Differences Between a Real Estate Agent, REALTOR® and Broker
Buying or selling a home can be a stressful experience for people. It can sometimes be overwhelming. There are so many decisions to be made, so many conditions to be met and so many issues that can arise during the home listing or buying process, the negotiation stage and the details to be sorted out in closing.
Most people buy or sell a home only a few times in their lives. It may be a starter home where financing is stretched to the maximum, a move-up home as the family grows or a downscaling event where the nest is now empty and less room is needed. Whatever the situation, the home selling and buying process can be challenging, and most people rely on help from a professional real estate salesperson.
Finding the right salesperson can be just as overwhelming as the process, and the right real estate agent can make the experience of buying and selling a home far less stressful. Each state has different licensing regulations for different types of real estate salespersons, and finding the right real estate agent in PA starts with understanding the difference between the terms broker, real estate agent and REALTOR®.
It’s fair to say that most homebuyers and sellers are aware of these terms, but when asked “What’s the difference between a real estate agent and a REALTOR® “What’s the difference between a real estate broker and a real estate agent?” they’d be hard pressed to answer accurately. On a local scale where the customer is personally affected, asking “What’s the difference between a real estate agent vs. a REALTOR® in PA?” could be very confusing.
These might all sound like a play on words, but there actually is a big difference in the definitions and the roles of a broker, an agent and a REALTOR®. Understanding who each real estate professional is and what they do will set you at ease when choosing the best professional to represent your homebuying or homeselling needs. Let’s look further into the question.
What’s the Difference Between a Broker, a REALTOR® and a Real Estate Sales Agent?
The proper answer can actually confuse some real estate salespeople. It’s correct to say that “every real estate broker is a real estate agent, but not every agent is a broker” and “every REALTOR® is a real estate agent, but not every real estate agent is a REALTOR®”. It’s also correct to say “most brokers are a REALTOR® but not every REALTOR® is a broker.” This needs to be clearly explained.
Real Estate Agent
What is a real estate agent? An agent is the entry level to the real estate sales business. A real estate agent in PA is officially known as a salesperson and is licensed by the state to perform all the legal functions of a real estate professional in representing a buyer or seller of residential or commercial property.
In order to obtain a salesperson license, the holder must meet and pass the minimum qualifications set out by the state so they are properly equipped to serve their client’s best interests. The standards include:
- A minimum of 18 years of age
- Undergo a specified number of hours in an approved course
- Successfully pass a state examination on real estate laws and transactions
All real estate agents or salespersons must work under the supervision of a licensed real estate broker who is higher qualified and more experienced in real estate law, finances and management of real estate transactions and salespersons.
Real estate salesperson licenses must be renewed frequently, and the license holder must take ongoing education to ensure they are current with evolving real estate law and market conditions.
Real Estate Broker
A real estate broker is essentially a real estate salesperson or agent who has more experience than a basic agent and has qualified higher in real estate education and coursework. Brokers are licensed to run their own real estate agency and to employ salespersons to list, sell and assist buyers in real estate transactions.
Generally, real estate brokers in Pennsylvania act as managers (broker of record) and/or owners (broker-owner) of real estate agencies, rather than simply filling the role of a real estate salesperson. Their higher responsibilities include:
- A minimum of three years continual, full-time experience as a salesperson
- Hold a valid real estate salesperson license
- Complete 240 hours of coursework at a state-approved college or university
- Successfully pass the state real estate broker examination
The state-approved real estate broker education program includes courses on:
- Real estate finance
- Real estate investment
- Real estate construction
- Real estate sales
- Residential property assessment
- Commercial property assessment
- Valuation of income-producing property
- Residential and nonresidential property management
- Salesperson supervision and management
- Real estate agency management
While most real estate brokers manage or own a real estate agency, they sometimes act as lone brokers who serve a niche, specialized market such as commercial or luxury property to demanding or sophisticated buyers. With a real estate broker license comes the expectation by both the customer and the regulatory body that brokers are more knowledgeable and experienced in their profession than agents.
Brokers in agencies are the managers who a salesperson or a REALTOR® report to and bear the responsibility for their actions. A real estate broker also handles the earnest money deposit and establishes the escrow account. Clearly, a broker assumes a greater responsibility than a salesperson or REALTOR® and as part of supervision duties, a broker will step in to handle and problems with a home purchase or sale.
