Real Estate Agent vs Realtor vs Broker Whats the Difference

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What is a Real Estate Agents: https://retipster.com/terms/real-esta... • What is a Real Estate Broker: https://retipster.com/terms/real-esta... • What is a Realtor: https://retipster.com/terms/realtor/?... • 0:00 - Intro • 0:13 - What is a Realtor? • 0:46 - Why join the National Association of Realtors? • 1:23 - How the NAR breaks up regions within each state • 1:47 - The difference between an Agent and a Broker in two-tier states • 3:21 - The difference between an Agent and a Broker in single-tier states • 3:38 - What makes someone a Managing Broker vs a normal Broker or Agent? • 4:13 - How to remember the difference between an Agent and a Broker • 4:35 - One exception to the rule that applies in commercial real estate • What is a Real Estate Agent? • A real estate agent (also known as a real estate salesperson in some states) is a professionally licensed individual representing a buyer and/or seller in a real estate transaction. Real estate agents are compensated with a commission for their services, which is a negotiated percentage of the property's sale price (normally 6% paid by the seller). • What is a Real Estate Broker? • A real estate broker is a real estate professional who has acquired a broker license. In most states, one must hold an active real estate license for two years and attain further education to acquire a broker's license. • What is a Realtor? • A REALTOR® is a real estate professional who is an active member of the National Association of REALTORS® (NAR). This national organization fosters and promotes best practices in the real estate industry. • The Relationship Between Real Estate Agents and Brokers • In many states, the real estate industry generally organizes the tiers of real estate licensees into two groups: • Real estate agents are typically known as the lower-credentialed group. • Real estate brokers are typically known as the more-credentialed group. • In these states, a real estate agent is required to hold their license, operate underneath a real estate broker or brokerage, and then pay a portion of their commissions to that broker in exchange for operating under their license. The broker will also commonly provide the agent with supplemental training, support, and resources. • This two-tier system is set up so that the higher-credentialed real estate broker can oversee the actions of a less-experienced agent. • Commission splits between agents and brokers are typically between 80/20 to 50/50, depending on how much value the broker brings to the relationship. • Some real estate agents who qualify for the broker’s exam may choose to remain as agents to avoid the additional responsibilities associated with having a broker’s license. • A real estate broker can conduct all the same activities as a real estate agent but they aren’t required to operate under anyone else to conduct business. Furthermore, if a broker makes a commission for servicing a sales transaction, they can keep the entire commission. Many real estate agents ultimately choose to obtain their broker status simply to avoid commission splits. • In other states, all real estate professionals licensed to sell real estate are technically labeled real estate brokers. Still, the higher-credentialed brokers are designated as managing brokers and are required to have at least two years of active experience and additional education. • In these states, it’s common for the layperson to refer to non-managing brokers as “real estate agents.” • A managing broker manages a non-managing real estate broker in the same way that a real estate broker manages a real estate agent in a two-tiered state. • In commercial real estate, whether a person is licensed as a real estate agent or broker, it’s customary to refer to all licensed professionals as real estate brokers and refer to the more-credentialed tier as managing brokers. • Join Our Community! • REtipster Forum: https://retipster.com/forum • REtipster Facebook Group: https://retipster.com/facebookgroup • Follow Along! • YouTube: https://retipster.com/youtube • Facebook: https://retipster.com/facebook • Instagram: https://retipster.com/instagram • Twitter: https://retipster.com/twitter • Pinterest: https://retipster.com/pinterest • LinkedIn: https://retipster.com/linkedin • TikTok: https://retipster.com/tiktok

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