Both real estate agents and brokers are licensed to help you in your home purchase.

Real estate brokers have additional certification in some states, but in many states the
word “broker” and “agent” are interchangeable. 

For example, in some states, brokers must have a real estate license for a minimum of
two years and then pass a more difficult exam.

In Illinois, however, a real estate broker is at the same level as a licensed real estate
agent. Illinois uses the term “managing broker” to refer to the person who oversees
agents at a firm. 

What does a real estate broker do?

Brokers are licensed to do everything a real estate agent does, including negotiating
and writing property transactions, but brokers can also assist agents if an issue occurs
during any part of the home-buying or selling transaction. 

Because brokers have a higher level of licensing, which requires more classwork hours
and tougher exams, real estate brokers are in a position to supervise and guide agents
and oversee transactions. 

When shopping for a home, you’re more likely to work with an agent, as most brokers
spend their days overseeing the real estate brokerage and supervising individual
agents. 

Brokers go by different names, depending on the size of their brokerage and their role
and responsibilities:

 Principal broker
 Managing broker
 Broker associate

Real estate brokerage definition

A real estate brokerage is a firm where a broker, agents and assistants work. The
supervising broker is responsible for all of the associate brokers and agents working at
the firm, as well as any unlicensed personnel. Some groups of associate brokers and
agents group together and form teams, but they are still under the supervision of the
supervising broker.

At a small boutique real estate firm, the broker might be the owner of the company and
may also take clients. At a larger real estate firm, the broker is the person who
oversees one specific office that’s part of the larger organization. 
 Types of real estate agents
There are several types of real estate agents, based on the roles they take on for their
clients. Many specialize in one type of real estate:

 Listing agent: represents the seller

 Buyer’s agent: represents the buyer
 Dual agent: represents both the seller and the buyer in a transaction
 Transaction agent: When dual agency is not legal, a transaction agent oversees the
transaction timelines and paperwork for both parties, but they don’t give advice or
represent either side. 

What do real estate agents do?

When working with buyers, real estate agents oversee the home purchase process,
from the initial home search all the way to the closing. Some real estate agents go
above and beyond the following list, but these are the key responsibilities of a full-
service, professional buyer’s agent:

Help you figure out your purchasing power: A good agent will guide you through
the pre-approval process, suggest lenders and help you determine the right budget. 

Home in on neighborhoods and school districts: Your agent can help you explore
neighborhoods based on your budget, lifestyle and commute. 

Curate listings based on your wants and needs: An agent will send you an initial
set of listings to review, then new listings regularly so you can determine if a property is
worth seeing in person. Agents sometimes have access to off-market or pre-market
listings that you wouldn’t be able to find on your own. 

According to the Zillow Group Consumer Housing Report 2019, 82% of buyers use an
agent during some part of their home search. And when buyers are determining the
right home to buy, 53% say their agent’s evaluation of the home is very or extremely
important to them

Submit offers: Once you’ve found a house you love, your agent will help you settle on
an offer price, suggest the terms of your offer and submit the offer to the listing agent
or owner for review. 

Negotiate on your behalf: Your agent will negotiate with the other party to come to
an agreement on final price and terms, including an earnest money deposit. Your agent
will continue to negotiate on your behalf as you move toward closing, especially on
things like inspections and closing credits. 
Make professional recommendations: Agents are also a great resource for referrals
to trusted professionals, such as home inspectors and real estate attorneys. 

Complete paperwork: There’s a lot of paperwork involved in buying a home. Your

agent will draft the contract, send disclosures and work with your real estate attorney
(where necessary) to review all documents. They’ll also help with any other required
paperwork during the escrow period. 

Facilitate inspections and repairs: Your agent will attend the home inspection with
you, help schedule additional inspection needs (a sewer line inspection, for example),
coordinate times with other parties and make sure deadlines are met. 

Navigate you through closing: Your buyer’s agent should attend your closing to
make sure there are no issues and handle any problems that arise. 

How does a real estate agent get paid?

While the role of a buyer’s agent is to help a buyer find a home, they’re usually paid by
the seller. Sellers typically pay 5-6% of the sale price in agent commission, with the
total amount being split roughly 50-50 between the seller’s agent and the buyer’s
agent. However, in FSBO instances or occasions where the seller isn’t paying a
commission, the buyer’s agent agreement will usually detail that the buyer is
responsible to cover agent commission. 

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A real estate broker, real estate agent or realtor is a person who represents sellers or buyers
of real estate or real property. While a broker may work independently, an agent usually works under
a licensed broker to represent clients.[1] Brokers and agents are licensed by the state to negotiate
sales agreements and manage the documentation required for closing real estate transactions.
Buyers and sellers are generally advised to consult a licensed real estate professional for a written
definition of an individual state's laws of agency, and many states require written disclosures to be
signed by all parties outlining the duties and obligations.
Generally, real estate brokers/ agents fall into four categories of representation:

 Seller's agents, commonly called "listing brokers" or "listing agents", are contracted by owners
to assist with marketing property for sale or lease.
 Buyer's agents are brokers or salespersons who assist buyers by helping them purchase
property.
 Dual agents help both the buyer and the seller in the same transaction. To protect their license
to practice, a real estate broker owes both parties fair and honest dealing and must request that
both parties (seller and buyer) sign a dual agency agreement. Special laws/rules often apply to
dual agents, especially in negotiating price. In dual agency situations, a conflict of interest is
more likely to occur, typically resulting in the loss of advocacy for both parties. Individual state
 laws vary and interpret dual agency rather differently, with some no longer allowing it. In some
states, Dual Agency can be practiced in situations where the same brokerage (but not agent)
represent both the buyer and the seller. If one agent from the brokerage has a home listed and
another agent from that brokerage has a buyer-brokerage agreement with a buyer who wishes
to buy the listed property, dual agency occurs by allowing each agent to be designated as an
"intra-company" agent. Only the broker himself is the Dual Agent.
 Transaction brokers provide the buyer and seller with a limited form of representation but
without any fiduciary obligations. Having no more than a facilitator relationship, transaction
brokers assist buyers, sellers, or both during the transaction without representing the interests of
either party who may then be regarded as customers. The assistance provided are the legal
documents for an agreement between the buyer and seller on how a particular transfer of
property will happen.
A real estate broker typically receives a real estate commission for successfully completing a sale.
Across the U.S. this commission can generally range between 5-6% of the property's sale price for a
full service broker but this percentage varies by state and even region.[2] This commission can be
divided up with other participating real estate brokers or agents. Flat-fee brokers and Fee-for-Service
brokers can charge significantly less depending on the type of services offered.