Last Updated: January 2026

If you're buying or selling a home, or considering a career in real estate, understanding the difference between a real estate broker and a real estate agent is essential. While these terms are often used interchangeably, they represent distinct roles with different responsibilities, licensing requirements, and career paths.

So what's the difference between these two professionals? In this comprehensive guide, we'll break down everything you need to know about real estate brokers vs agents, including how they work together, what each role involves, and whether you should work with an agent or a broker for your transaction.

What Is a Real Estate Agent?

A real estate agent is a licensed real estate professional who helps clients buy, sell, or rent properties. To become a real estate agent, an individual must complete pre-licensing education courses, pass a state real estate license exam, and work under the supervision of a licensed broker.

Real estate agents facilitate real estate transactions by:

• Listing properties and marketing them to potential buyers
• Showing homes and conducting property tours
• Negotiating offers between buyers and sellers
• Preparing contracts and handling paperwork
• Guiding clients through the closing process

A real estate agent must work under a licensed broker, they cannot operate independently. This means every real estate agent is affiliated with a brokerage firm that provides oversight, training, and legal liability protection.

Types of Real Estate Agents

There are several types of real estate agents, depending on their specialization:

• Buyer's agent: An agent represents homebuyers throughout the purchase process
• Listing agent: Works with sellers to market and sell their properties
• Dual agent: Represents both buyer and seller in the same transaction (where legally permitted)
• Commercial real estate agent: Specializes in commercial property transactions

Real Estate Agent Licensing Requirements

Licensing requirements for real estate agents vary by state, but generally include:

1. Being at least 18-19 years old
2. Completing 40-180 hours of pre-licensing real estate courses
3. Passing the state real estate license exam
4. Submitting to a background check
5. Finding a sponsoring broker to work under

Most states require agents to complete continuing education to maintain their license and stay current with real estate law changes. Real estate agents need to renew their licenses periodically and meet ongoing education requirements.

What Is a Real Estate Broker?

A real estate broker is a real estate agent who has obtained additional education and a broker license to operate at a higher level. To become a licensed real estate broker, professionals must pass a broker exam and meet additional requirements. While all brokers start as real estate agents, a broker may work independently, own a real estate firm, and hire other real estate agents to work under their supervision.

Real estate brokers have more extensive training in areas such as:

• Real estate law and contracts
• Property management
• Real estate finance and investment
• Brokerage operations and management
• Ethics and professional standards

Types of Real Estate Brokers

The real estate industry includes several types of real estate brokers:

• Designated broker (or principal broker): The primary broker responsible for a brokerage's operations and legal compliance
• Managing broker: Oversees day-to-day operations and supervises other agents
• Associate broker: Has earned their broker's license but chooses to work under another broker rather than operating independently
• Broker associate: Similar to an associate broker, working under a designated broker

Real Estate Broker Licensing Requirements

To become a real estate broker, candidates must typically:

1. Hold an active real estate agent license
2. Gain 1-3 years of experience as a licensed real estate agent
3. Complete additional broker-level education (60-150+ hours)
4. Pass the broker exam
5. Meet additional state-specific requirements

A broker's license allows the holder to manage their own real estate office, supervise real estate agents, and take on greater responsibility in real estate transactions.

Key Differences Between Real Estate Brokers and Agents

Understanding the fundamental differences between a real estate agent and a real estate broker helps clarify their distinct roles in the industry.

Education and Experience

Independence and Supervision

One of the most significant differences is independence:

• Real estate agents must work under a licensed broker and cannot operate independently
• Real estate brokers can work independently, open their own brokerage, and supervise other agents

An agent must work under the supervision of a broker, whereas a real estate broker can manage their own real estate firm and hire real estate agents to work under them.

Responsibilities

Real estate brokers typically handle additional responsibilities that agents don't:

• Legal liability: Brokers bear ultimate responsibility for their agents' actions
• Compliance: Ensuring all transactions follow real estate law
• Record-keeping: Maintaining transaction records and trust accounts
• Training: Educating and mentoring agents within the brokerage
• Dispute resolution: Handling conflicts between parties

Compensation and Commission

How agents and brokers are paid differs significantly:

A real estate agent will receive a portion of the real estate commission from each transaction, splitting it with their supervising broker. The typical commission split ranges from 50/50 to 90/10, depending on experience and brokerage structure. An agent may also earn bonuses or higher splits as they gain experience and sell real estate more successfully.

A real estate broker may keep the entire commission when working with clients directly, plus earn a percentage of commissions from agents working under their supervision. This is why a broker often earns more than an agent, they can generate income from multiple revenue streams.

What Is a REALTOR®?

The term "REALTOR®" is often confused with real estate agent, but it represents something specific. A REALTOR® is any real estate agent or broker who is a member of the National Association of Realtors (NAR).