REALTOR®
REALTOR® is a registered trademark. It’s a professional designation awarded to licensed real estate salespersons who apply for membership in the industry self-regulated organization known as the National Association of Realtors® (NAR).
A real estate salesperson who is allowed to use the title REALTOR® has been screened by NAR for their experience, education and professionalism in the real estate business. The qualifications include:
- Hold a valid real estate salesperson or broker license
- Be actively engaged in full-time, professional real estate sales
- Have no criminal record
- Have no current, recent or pending bankruptcy proceedings
- Have no record of unprofessional conduct or sanctions
- Pledge and adhere to the NAR Code of Ethics
The National Association of Realtors® states that their Code of Ethics is what separates a professional REALTOR® from nonmember real estate agents or salespersons. The Code of Ethics includes these 17 promises that REALTORS® must fulfill:
- Pledge to put the interests of buyers and sellers ahead of their own and to treat all parties honestly.
- Shall refrain from exaggerating, misrepresenting or concealing material facts, and is obligated to investigate and disclose when situations reasonably warrant.
- Shall cooperate with other brokers/agents when it is in the client’s best interest to do so.
- Have a duty to disclose if they represent family members who own or are about to buy real estate, or if they themselves are a principal in a real estate transaction, that they are licensed to sell real estate.
- Shall not provide professional services in a transaction where the agent has a present or contemplated interest without disclosing that interest.
- Shall not collect any commissions without the seller’s knowledge nor accept fees from a third party without the seller’s express consent.
- Shall refuse fees from more than one party without all parties’ informed consent.
- Shall not comingle client funds with their own.
- Shall attempt to ensure that all written documents are easy to understand and will give everybody a copy of what they sign.
- Shall not discriminate in any way for any reason on the basis of race, color, religion, sex, handicap, familial status or national origin.
- Expects agents to be competent, to conform to standards of practice and to refuse to provide services for which they are unqualified.
- Must engage in truthful advertising practices.
- Shall not practice law unless they are a lawyer.
- Shall cooperate if charges are brought against them and present all evidence requested.
- Agree not to badmouth competition and agree not to file unfounded ethics complaints.
- Shall not solicit another REALTOR’s® client nor interfere in a contractual relationship.
- Shall submit to arbitration to settle matters and not seek legal remedies in the judicial system.
The NAR Code of Ethics is strictly enforced by local real estate boards and certified salespersons who hold a REALTOR® membership and take their responsibilities very seriously. The standards are much more rigorous, restrictive and confining than those who hold the basic state salesperson or real estate agent license.
As of August 2016, there were 1,223,423 members of NAR who hold a REALTOR® designation. This is out of approximately 2.5 million licensed real estate sales agents across America, or making up nearly half of the professional salespersons and brokers/holders of a voluntary and improved professional standard.
In addition to screening and certifying licensed real estate agents and brokers, NAR provides a facility for professional development, research and exchange of information across its membership as well as to the public and all levels of government — federal, state and local. At its core, NAR acts “for the purpose of preserving the free enterprise system and the right to own real property.”
Advantages and Disadvantages of Using a Broker, Agent or REALTOR®
Beyond a doubt, the biggest advantage any buyer or seller of real estate can have is peace of mind. Peace of mind that the transaction is being handled by someone with experience. Someone who helps with pruchases of sales every month. Experience matters. After all, a home is usually the biggest investment for the average American, and having someone who will help you make a solid investment when purchasing, or having someone who will help you get the most dollars out of the sale of your home … is key.
There are other advantages like access to the Multiple Listing System, or MLS. But the truth is there are many services out there that will give a consumer the ability to place their home for sale in the MLS, without providing you the most valuable acpect of all: true guidance, from a professional who does this day in & day out… who knows what to expect… and can walk you through the entire process, explaining every step, giving you insight into the various situations that may arise, so you can make educated decisions that will help make this a smooth successful transaction.
Let’s look at the many components that a REALTOR® brings to the able, advanges and disadvantages.
