What Sets a Real Estate Broker Apart from an Agent
Regarding the real estate and property industry the majority of people don’t have an inkling that there is a distinction between a real estate broker and an agent. It is tragic enough that most people don’t differentiate between the two. Though some of their tasks and job descriptions may be similar, there are some vital distinctions in a wide array of factors. So as to be able to clearly tell one from the other, we have to meticulously investigate factors such as salaries, commissions, benefits, and lots of other traits. The following pointers will make understanding the difference between real estate brokers and real estate agents a walk in the park.
In terms of opening an independent brokerage firm, property brokers have it easy as compared to their real estate counterparts. Prior to launching your own real estate brokerage firm, you have to be a licensed broker. If you intend to open your brokerage practice, there are two major ways to go about it. You can handle deals alone and be the sole beneficiary of all the commissions from property deals. Another way is having associate brokers and real estate agents working under your license in your brokerage company. It goes without saying that these agents and associate brokers will share their commissions with you.
What really sets real estate brokers from a typical run of the mill property agent is the salary and fees earned. Brokers are the sure winners regarding the amount of fees earned between them and agents. The sheer amount of money earned is what drives many real estate practitioners to get a broker’s license. It goes without saying that you can make a whole lot of money as a real estate broker than you can make as a real estate agent. It can be even more financially rewarding if the broker has associate brokers and agents working in the brokerage firm.
Let’s face it; there are brokers with the relevant qualifications and training who are not yet ready to open their own real estate brokerage firms. So the next best option would be to work under a licensed brokerage firm as an associate broker. Regardless of working side by side with agents without a broker’s license, associate brokers still get paid more. Due to their license, the associate brokers will get higher perks even if they are working on the same deal.
At times, property owners get tired of managing their own properties. In such cases, property management firms can come in very handy to provided expert and professional management services. The good news is that if you are a licensed broker, you are perfectly eligible to provide property management services. On the other hand, real estate agents are not eligible to manage property management firms. Considering how lucrative the property market is, this is an added source of revenue for the broker. These are just some of the advantages that brokers have over real estate agents.