What is The Difference Between a Real Estate Broker and an Agent?

Real Estate Broker and an Agent

Last Updated on June 16, 2023 by

During the home buying or selling process, often times people are confused about the difference between a real estate broker and an agent. There are many different types of real estate professionals, and understanding their roles can help you avoid any further hindrance from your goals. 

To help them stand out in a crowd, some real estate agents add titles and certifications after their names. They can work as real estate agents, associates, or brokers, but all of them must be licensed to sell real estate. Let us understand what the key similarities and differences are between a real estate broker and an agent. 

Real Estate Broker   

A real estate broker is higher in rank than an agent. He is a professional who works in the real estate industry. A broker, on average, has more training and subject-matter knowledge than an agent, although this is not always the case. A real estate broker may either work in independence or employ real estate salespeople to work for him. The specific rules vary from place to place, but the majority of them have similar criteria. 

Brokers have a lot of liberty in terms of how they structure their real estate careers. Since they are not working for anyone else’s company, they have more freedom in their professional life and choose to work as an independent contractor like in different new developing cities like Nova city Islamabad. They can also start their own brokerage company and employ real estate agents to work for them.

Requirements to Become a Real Estate Broker 

If one wants to become a broker, they must complete additional education and pass a separate licensing exam. A broker may sell property on their own or open a brokerage company where they manage and supervise other agents once all of the required licensing requirements have been met.

The National Institute of Real Estate Management is a non-profit organization dedicated to real estate management (NIREM). This institute offers real estate management diploma courses in order to improve the real estate community’s reputation and increase their awareness of how to function in the industry. The institute welcomes seasoned and veteran real estate practitioners who also hold leadership positions in various real estate organizations.

Real Estate Agent 

Agents are professionals who are licensed to sell real estate. They’re not real estate agents. A real estate agent cannot work for themselves; they must work for a broker who employs them. Brokers are liable for the conduct of their real estate agents. 

When most people think of real estate professionals, they immediately think of an agent. This is the place to begin if you want to work in the industry. Agents are in charge of communicating with buyers, organizing open houses, and handling all other aspects of the sale process. An agent must operate under the supervision of a licensed broker in order to legally sell land. 

Most agents earn money by means of a commission, which is normally a percentage of the sale price. Depending on the brokerage for which an agent operates, the payment arrangement can be very different. As a starting point, becoming an agent provides a lot of opportunities for a person to gain experience as they begin their real estate career

Also Read: how to sell your house

Requirements to Become a Real Estate Agent 

To become an agent, a person must complete a series of real estate classes and pass a state-specific licensing test. Recently NUST has begun to offer diplomas for the real estate agents. There is also the National Institute of Real Estate Management that offers certifications for real estate agents


The real estate work titles truly are complicated. Although the differences are minute, yet they matter and it is critical to be well-versed in the subject. Rest assured, the next time someone mentions a broker or agent, you’ll know what they’re talking about.

Knowing what types of real estate practitioners are available will assist you in making well-informed decisions. When hiring a real estate agent, for example, you may want to look into the credibility of the real estate broker for whom the agent works. Regardless of the type of specialist you’re working with, make sure they’re properly certified and have a good track record.

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M Junaid Lead Writer, Content Marketer at Sigma Properties [Real Estate], A writer by Day and reader by night

M Junaid Lead Writer

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