THE MLS
The MLS is an interagency arrangement that gives approved members the right to advertise listings cooperatively and to represent buyers and sellers of real estate properties on the integrated, computerized listing system. The MLS accounts for the vast majority of real estate listings across the nation, and most MLS boards are very restrictive as to who is allowed to advertise on and access the MLS system.
Just because a salesperson holds a valid real estate sales license, regardless of their jurisdiction, does not mean they automatically have the right to list on or sell from the MLS. Most MLS boards require an agency to have a broker with a REALTOR® designation, and many will not allow an agent to participate on the MLS as well if they are not designated REALTORs®. Therefore, it’s vital that if you intend on selling or buying a home or other property through the MLS, you should ensure your licensed representative is able to obtain access to the Multiple Listing System.
There are other advantages and disadvantages of using a broker, a sales agent or a REALTOR®. Let’s look at them closer.
Real Estate Agent
Although an agent or real estate salesperson may not have the experience of a broker or the additional training or certification of a designated REALTOR®, you may find that an agent may have more time to devote to your listing or buying needs. Many agents are new to the business or may not devote full time to the industry, but that doesn’t mean they don’t have a tremendous amount of local knowledge such as areas, zoning conditions or even the history of a particular piece of property.
Real estate agents do not carry the responsibility that a broker does. However, they have the backing of their broker when it comes to dealing with contract specifics. All licensed real estate salespersons in Pennsylvania must be employed by a licensed broker who is also mandated to supervise each and every transaction that comes through their agency.
And while a person with a basic real estate license may not have sufficient knowledge of contract law, how to properly price a property or how to successfully negotiate a fair price and terms of a real estate deal, as well as properly wording subject clauses or structuring closing dates, they will have access to a Broker at all times to get answers to any issues that may arise that they may nt have encountered themselves yet.
Real Estate Broker
Clearly, the vast majority of real estate brokers have much more experience in the business than most agents or designated REALTORs® do. They have more invested in their careers and have a much higher standard of care required in their professional performance.
Most Brokers are managers, yet some are in sales. The brokers who manage as usually called “Broker of Record” or “Managing Broker” or alike.. while a broker who is still in sales in usually called an “associate broker”. Associate Brokers are Brokers who met all the requirements from the State to become brokers, but wish to remain in sales, and have their lincense under another Broker (a managing broker).
Having a broker represent your purchase or sale may be advantageous when dealing with a complicated property or a complex transaction. It would be wise to discuss the project with a broker if you suspect there may be difficulties that a REALTOR® or agent may not be able to handle.
Broker/Appraiser used to be one license. Now they are two licenses. Brokers may not appraise. They can give their “opinion” of price, same as any agent, but it holds no legal value.
Additionally, most real estate brokers will have a full schedule managing their agency and supervising their staff and may not be able to give you the time necessary to market or purchase your home. Brokers typically assign buyers or sellers to one of their licensed agents or REALTORs®… and step in to give their agents and clients advice when a sticky situation arises.
REALTOR®
A REALTOR® designation is not to be taken lightly. These folks have proven their ability to serve their customers professionally, whether it be listing their home or selling it.
REALTORs® are committed to the real estate industry and are held to a higher standard of accountability than their nondesignated counterparts. The designation is insurance that the salesperson has knowledge of real estate contract law and their finger on the pulse of local market conditions.
Be assured that a professional REALTOR® will act to the highest standards when representing you while buying or selling a home. They have earned the designation, maintain it with pride and adhere to the Code of Ethics.
CENTURY 21 Core Partners is a full-service real estate provider and employs professional brokers, agents and REALTORs®. Contact CENTURY 21 Core Partners in Pennsylvania and discuss which representative option is best for listing or purchasing your home.
Recent Company Testimonials
-
“She was outstanding and could not have made this move from florida to here without her”
-
“I knew I had to have Heather Bradley as my agent. I trusted her to look out for my best interest and to find the right home for me. I had a very specific list for my home search and Heather worked relentlessly to find the perfect fit. She is detail oriented, professional, and so pleasant to work with. Heather went above and beyond to ensure the entire process went smoothly. I can’t thank her enough! I highly recommend Heather Bradley!”
