What’s the difference between a realtor, broker, and agent?
Real estate agents are licensed to help you buy, sell, and rent properties, but brokers have additional licenses to work independently or hire other agents.
There's a central figure in the story of buying or selling your home: A person who is there with you from start to finish, guiding you through the process's practical and emotional ups and downs. This person is your realtor. Wait, they’re your broker. No, they’re your real estate agent.
The terms used to describe this person can be slippery, and while realtors, brokers, and agents are all real estate professionals licensed to help you buy, sell, or rent a home, their training and the scope of their abilities differ.
Broadly speaking, real estate agents assist customers in property transactions. On a more granular level, they steer the deal to completion — all the way from start to finish.
This is no simple task. Real estate transactions are multi-faceted, with legal, financial, and logistical components. Behind each of those elements are people: notaries, real estate lawyers, and other agents; banks and lenders; buyers, sellers, and their families.
It is the job of the real estate agent to advocate on behalf of their client to all of these parties, while shepherding their client through their responsibilities in the transaction.
Related: Do buyers pay real estate commission?
To become a real estate agent, you must complete a pre-licensing training course. The requirements of the course vary by state, but they take as many as 135 hours in California, or as little as 63 hours in Florida. Generally, the courses cover:
Once a candidate has completed their state’s required course, they are eligible to take the real estate licensing exam and activate their license once they pass. Real estate agents may then join a brokerage, where they will be supervised by a more experienced broker.
Not all agents have the same responsibilities in the real estate world. These are the most common types of agents:
→ Learn about the difference between a listing and selling agent
Realtors can be real estate agents or brokers, but to be called a realtor, an agent or broker must be a member of the National Association of Realtors (NAR). The NAR is an organization that fosters professional behavior and the development of real estate professionals. It is America’s largest trade organization, representing 1.5 million members.
According NAR, 67% of realtors were licensed agents, with 35% holding either broker or associate broker licenses. So why take the extra steps to become a realtor? Realtors have access to special benefits organized by the NAR, such as tools to enhance their business, real estate market data, and educational opportunities.
One of the distinguishing characteristics of the NAR is that it holds its members to a strict code of ethics, which dates back to 1913. The code was one of the first of its kind adopted by any business group and was created to ensure that realtors provide the highest quality service while furthering their clients’ best interests.
Real estate has a long, fraught history of discrimination that remains today. In 2020, the NAR addressed growing awareness and concern about bias in real estate by revising its code to make its commitment to antidiscrimination explicit and introducing training around implicit bias.
→ Find out what else is considered unethical realtor behavior
A broker is a real estate professional who has gone through additional training and licensure to obtain the title of broker. A broker’s license allows these real estate experts to work independently, free of the supervision of a firm. It also enables them to open their own firm, and hire and advise agents. While real estate agents are licensed to help you buy, sell, and rent properties, they have to work for a broker.
To become a licensed broker, you must first be a real estate agent. While the requirements vary by state, most call for candidates to have worked as an agent for two to three years before applying to become a broker
Agents who meet this experience requirement must complete additional coursework and pass a final exam. Once they’ve done so, they are free to exercise their new responsibilities, either independently or at a firm.
There are three different tiers of brokers:
Brokers, like agents, earn a commission based on the final sale price of a property. However, as brokers have the authority to run their own brokerage firm, they can retain a higher percentage of the commission. Brokers may choose to work directly with clients, earning the full commission, or they may delegate transactions to agents within their brokerage and receive a portion of the commission as the brokerage's share. The specific arrangement between brokers and agents can vary depending on the brokerage's policies and the individual agreements in place.
The question of whether a broker is better than an agent depends on individual circumstances and needs. Brokers aren't necessarily better than agents; their additional training and qualifications make it so they can operate independently, whereas agents work under a broker's supervision. Brokers may offer a wider range of services and have more experience, but there are highly skilled and knowledgeable agents, too.
When you buy or sell your home with Orchard, you’ll work with licensed agents and Realtors with local knowledge and experience.
The nuances between real estate agents, brokers, and realtors can get redundant for the average homebuyer or seller. It can be helpful to know their major differences.
Real estate agents are licensed to help you buy, sell, and rent properties. They must work for a broker or a brokerage and cannot work independently. Here's more on what real estate agents do.
Brokers are agents who have gone through additional education and licensing requirements that allow them to work independently or hire other agents to work for them.
Realtors are agents or brokers who are also members of the National Association of Realtors (NAR), a trade association that holds its members to a strict code of ethics.
In some cases, an agent can represent both the buyer and the seller in a transaction, known as dual agency. However, dual agency is subject to specific regulations and disclosure requirements that vary by jurisdiction. It's important for all parties involved to understand the implications and potential conflicts of interest associated with dual agency.
Real estate agents and brokers are not licensed to provide legal advice. While they possess knowledge and expertise in real estate transactions, they are not qualified to offer legal interpretations or advice. It's advisable to consult a qualified real estate attorney when legal matters or complex issues arise during a real estate transaction.
Say goodbye to the days of needing to sell your home before buying a new one. There’s an easier way, and our FREE guide breaks down how it can work for you.
On top of Orchard’s Home Sale Guarantee, we list, prep, and show your old home after you’re all moved out.
Grow your business and make $50-$70K more per year.
When you list with Orchard, we’ll get your home show-ready and make repairs to increase your home’s value at no upfront cost.
Orchard guarantees your home will sell, so you can buy your next one worry-free.
On top of Orchard’s Home Sale Guarantee, we list, prep, and show your old home after you’re all moved out.
Use our home sale calculator to estimate your net proceeds.
Our Home Advisors are experienced local agents who know how to sell for top dollar and help win your dream home.
All Orchard Home Advisors are experienced agents who know your local market inside and out. Request a consult today.
Did you know cash offers are 4x more likely to be chosen by a seller? Let us help you make one on your next home.
Get the most accurate free home valuation — in minutes
Orchard Home Loans shops the market to find your best rates.
A cash offer is 4x more likely to be chosen by a seller. Get qualified today.
Make a cash offer now, and Orchard will sell your old home after you move.
Tell us your must-haves to see personalized home recommendations that meet your criteria.
With Orchard, secure your dream home before you list. Avoid home showings, rentals, and double moves.
Learn More
.png)
