Broker vs. Realtor: What’s the Difference?

Both real estate brokers and Realtors are real estate professionals. A real estate agent has a professional license to help people buy, sell or rent houses. A real estate broker is an agent who has completed additional training to meet certain licensing requirements set by the state to become a broker. A Realtor can be a real estate agent, broker or other real estate professional. Read on to understand the roles of a real estate broker versus Realtor and the skills and expertise they bring to help you buy or sell a house. 

What Is a Broker?

A real estate broker is a licensed real estate professional who has earned a broker’s license. In most cases, a real estate broker first earned a real estate agent license but not always. Becoming a real estate broker requires more rigorous training than an agent’s license. In many cases, real estate agents work under a real estate broker. A real estate broker may own or manage a real estate brokerage or agency to facilitate real estate transactions. 

Generally, the steps to become a real estate broker include:

• Taking a real estate sales course approved by your state
• Passing the state’s real estate agent licensing program
• Gaining experience working as a real estate agent
• Taking a state-approved real estate broker course
• Passing the real estate broker exam
• Getting other real estate certifications, such as a specialization in commercial real estate

The duties and responsibilities of a real estate broker can include:

• Assisting buyers in visiting real estate properties for sale
• Preparing and presenting purchase offers to sellers
• Listing and showing properties
• Writing contracts and facilitating real estate transactions
• Advertising properties
• Supervising other real estate agents
• Owning and running a real estate brokerage

Types of Real Estate Brokers

There are several types of real estate brokers with varying levels of experience and responsibilities. These include:

Principal or Designated Broker

A principal broker or designated broker owns or manages a real estate firm. They hire other real estate agents to buy and sell properties. The principal broker oversees operations, helps real estate agents resolve client issues and offers additional training and support to increase agents’ success.

Managing Broker

The managing broker oversees the operations of a real estate firm. They ensure legal compliance with all state laws, documentation of transactions and accurate record-keeping. Managing brokers may also mentor or train other real estate agents and assist them in listing or marketing homes.

Associate Broker

An associate broker is the first step to becoming a managing or principal broker. An associate broker works as a real estate agent but has completed the licensure to become a real estate broker. They can start brokering with their own transactions to increase commissions. 

What Is a Realtor?

A Realtor is a real estate professional who is a member of the National Association of Realtors (NAR). Realtors agree to follow the NAR’s code of ethics. Realtors can be real estate agents, real estate brokers or other related professionals. 

To become a Realtor, you must enroll in and complete a state-approved real estate course and pass a real estate exam to become an agent or broker. Then, you’ll need to apply to join your local chapter of NAR. Usually, membership requirements include an application and an annual fee. After enrolling in NAR, you can access additional continuing education and professional development courses.  

The duties and responsibilities of a Realtor are to uphold the high ethical standards of NAR in every real estate transaction. As part of the professional organization, Realtors also get access to transaction management services and real estate market data, potentially giving them an edge in helping clients buy and sell properties.

Broker vs. Realtor: How Are They Similar?

There are some similarities between a real estate broker and a Realtor, and in many cases, real estate brokers are also Realtors. Here’s an overview of the similarities. 

Expertise

Real estate brokers and Realtors are experts in the field of real estate. While a Realtor is a more general term for a real estate professional who is a member of NAR, it signifies professionals dedicated to maintaining strong ethical standards above state requirements. 

Real estate brokers can also be Realtors, but aren’t always. A broker designation signifies additional training and state-approved certification that is more rigorous than a real estate agent. 

Access to Listings 

Both Realtors and brokers have access to listings through the multiple listing service (MLS). Realtors may have access to additional transaction management software, but brokers can also purchase or create customized software with access to listings or more sophisticated search functions. 

Negotiation Skills

Both real estate brokers and Realtors are professionals trained in negotiation. A key role in their professions is to negotiate on behalf of their clients. Working with a Realtor or real estate broker ensures strong negotiation skills. 

Availability

Real estate brokers and Realtors are usually busy and may have less time to commit to clients, especially if acting in a more senior management role such as managing broker or principal broker. However, Realtors and brokers may still facilitate or negotiate individual real estate transactions. 

Broker vs. Realtor: How Are They Different?

While there are some similarities between a real estate broker and a Realtor, there are also key differences in licensure and roles they play within a brokerage. 

Licensure Requirements

To become a Realtor, you need a real estate license and to join the National Association of Realtors. This may require less rigorous training and certification than a real estate broker. Real estate brokers typically become real estate agents and then complete additional training and licensure requirements or testing to become licensed real estate brokers. Because real estate brokers can also be Realtors, whether there is a variance in licensure depends on individual professionals. 

Job Scope

Real estate brokers can broker real estate transactions or open their own brokerage and hire other real estate agents to work for them. Realtors may or may not have the licensure required to broker transactions, meaning they may only have the certifications to help individual clients buy or sell properties. 

The difference between Realtors and brokers regarding job scope can be between an individual agent working for a brokerage and the leader or principal broker overseeing all operations. On the other hand, Realtors can be brokers, in which case there’s no difference in the roles. 

Independence Level

The difference between a real estate broker and a Realtor regarding independence level comes down to other certifications. A real estate broker has more independence than a real estate agent to broker transactions or open their own brokerage. A Realtor could be either a real estate agent or a broker. 

Should You Work with a Broker or a Realtor?

Working with a Realtor offers assurance that the professional maintains the highest ethical standards. At the same time, an associate broker brings professional expertise and qualifications to help you broker a real estate deal. There’s no reason to choose between a broker and Realtor, —you can work with both in a single professional. 

Ready to get started investing in real estate? Find Benginga’s complete guide to real estate investing, or learn when to sell a rental property and how to choose a seller’s agent. 

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