Agent? Broker? Realtor? Who Am I Talking To?

If you’re entering the real estate market for the first time, you may find the variety of real estate professional titles a little confusing. There are a number of different, seemingly interchangeable, titles flying around, but it’s important to distinguish between them.

The real estate profession is regulated by state governments, which have different requirements for earning a license. In general, though, the titles you may come across include the following:

•Real estate agent: Anyone who earns a real estate license can be called an “agent.” They look at listings on the multiple listing service (MLS) and help you buy or sell your property. State requirements vary, but in all states, you must take a minimum number of classes and pass a test to earn your license.

•Realtor®: A real estate agent who is a member of the National Association of Realtors®; and therefore, the agent must commit to the standards of the association and its code of ethics.

•Real estate broker: A person who has taken education beyond the agent level as required by state laws and has passed a broker’s licensing exam. Brokers can work alone or can hire agents to work for them.

•Real estate salesperson: Another name for a real estate agent.

If you have hired a real estate agent to help you buy or sell a property, that agent typically reports to a broker who will also play a significant role in your transaction. The broker handles aspects like the earnest money deposit and establishing the escrow account. In addition, the broker bears responsibility for the actions of the real estate agents under his or her supervision. You can decide whether to work with a salesperson or a broker, but as a homeowner or buyer, be sure to take the time to interview real estate professionals and ask for references.