If you’ve ever wondered what the difference between what a real estate agent is and what a real estate broker is, you’re not alone. In fact, some parts of the world don’t even use real estate agents at all, so it may be possible this is the first time you’re hearing about them. Today, we’ll be breaking down the differences in plain English.

But first, let’s clarify the difference between a realtor and a real estate agent. While they have the same responsibilities and some may use the terms interchangeably, there is a key difference. A realtor is a real estate agent who is a member of the National Association of Realtors (NAR), which is an American trade association for people who work in the real estate industry. Only real estate agents who are a part of the NAR can call themselves a realtor, as it’s a trademarked term.

Now that we have that out of the way, let’s talk about real estate agents. A real estate agent is someone who is licensed to help you buy, sell, or rent real estate. They are responsible for facilitating contract negotiations, organizing and submitting documentation, and providing guidance through the buying/selling process. Real estate agents here in the United States also have to work underneath a licensed real estate broker. Think of the agent like a player on the team and the broker as the head coach.

Brokers, on the other hand, can do everything a licensed real estate agent can do, but the distinction is in their experience and licensing. A broker has to take additional coursework, they have to pass a more advanced licensing exam, and they generally have more legal responsibilities. They might also recruit and train agents, write contracts, supervise real estate transactions, and communicate with government and professional associations. Furthermore, brokers can be split into three levels of brokers:

1. Associate brokers have a broker’s license but work under another brokerage. They typically don’t supervise agents.
2. Managing brokers are responsible for overseeing transactions and daily operations. They’re the ones hiring and training agents and managing administrative duties.
3. Principal/designated brokers supervise agents to ensure they’re complying with state and national real estate laws.

In Texas, to qualify for a broker’s license, you must have five years of experience as a licensed real estate agent, and prove you’ve logged transactions by maintaining a record of all deals, activities, and documentation related to a property sale or purchase.

So why should you care if you’re working with a licensed real estate agent or real estate broker? Well, that’s a great question! It’s because experience matters. A broker may have more hands-on experience, especially in tricky deals. But don’t count out agents—many of those agents are rock stars that have years of experience, and they themselves are backed by experienced brokers who are helping guide them behind the scenes. 

Here’s a pro tip:

When you’re hiring someone to help you buy or sell your home, ask them about their support system. Even if you’re working with a licensed realtor, make sure their broker is accessible to you and that their broker is involved. That support can make a huge difference. 

So to recap, agents are licensed to help you buy or sell homes, but they work underneath a real estate broker. Brokers have extra education, more responsibilities, and they can operate independently or manage a whole team or firm.