Broker vs Agent -Why it is Important to you

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Real Estate Agent

Real Estate Broker or real estate agent, they are the same aren't they?  No they are not the same there are many differences between Real Estate Broker and real estate agents.  The biggest difference is experience, another big difference is knowledge.  If real estate experience and real estate knowlege are important factors when hiring a real estate professional, please read on. 

A Real Estate Broker license is required to sell real estate in the state of California.  Real Estate agents work for a Real Estate Broker.  Without a broker a real estate agent can not sell real estate in California.  To obtain a real estate license you take a few classes on real estate principals and take the state exam.  If you achieve a score of 70% or higher (not a very high percentage) on the state test and pay some fees you have yourself a real estate license.  In the past few years there have been a record number of real estate licenses issued with the great boom in the real estate markets of CAlifornia and the nation.  Many of these same agents are now exiting the business as times have become tougher.

To obtain a Real Estate Broker license it takes a little more effort, actually a lot more effort.  There are a couple of ways of achieving a Real Estate Brokers License. the two most common require real estate experience and knowledge.  The most common way of obtaining a Real Estate Broker License is to first obtain your real estate (agent) and gain two years of practical experience.  Once you have two years of experience and you have completed additional real estate classes on topics like real estate law, real estate agency, real estate ethics and many other topics, then you can sit for the State Real Estate Broker exam.  This exam however is twice as long as the real estate license (agent) exam and requires a greater knowledge of real estate practices and real estate law.  The other typical way of obtain a Real Estate Brokers License is by obtaining a Four year university degree, a person can sit for the Broker exam. 

So when looking for a Real Estate Professional to represent you in the buying or selling of Real Estate in California, if real estate knowledge and experience are important to you, choose a Real Estate Broker.    Typically they have greater experience and knowledge.  

 

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Rainmaker
273,245
Ron Tarvin
Luxury and New Construction in Katy & Cypress TX - Katy, TX
Broker, Katy, Houston, Cypress 77450,77494,77095

I'm guessing that you don't have any "agents" that work for you then Craig?

I know in Texas, the broker exam isn't too much more expansive on knowlege and experience...but it does require that you have been licensed as a real estate agent for at least 2 years.

Mar 21, 2008 06:45 AM #1
Rainer
19,663
Optimum Real Estate Group
Newport Beach, CA

Actually I do have quite a few agents who work for me.  They are all very knowledgable and have good experience, yet none have the same knowledge level or experience I do as a Broker for 18 years.

I have a Broker license in two states and the exam in both states has been far more extensive then the real estate liecense exam.

Mar 21, 2008 06:55 AM #2
Rainer
291,941
Diane Aurit
LKN Realty, LLC - Mooresville, NC
Lake Norman Real Estate
Craig, you might find it interesting that here in NC they are now requiring ALL agents to be brokers.  I moved here from CA three years ago and ended up having to take 165 hours of classroom courses but it was worth it!
Mar 22, 2008 01:19 AM #3
Rainer
19,663
Optimum Real Estate Group
Newport Beach, CA

Diane,

That is good to hear, I would love to see more states to that model. It would be the best thing for the industry. 

 

Mar 22, 2008 08:38 AM #4
Anonymous
Robin

Craig,

I found this page as a result of a Google search intended to inform me about the differences between Brokers and Agents, as I am currently working toward the CA Agent's License. As I just began this process, I was rather surprised to find that with the Principles, Practices, and Business Law classes I'm taking I would only need four more classes to be eligible to sit for the Broker's exam.

As you point out, the requirement of two full time years of realty experience (which must be documented/verified) is the only thing which makes this goal justifiably difficult, and supports your notion of greater experience for the Broker.

However, since- as you mentioned- a four year degree allows an individual to bypass the two years of full time experience, it would seem that anyone who has graduated college can become a broker with about 3840 hours less experience in the field. Given there are plenty of people who have achieved this goal, I would say that particular exemption detracts from the buyer's security which you're insinuating exists by dealing with Brokers directly.

Unless of course you're dealing with a broker who actually has two years of experience. Otherwise, I'm not quite sure that a BS in Viticulture would constitute a working knowledge of Real Estate.

Lastly, a person can sit for the Broker's exam in CA without the 2 years experience if they've passed the BAR exam, but I think that exemption makes a little more sense given the content of the exam.

Jun 19, 2008 05:36 AM #5
Rainmaker
25,919
Jim Quinn
Century 21 - Anaheim, CA
North Orange County Real Estate

A broker license is definitely better. There is a difference in knowledge unless the agent has more experience in the field.

Jul 11, 2008 06:52 PM #6
Rainer
10,243
Paul Aragon
Coldwell Banker- Greater Valleys - Porter Ranch, CA

I agree with Robin. Having a graduate degree, I found it disappointing at the ease by which brokers and salespersons can achieve what some might call elite or exclusive licensing. In reality, a broker's license is not that much more effort. The required reading and courses are elementary, the study time for both licensures are the same, and obtaining the license has no relation to the experience that is necessary to represent a client  in the best way. There are many 20 year veteran agents who are MUCH more qualified to better represent clients than recently licensed brokers who (if you're a college graduate) can pass the exam and get licensed without ever having a transaction under their belt.

Many brokers use this licensure as a marketing tool to set themselves apart...sometimes the actual distance they measure is negligible and makes no practical difference.

Although licensed for 5 years, I had the opportunity to take the broker's exam upon entering this field...I didn't (my mistake). I only took the salesperson's exam. I recently took the broker's exam with very little extra effort. It is not an exclusive club in quality, only quantity.

One thing that I must humbly state- although I now have passed the broker's test, I recognize that the 20 year owner of our private brokerage firm (the 5th largest firm in all of Los Angeles COUNTY), although not a broker, has much more practical knowledge than I (as a top producing agent) have been able to acquire in my short (5 years), yet profitable career.

To all those buyers looking for someone to represent you...You can't substitute ethics, experience, and proven success for a plaque on the wall!

Aug 27, 2008 04:36 AM #7
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Rainer
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Optimum Real Estate Group

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