Real Estate Agent vs Broker vs Realtor: What’s the Difference?

Whether you’re considering a career in the real estate industry or you’re trying to figure which type of real estate professional would be best equipped to help you out, knowing the differences between the major roles in real estate is helpful! Agent, realtor, broker… it’s easy to get lost in the jargon! This quick read will spell out the difference in each role’s duties, certification requirements, and more!

What Does a Real Estate Agent Do?

Real estate agents are the most common types of real estate professionals. While every state has different requirements, agents all have to pass a test to get their Real Estate License! In Arkansas, you must be 18 years of age, have completed at least 60 hours of education, pass state and federal background checks, and receive approval from the Arkansas Real Estate Commission to sit for the exam. Getting that license is no easy feat – only about half of all applicants pass the test and get their license.

On a day-to-day basis, real estate agents perform the following tasks: 

• Help home buyers find potential homes – including showing homes. 
• Help home sellers find potential buyers. 
• Promote listings.
• Guide buyers and sellers through the complicated steps of the process. 
• Negotiate on the client’s behalf. 
• Organize and deliver paperwork and documentation.

All real estate agents must operate under a broker or brokerage. Read on to learn what broker’s do.

What Does a Real Estate Broker Do

Real estate brokers have the same license as agents, however, they must also pass the broker’s exam and obtain a broker’s license! Though every state varies, there are prerequisites for who can become a broker. In Arkansas, you must have your real estate license, have completed 60 hours of education (45 of which being the Broker Pre-License Education course), have been an active agent for 24 months out of the last 48, pass state and federal background checks, and receive approval from the Arkansas Real Estate Commission to sit for the exam.

In short, brokers differ from agents in that they are educated on the ins and outs of real estate law, ethics, taxes, and insurance. There are three different types of brokers: 

• Principal or Designated Broker
• Managing Broker
• Associate Broker

Principal/Designated brokers generally run a team of licensed agents and administrative staff. These brokers make sure that the transactions of the agents comply with state and federal real estate law. Principal brokers usually make a percentage of each agent on their team’s commission, but many also have a base salary.

Managing brokers have more of a day-to-day supervisory role and work under a Principal broker. Managing brokers perform tasks such as keeping an eye on and assisting in the agents’ transactions, hiring and training new agents, and overseeing admin staff and operations. Sometimes, the Principal broker and Managing broker are the same person.

Associate brokers perform the same tasks as a real estate agent – they have their broker’s license, but they’re still working under a Principal or Managing Broker. Associate brokers carry out buying and selling tasks like an agent, but they usually have more autonomy and make more in commision than agents do.

What Does a REALTOR® Do?

A REALTOR® is a real estate agent who has been accepted as a member of the National Association of Realtors. This title is regarded with respect and credibility by many buyers, sellers, and brokerages. Being a REALTOR® can land you a spot on an elite brokerage team, giving you many advantages. According to the NAR, “the term REALTOR® is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of REALTORS® and subscribes to its strict Code of Ethics” (which you can view here).

Quick Look at Differences Between Real Estate Agents, Brokers, and Realtors