Difference Between Real Estate Agent and Broker

Learn the key differences between a real estate agent and a broker, including licensing, roles, and earning potential. A simple guide for home buyers and sellers.

gauthamda

Jun 25, 2025 - 12:46

Difference Between Real Estate Agent and Broker

When you're buying or selling a home, you may come across terms like "real estate agent" and "broker." They often sound like they do the same job—but there's a difference. Understanding how they differ can help you make better decisions in your real estate journey.

Let’s break it down in simple terms.

Who is a Real Estate Agent?

A real estate agent is a licensed professional who helps people buy, sell, or rent homes and properties.

Agents work under a real estate broker or brokerage. This means they don’t work independently. Instead, they operate under someone who has a higher level of licensing—a broker.

What Does a Real Estate Agent Do?

Real estate agents act as the middleman between buyers and sellers. Here are some of their common tasks:

Helping clients find homes or buyers
Arranging property showings
Negotiating offers
Handling paperwork
Providing market insights

They focus on the customer experience and make the real estate process smoother for clients.

What is a Real Estate Broker?

A real estate broker is someone who has completed extra education and met additional requirements beyond the agent level. Brokers hold a higher-level license, and they can work independently or manage their own real estate firm.

In short, all brokers are agents, but not all agents are brokers.

What Does a Broker Do?

Brokers can do everything a real estate agent does—but with more authority and responsibility. Here’s what sets them apart:

They can own or operate a brokerage
They can supervise agents
They are legally responsible for the actions of the agents they manage
They can hire or train agents

Because of this added responsibility, brokers typically earn more than agents.

Types of Real Estate Brokers

There are different types of brokers, each playing a unique role:

1. Principal Broker (Managing Broker)

This person manages the brokerage firm. They supervise agents, handle legal matters, and ensure the company complies with real estate laws.

2. Associate Broker

An associate broker has a broker license but doesn’t run the brokerage. Instead, they work under a managing broker—similar to how agents do.

3. Designated Broker

This is the broker responsible for all activities at a brokerage. In some states, this is the same as the principal broker.

Education and Licensing Differences

One of the main differences between an agent and a broker is their education and licensing requirements.

Real Estate Agent Requirements:

Complete a pre-licensing course
Pass the state real estate exam
Work under a licensed broker

Real Estate Broker Requirements:

Be a licensed agent for a certain number of years (usually 2–3)
Complete additional education (broker courses)
Pass the broker licensing exam

Because brokers have more training, they often understand the laws and the real estate process more deeply.

Can a Real Estate Agent Work Alone?

No. Real estate agents must work under the supervision of a broker. They cannot operate independently.

Only brokers can run their own real estate businesses or open a brokerage office. If you see a small real estate company owned by one person, that person is likely a broker.

Earning Potential: Agent vs Broker

Brokers usually make more money than agents. That’s because:

Brokers earn commissions from their own deals
They also receive a portion of the commissions from the agents they manage

Agents, on the other hand, split their commissions with the broker they work for.

However, brokers also take on more risk and responsibility.

Who Should You Work With?

Whether you choose to work with an agent or a broker depends on your needs.

For general buying/selling help: A licensed real estate agent is perfectly capable and knowledgeable.
For complex transactions or legal questions: A broker may offer more experience and oversight.

Most people work with an agent, who is backed by a broker in case higher-level help is needed.

Summary: Key Differences at a Glance

Feature	Real Estate Agent	Real Estate Broker
License Level	Basic	Advanced
Can Work Independently	No	Yes
Can Supervise Others	No	Yes
Education Required	Pre-licensing course	Additional broker training
Responsibilities	Work with buyers/sellers	Manage agents and business
Earnings	Commission-based	Commission + overrides

Final Thoughts

While both agents and brokers are essential to real estate transactions, they play different roles. Agents are the front-line professionals working directly with buyers and sellers. Brokers are the higher-level experts who often manage agents and ensure everything runs legally and smoothly.

Knowing the difference helps you understand who you’re dealing with and what to expect from the relationship. Whether you're buying, selling, or investing, it's always smart to know the credentials of the professional guiding you.