What is the difference between a licensed real estate agent, a realtor and a licensed real estate broker?

The world of real estate is a wonderful and rewarding career path for people who are outgoing and dedicated to achieving their life goals. These same people want to break away from their every day nine to five job allowing themselves newfound freedoms. What is better than being able to control your own schedule while meeting new friends and opening up your pay bracket to a position with no top out salary?

When we say that you have “no top out salary” we mean that you can earn as much as you’d like as long as you put that extra effort in along the way. Real estate agents are commission based, meaning if you sell a house you get a percentage based on the sales price. You, as a real estate agent, can sell as many houses in a year as you’d like with some skills and a little luck making a large salary possible. The difference in pay between a real estate agent and a real estate broker is in the fact that the real estate agent has to work for the real estate broker and the broker gets a percentage of all the sales that the real estate agents working for him make. A real estate broker can have several agents working under them at any given time.

If you are entering the real estate market from the beginning, you can get yourself into the basic courses allowing you to become a licensed real estate agent in just a couple of months in most cases, although not all state requirements are the same. A realtor is just another name for a real estate agent that happens to be a member of the National Association of Realtors.  The realtor must abide by a set standard established by that group’s set codes and any other rules that have been established through that group.  However, in both cases, in order to sell houses you will need to find a licensed real estate broker that will hire you into their established real estate business. In some states, you can not be a real estate broker unless you have been a real estate agent first for a period of time set by the state.

Real estate brokers are real estate agents that have been in the business long enough to meet the state requirements and have taken their education to that next level. School requirements to become a real estate broker may vary from state to state, for instance, in Colorado you will need 168 hours in a state approved school, but in Florida you only need to complete 63 classroom hours, plus the state exam will be required in both states. Real estate brokers are not stuck in the office either and can sell houses in the field also. No matter which type of real estate salesperson you are, you are sure to find a need for your services in every little or big city across America.

Check out our picks for the Top Online Schools for Real Estate Programs to get you started!