REAL ESTATE BROKERS AND AGENTS: WHAT’S THE DIFFERENCE?
Are you looking to purchase or sell a house? Real Estate agents and brokers are likely to become your partners in this transaction. Both of these professionals are licensed to assist you in buying, selling, or renting a home. However, they differ in their training and what part of the process they will help you with.
So what is a real estate broker? What is a real estate agent? And what are the differences between them? This reading will give you a rundown of what each professional does and why it's essential to understand the difference.
Real Estate Agent:
What Is A Real Estate Agent?
Real estate agents are licensed to assist customers in purchasing, selling, and renting real estate. They must work for a brokerage or broker who sponsors them.
The procedure to earn a license and work as an agent varies greatly from state to state. Typically, an aspiring agent must be a valid resident of the United States, be at least 18 years old, have completed the required coursework, and passed a licensing exam. They are then required to locate a brokerage that will sponsor them as a newly licensed agent, helping and overseeing them, and allowing them to start accepting clients.
How Does An Agent Help?
- Keeps track of essential economic and market news in the local and regional areas.
- Investigates current, ongoing, and purchased postings, as well as the daily MLS listings and activity reports.
- Scheduling and coordinating meetings with clients and other agents for events, including showings, open houses, and consultations.
Why Do You Need A Real Estate Agent?
Real estate agents must obtain a license and adhere to specific license standards in order to represent customers who wish to sell, rent, or buy a house in their region. You’ll need them to guide you through the buying or selling process.
The listing agent will list, price, and market the property according to current trends and standards, schedule showings, help you with paperwork, and help things go smoothly. The buying agent will find and show you properties that fit your needs and wants (luxury home, big backyard, all on one floor, etc.), negotiate, help you find financing and make a competitive offer, inform you of what the current market trends are, and again, make sure things run along without too many hitches!
It is in your best interest to obtain a real estate agent, and in the case of a selling agent, you have to have one since many listing agents won’t see or work with a buyer directly. You can sell your house on your own (For Sale By Owner [FSBO]), however, it is always better to have someone with a license and education to help you through the process.
Real Estate Broker:
What Is A Real Estate Broker?
Brokers are technically real estate agents; however, they have gone through further training (at least 168 hours, according to the Colorado Department of Regulatory Agencies) and licensure. Before entering a broker licensing program, most real estate professionals will have a few years of professional experience as agents. They undergo additional educational requirements and complete a second licensure exam, resulting in more extensive knowledge than an agent has.
Brokers, unlike agents, can operate independently without a need for endorsement and they can hire other real estate agents to help them. This allows them to form their businesses or work as independent consultants. They manage the brokerage, supervise agents, create and negotiate terms, and function as highly skilled agents throughout real estate sales.
How Do They Help?
- Supervising and aiding real estate agents with their dealings.
- Advising customers on how to prepare their homes for sale (repairs, high ROI renovations, staging, etc.).
- Reviewing and strengthening crucial papers such as sales contracts and agreements, as well as drafting and submitting property-related documentation.
Why Do You Need A Real Estate Broker?
Since they operate larger enterprises and supervise employees, brokers study coverage, taxation, moral and legal concerns, and business administration. When working with an associate or independent broker, you’ll benefit from everything that you would with an agent, and they’ll have an additional wealth of knowledge when it comes to buying and selling homes. Some brokers will hire, train, and supervise other agents on how to remain within the law in their dealings. Though you may not have direct contact with some of these brokers, they are still supporting you from behind the scenes.
What Is The Difference Between An Agent And A Broker?
The phrases broker and agent are commonly interchanged in informal speech. The word "broker" is frequently used in the commercial world to describe a certified professional. In contrast, "agent" is commonly used throughout the residential world to indicate the agents directly involved with the clients purchasing or selling a property.
However, the actual difference is that all brokers are agents, but a broker has gone through additional training, testing, and licensure. And whereas an agent needs a broker or brokerage to work through, a broker can work on their own or oversee a staff of agents.
Find A Great Agent Or Broker!
The Real Estate market is challenging to navigate, and it can be a bit dizzying for a layperson. No matter what you're searching for, experienced and dedicated real estate brokers and agents can make the buying or selling process easier for you.
Before you start, it is always good to be as educated as possible. Here are some instructional resources, including things to help you prepare before house hunting, ways to finance your dream home, and what to know about foreclosure (and how to avoid it!).
Whether you choose to hire an agent or broker, it is important to work with someone with your best interests in mind. At Code of the West Real Estate, our entire staff are licensed brokers to ensure the highest standards throughout the buying, selling, or renting process. And we truly want to help you find the deal of your dreams!
Where Does Code Of The West Real Estate Come In?
Code of the West Real Estate has access to the best resources to help you find the perfect home or sell the one you have. Whatever your wish, our trusted Southern Colorado Real Estate agents are just the team to help you find your ideal fit. We specialize in Colorado mountain homes for sale, but we have partners in New Mexico and Montana as well. Contact us to get started today!