What are the Differences Between a Real Estate Agent, a Broker and a Realtor?
When first entering the real estate market, it is not uncommon to have a few questions. One of the most commonly asked is one that even those who have bought and sold houses in the past often do not know the answer to What is the difference between a real estate agent, a real estate broker, and a realtor?
For some reason, many people assume that these terms are fairly interchangeable. However, the truth is that all three of these players in the real estate game have their own jobs and responsibilities.
Here are a few differences between real estate brokers, real estate agents, and realtors.
What Does it Mean to be a Real Estate Broker?
Put simply, a real estate broker is essentially a real estate agent who has taken their career a step further and has completed additional and more detailed coursework. It is this additional and detailed coursework that qualifies them to run their own brokerage firm and take on the additional responsibilities of a broker.
Some of the major aspects of being a real estate broker include:
-Real estate brokers have more rights than real estate agents do. These include being able to manage other real estate professionals and do appraisals.
– Real estate brokers are held to a noticeably higher standard of knowledge
– The broker’s exam is quite a bit longer and significantly more difficult than the exam that real estate agents have to pass.
-Unlike real estate agents, the broker is the one who is responsible for ensuring that the actual transaction is completed smoothly.
What Does it Mean to be a Real Estate Agent?
Essentially, a real estate agent is someone who is licensed to sell real estate. They are not allowed to work on their own, and therefore must be employed by a real estate broker. That said, a real estate agent can be a broker (whose role will be discussed later in this article).
Some things that real estate agents are responsible for in their job include:
-Advertising properties that they are representing
-Taking clients on house tours
-Arranging house tours (this is sometimes done by the office receptionist)
-Hosting open houses
-Submitting offers
– Negotiating sales deals
What is a Realtor?
What sets Realtors apart from real estate brokers and real estate agents is that a realtor is a current member of the National Association of Realtors. And therefore must follow the National Association of Realtors Code of Ethics. This is a strictly enforced program consisting more than 15 articles that outline governing the standards of practice. This code of ethics does not apply to other real estate professionals that are not members of the National Association of Realtors.
Some aspects of being a realtor include:
-Practitioners, lawyers, and consumers accept the National Association of Realtors code of ethics as the bible of professionalism for the real estate industry.
-In order to qualify as a realtor, members must complete their ethics training within a year of joining the NAR.