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You often hear people say they contacted a real estate agent or a broker, but not many know the difference between them. However, there are some significant differences, and knowing them can help you with your next real estate deal. 

What is a Real Estate Agent?

When most people think of real estate experts, they immediately think of an agent. This is the place to begin if you want to work in the industry. Agents are in charge of meeting with customers, hosting open houses, and handling all other aspects of the selling process.

A person must complete real estate training and pass a state-specific exam, and be licensed to become an agent. In addition, an agent must operate under the supervision of a qualified broker to sell property properly. Bottom line— agents are unable to function on their own.

Most agents earn money by charging a commission, generally a percentage of the sale price. The payout structure might differ depending on the brokerage for which an agent works.

As a starting point, becoming an agent provides many opportunities for individuals to obtain experience as they begin their real estate careers.

What is a Real Estate Broker?

A broker is a real estate expert who has progressed beyond the agent level. A person must complete further schooling and pass a second licensing exam to become a broker. 

Brokers can sell property independently or start a brokerage business where they manage and supervise other agents once all relevant license criteria have been satisfied.

When it comes to flexibility, brokers get more in terms of how they arrange their real estate careers. Because they are not working for someone else’s business, individuals have more freedom in their work-life if they want to work as independent agents.

They can even start their own brokerage firm and recruit real estate agents to work for them. A broker’s license also brings up the possibility of property management.

These factors enable the broker to experiment with various commission scenarios that will ultimately benefit them. Although becoming a broker is more challenging, many people believe the payout is well worth the additional knowledge.

Benefits of Real Estate Agents

1. Licensing Requirements 

Licensing requirements for agents are lower than they are for brokers. Aspiring real estate agents must complete administrative criteria, take state-specific pre-licensing courses, and pass a licensing test to obtain a real estate agent license.

They can then begin representing clients at that moment. On the other hand, Brokers must finish far more training and pass an even more rigorous exam. 

As a result, many real estate agents would rather stay as agents than complete the additional procedures necessary to become brokers.

2. Flexible Schedules

You can organize your day to accommodate your personal life as a real estate salesperson since you are your boss. This means you don’t have to punch in or out, nor do you have to start or finish work at a set hour. 

Setting your own hours and creating your schedule allows you to spend more time with friends and family while improving your work-life balance and job happiness.

3. Fewer Management Responsibilities 

Agents have fewer management responsibilities than other employees and are primarily in charge of representing purchasers and sellers in real estate transactions.

On the flip side, real estate brokers are often in charge of various managerial tasks linked to the brokerage’s business, including hiring employees, financial reports, etc.

Contract drafting, administrative activities, and hiring and onboarding agents are also common examples of these responsibilities. As a result, many agents would instead focus on their clients than on administration and management.

4. Business Expansion

You can grow your real estate business as much as you want since you’re the boss. You can also earn your broker’s license and create your own brokerage firm at a later date.

Many agents enjoy freedoms that brokers can’t afford to take advantage of since they have more responsibilities. In many cases, being a real estate agent is more than enough for some individuals. 

5. Limited Financial Responsibilities

Real estate agents are only liable for a limited amount of money. As a result, they cannot be held responsible for the activities of other agents, either financially or legally. 

In addition, real estate agents have less liability than real estate brokers due to their lower obligations and responsibilities.

Benefits of Real Estate Brokers

1. Expanded Knowledge 

Brokers are essentially the experts in the business. You can take your career as a real estate professional to the next level by creating your own brokerage firm once you are a licensed broker in your state.

2. More Opportunities

Real estate brokers can establish property management firms, giving them another income stream— property management businesses liaise between a rental property’s owner and the tenants.

Real estate operations must be conducted under a broker’s license, such as leasing and collecting rent. As a result, by law, every property management company must have a certified real estate broker on the payroll.

Nevertheless, property management may be a terrific supplemental cash stream or a new career opportunity if investment properties are presently trendy in your region.

3. Provides More Power 

When you work as a broker, you are treated with greater respect. After all, being a broker demonstrates that you’re serious about your real estate profession.

It also indicates that you are more knowledgeable about local and national real estate legislation, particularly negotiating, marketing, and contracts.

Because brokers often have more expertise and understanding of real estate than the average agent, many buyers and sellers opt to work directly with brokers. 

Becoming a broker comes with many advantages, including the potential to create your own firm, employ agents, and manage office personnel.

4. Exclusive Benefits

Real estate brokers, on average, have more experience in the field than many agents. Furthermore, real estate brokers usually have more specialized training and certifications than many local agents. 

As a result, customers who are considering buying or selling a house in the future are more inclined to trust seasoned local brokers than fresher, less skilled agents.

5. Make More Money

One of the most compelling parts of becoming a real estate agent is that your income potential is unrestricted. The same is true, but considerably more so for a broker. 

This is because agents must currently divide their commission with their broker. As a broker, you keep the whole commission if you work for yourself.

In addition, brokers can also earn a commission from another agent’s sales that work directly under them. Imagine you have a brokerage firm with several real estate agents— in that case, you could be earning commissions from each agent’s sale.  


Becoming a real estate agent or broker is a big decision that only the person involved can decide. Both sides have many benefits, but if you want more freedom and time to enjoy the good things in life, you might want to start as an agent and go from there. 

If you’re a licensed real estate agent and want to join a team of experts that can help you take your career to the next level— contact us today! 

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