For most people, there is no distinction between a real estate broker and a real estate agent. However, if you work in the real estate industry, there is a very clear difference.
All real estate brokers were once licensed agents — but not all agents are brokers. Brokers assume legal responsibility for the agents and the real estate transactions being managed through their brokerage.
Agents hang their licenses with a brokerage, and the broker provides oversight, consultation, and direction to ensure transactions get managed according to the letter of the law.
If you ask most brokers to define their role, it definitely doesn’t end at compliance. And, as with any industry, technology, the age of the customer, and market disruption has recast the role of broker in a big way.
Before understanding how successful brokers define their roles, it’s important to understand how it’s been defined, historically.
The National Association of REALTORS(r) (NAR) defines brokers as individuals who wear many hats.
In many cases, the broker has also been the owner of the brokerage, which meant that their responsibilities included tasks well outside of their real estate know-how.
Not only was the broker-owner responsible for compliance and paperwork approval, these Janes- and Jacks-of-all-trades found themselves responsible for everything from generating leads for agents to ordering office supplies. In a given day, it wouldn’t be uncommon for a broker to deal with recruiting and hiring agents, training new agents, guiding agent transactions, or event mediating agent disagreements.
While many brokers might still survive as overwhelmed generalists, many have embraced technology, lean processes, and smart hiring in order to thrive in today’s market.