Real estate agent vs. broker vs. Realtor: The differences explained

Key takeaways

• Real estate agents, brokers and Realtors play different roles. While all three help facilitate transactions, brokers have additional licensing and oversight authority, and Realtors are agents or brokers who belong to the National Association of Realtors and follow its ethics code. 
• The right professional depends on your needs. Agents are well-suited for most residential transactions, while brokers may be helpful for complex luxury or commercial deals. Realtor status signals professional affiliation, not a separate license. 
• Commission rules and practices are changing. New NAR rules adopted in 2024 require buyers to sign written agreements with brokers and allow greater transparency and negotiation around agent compensation. 

While the roles of real estate agents, brokers and Realtors often overlap, each has a distinct definition and set of responsibilities within the industry.

A real estate agent is a licensed professional who helps buyers, sellers and renters complete real estate transactions. Agents work under a real estate broker, who has completed additional education and earned a broker’s license. Brokers may work independently, supervise agents or operate their own brokerage. A Realtor is a licensed agent or broker who is a member of the National Association of Realtors, or NAR.

Agents, brokers and Realtors may specialize in areas such as residential or commercial real estate, rentals or property management.

Real estate agent: A licensed professional who represents buyers, sellers or renters in real estate transactions and negotiates on their clients’ behalf.

Real estate broker: An agent who has completed additional education and passed a state broker’s exam. Brokers can work independently, open a brokerage and hire agents.

Realtor: A licensed agent or broker who is a member of NAR and agrees to follow its Code of Ethics and Standards of Practice.

To become licensed, a real estate agent must complete state-required pre-licensing coursework and pass a state exam. Requirements vary by state. Massachusetts requires 40 hours of coursework, while Texas requires 180.

The licensing exam typically covers real estate practices and federal and state laws. A passing score is usually between 70% and 75%. Licensed agents must also complete continuing education to maintain their credentials.

An agent’s role depends on whom they represent in a transaction.

A listing agent, or seller’s agent, represents the homeowner. These agents price and market the property, host showings, recommend updates and negotiate with buyers or their agents. They often use the multiple listing service, or MLS, and may assist with staging.

A buyer’s agent, sometimes called a selling agent, represents the purchaser. They help clients find homes, attend showings, write offers and negotiate with the seller’s agent.

After an offer is accepted, agents guide their clients through inspections, appraisals and closing paperwork. Agents are legally required to act in their client’s best interest. In some states, agents may represent both parties in a transaction, known as dual agency.

An experienced agent can help streamline the buying or selling process, reduce stress and negotiate favorable terms. Agents typically have in-depth knowledge of local markets, zoning rules, contractors and other professionals. Some may also know about properties not yet listed publicly.

Brokers complete more coursework than agents and must pass a comprehensive state exam. Coursework often includes contracts, ethics, insurance, taxation and brokerage management.

Most states also require brokers to have prior experience as licensed agents, typically two to four years. Education requirements vary widely. Colorado and Indiana require about 24 hours of coursework, while Texas and California require 270 and 360 hours, respectively.

Brokers may represent clients, manage a brokerage or both. In addition to handling transactions, brokers supervise agents, resolve disputes and oversee daily operations and marketing. Some brokers focus solely on management, while others continue client-facing work.

Associate brokers: Licensed brokers who work under another broker and typically do not supervise agents.

Managing brokers: Oversee transactions, train agents and manage staff.

Principal or designated brokers: Ensure the brokerage complies with state and federal laws. They supervise agents and are often paid through commissions and, in some cases, a salary.

Each brokerage must have one designated broker responsible for legal compliance.

Independent brokers may offer access to a broader range of properties, including listings that are coming soon. Established brokers often manage teams that provide specialized expertise. Brokers may be especially useful for luxury properties, commercial transactions or complex deals.

A Realtor is a licensed agent or broker who belongs to NAR and agrees to follow its ethical standards. While Realtors perform the same functions as agents or brokers, membership signals a commitment to professional conduct.

Realtors may specialize in residential or commercial real estate, property management, appraisal or brokerage services.

Like other real estate professionals, Realtors guide clients through transactions. They also have access to NAR training, tools and industry resources, which may benefit buyers and sellers.

Real estate agents, brokers and Realtors are typically paid by commission. In March 2024, NAR adopted new commission rules that allow buyers to negotiate agent compensation directly.

Previously, sellers often paid both the listing and buyer’s broker. The new rules require buyers to sign a written agreement with a broker before touring homes and allow more transparency in agent fees.

The right real estate professional depends on your needs. Agents, brokers and Realtors can all help buy or sell a home, but each designation reflects a different level of training, responsibility or professional affiliation.

This story was updated May 4.