Agents, Brokers and Realtors...oh my! All of these terms are referenced in society like they are interchangeable to describe a real estate professional. However, they are actually all different. The following information will help you decide which professional may be best for you.
I always like to describe agents and brokers in relation to school. Real estate agents are like college graduates. Real estate brokers are like graduates with a master's degree. They both are knowledgeable in their field, but in order to get a broker's license, one has to take more advanced classes and take a harder test.
In order to become an agent, one has to take a Principles of Real Estate course followed by a test. Upon passing that test they can proceed to the state exam. There are no prerequisites to become an agent.
In order to become a broker, one has to have at least 2 years experience as an agent to qualify and apply and take the state exam. That 2 year pre-requisite may be exempt if the person has a four-year degree. Before the exam, the applicant must take a series of courses such as real estate law, real estate agency, ethics, etc. The state exam is twice as long as the agent's and requires greater knowledge of real estate practices and law.
There are three types of different brokers, as well. The above description is for a transaction broker who can assist buyers or sellers. There are also Managing Brokers who manage a company, but they usually don't sell homes. Their main priority is to assist agents and brokers in their office transactions rather than assist clients. A Designated Broker is above the Managing Broker, and their job is on a more corporate level as opposed to in the field. The general public usually don't see Managing or Designated Brokers unless we work for them. Buyers and sellers typically deal with transaction brokers and just refer to them as "brokers."
A Realtor is an agent or broker who is a member of the National Association of Realtors (NAR). Only members can call themselves Realtors. There is about 1.3 million Realtors, mainly in the USA. There are about 1 million agents and brokers who are not members of NAR.
Oh, and I ought to put it out there that Realtor is pronounced Real-TOR...not Real-a-tor. Don't ever hire an agent or broker who can't say their own profession.
It's also a misconception that agents are less worthy than brokers; that's hardly the case. It's just about experience and how much knowledge a professional wants to gain; just like there are knowledgeable people out there who don't have a master's degree and knowledgeable people who do have one. I have an agent's license in California and a broker's license in Washington. When choosing a real estate professional, you should base your decision not only on a person's knowledge and expertise, but also on how well they will work for you.
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