Realtor, real estate agent and broker get used as though they mean the same thing. They do not, and the differences occasionally matter to you as a buyer or a seller. Here is what each one actually is, and where it makes a practical difference.
What is a real estate agent?
A real estate agent is someone licensed by their state to help people buy, sell or rent property. Requirements vary from state to state, but the shape is the same: complete the pre-licensing course, pass the written exam, activate the license, and join a brokerage. Continuing education keeps it active. An agent cannot practice on their own; they work under a brokerage.
Agents usually work in one of two roles on a given transaction. A listing agent represents the seller, which means pricing the home, marketing it, running showings and negotiating the offers that come in. A buyer’s agent represents the buyer, finding suitable homes, arranging visits and handling the offer and negotiation. The same person does both jobs at different times, just not usually on the same house.
Agents are paid by commission, a percentage of the sale price, which in Florida is customarily paid by the seller and then shared between the two agents and their brokerages. Commissions are negotiable, and ours are set out on the buyer agent commissions page.
What is a Realtor?
A Realtor is a licensed agent or broker who also belongs to the National Association of Realtors and follows its code of ethics. The word is a registered trademark, which is why it is capitalized, and it can only be used by members. Membership also requires a clean record with no professional sanctions.
All Realtors are agents. Not all agents are Realtors. The practical difference is accountability: the NAR code is enforced by local associations, so there is a body to answer to beyond the state licensing board. It is updated regularly, and members have to retake the ethics course to stay in good standing.
What is a real estate broker?
A broker is an agent who has done additional coursework and passed a harder exam, covering contracts, ethics, taxes, insurance and investment property. A broker can work independently and can hire agents to work under their supervision, which an agent cannot do.
Broker is not one job. A few versions come up often enough to be worth knowing:
Broker associate
Holds a broker’s license but works under someone else’s brokerage, usually still selling. For a lot of agents this is the step before opening their own firm.
Designated broker
Owns or manages the firm, hires the agents, and carries responsibility for how the office runs.
Broker of record
Answerable for everything done in the firm’s name: compliance, records, escrow and trust accounts, paperwork and commission distribution. Exact duties vary by state.
Managing broker
Runs the day to day. Training, marketing, listings and keeping transactions inside the rules.
So which should you use?
Honestly, the title matters less than the person. What changes your outcome is whether they know your market, whether they return calls, and whether you trust them with the largest transaction most people ever make. An agent with fifteen years in one county will serve you better than a broker who has never worked your zip code.
What the titles do tell you is where the accountability sits. A Realtor answers to the NAR code as well as the state. A broker carries responsibility for a whole office rather than just their own files.
I am a Broker and the owner of Misty Morrison Real Estate and Company, and a Realtor. If you are buying or selling your home anywhere in Brevard County, get in touch and we can talk through what you are trying to do.
