Real Estate Broker vs. Agent: What’s the Difference?

Both real estate agents and brokers are licensed to help you through your real estate journey — whether renting, buying or selling a home. While the word “broker” and “agent” are interchangeable in some states, such as Illinois, in others they classify two distinct levels of responsibility. 

A real estate agent must work under the supervision of a broker, while a broker can work independently or manage and supervise agents. With the right education and experience, agents can become real estate brokers.

We’ll share the similarities and differences between a real estate broker and agent to help you better understand these professionals, how they operate, and how they can help you.

Note: Specific duties, requirements, and permissions vary by state, so the exact role and responsibilities may differ where you live.

Difference between a real estate broker and agent

Experience

Typically, brokers must have a real estate license for 2-3 years as a real estate agent to meet state experience requirements. Agents must then pass a more difficult exam to become a licensed broker. The transition from real estate agent to broker may also require additional certification.

Responsibilities

A real estate broker can work independently, while a real estate agent cannot. Brokers may own or manage a brokerage, supervise agents, and ensure transactions comply with state and federal laws. In some states, brokers may also manage escrow funds or mediate disputes. Real estate agents, on the other hand, facilitate clients through the renting, buying or selling process.

Commission

Agents and brokers earn commission from the real estate transactions they facilitate. Commission is typically paid to the brokerage, and then split between the broker and the agent according to their independent contractor agreement. The amount and payment structures are not set by law and are fully negotiable. Because brokers may earn commission from their own transactions and a share of their agents’ commissions, they may have higher earning potential than agents.

When two brokerages are involved in a real estate transaction (such as the buyer’s agent and the seller’s agent), compensation may be shared between brokerages based on the terms agreed to in advance. In some cases — such as certain for sale by owner (FSBO) sales or where the seller does not offer compensation — buyers may agree to compensate their agent or broker directly based on their buyer agreement. 

What does a real estate broker do?

Brokers are licensed to do everything an agent does, but they also carry the legal and operational responsibility for the brokerage. Many spend most of their time supervising agents and ensuring transactions are compliant; others still take on clients directly, especially in smaller firms.

Responsibilities of a broker

• Supervise and mentor agents: Provide guidance, training, and performance oversight.
• Review documents: Check contracts, disclosures, and advertising for accuracy and compliance.
• Manage risk and compliance: Maintain office policies, trust/escrow procedures (where permitted), and state/fair-housing adherence.
• Resolve transaction issues: Help troubleshoot appraisal, title, inspection, or financing challenges.
• Run the brokerage: Recruit agents, set compensation plans, manage budgets, vendors, and office operations.
• Work with clients (as applicable): Some brokers may own the company and also take clients, particularly in small boutique real estate firms.

Types of real estate brokers

Brokers can go by different titles, depending on the size of their brokerage and their role and responsibilities:

• Principal broker: The broker of record legally responsible for the brokerage and all licensees.
• Managing or supervising broker: The supervising broker is responsible for all of the associate brokers and agents working at the firm, as well as any unlicensed personnel. They handle daily operations and compliance.
• Associate broker: Holds a broker license but chooses to work under another broker rather than running their own firm. Some groups of associate brokers and agents group together and form teams under the supervision of a supervising broker.

What do real estate agents do?

Real estate agents help people buy, sell, and rent homes. They act as licensed professionals who guide clients through every step of the transaction — from pricing and marketing a property to touring homes, submitting offers, negotiating terms, and managing paperwork through closing. Agents provide local market expertise, coordinate with other professionals such as inspectors and lenders, and help ensure a smooth, legally compliant process. While you technically don’t need a real estate agent, about half (50%) of buyers — and 56% of those who used an agent — said their agent was the most helpful resource during their home buying experience, according to 2024 Zillow data.

Responsibilities of a real estate agent

• Clarify budget and pricing strategy: Agents help buyers understand financing options and establish a realistic budget. For sellers, they analyze comparable sales and local trends to develop a strong pricing strategy.
• Focus the search or market the home: Buyer’s agents narrow down neighborhoods and properties that match your needs, while listing agents handle marketing — from professional photos and online listings to open houses and showings.
• Curate listings and manage showings: Agents share relevant listings with buyers, schedule tours, and help assess each property’s fit. On the seller side, they coordinate showings with potential buyers and manage feedback to keep the listing competitive.
• Guide offer and negotiation strategy: Buyer’s agents help clients craft offers and negotiate on price, contingencies, and terms. Listing agents review incoming offers, communicate counteroffers, and advocate for their seller’s best interests.
• Manage paperwork and timelines: Agents prepare and review contracts, disclosures, and closing documents, coordinating with lenders, attorneys, and escrow officers to keep the process on schedule.
• Coordinate inspections, appraisals, and closing details: They help schedule inspections and appraisals, address any issues that arise, and ensure both parties meet deadlines leading up to closing.
• Support you through closing: Whether representing a buyer or seller, agents usually attend the closing to confirm all requirements are met and help resolve any last-minute details.
  

Types of real estate agents

There are several types of real estate agents, based on the roles they take on for their clients. Many specialize in one type of real estate:

• Listing agent: represents the seller
• Buyer’s agent: represents the buyer
• Dual agent: represents both the seller and the buyer in a transaction
• Transaction agent: When dual agency is not legal, a transaction agent oversees the transaction timelines and paperwork for both parties, but they don’t give advice or represent either side. 

Choose the right pro with confidence

Finding the right real estate professional can make all the difference in your buying or selling experience. Whether you need hands-on guidance through every step or expert oversight to ensure your transaction runs smoothly, understanding the real estate broker versus agent distinction can help you decide who’s the best fit for your needs.

Start your search for a local broker or agent with Zillow’s Agent Directory, where you can read client reviews and see their recent home sale activity.