Differences Between a Real Estate Broker and an Agent and Which One is Better

Are you planning to sell your home and purchase a bigger place? It sounds like you can use the help of a real estate broker…or is it an agent? Does it really matter what they’re called or who you call? Apparently, it does.

Don’t assume that any real estate professional will do when it comes to choosing someone to represent your best interests. Though the terms are interchangeable, it doesn’t mean they’re the same. There are some significant differences between the roles of the various professionals, in addition to the different requirements for using particular titles.

Before you enter into a real estate transaction of any kind, let’s get to know the differences between a real estate broker and an agent.

A Real Estate Broker is:

• PRC Licensed

A real estate broker has passed the Real Estate Brokers Licensure Exam administered by the PRC. Thus, a broker is licensed to conduct a real estate transaction between a buyer and a seller and must be present in every transaction where real estate agents are involved.

• Independent

A real estate broker can work independently or can hire a real estate agent. Brokers can either personally engage in real estate transactions or manage an office for a large company or be the business owner.

• A Graduate of 4-Year College Course

A broker is required to have graduated from a 4-year college course and has to undergo more extensive education in relation to business management.

• Dealt with more responsibilities

The broker takes on essentially all legal responsibility for any real estate transactions done by himself or any agent who works for him. Within the brokerage, the broker handles additional financial and management responsibilities required to run a successful real estate business.

An Agent is:

• Registed under HLURB

An agent is an accredited salesperson but is not a real estate broker. An agent is required to register and be accredited to HLURB according to the new ruling.

• Dependent

An agent works for the real estate broker and can’t complete a real estate transaction without the broker’s oversight.

• Personally involved in the transaction

An agent is usually the person that you as a consumer will encounter in the transaction.  An agent works directly with buyers and sellers.

• Loaded with tasks

Basically, an agent’s tasks include showing homes or commercial properties to prospective buyers, finding properties for prospective buyers, studies and keeping abreast of the real estate market and acting as liaison between seller and buyer and sometimes helping a buyer secure financing.

A Broker-Agent is:

• A licensed professional that performs the duties of a broker, as well as an agent’s. They have the option of working in the field or in an office. A broker-agent arranges transactions between a buyer and a seller from start to finish including all the paperwork that comes with the process of buying or selling a property.

• A broker-agent receives a commission once the deal is executed.

In short, a broker is the person that runs the real estate office while an agent is the person who works directly with the consumers in the transaction. But which one is better? Technically speaking, both brokers and agents can represent clients in purchasing and selling a home or property.They both can search for available homes in a numerous listing services, show clients homes, market a house and form real estate contracts.

If you want someone that will do all the work for you from the confines of an office, you may hire a broker. All your concerns about real estate legalities will be answered since a broker has complete knowledge of real estate law. As an insider of the real estate market, a broker is well-acquainted to the conditions of the market which means a broker can devise the best deal for you. Furthermore, a broker will take care of the legal and admin transactions. The important documents that need to be completed and submitted before a deal is closed will be taken care of by the broker to ensure that the process goes smoothly and nothing is missed.

But if you want someone that can assist you in a more personal approach, you may hire the services of an agent. An agent will help you deal with practical issues regarding the sale or purchase of your property and the transaction will just be overseen by a broker. An agent will provide you with advice and guidance to help you buy or sell your home. An agent will keep you informed, walk you through the buying or selling process and make sure that all the necessary due diligence is carried out.

One should consider and evaluate the similarities and differences between real estate brokers and agents, and how they apply to your needs and personality. If you’re still undecided, then you may hire a broker-agent instead. You’ll get to experience the service of both worlds, that of a real estate broker’s and an agent’s.

In the end, no matter whose service it is you choose to hire, the key is to find someone with whom you can put your confidence and trust on.

How did your real estate transaction with your broker or agent go? Share it with us.