Back to school
The main difference between an agent and a broker is that the broker has to complete more courses. Both hold licenses and are allowed to sell the house. Because brokers spend more time learning, they can do some things that agents cannot. For example, they may manage a broker.
If you work for a real estate company, you can become an agent and sell houses. However, if you are independent, you must become a broker. In layman’s terms, a broker has more power and responsibility than an agent. They have completed more schooling and therefore have more knowledge of the industry. Usually, agents work under brokers.
Don’t Knock Your Agent
Now, this is starting to sound like the agent is just a broker’s stooge, cleaning the office, making coffee, occasionally smiling at customers as they walk in. While it is true that agents are primarily brokerage salespeople, this does not mean that they are general hired help. An agent is able to do for you many of the same things a broker can do.
In an actual real estate broker, they do pretty much the same job. Agents may purchase properties to register, act as intermediaries between buyers and sellers, secure financing from lending institutions, seek titles, and more. They will also have complete knowledge of the environment, pricing, tax and zoning laws, and buyer needs. In fact, they may be the only ones you see from start to finish of the entire process.
Brokers are not wizards with magical powers to make your house yours. With all their extra knowledge and education all they can do is own a real estate company. Their extra training is how to run this business, manage employees and basically run the show.
A Few Words of Warning
As if that wasn’t confusing enough, many people use the two terms interchangeably. Even real estate professionals will mix it up sometimes. It’s beneficial for you to understand this bit of knowledge, so you can understand what’s going on during your home buying adventure.
Another caveat – in Canada, the two terms are interchangeable. Both brokers and agents are referred to as “agents”.
Finding a Good Real Estate Agent and Broker
All agents and brokers must be qualified and licensed. This guarantees that they have gone through the training they need and that they follow a strict code of ethics.
The best way to find a good one is through referrals. Happy customers will always talk about the company that helped them get their dream home. You can also perform an Internet search. There are tons of websites that will help you find a good local agent. Another way is to attend an open house. They will always have signs and lots of information about other places too. You can always walk around and look at the signs too.
Now that you are armed with this knowledge, you are ready to search. Happy house hunting!
