If you’re thinking about starting a career in real estate, chances are you’ve done some research and come across three common job titles - real estate agent, broker, and Realtor®. While these job titles are sometimes used interchangeably, they don’t all mean the same thing.
All three professionals have completed the necessary education requirements and earned their license to help people buy and sell homes. So what is the difference between a real estate agent vs. broker vs. Realtor®? We’ll walk you through it.
What is a real estate agent?
Real estate agents are professionals who earned their real estate license to assist people in the process of buying and selling property and are employed at a real estate brokerage. They help buyers find the best home in their price range and negotiate the best deal, and assist sellers in listing their home at a competitive price.
The process, requirements, cost, and timeline to become a real estate agent vary slightly state-by-state. However, here are some general requirements if you’re interested in starting the process yourself. You’ll need to:
- Meet the age requirement per your state laws. Most states require you to be at least 18.
- Satisfy any residency requirements.
- Complete any coursework required by your state.
- Enroll in a real estate school and complete any coursework required by your state.
- Take and pass your state’s real estate licensing exam.
- Once you’ve passed the real estate licensing exam, you’ll need to undergo a fingerprint background check. This is required in most states.
What is a real estate broker?
All real estate brokers are real estate agents, but not all real estate agents are brokers. A real estate broker is a licensed real estate agent who has continued their education and passed their state’s required exams to earn their real estate broker license. This gives them the qualifications to manage their own business as a brokerage. They can choose to work independently or hire other real estate agents to work for them. Just like becoming a real estate agent, the requirements, cost, and timeline for becoming a real estate broker will vary by state.
What is a Realtor®?
A Realtor® is a real estate professional who is a member of the National Association of Realtors® (NAR), an organization that real estate agents and brokers can join for an annual fee. The NAR is the largest trade association in the U.S. and holds its members accountable for their professional behavior.
Real estate broker vs agent: What's the difference?
Differences in how they get paid
One of the main differences between a real estate agent and broker is how they get paid. At a traditional brokerage, real estate agents are paid commission, a percentage of the property’s sale price - typically ranging from 5% to 6%. The commission usually divided between the buyer’s agent and the seller’s agent. They then will split that with the brokerage firms they work at.
As previously mentioned, both a real estate agent and broker can use the title Realtor® as long as they are an active member of the NAR. A licensed Realtor® must meet all the professional requirements of their position, whether that be a real estate agent or broker, and pass a course on the NAR Code of Ethics every four years. Members are held to a higher standard of service, and may offer a better experience for their clients.
Realtors® also receive discounts and educational resources from NAR that are intended to help them improve their practices and increase their earnings.
Interested in working for Redfin?
Redfin employs real estate agents, brokers, and Realtors® to help our clients buy and sell homes. Explore different real estate career paths and opportunities at Redfin: