Saving money for a down payment on a home is no easy feat, which is why I started looking into various ways to make sure that I had things sorted out like I should. I began working with a real estate agent to chat about what to do and how to start saving, and they explained how much I needed if I wanted to avoid private mortgage insurance, and when the market typically trended upwards. It was really neat for me to see everything I could do with the advice, and saving became easier after I had a clear goal. Find out more about real estate by reading this blog.
Cathy Frazier
When you want to sell or buy a house, you probably want to work with a real estate professional rather than go through the process alone. Since you see these professionals referred to in different ways, you may not know if you need an agent or broker or if there is even a difference. They perform similar jobs, but here are some differences between a real estate broker and an agent and which one you might work with.
A Real Estate Broker Has More Education
Most states require education and licensing to be a real estate broker or agent, although the exact requirements can vary by state. Generally, a broker needs more education and has to pass a more comprehensive test in order to get a broker's license. A real estate agent also needs to be licensed, but they study for and test for a different license. Brokers have more training in things like real estate law, complex transactions, and ethics. In addition, a few years of experience working as an agent may be required before being allowed to take the broker's exam. So, a licensed broker is also a licensed real estate agent, but an agent is not necessarily a broker.
Real Estate Agents Work For Brokers
Another difference is that a real estate agent has to work under a broker. So, the head of a real estate agency is always a broker, and if an agent wants to start their own business and work independently, then they need to get a broker's license first. This ensures there is someone with advanced training to oversee all the agents and transactions that are completed under the agency name.
A Broker May Do Mostly Office Work
A broker spends a lot of time in the office reviewing real estate transactions and training new agents. Real estate agents spend their time in the field working with home buyers and sellers. The exception is a broker who works for themselves and who acts as both an agent and broker. If you have a simple real estate transaction such as selling your home or buying one, then you'll probably work with a real estate agent since you want someone who has time to show you properties and who is out in the community looking at houses and neighborhoods all day. However, if you're buying a short sale or entering into a complicated transaction, then working with a broker alone or along with an agent could be helpful to ensure you're getting the guidance you need to make the right decisions and go through the process properly.