-
“I am in the business of purchasing investment properties. Elle is the only agent I would use. She is knowledgeable about real estate, passionate about doing what's best for her clients, and studies the market to get the best possible property for the best price. Here, she provided me with critical information on the market value of the property. She negotiated a good price given the market status right now (being a seller's market). She made sure the settlement was on track at all times and communicated with me often to ensure that I knew the status. Settlement went on schedule with no complications. That is what is most important to me (and I think this should be added to your survey) - communication. Often buyers/sellers do not know how this process works. Agents should be guiding them through the process as it unfolds. This is what sets Elle apart from others. She was there with me throughout the entire process. I was not "just another sale." I was and always will be her client. Thank you, Elle, for making this deal go so smoothly.”
-
“Incredibly helpful”
-
“Eva Kelly will work hard for you. She is always able to be contacted and is very knowledgeable. She makes buying and selling a home very easy!”
-
“We have used many real-estate persons over the pass three decades and Michael Segarra is the best hands down.”
-
“Michael was wonderful to work with. He listened to our needs for both buying a new home as well as selling our existing home, and worked tirelessly to ensure a smooth sale and purchase. We recommend him wholeheartedly.”
-
“Heather went above and beyond to not only help us find the house of our dreams, but also walk us through the process of buying our first home. We are so grateful for all her experience and help through the process! Heather was so kind and knowledge through the entire process! I feel like the word excellent does not do justice to the grates listed above. It always seemed like she went above and beyond to help us at any time of day!”
-
“Laura was recommended to us by a co worker and we are so grateful for the recommendation. Laura was all around such an amazing agent.”
-
“Stacey is the best! Always had time to answer questions and meet with us when needed. She knew what we wanted and helped to get us to our end goal.”
-
“Heather tirelessly helped me search for a great home for my family in a difficult market when we were often up against multiple offers. She was professional and dedicated. She helped me get the house I wanted even when I was starting to get discouraged!”
-
“Always keep great communication Always answered all questions if she didn't know the answer she will find it. Fast working. Hard work. Flexible. Honest .great people and communication skilled. She's great. Knowledgeable. Honest Becomes one of the family. Out going friendly. Would refer her to family and friends.”
-
“We moved from TX to PA - not an easy task. Sue Spahr went above and beyond for us - even showed us homes via facetime! We love Sue and would recommend her again and again!”
-
“Scott was very prompt with answering my questions. He listened to us when we explained what we were looking for, and helped us find houses that fit our needs.”
-
“Susan is hands down my only choice to ever go through this process with again. It was almost sad to finally be moved into our house. She felt like family by the end, with her care and concern, that lasted far past the ink drying on the paperwork”
-
“Miss Stacy was the best, was available anytime of the day answered all of our questions took care of all our concerns. With everything being so uncertain due to covid 19 she still made everything happen in a timely manner .We were extremely comfortable with every decision we made with Stacy and grateful she was in our corner. Miss Stacy explain everything in detail in a way we could understand .We had a lot of questions and she had all the answers and when she did not she got the answers asap for us ,very professional and down to earth.”
-
“She went out of her way, above and beyond, to help us with closing. It really came down to the wire and it only ended up happening that day due to her efforts.”
-
“Stacey was great! She did whatever it took to find and get us into a new home. Always available for questions and anything else we needed.”
-
“I strongly recommend Christian to anyone that needs the work of a realtor.”
-
“Said it previously”
-
“Susan Spahr did a fabulous job guiding me through the home-buying process. I felt extremely safe entrusting Susan with all the aspects of purchasing a home. She made the whole process simple and easy to understand as a first time home-buyer. I would highly recommend Susan to anyone looking to purchase their own property.”
-
“Mr. Gonzales did a great job helping me sell my house! This was my first time selling and it had been 18 year since I bought the house so I am grateful for the time he took to explain everything to me and his guidance throughout the process. He was spot on as far as selling price and marketing techniques to get the house sold.”
-
“Megan was a terrific help! She answered all my questions promptly, and always got back to me quickly, if not right away. She made sure everything was going smoothly for us and even got us a little housewarming gift, with things I actually needed, for my house! Megan was great! I definately recommend her, if you're looking into buying a home!”
