If you’re new to real estate, you’ve already heard of real estate agents and brokers. You’re probably wondering what the differences are between them and you may have even heard of real estate agents being referred to as brokers. They may sound similar, but they play very different roles.
So is there a difference? Yes, there is, and we’re here to clear the confusion.
What is the difference between a broker and an agent?
An agent is a person responsible for facilitating the real estate transaction. They can work with buyers and sellers but are ultimately responsible for bringing the two together and aiding the sale along.
Real estate brokers can own real estate firms that agents work for. In simple terms, agents work for brokers. Brokers act as the liable party and are responsible for the actions and managing interactions of the real estate agent. They are also responsible for negotiations, arranging, and overseeing the entire transaction.
The real estate agent is whom the buyer and seller interact with. The agent shows homes, introduces buyers and sellers to one another and walks either party through their end of the process. Brokers handle legal contracts and report any requests relative to the transaction to the broker.
What can lead to confusion is when someone who is a licensed broker still works as an agent. [Read more…]