Real estate brokers and agents are both licensed to assist you with your home purchase. Some states have additional certification for real estate brokers, while in others, the words "broker" or "agent" can be interchangeable.

For example, brokers must hold a real estate license for at least two years in some states and then pass a harder exam.

A real estate broker in Illinois is the same as a licensed agent. In addition, the term "managing broker" is used in Illinois to describe the person responsible for overseeing agents within a company.

What Is A Real Estate Broker?

Brokers can do all that a real agent does, including writing and negotiating property transactions. However, agents can also be assisted by brokers if there is an issue during the home-buying process.

Brokers have a higher licensing level, which means they can supervise agents and manage transactions.

You're more likely than not to work with an agent when shopping for a house. This is because most brokers spend their time overseeing the realty brokerage and supervising individual agents.

Brokers are known by various names depending on their size and their roles and responsibilities:

• Principal broker

• Managing broker

• Associate broker

Real Estate Brokerage Definition:

A real estate brokerage is an organization where agents, brokers, and assistants work. All associate brokers and agents at the firm are under the supervision of the supervising broker. The supervising brokerage can also monitor unlicensed personnel. Although some agents and associate brokers form teams, they remain under the control of the supervising brokerage.

A broker may be the sole owner of a small, boutique real estate company. He or she can also take on clients. In addition, a broker is responsible for overseeing a specific office within a larger firm.

Different Types Of Real Estate Agents

Based on their roles for clients, there are many types of real estate agents. In addition, many agents specialize in one type or another of real estate.

• Listing Agent:

  Represents the seller

• Agent for the buyer

• A dual agent:

  Represents both the buyer and seller in a transaction

• Transaction Agent:

  A transaction agent is a person who oversees both the paperwork and timelines for each party when a dual agency isn't legal. They don't advise or represent either side.

What Are Real Estate Agents Doing?

Real estate agents are responsible for overseeing the entire home buying process from the initial search to closing. While some real estate agents may go beyond what is listed, these are the core responsibilities of a professional buyer's agent.

• Calculate your purchasing power: 

  A good agent can help you navigate the pre-approval process and suggest lenders. They will also help you to determine the best budget.

• Search for neighborhoods and school districts: 

  Your agent can help guide you to find neighborhoods that suit your lifestyle, budget, and commute.

• Curate listings according to your needs and wants: 

  An agent sends you the first list of listings that you can review. Then, they will keep you updated with new listings to decide if the property is worth visiting in person. Sometimes agents have access to pre-market and off-market listings that you might not be able to find yourself.

• Submit offers:

  Once you have found the house you love, your agent can help you set a price and terms and then submit your offer to the owner or listing agent for review.

• Negotiate for you: 

  Your agent will negotiate with the other side to reach a final price and terms. This includes an earnest money deposit. As you progress towards closing, your agent will continue to negotiate for you, particularly regarding inspections and closing credits.

• Get professional recommendations: 

  Agents can also refer to trusted professionals such as real estate lawyers and home inspectors.

• All paperwork required: 

  Buying a house requires a lot of paperwork. Your agent will prepare the contract, provide disclosures, and collaborate with your real estate attorney to review all documents. They will also assist with any additional paperwork required during the escrow period.

• Facilitate inspections, repairs: 

  Your agent will assist you with your home inspection. They will also help schedule additional inspections (e.g., a sewer line inspection), coordinate times with other parties, and ensure that deadlines are met.

• Guide you to closing: 

  Your buyer's agent should be present at your closing to ensure that there are no problems and resolve any issues.

What Does It Take To Make A Real Estate Agent A Successful Business?

Although the buyer's agent's role is to assist the buyer in finding a home, they are usually paid by the seller. The seller usually pays 5-6% of the sale price as agent commission. Thus, the total amount is split roughly 50-50 between the buyer's agent (and the seller's agent). In FSBO cases or instances where the seller doesn't pay a commission, the agent agreement for the buyer will typically state that the buyer is responsible for paying agent commission.