Is there a difference between a real estate broker and a real estate agent? And if so whats the difference?
Posted on November 27th, 2009 in Renting & Real Estate | 3 Comments »
legend4real asked:
I would like to get in to real estate investing and I would like to know the difference to see if one would be better to work with that the other. Thanks.
Wood-Ridge NJ Real Estate
I would like to get in to real estate investing and I would like to know the difference to see if one would be better to work with that the other. Thanks.
Wood-Ridge NJ Real Estate
3 Responses
Jacksonville FL Real Estate
That depends upon state law.
In my state a broker’s license requires a minimum of two years successful experience as a real estate agent plus a minimum of 120 hours of advanced classes in real estate.
The overwhelming majority of real estate sales persons do not earn that broker’s license even after much experience. Only a broker can legally open their own real estate brokerage.
As with anything that hinges upon advanced education, their is no guarantee that someone with more education will be better or more effective at their job. So there are more important things that you may want to consider in choosing an agent. Of course, I recommend using a real estate broker. (In some states all real estate agents must be brokers.)
Frederick Real Estate
You want to work with the broker. They are the ones with the real license (agents work under them as salesmen). The broker is the one with the know how, and experience. They also do not split their commissions with anyone, so will negotiate more. If you deal with an agent, they have no control, it is the broker who is paid the commission, of which 50% usually goes to the agent.
Simi Valley CA Real Estate
Landlord is wrong, mainly, because she isn’t licensed in either.
As Terry stated, it depends on the state.
I live in North Carolina. ALL REAL ESTATE SALESPEOPLE here in our state are Brokers….ALL of us. We don’t have a salesperson’s license anymore…it was phased out about 3 years ago.
However, in order to own your own firm here, you have to close X number of transactions in order to apply for a Broker-in-Charge (BIC) status…that permits you to operate independently with your own firm.
Until you close X number of transactions, you have to work under the BIC.
However, all of us get the same amount of education.
Now, in SOME states, there are salespeople, brokers, and BIC’s.
Salespeople go through a 6 week course, take a test, and must work under a broker.
Brokers are licensed salespeople that simply took additional education, and are a broker, but they still work under a BIC.
A BIC, are always those that either own or are in charge of a real estate firm.
So that is the differences between how states are set up.
Ultimate, WHO it is makes no difference…I have seen Brokers with 30+ years experience that I wouldn’t put in charge of selling a puppy, and I have seek brand-new rookies that can negotiate like pros.
Get references…that is how you get the best.