If you’re considering a career in real estate, you may find a lot of talk about real estate agents and real estate brokers! As such, anyone who plans on having a career in real estate should know the difference between a real estate agent and a real estate broker! First and foremost, it’s important to note that real estate brokers are in charge of their own brokerage and thus other agents! In addition, you should know that brokers typically make more money than real estate agents—but it takes a lot of hard work to become a broker! Lastly, real estate brokers typically have better commission splits than real estate agents.
Brokers are in Charge
Real estate brokers are in charge of their own brokerage, and, as a result, oversee multiple agents! As such, brokers are still able to operate as agents and work with clients to buy and sell homes. As a result, some brokers choose to operate their brokerage alone and keep all the commissions that they earn for themselves. However, there are other brokers who choose to work with other agents as a part of their brokerage and thus split commissions with said agents on transactions that the agents complete! As a result, you’ll find yourself working with a broker during your transactions as an agent, so understanding how your job differs from theirs is never a bad thing!
Brokers Often Make more Money
Due to the fact that brokers are in charge of their own brokerages and thus other agents, they often make more money than typical agents. This is not to dissuade you from becoming an agent—after all, most brokers worked for some time as real estate agents prior to becoming brokers! Real estate agents themselves can be incredibly successful depending upon the number of homes that they help their clients buy/sell and the sale price of said homes! This is to say that it is certainly possible to make just as much money as a broker as agent, so don’t think that you’re missing out if you’re working as an agent!
Brokers Often Make Better Commission
Brokers have a certain level of knowledge and expertise that allows them to demand a higher commission percentage. As such, they often take a way a larger commission than the agents that work for them, and this adds into idea that brokers usually make more money than agents!
All of this knowledge is not to discourage you from becoming an agent—there are plenty of agents that are incredibly successful! In addition, the experience that you accrue while working as agent will serve you well should you decide to later become a broker!