Real estate agent vs broker vs realtor. Here is what you need to know. Most people think these are the same as they do the same work. But there are some differences that you need to know if you want to become one of them. Because in every profession, there are some extra license requirements and some extra work you have to do to qualify for that.
Read this article, and you will know the primary difference between these guys and what you should do if you want to become an agent, broker, or realtor in your country.
Real Estate Agent vs Broker vs Realtor
These are the primary differences between an agent, a broker, and a realtor.
- A real estate agent has a professional license from the state government to help people buy, sell, and rent homes. They work for a brokerage firm.
- On the other hand, a broker is also a real estate agent, but he has completed some additional training and other requirements. A broker can work independently and hire other agents to work for him.
- A Realtor has a membership of the NAR (National Association of Realtors). He must comply with NAR’s strict Code of Ethics to stay a Realtor for life. Yes, there are no huge differences between these three guys, but they are not like the same.
In every country, there is a NAR association. If you want to become a Realtor, you must become a member. With that, you will get lots of benefits than an average agent or a broker.
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Who is a Real Estate Agent?
A real estate agent is a person who is licensed by the state government to help homebuyers buy, sell, and rent homes or any other properties. He brings buyers and sellers together in common ground and takes a small commission as his service fee, which is 1% – 5% of the total property value. An agent is also called a real estate associate and salesperson.
To become a real estate agent, you must follow these requirements.
- 18 years of age
- A legal resident in the country
- Appear in the pre-licensing class (not applicable in every country)
- Pass it with over 60+ marks
- Clear your criminal records if any
- Pay the fees of about $320+
- Receive your real estate license in six months
- Maintain your real estate license without any legal issue
Check all these before you apply.
How Much Real Estate Agent Make?
A real estate agent is get paid on a commission basis that can vary from 1% to 5% of the total property value. The higher the sale price, the higher the commission for an agent.
Here are the average earnings for agents in different situations.
- For commission basis, a home sells for $10,00,000 with a 2% commission. You will earn about $20,000 as a commission.
- You can also get a job and get paid a monthly salary. For that, you need to work under a brokerage firm.
But is not the broker as same as an agent? Here are the differences.
Real Estate Agent vs Broker
A real estate broker is similar to an agent, but he can work independently, start their own brokerage and hire other real estate agents.
There are three types of real estate brokers you will see.
- Associate brokers: They have broker licenses but work under another brokerage firm.
- Managing brokers: They manage the whole company as a manager, hire agents, and manage administrative staff.
- Principal broker: He is like the top man in that building, or you can call them supervisors. Each real estate office has one principal broker and controls them all.
How does a real estate broker get paid?
Brokers earn money by taking a share of the commission money earned by the agents in their firm. They also can earn commissions from their own real estate deals, but they don’t have to split their commissions.
Real Estate Agent vs Realtor
A Realtor is a professional who has a membership of the NAR (National Association of Realtors). If you are an agent and you want to become a realtor and get all the benefits, then you have to join the NAR and follow their rules.
If you want to join the NAR, you have to pay a one-time application fee and annual membership fees to maintain your Realtor status. All Realtors in the country must follow the National Association of Realtors’ strict Code of Ethics if they want to stay a Realtor.
By joining this NAR team, you can get ahead of millions of agents in your country. You can also get more leads through that network and earn more money. That is the power of an association.
Plus, you will gain access to a wealth of amenities, business tools, real estate market data, educational opportunities, and networking opportunities.
How to Get Approved by the NAR
Follow these steps to get approved by the NAR.
- Have an active real estate license.
- Be active in the real estate business.
- Not have any records of official sanctions.
- No bankruptcy records.
These are basics that any agent can follow. But there are more that you need to follow. Visit the NAR website and learn more.
Real Estate Agent vs Broker vs Realtor
So what you should do to become all of them as all can give you some great results.
First, get your real estate license, become a certified real estate agent, and then go for the NAR membership. Then after some success, you can open your own brokerage firm and become successful.
So I hope now you have a clear idea of what is an agent, a broker, or a realtor. All these data are taken from various internet sources, including www.nar.realtor, investopedia.com, Realtor.com, and many others.
Data can change over time, do your necessary research before acting. Thanks for reading, see you soon.