What is the Difference Between a Broker, a Realtor and an Agent?

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If you have thought about becoming a real estate professional you might have heard about these terms, Agent, Broker or Realtor. But unless you are already in the business you probably don’t know what they mean. Each does have a different meaning although all three can pretty much do the same job. There are pro’s and con’s to each so before you launch yourself into the real estate world, it’s best to take a step back and learn all you can about the industry itself first.

First of all, being a real estate agent is not cheap. It’s not a business one can get in and out of easily. It takes study and education plus money for your license and fees. You will typically pay more going into real estate than you will make your first month. It does help to have a reputable and helpful real estate company to help in your first few months on the field. Once you take the test and pay for your license you will need to find a broker to hang your license with. Everyone must become an agent first then work for a while before they can move up to broker.

A broker is a highly level of real estate education. Most agents must stay at the agent level for about 2 years before they can graduate to the broker status. Not everyone has to do this but it shows clients you are a more serious real estate professional and have more education in the industry. Being a broker also means more responsibilities and possibly higher fees depending on the area of the country you are in.

Once you are an agent, you must hang your license with a broker. The over seeing broker must pay B and O taxes for you and insurance should you get sued while under their brokerage name. Once you become a broker you can either stay with your overseeing broker and keep the protection of someone else paying for your mistakes and insurance (should you make any) or you can now go out on your own with your own brokerage firm but you must take on the responsibilities that come along with it. Most agents that become brokers do stay with the company they started with but still value the added title and education. As an agent, you are limited as far as responsibilities but still have the protection of a company over you. Of course as with any company, if you make too many mistakes you maybe asked to leave.

The third title is a Realtor. Either a broker or an agent can be a Realtor. What this is, is a specific association that real estate professionals can belong to that adhere to a set of ethics and standards in the industry. Of course this is a nice thing for clients to hear when they learn about the ethical practices and standards that Realtors provide. The drawback is that in most states, the over seeing broker must require all their agents to belong to this association. It may not be an individual choice. Plus, in the real estate business, all professionals should be ethical and held to higher standards not just because they belong to an association. If the entire brokerage firm requires their employees or agents to belong, it doesn’t give the individual agent the choice to prove themselves as set apart. Anyone can belong and still practice unethical behavior. There are benefits to being a member but the best bet is to simply be the best agent or broker you can be in general for all your clients.

I hope this has given some insight into the world of the realty industry. For excellent resources on this and other information visit the experts in Alamogordo homes and properties in New Mexico.

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Source by Tammy Emineth