NAR membership requires adherence to a strict Code of Ethics and provides access to:

• The Multiple Listing Service (MLS)
• Professional development resources
• Networking opportunities
• Legal support and advocacy

Not all real estate agents and brokers are REALTORS®, it's a voluntary professional designation that demonstrates commitment to ethical standards.

Is a Broker Better Than an Agent?

One common question homebuyers and sellers ask is whether it's better to work with a real estate broker or a real estate agent. The answer depends on your specific needs.

When to Work With a Real Estate Agent

Most home transactions are successfully handled by experienced real estate agents. An agent helps by:

• Providing dedicated attention to your transaction
• Leveraging local market knowledge
• Handling negotiations on your behalf
• Guiding you through the buying or selling process

For typical residential real estate transactions, a skilled real estate agent can help you achieve your goals effectively.

When to Consider a Real Estate Broker

You might prefer working directly with a broker in situations such as:

• Complex transactions: Investment properties, commercial real estate, or multi-family deals
• Legal concerns: Transactions requiring extra oversight or expertise
• Direct relationships: When you want to work with the brokerage owner
• Experience matters: Brokers typically have more years as a real estate professional

Both agents and brokers can provide excellent service, what matters most is finding a knowledgeable professional who understands your local real estate market.

How to Become a Real Estate Agent or Broker

Becoming a Real Estate Agent

If you're interested in a real estate career, here's the typical path to become a real estate agent:

1. Research your state's requirements – Licensing requirements vary by state
2. Complete pre-licensing education – Take approved real estate courses
3. Pass the licensing exam – Study and pass your state's real estate license exam
4. Choose a brokerage – Find a broker to sponsor and mentor you
5. Activate your license – Submit all required documentation
6. Start building your business – Begin working with clients under broker supervision

Advancing to a Real Estate Broker

For those seeking to become a real estate broker, the career path continues:

1. Gain experience – Work as a licensed real estate agent for the required years
2. Complete broker education – Finish additional coursework in real estate law, finance, and management
3. Pass the broker exam – This test is more comprehensive than the agent exam
4. Decide your path – Choose to open your own brokerage or work under another broker as a broker associate
5. Build your brokerage – Hire other real estate agents and grow your business

Real Estate Career Path: Salary and Earnings

For aspiring real estate professionals wondering about earnings potential, here's how compensation generally breaks down:

• New real estate agents: May earn $30,000-$50,000 in their first year
• Experienced agents: Often earn $50,000-$100,000+ annually
• Real estate brokers: Can earn $75,000-$200,000+ depending on their operation
• Brokerage owners: Top earners who build successful real estate companies can exceed $500,000 annually

The highest-paid positions in real estate typically belong to broker-owners who have built large teams and diversified their income streams through commissions, management fees, and business ownership.

Agents and Brokers: Working Together

In practice, real estate agents and real estate brokers work together as a team. The broker provides:

• Legal and regulatory oversight
• Brand recognition and marketing support
• Training and professional development
• Access to technology and tools
• Administrative support

In return, agents bring in clients, facilitate real estate transactions, and share their commissions with the brokerage. This symbiotic relationship allows agents to focus on helping clients while brokers manage the business operations.

Real Estate Broker vs Agent FAQs

What is the difference between a real estate broker and agent?

The main difference between a real estate broker and agent is licensing and independence. A real estate agent must work under a licensed broker's supervision, while a broker can work independently, own a brokerage, and supervise other agents. Brokers have additional education and experience requirements beyond what agents need.

Is a broker higher than an agent?

Yes, a broker is higher than an agent in terms of licensing hierarchy. All brokers started as agents but completed additional education and experience requirements. Brokers can supervise agents, own a real estate firm, and bear legal responsibility for transactions conducted by agents under their supervision.

Should I work with a broker or an agent to buy a home?

For most home purchases, working with an experienced real estate agent is sufficient. Agents handle the majority of residential transactions successfully. Consider working directly with a broker for complex deals like commercial properties, investment portfolios, or when you want the brokerage owner's personal attention.

Can a real estate agent become a broker?

Yes, a real estate agent can become a broker by gaining 1-3 years of experience (varies by state), completing additional broker-level education, and passing the broker licensing exam. Many agents pursue their broker's license to gain independence, earn more commission, or open their own brokerage.

What does a principal broker do?

A principal broker (also called designated broker) is the primary broker responsible for a brokerage's operations. They ensure all agents comply with real estate laws, maintain proper records and trust accounts, supervise transactions, and bear legal liability for the brokerage's activities.

The Bottom Line

The difference between a real estate agent and a broker comes down to licensing, independence, and responsibility. Both play vital roles in helping buyers and sellers navigate real estate transactions successfully.

• Real estate agents are licensed real estate professionals who must work under a broker's supervision
• Real estate brokers have additional education and can operate independently or manage their own brokerage
• REALTORS® are agents or brokers who are members of the National Association of Realtors

Whether you're buying your first home, selling an investment property, or considering a career in real estate, understanding these distinctions helps you make informed decisions.