What's the Difference Between a Real Estate Agent & Broker?
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Both the real estate agent and broker play pivotal roles in the real estate industry. And while it's easy to get the two mixed up, they're both significantly different and similar in many ways.
Let's start with an obvious similarity: Agents and brokers are both licensed professionals who assist individuals in the buying and selling of property, and they both provide valuable market services to their clients.
But what about a significant difference? Easy: The education and experience requirements are vastly different between the two.
Let's take a closer look.
What's the Difference Between a Real Estate Agent and a Broker?
The difference between a real estate agent and a broker is that a real estate agent typically helps with the buying and/or selling of property, while a broker may do the same by employing real estate agents to work on their behalf.
A broker generally oversees the entire real estate transaction, including taking care of the paperwork and liaising with other parties involved in the process.
A real estate agent works directly with buyers and sellers to help them find or purchase the right property. They are responsible for finding properties that meet their clients' criteria, negotiating contracts, providing advice on pricing, and more.
On the other hand, brokers may employ multiple real estate agents to work for them in order to better manage transactions.
Brokers are usually more experienced in most, if not all, aspects of the real estate industry than agents: Their educational requirements often involve hundreds of hours of professional education, and they enjoy exclusive access to local market intelligence and other tools that regular agents don't have.
What Does a Commercial Real Estate Agent Do?
A commercial real estate agent is a professional who assists in the sale, purchase, or lease of commercial real estate. In order to become an agent, you must first get a real estate license, and to obtain this license, you need to pass your state's required tests and log a certain number of hours either on the job, in the classroom, or both.
As a licensed agent, you're responsible for helping sellers list their properties and buyers find the right properties. You also need to ensure that all legal contracts and paperwork are filled out correctly.
Real estate agents must also stay up to date on market trends and pricing so they can provide accurate information to their clients. Finally, agents must adhere to any local laws or regulations related to real estate transactions in order to remain compliant with state licensing requirements.
Becoming a commercial real estate agent requires dedication and hard work, but it can be a very rewarding career for those who take the time to get licensed.
What Does a Commercial Real Estate Broker Do?
A commercial real estate broker is a professional who has obtained a state-commissioned license to legally represent clients in the purchase, sale, and lease of commercial real estate.
It takes more experience and greater education to become a broker: An aspiring broker must pass a state-administered license exam in order to become a licensed broker and log hundreds of hours of professional real estate instruction.
The responsibilities of the broker may vary depending on the type of license held: Associate brokers are typically more junior-level positions, while managing brokers are senior positions and generally lead a team of agents.
In some states, there are also principal brokers and designated brokers who have additional responsibilities.
Generally speaking, commercial real estate brokers work with clients to identify suitable properties or tenants for their needs and then negotiate an agreement that is mutually beneficial for both parties.
They also provide advice on market trends and help facilitate the entire real estate transaction process from start to finish, and they can work with both a buyer and a seller at the same time as a dual agent, something regular agents can't do.
What Is an Associate Broker?
An associate broker is a real estate broker who has earned a special license and has more experience on the job than a regular broker. This license is obtained after the completion of additional education and allows the associate broker to work with another broker or independently.
An associate broker must have knowledge in all aspects of the real estate business, from marketing and sales to closing procedures, as well as stay up to date on all relevant laws and regulations.
They may act as a mentor to new brokers, helping them understand all aspects of the profession, as well as participate in all areas of the real estate process, such as writing contracts, negotiating with buyers and sellers, attending meetings with clients and other brokers, developing marketing plans for properties, and handling paperwork.
What Is a Managing Broker?
A managing broker is a real estate broker who has obtained a higher license than an associate broker or another type of broker. To obtain this license, you must have completed additional training and education beyond what is necessary for the more basic broker licenses.
A managing broker is responsible for overseeing all of the activities of their associates and ensuring that they are following all laws and regulations governing the real estate industry. They often oversee transactions, advise clients, manage staff, and work to improve the overall success of their office by setting goals and objectives.
Managing brokers also ensure that all licenses held by their associates are active and up-to-date. As such, they are tasked with managing a variety of responsibilities in order to ensure that their office remains successful.
What Kind of Real Estate Agent Do You Need?
Do you need a broker or just an agent? A broker has more experience as well as exclusive access to local market intelligence and can handle larger and more complex transactions. But if you only need help with smaller transactions, then hiring an agent may be enough.
Do your research, stay diligent, and happy investing.
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