-
“My family and friends had used Christian's services before for the purchase of their homes and always recommended him to my wife and me, they told us that Christian was always trying and looking the best for them. Now in the purchase of our home, we saw the way Christian was always working to get us the best loan for us and get help with down payment & closing cost from the seller and the State. He was always trying to find us the perfect house to call home. We would recommend Christian to our family and my friends without hesitation. Freddy A. Castillo y Michel Almonte De Castillo, York PA Mi familia y amigos habían usado los servicios de Christian antes para la compra de sus casas y siempre lo recomendaron a mi esposa y a mí, nos dijeron que Christian siempre estaba intentando y buscando lo mejor para ellos. Ahora, en la compra de nuestra casa, vimos la forma en que Christian siempre estaba trabajando para obtener el mejor préstamo para nosotros y obtener ayuda con el pago inicial y el costo de cierre de parte del vendedor y del Estado. Siempre intentaba encontrarnos la casa perfecta para llamar hogar. Recomendaríamos a Christian con nuestra familia y amigos sin dudarlo. Freddy A. Castillo y Michel Almonte De Castillo, York PA”
-
“Dwyane Piper went above and beyond the call of duty to ensure the very best experience. The old owner, a very sweet elderly widow had 3 lifetimes worth of items in the home. Dwayne actually assisted her (not his customer) meeting her deadline for closing. He is one of the most kind and compassionate people I have ever meet. Hi did this while maintaining her dignity and comfort level....so great to see professionalism and compassion can co exist.”
-
“Heather was amazing, she had my house sell within a week. I did not have any problems at all everything was fast and easy Thank you Heather, It still means a lot to us”
-
“Susan is a true professional. She’ll fight tooth and nail for her clients and always go the extra mile...she was truly a pleasure to work with. She always made me feel like I was top priority and her only client. She will certainly get any and all my recommendations and/or referrals. Top notch agent in every way. Again, can’t say enough positive things about Susan.”
-
“She is the best there is in home acquisition. She will follow up on your behalf without you reminding her. She is very thorough”
-
“Michael was a phenomenal agent to represent us in selling our home. Michael provided excellent insight and used his years of experience to help us get our home sold for maximum dollar. He guided us from the initial tour of our home, through photos and showings. His excellent negation skills though home inspections made it a stress free experience for us and we breezed through closing. Michael was able ti iron out any bumps along the way for us and we were thrilled with the results. Onto of all of that Michael is a great person and an absolute joy to work with.”
-
“Very quick to get back even with the simplest of questions”
-
“Ingrid Shuey is a very professional real estate broker at work. There is no obstacle for her that cannot find a solution for her. She is 100% bilingual, helping many Hispanics to fulfill their dreams of owning their own home.”
-
“Stacey sold my parents their house. She came highly recommended. She was amazing with my house deal. She went over and above always to work out any issues. I'm so happy to have worked with Stacey. Stacey was always there for me and ran the extra mile to make sure everything not only got completed but on time. She was very attentive and made things as smooth as possible for me during the transaction. Stacey was perfect with her communication throughout the whole process of me purchasing my home. She was also very knowledgeable when I would ask a million questions because some things I did not understand or would become stressed about and she would always calm my fears and answer me quickly and concisely. I'm just so grateful that I had Stacey during the purchase of my home representing me and walking me through everything. She was very helpful, very attentive. She's very down-to-earth and very approachable and always made me feel very comfortable. I would highly recommend Stacey. She even made home baked cookies to bring to my Settlement. She is awesome!”
-
“My house was a difficult property to sell due to the location, but Eva Kelly did not give up. From the beginning she put up a huge yard sign, placed adds and had great up to date pictures of my house. The last agent used pictures from when I purchased the house! Eva got people to walk thru the house, she had Open House's and did whatever she needed to do to sell this house! I am very pleased and very satisfied with the sale of this house. Eva went out of her way for me. I was already down in Florida with my fiance' who just recently contracted the flesh eating bacteria and he was in the hospital for over 2 months. Eva was my voice for me. She kept me in the loop and made me not really have to make any choices..she was wonderful an was on top of everything. I did not feel like I was just another seller to her. (Other agents had gotten me mixed up with other homes) Would use her again and would highly recommend.”
