What’s the difference between a real estate agent and a broker? Usually, when somebody says “agent” or “broker” what they mean is the real estate salesperson. However, there are two types of licenses:
1. The real estate agent license
2. The real estate broker license
Most salespeople don’t also have the broker license. In this article, we are going to discuss the differences between the two types of licenses and what it means for you as a buyer or seller.
An agent, also called salesperson, must be at least 18 years old and have proof of legal presence in the US. They must be honest and trustful. A conviction of a crime may result in a denial of the license. A real estate agent must complete three college-level courses. They also have to pass a 3-hour test with 150 questions and score 70 percent or better.
On the other hand, real estate brokers have much stricter licensing requirements. A broker must be at least 18 years of age, have proof of legal presence in the US, be honest and trustful. As in the case of a real estate agent, a conviction of a crime may result in the license being denied. The broker must complete eight college-level courses and a minimum of two years full-time licensed salesperson experience. Also, real estate brokers must take a 5-hour test with 200 questions and score 75 percent or better.
Commitment and experience
It’s all about commitment, experience, and dedication! A broker makes a much bigger commitment of time and education.
A real estate agent has to work for a broker. In other words, agents have to be supervised by a licensed broker. A real estate broker can either choose to work for themselves or to associate with another broker, open their own office, have their own escrow company, issue loans, etc.
What does it mean for you?
Most people buy and sell a few houses during their lifetime. Even if you’ve only done it five times, it isn’t enough to understand the complexities of a real estate transaction. Some states even use attorneys for real estate transactions since the process is so complicated and riddled with lawsuits, involving so much money!
Are you willing to let an agent who only took three classes represent you? When you are so much at stake, do you really want to put your transaction in the hands of an inexperienced real estate agent? How much money are you going to leave on the table? Of course, it is entirely up to you to make a wise decision!