Broker to Help You Find a Rental?

Yes. Realtors and brokers also list and find tenants for rental residences in addition to helping buyers and sellers do so. Most of the time, when an individual rents a property, the renter will pay a commission to their broker, then the listing agent will share it with his agency.

Is There a Difference Between a Buyer’s Agent and a Seller’s Agent?

A buyer’s agent aids homebuyers in their hunt for a new property. Other real estate companies and their owners will often allow a buyer’s agent to obtain entry to properties that are on the market. A seller’s agent, also known as a listing agent, is responsible for putting a home on the market and promoting it to potential buyers. It’s up to the seller’s agent to display the property, hold open houses, and promote the home digitally. Buyer and seller’s agents typically receive a share of a seller’s commission when a sale occurs and split it with their respective agencies.

How Much Commercial Realtors Make

Despite commercial real estate having a longer sales cycle, Monster, a popular job board, reports that commissions for commercial real estate brokers are higher than those for residential real estate salespeople. Because of these characteristics, the average annual compensation for a commercial real estate broker is $85,000.

NAR cites this large salary as a consequence of the way that commercial realtors are more likely than residential ones to earn 100% commissions. Considering that the ordinary commercial offer is around $3 million vs $154,000 for the average cost of a US home. And are much more able to keep a broker’s license, which increases their earning potential. The average annual compensation for a realtor in Arizona is $89,000.

How Do Real Estate Brokers Get Paid?

The commissions that are received by the real estate agents who work for them are how real estate brokers are paid. In contrast to real estate agents, they are also paid commissions from their own agreements, but they are not required to split those commissions with “the office.”

What Is the Difference Between a Buyer’s Agent and a Seller’s Agent?

A buyer’s agent helps prospective homeowners with their real estate search. Typically, a buyer’s agent will have access to listings from other agencies in addition to their own. A seller’s agent, often known as a listing agent, creates and promotes a real estate listing. The homeowner is represented by the seller’s agent, who may also stage the home, hold open houses, or post pictures of it online. The commission paid by the seller when a house is sold is typically split equally between the buyer’s and seller’s agents.

Can You Sell a Home by Yourself?

There are ways to market a home as for sale by owner for those who want to avoid paying exorbitant costs (FSBO). These can range from a straightforward “for sale” sign in the yard to cheap listing services that, for a set cost, will put the home on the Multiple Listing Service (MLS) along with some basic images. Of course, except from the web listing, there won’t be any professional marketing or staging to publicize and encourage people to see the home. You can also still be obligated to cover the buyer’s agent’s commission after the house sells.

Is it Better to Use a Real Estate Broker or Real Estate Agent?

For the buyer or seller of a home, the distinction frequently doesn’t matter all that much. However, an independent broker might have access to additional properties that are listed by other organizations. A broker may also be allowed to charge slightly more because they are not required to split their profits with an agency.

Can You Use a Real Estate Broker to Rent a Property?

Yes. Real estate brokers and agents assist in renting out properties and finding qualified renters in addition to purchasing and selling. Normally, the renter pays their broker a fee (usually one or two months’ rent) when a property is rented, and this charge is split with the listing agent.

Is It Better to Be a Real Estate Agent or a Broker?

Everything depends on what you’re looking for. Some real estate agents are content to carry on with their current group of colleagues. They appreciate having access to the services that their brokerage provides. An agent who works for brokerage benefits from networking possibilities, brand recognition, and individualized training.

However, becoming a broker might be the next step in a career for self-driven agents who aspire to be their own boss.


This guide shows that there isn’t much difference between a real estate agent, a broker, and a realtor. For one to become a realtor, the individual must become a member of the National Association of Realtors (NAR), which is the major trade organization in the United States. 


Why a broker is better than an agent?

Real estate agents and brokers are experts at guiding their customers through selling, buying, and renting a house. A broker, on the other hand, often has more in-depth training and often functions in supervisory positions, supervising the agents who work for them, as opposed to the agents themselves.

Do real estate brokers make more than agents?

Yes. Brokers have their own real estate companies, hence their earnings tend to be higher than those of agents. Additional to their regular salaries and benefits, they may be paid a share of the commissions earned by the agents they work with.

How long does it take to get a real estate license?

In a regular classroom, it takes at least 4-6 months to earn a real estate license. In order to get your real estate license, you’ll need to complete your pre-licensing course online in as little as eight weeks.

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