-
“I have been working with Stacey to find my forever home for three years. To say I was picky was putting it mildly. She never wavered and every time I asked to see a property she scheduled a showing. I was looking for a home in a very sought after school district and as quickly as I would ask to see a house it would be off the market. We had toured so many homes that for the last few months she could tell by my face the minute we walked into a house that it wasn't the one. She was always helpful and honest. If I ever have to or want to move again, there is no question in my mind, I would call Stacey immediately!”
-
“They listened to what we were looking for and the price range we wanted to stay in. We're available to show us houses quickly”
-
“Rocio Palacios very professional and I feel confortable worked with her, very nice experience, I really recommend her to friends and families”
-
“Michael is a hard worker and is very dedicated to his clients. He had a good understanding of our needs and was very flexible. He went above and beyond to meet us at times that were convenient for our family. Michael knows a lot about the area and was able to help us to find our dream home! I would highly recommend using him as your agent!”
-
“Christian Maldonado was very trustworthy, helpful, knowledgeable and professional. I felt that he was always looking out for the best interest of all parties.He was always very courteous and prompt. I was extremely grateful for his help and would highly recommend him in the future.”
-
“I couldn’t have asked for a better guy to work with. He listened to what I was looking for and answered questions I had along the way. Scott was a solid advocate for me throughout the process and it made my first home purchase less stressful knowing I had him to answer the inevitable questions that arose. I have and will continue to recommend Scott to others I know who are looking for a home.”
-
“Heather was listing agent on a property I put an offer in on and did not get, however it became clear during that process I wanted to use her as my agent, even if it was as a dual agent because she handled that initial situation with absolute integrity. Heather could not have been more responsive and attentive to any and all questions I had throughout the entire process. Outstanding performance from beginning to end of process. I would recommend Heather to any of my friends and family.”
-
“Eva was incredibly helpful throughout our entire homebuying experience. Her knowledge and efficiency really helped us to be able to trust her in knowing she will do whatever is best for us and our future home. I would recommend her to anyone.”
-
“I am a first time homebuyer. Eva was so on top of making sure I understood and reaching out to the listing agent for my new home, especially when he was hard to get a hold of. Eva was easily contacted at any time. She is knowledgeable for the area and had excellent suggestions. She was recommended to me by a coworker who had the best recommendation of her as well. I would 100 percent recommend her and use her again as an agent should I need.”
-
“We had what we thought would be a difficult piece of property to sell. I spoke with Heather Bradley and, in one phone call, she knew what our plans were and how to best execute them. Thanks to her research and hard work we were able to have the property sell within just a few weeks.”
-
“Absolutely incredible experience. Heather has an awesome personality, is extremely knowledgeable, and has great attention to detail. This was my first time buying a home and she (and the loan officer, Mike Cersei), were nothing shy of amazing. They made all of my financial options crystal clear, as well as Heather’s experience and attention to detail with even the smallest aspects of the home I purchased. She has the ability to be the friendliest person you’ve ever met, and flip a switch when it comes to negotiation with other agents and getting you exactly what you want at the price you want it. That cannot be taught. Overall fantastic experience and I thank her and her team for my first home.”
-
“She is very professional and very Polite.”
-
“Susan was fantastic to work with. She was patient and understanding. She sent me MLS disclosures and information on houses I was just curious about, which made my process a lot easier. I literally had no issues with the whole home buying process and I have to commend her for that! I would recommend her to anyone and look forward to working with her again in the future.”
-
“Michael was very easy to work with , he was very knowledgeable years of experience which is what I needed due to my circumstances with my home. He sold my home within less than 24hours and got me out of a hardship situation. Grateful.”
-
“Susan makes the process enjoyable!! I have sold/purchased homes with Susan in the past and I never ever worry about missed details, forgotten paperwork or miscommunication. She explains the process with patience and professionalism, then follows up with detailed correspondence and time lines. Susan is kind, understanding, thorough, transparent and keeps the process painless and stress free for everyone !!! I would recommend Susan 100%!!! I am extremely grateful for her professionalism and compassion!!!”
-
“Heather is the #1 agent in South Central, PA!!!!!”
-
“Heather was amazing from start to finish! She really put herself in our shoes and made decisions based on what the seller would want or need. She was very knowledgeable and clear on the process and walked us through everything. We appreciate all the work she did in getting our home sold!! She went above and beyond to ensure we closed in a timely matter including all hiccups on the buyers side. Thank you Heather!”
