When buying or selling a home, the different titles given to various people involved in your transaction can get confusing. Understanding the responsibilities and training for different real estate professionals can make the home buying and selling process less confusing.
Real Estate Agent
A real estate agent is a licensed salesperson. State requirements vary, but generally, the agent must complete a minimum number of classes and pass a licensing exam before earning the title of real estate agent. Agents work as sales personnel, earning commissions from successful sales. Agents can choose to specialize, working as a listing agent or buyers agent. A listing agent represents the seller. They owe a fiduciary responsibility to the seller, and are under an obligation to protect that interest. A buyer's agent represents the buyer, and may require the buyer to sign an exclusive buyer's broker agreement.
The decision on whether to choose an exclusive listing or buyers agent, or a more general real estate agent, is a personal one. Some people prefer to know that the person they are working with is compelled to work exclusively for them, and will not have competing interests. Others prefer an experienced all-around agent, who is working for both buyers and sellers as these people are often more aware of what is on the market, how sales are going in the neighborhood, and other relevant information.
Real Estate Broker
A real estate broker has a more extensive education than an agent. Again, the licensing requirements vary by state, but the education is more intensive and the licensing exam more rigorous than that of the real estate agent. While an agent must work under a broker, meaning they cannot operate by themselves, a broker can open up their own agency, working alone, or hiring real estate agents to work for them. An individual who has passed the real estate broker's exam but chooses to work for another broker rather than on their own is known as an associate broker.
While real estate brokers have more intensive education than an agent, that doesn't necessarily mean that you should choose a broker over an agent when buying or selling a home. Although brokers can show and sell homes, their main responsibility is handling the paperwork, escrow accounts, and other business activities involved in the real estate process. While some brokers continue to show homes as well, often their time is taken up with these other responsibilities. Brokers can also help if you have problems with the agent you are working with. Whether it is trouble with scheduling showings, problems with paperwork, or smoothing the way with a lender, having an experienced broker intervene can make the home buying and selling process less stressful.
