With so many job titles in real estate, finding the right person to represent you when buying or selling a home can feel confusing. However, job titles alone don’t reveal who is more experienced or more qualified to handle your transaction.
This article explains what a real estate broker is, the different types you may encounter, and how to make an informed decision when choosing the best professional for your home sale or purchase.
What is a real estate broker?
A real estate broker is a real estate agent with an advanced license that requires more experience and education. While brokers can still call themselves agents, most use the broker title to emphasize their higher qualification.
If you work directly with a broker, you’ll likely notice few differences from working with a non-broker agent, as their roles and responsibilities with clients are similar.
An individual broker's full job description depends on their role within their firm. The three most common roles are:
- Associate broker: Acts like a typical real estate agent, spending most of their time helping clients buy and sell property.
- Designated broker: Ultimately responsible for running a brokerage. When someone refers to "the broker" at a company, they usually mean this person. Other titles include principal broker, qualifying broker, broker-in-charge, and broker-of-record.
- Managing broker: Oversees the day-to-day operations of the firm and reports to the designated broker. Larger brokerages often employ a managing broker.
Most people work with an agent or broker-associate, but at smaller brokerages, you might deal directly with the broker of record. This was my experience when I sold my home in 2024.
Note: The entry-level real estate license is called a "broker" license in nine states: Colorado, Illinois, Indiana, New Mexico, North Carolina, Oregon, South Dakota, Tennessee, and Washington.
Entry-level brokers in these states are roughly equivalent to salesperson licensees in other parts of the country. They must still "upgrade" to a higher license level before they can manage other agents, start their own brokerage, or conduct other activities typically reserved for brokers.
What exactly does a broker do?
Justin Willard, the broker of record at Willard Realty Team, handled my home sale. I worked directly with him throughout the entire process. Working with him felt no different than working with a knowledgeable, experienced listing agent. He handled:
- My home’s pricing strategy
- Making staging and home improvement suggestions
- Marketing my home
- Arranging for professional photography and virtual tours
- Coordinating showings and appraisals
- Communicating with buyers
- Consulting with a real estate lawyer about our home’s unique circumstances
- Preparing contracts
He was planning to hold open houses, too, but the first people to see our home put in an offer at the full asking price. About 30 days later, we had the sale proceeds in the bank.
Brokers acting as the buyer's agent can help you find homes that meet your criteria, coordinate showings, negotiate with the seller, and navigate paperwork and closing.
If the broker is overseeing your agent, they may provide guidance and support around unique complexities in your home’s purchase or sale, prepare your contracts, and mediate conflicts between you and the agent.
“When [you] hire a real estate sales associate, broker associate, or broker of record, [you’re] essentially hiring the broker of record because the broker of record owns the listing,” says Willard. “If something goes wrong, the broker of record has the final say.”
Should I hire a real estate broker?
Willard says it may be beneficial to hire a real estate broker if they have more experience than other real estate agents you're considering.
“If you can hire somebody who is a broker associate over a sales associate, [you know] that they're definitely going to have at least more time in the fire, more experience [than a newer agent].”
Becoming a broker typically requires a couple of years of full-time agent experience, additional real estate coursework, and passing a broker licensing exam.
Having experience is valuable not only for navigating unexpected challenges but also for avoiding them altogether. So, while not a guarantee, more experience can lead to better outcomes and a smoother process.
Beyond experience, Willard recommends looking for agents who specialize in your target neighborhood and have a strong track record of closed transactions.
In my case, I earned an additional $10,000 in proceeds by working with a local broker who knew my neighborhood well.
Another top local agent wanted to list our home at $540,000. However, Willard, whom we ultimately chose because we felt he was more experienced and knew the neighborhood better, recommended $550,000 based on his local expertise. The home sold and appraised for exactly that amount.
If buying in a specific area, Willard says he would test agents on their neighborhood knowledge — such as crime rates, local schools, and area pros and cons — to assess their market expertise. And don’t forget to review agent feedback. Willard suggests focusing on negative reviews to identify possible weaknesses.
Questions to ask when interviewing real estate brokers
You can ask these questions during interviews to find out whether the process of working with a particular broker would differ much from that of a real estate agent:
- Will I work directly with you, or with someone else from your team? What specific role will you play in my transaction?
- How long have you been a broker? How many years of total real estate experience do you have?
- What’s your brokerage’s track record in this market for the past year?
- Do you offer any services beyond those typically provided by a real estate sales associate?
For more details on what to ask during interviews, read our guide on questions to ask when selling or questions to ask when buying.
When I decided to sell my home, I turned to Clever Real Estate to help me find the best local agents. Its service is free, and within 15 minutes of my submission, I had the names of three top-rated agents in my area, two of whom I interviewed.
There was no obligation to go with any of our matches, but we ultimately felt confident about moving forward with one of them. If you’re just starting your home buying or selling journey, consider using Clever to jumpstart finding quality agents.
Clever can connect you with multiple top agents in your area. All agents are vetted based on years of experience, past successful transactions, and customer reviews.
You can compare and interview agents for free — with no strings attached.
Ready to learn more? Click below to take a simple quiz and see your agent matches!
FAQ
What is the difference between a broker and a realtor?
A Realtor is simply a real estate professional who belongs to the National Association of Realtors (NAR). Both brokers and agents can be called Realtors if they’re members. Non-members cannot legally use the “Realtor” title.
How do real estate brokers make money?
Associate brokers earn most of their income the same way agents do: by collecting commissions when helping clients buy or sell homes.
Brokers who own their own brokerage receive a portion of the commission from every deal their agents close. When they serve as the agent themselves, they keep their firm’s share of the commission.
Managing brokers may earn a salary and bonuses tied to the brokerage’s or agents’ performance.
Who makes more money, a realtor or a broker?
Brokers typically earn more than real estate agents, with a median annual wage of $72,280 compared to $56,320 for agents.[1] However, higher broker earnings don’t mean higher costs for buyers or sellers. The average commission is still around 2.5–3%.
What are real estate broker education requirements?
Real estate brokers must have at least a few years of experience, complete the required coursework, and pass a broker licensing exam before they can get a broker license.
At a minimum, hiring a broker ensures you’re working with someone who has some years of experience and a knowledge base above that of a newer real estate agent.
However, since agent experience is paramount for a smoother, more successful real estate transaction, this minimum is just a starting point. Focus on experience and local market expertise rather than titles alone when looking for an agent.
