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Allen J. Schaben/Los Angeles Times via Getty Images May 10, 2022 TJ Porter is a contributing writer for Bankrate. TJ writes about a range of subjects, from to . Michele Petry is a senior editor for Bankrate, leading the site’s real estate content. Bankrate logo The Bankrate promise
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. Bankrate logo The Bankrate promise
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Buying or selling a home is one of the biggest financial decisions an individual will ever make. Our real estate reporters and editors focus on educating consumers about this life-changing transaction and how to navigate the complex and ever-changing housing market. From finding an agent to closing and beyond, our goal is to help you feel confident that you're making the best, and smartest, real estate deal possible. Bankrate logo Editorial integrity
Bankrate follows a strict , so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. Key Principles
We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers. Editorial Independence
Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo How we make money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Buying or selling a home involves a great deal of money, so having to guide you through it all can make a big difference. Knowing the nuances between the types of professionals you’ll encounter at a real estate firm can help you choose the one who can be most helpful, whether you’re looking to buy or sell. There are many common factors between real estate agents and brokers. Both are licensed professionals who can help you buy or sell property. Becoming an agent involves pre-license training and a written licensing exam. Brokers engage in additional education, above and beyond , and must pass a broker’s license exam. Here’s more on the differences between a broker and an agent — including how Realtors fit in.
What is a real estate agent
Real estate agents are licensed salespeople who help their clients buy or sell homes. Although they are independent contractors, agents must work under a real estate broker and are typically compensated through shared with that broker. Before they can start working, real estate agents must take classes and pass a licensing exam in the state they plan to work in. When agents first get their license, they “have to practice or begin with another individual that has received a broker’s license,” explains Jeffrey Hicks, an associate broker in Atlanta with Apollo Associates Realty and past president of the National Association of Real Estate Brokers. There are two main types of real estate agents: buyer’s agents and listing agents. Buyer s agent
A buyer’s agent helps people who want to purchase a home. This means helping buyers find homes in their area, touring the home with them and helping them prepare and . Listing agent
A listing agent, also called a seller’s agent, helps people who want to sell their home. This means pricing the home appropriately for the market; listing the home on , a database of homes for sale; marketing it to potential buyers, including staging and ; and helping the homeowners negotiate offers.
What is a real estate broker
Real estate brokers own and manage real estate brokerages (sometimes called agencies). These firms work with a and others to facilitate real estate transactions and manage real estate agents. Many brokers are also licensed agents. Like real estate agents, real estate brokers must take classes and pass an exam to get a license to operate. Typically, the broker exam is more rigorous than the one for agents and involves additional coursework. There are a few different types of real estate brokers: Broker associate
Broker associates are licensed brokers who typically work as real estate agents but also have the training and licensure to broker a real estate transaction. This is often the first step that real estate agents take toward advancing their career, as brokering their own transactions can increase commissions. Designated broker
Designated brokers typically own or manage real estate firms and hire real estate agents to work with clients to buy and sell properties, and help their agents resolve client issues. They can also develop and offer training materials to teach their agents skills that can help them make more sales. Broker of record
The responsibilities of brokers of record can vary from state to state, but typically they oversee the activities performed on behalf of the firm by its agents and other employees (such as office staff). This includes making sure all employees comply with real estate law, keeping accurate records, managing trust and escrow accounts, reviewing paperwork and distributing commissions. Managing broker
Managing brokers, like brokers of record, oversee the day-to-day operations of a real estate firm. They often train and mentor real estate agents and supervise the marketing and listing of homes. Managing brokers also keep an eye on legal compliance, ensuring that client interactions and transactions are properly documented and that the firm follows all relevant state laws.
What is a Realtor
Realtor is a trademarked term for real estate agents or brokers who are members of the National Association of Realtors (NAR), an industry trade organization. All Realtors are agents or brokers, but not all agents or brokers are Realtors. As members of the trade group, Realtors agree to follow NAR’s code of ethics. That doesn’t mean brokers and agents working outside of NAR are unethical, however; every licensed agent and broker must adhere to state standards.
Which should you work with
A real estate broker, a real estate agent and a Realtor can all provide highly professional services, so your decision might come down to the types of services you need and the amount of experience you’re looking for. In general, if you’re buying or selling a home, you’ll work with a real estate agent or broker associate. Don’t make assumptions about experience, however. Some agents might have years in the game but decided against becoming a broker. Likewise, some brokers might have just a few years under their belts. When deciding who to work with, it can be wise to ask for testimonials from past clients to gauge their track record. What it comes down to is who you click with best. SHARE: TJ Porter is a contributing writer for Bankrate. TJ writes about a range of subjects, from to . Michele Petry is a senior editor for Bankrate, leading the site’s real estate content. Related Articles