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If you’re thinking about starting a career in real estate, chances are you’ve done some research and come across three common job titles - real estate agent, broker, and Realtor®. While these job titles are sometimes used interchangeably, they don’t all mean the same thing.

All three professionals have completed the necessary education requirements and earned their license to help people buy and sell homes. So what is the difference between a real estate agent vs. broker vs. Realtor®? We’ll walk you through it.

What is a real estate agent?

Real estate agents are professionals who earned their real estate license to assist people in the process of buying and selling property and are employed at a real estate brokerage. They help buyers find the best home in their price range and negotiate the best deal, and assist sellers in listing their home at a competitive price.

The process, requirements, cost, and timeline to become a real estate agent vary slightly state-by-state. However, here are some general requirements if you’re interested in starting the process yourself. You’ll need to:

1. Meet the age requirement per your state laws. Most states require you to be at least 18.
2. Satisfy any residency requirements.
3. Complete any coursework required by your state.
4. Enroll in a real estate school and complete any coursework required by your state.
5. Take and pass your state’s real estate licensing exam.
6. Once you’ve passed the real estate licensing exam, you’ll need to undergo a fingerprint background check. This is required in most states.

What is a real estate broker?

All real estate brokers are real estate agents, but not all real estate agents are brokers. A real estate broker is a licensed real estate agent who has continued their education and passed their state’s required exams to earn their real estate broker license. This gives them the qualifications to manage their own business as a brokerage. They can choose to work independently or hire other real estate agents to work for them. Just like becoming a real estate agent, the requirements, cost, and timeline for becoming a real estate broker will vary by state.

What is a Realtor®?

A Realtor® is a real estate professional who is a member of the National Association of Realtors® (NAR), an organization that real estate agents and brokers can join for an annual fee. The NAR is the largest trade association in the U.S. and holds its members accountable for their professional behavior.

Real estate broker vs agent: What's the difference?

Differences in how they get paid

One of the main differences between a real estate agent and broker is how they get paid. At a traditional brokerage, real estate agents are paid commission, a percentage of the property’s sale price. Real estate commissions can be negotiated, and the exact terms of an agent’s commission vary from sale to sale, and can depend on the region and which firm they work for. The agent then splits their commission with the brokerage firm they work at.

A real estate broker can earn money through commission just as a real estate agent would, but a broker isn’t required to divvy up their commission with their brokerage. If applicable, a real estate broker can also take a share of the commissions earned by real estate agents who work under them.

Differences in day-to-day responsibilities

Another difference between a real estate agent and broker is their day-to-day responsibilities. For a real estate agent, each day can look a little different, depending on what the buyers or sellers need on any particular day. From touring homes with your clients, sending out emails, writing offer letters, researching local market trends, scheduling home inspections, preparing a property listing, and more - a real estate agent’s perfect day is a busy one.

The responsibilities of a broker can vary depending on the type of real estate broker they are - associate, managing, or principal broker:

1. Associate broker: An associate broker has a broker license, but still chooses to work under another broker, and doesn’t usually supervise other agents. Their day-to-day responsibilities can be fairly similar to a real estate agent.
2. Managing broker: A managing broker will oversee transactions and the operations of the office, hire and train new agents, and manage staff.
3. Principal broker: A principal broker, or designated broker, supervises real estate agents to ensure they’re in compliance with state and national real estate laws.

A real estate broker may work independently as a real estate agent or have other real estate agents who work for them at a real estate brokerage. Real estate agents must work under a licensed real estate broker, so the only real estate professionals able to work independently are brokers.

Managing brokers and principal brokers bear the legal responsibility for the actions of the agents who work under them and oversee their agents’ continuing education and training. By law, only a real estate broker can facilitate a real estate transaction between a buyer and a seller; therefore, all real estate agents must have a sponsoring or supervising broker in order to work as a real estate agent.

Realtor® vs real estate agent: What's the difference?

As previously mentioned, both a real estate agent and broker can use the title Realtor® as long as they are an active member of the NAR. A licensed Realtor® must meet all the professional requirements of their position, whether that be a real estate agent or broker, and pass a course on the NAR Code of Ethics every four years. Members are held to a higher standard of service, and may offer a better experience for their clients.

Realtors® also receive discounts and educational resources from NAR that are intended to help them improve their practices and increase their earnings.

Interested in working for 7M Sports?

7M Sports employs real estate agents, brokers, and Realtors® to help our clients buy and sell homes. Explore different real estate career paths and opportunities at 7M Sports:

• Real Estate Agent
• Associate Agent contractor
• Real Estate Support