Between real estate brokers and agents, who makes more money?
It's the brokers!
On average, a real estate broker makes $60,000 or higher every year, while an agent's annual average is close to $50,000. Why the pay difference?
While both roles are within the real estate industry, brokers and agents have different levels of training and abilities. Whether you’re buying, or selling your home, it’s helpful to understand the differences between being a real estate agent vs broker vs realtor. The more you know about who you're hiring, the smoother your upcoming real estate transaction will be.
How’s a real estate agent different than a broker? Exactly what does a realtor do? Read on to find out!
What Does a Real Estate Agent Do?
Let’s start differentiating between a real estate agent vs broker vs realtor, by reviewing the role of a real estate agent! A real estate agent is a licensed professional that organizes transactions between sellers and buyers.
If an agent represents a seller, they’re referred to as listing agents, and buyer’s agents represent buyers. It’s not uncommon for experienced agents to perform both services, but not for the same transaction.
When it comes to picking the best agent, look for an agent that will mesh well with your personality. The last thing you want is a pushy agent that pressures you into making a decision you’ll later regret.
The Role of a Realtor
Now we can review the differences between a realtor vs a real estate agent. A realtor is any person that holds an active membership with the National Association of Realtors (NAR).
There are real estate agents who are realtors, however, that’s not always the case. You could hold an active NAR membership, and have a completely different title, such as a home appraiser, and still be a realtor at the same time.
What Is a Real Estate Broker?
Last but not least, let’s dive into the different responsibilities of being a real estate broker vs an agent. For starters, a real estate broker is a higher ranking position, that comes with more freedom than a simple agent’s license. A broker can choose to work independently, or they can form a team of agents to make sales for them.
Negotiate Commission Rates
Remember, when you’re talking to one of the broker’s listing agents, their commission's negotiable. If you think your home will be easy to sell, offer the agent a fair, lower commission rate. However, remember to keep the commission offer high enough to incentivize them to work hard for you.
Distinguish Between a Real Estate Agent vs Broker vs Realtor
Finally, a clear answer to the differences of being a real estate agent vs broker vs realtor. Remember to take your time as you find a real estate professional who has your best interest at heart.
Go ahead and set up an initial meeting with an agent in your area today, to see if they’re someone you want to do business with! For more helpful real estate tips, explore the rest of our site.