The real estate industry is a landscape filled with opportunities and trends, all of which come with varying degrees of requirements. You’ll need to be quick and adaptable to make it big, but that’s only a part of your worries. The real estate world also comes with confusing job titles, making it difficult for newcomers to decipher which roads they ought to take.
You’ll be met with titles such as the realtor, broker, and of course, real estate agent. More often than not, however, the titles real estate agent and real estate broker are often used interchangeably. Although they share a common foundation (which is to represent buyers and sellers in transactions), they each have their own responsibilities.
Before you plunge into the world of real estate and all its rewarding glories, you must first understand the difference between an agent and a broker. Here’s a quick and easy guide to follow:
The Anatomy of a Real Estate Agent
In the simplest terms, a real estate agent is someone who possesses a professional license. This license allows them to help people purchase, sell, or even rent various real estate properties. To obtain this license, however, individuals are required to get pre-licensing training.
This will come with a required number of training hours, but the minimum depends on state jurisdiction. Real estate agents may either be asked to go for as little as 60 hours of pre-licensing or as far as 135 hours, all depending on their respective states.
Once the prelicensing training is completed, aspiring agents will then be asked to take a written exam. These are divided into portions, which encompass general real estate principles, federal real estate laws, and even state-specific laws.
After passing the exam, they’re now entitled to own a license, effectively allowing them to become full-fledged real estate agents.
The Anatomy of a Real Estate Broker
Although real estate agents go through stringent training, real estate brokers go above and beyond what is required. They’ll need to take up extra educational courses to earn the title of a broker, after which they’ll be asked to qualify with the help of a licensure exam.
The broker education program usually covers more specific topics, including taxes, insurance, contracts, and even ethics, all of which allow a professional to approach the industry at an in-depth level.
They’ll also be asked to dive deeper into real estate legislation, and how state and federal laws apply to property management, construction, investments, and of course, brokerage. Aspiring brokers will be asked to sit through an examination, and upon passing the exam, they will have obtained a broker license.
Heading Towards the Right Real Estate Career Path
Although the industry can be demanding, the rewards are always worth it. It’s the reason why countless professionals are continually drawn to the world of real estate, and if you’re looking to switch careers, this might be the sign. Understanding the key differences between the titles is crucial, as this allows you to understand how and when you can grow in your future real estate career path.
If you’re ready to start a career in real estate, allow Smith Street Homes to welcome you. We are currently offering real estate jobs in Davison, and if you’re up for the challenge, we’re ready to welcome you to the dream team. Apply today!