Real estate agents vs. real estate brokers

Anyone out there please feel free to correct me if I'm wrong, but my understanding is that an Agent works for a Broker. But, they perform the same tasks.

The Brokerage is owned by the Broker, and the Agents work out of that Brokerage.

While an Agent may be investor friendly, it is nice when the Brokerage is too. There are Brokerage fees that an Agent can get waived (say after the first one), but only if their Broker plays nice.

Once you've gotten through the initial steps n interviewing an agent, and our first requests as DG-ers, make sure you ask about Brokerage Fees and don't sign any Exclusive Agreements--- no no no.

-Tina

I believe you are correct. That is the difference as I know it. The Broker is the boss over the agents. My friend is a broker.

Stephan,

You are correct. A Real Estate Agent basically has a License to sell real estate in a given state, and generally speaking this requires minimal hours of training and passing a state exam. A Broker on the other hand (and in Texas for example), must have had an Agent's license for at least 2 years, is subject to much more extensive real estate related training and education (the equivalent of about a 2 year Associates Degree {again in Texas}), and also passes a Broker's exam.

The Broker is the Real Estate Agency owner; the Agent is just a licensed sales person who works under the Broker's license. Both must meet and maintain continuing education requirements established by the state.

Reyn, most of the time you will be dealing with a Real Estate Agent vs. a Broker. As the Broker is busy managing and growing his business (i.e. his agency) he probably won't take the time personally to work with new investors. He leverages his time and effort by employing RE Agts as 1099 Employees to maximize his return.

"Success seems to be largely a matter of hanging on after the others have let go." William Feather

--Walter

Thank you for the information. I am like a sponge nowadays. Learn, learn, learn.

the explanation here between a Broker and an Agent is correct. Broker is the boss and the Agent is a 1099 employee (so to speak). You can work with either or both.

However, Tina brings up a very important point about Exclusive Agreements. I can't tell you how many times I've see people innocently sign these and get themselves into trouble! Some Agents and/or Brokerages will ask you to sign an Exclusive Agreement which is a contract that binds to you agree to not work with any other Agent or Brokerage for a period of time (3mo or 6mo) AND if you do, they are still entitled to a commission even when they had NOTHING to do with the deal! This is highway robbery and (to me) unethical. If the Agents are entitled to the commission regardless of how much work they do then what motivation does your Agent have to get the work done for you? Please please please DO NOT sign one of these agreements under any circumstance! Thank you Tina for bringing this up. Sorry to come on so strong about this but I've seen too many students get into trouble from these agreements and then end up with "deadbeat" agents making money for nothing. I hope this helps.

Have a wonderful day!

Karen