All three of these professionals help home buyers and sellers, but each title means something distinct.  

When shopping for a new home, you might see the terms real estate agent, Realtor and real estate broker. While these terms are often used interchangeably, each title means something distinct. Here’s what home buyers and sellers need to know about each.

Real estate agents are licensed professionals

Professionals who facilitate real estate transactions are called real estate agents and they must be licensed. They can work for either buyers or sellers.

In Michigan, a 40-hour pre-licensure course is required before one can be licensed. The course covers the fundamental knowledge needed to pass the Michigan Real Estate Exam for Salespersons. Topics include contracts, mandated disclosures, statutory requirements, market analysis and more.

After taking the pre-licensure course, candidates apply for a license from the State of Michigan and take an exam. Those who pass the exam receive their license. To maintain the license, real estate agents must take 18 hours of continuing education every three years.

When licensed real estate agents go to work, they’re required to work under the supervision of a sponsoring broker or brokerage firm.

Real estate agents get paid a commission when a transaction is completed. Those agents working for brokerage pay a portion of their commission to the broker.

Real estate brokers are also licensed

Real estate brokers are real estate agents who get additional training and are permitted two key privileges. First, they can work independently; they’re not required to work for another broker or brokerage house. Second, they can create their own brokerage house and hire real estate agents.

In Michigan, a real estate agent needs at least three years of full-time experience to apply for a Michigan Real Estate Broker license. A pre-licensing requirement for brokers is 90 hours of coursework within three years of application.

Realtor is a professional designation

You’ve probably noticed that Realtor starts with a capital R. Only real estate agents who are members of the National Association of Realtors (NAR) may use this trademarked title. In addition to being licensed, Realtors pledge to uphold integrity, honesty and client interests. They must also complete ethics training every three years.

Realtors may be real estate agents, brokers or other real estate professionals.

Mortgage Loan Officers at Consumers

Real estate agents, brokers and Realtors provide valuable services for home buyers and sellers. When buying a home, another person you want on your team is a knowledgeable professional to help with your home loan. Our team of mortgage loan officers will answer all your questions and help you every step of the way from pre-qualification to closing. Apply for your mortgage online or call us at 800-991-2221.

 

All loans subject to approval. Rates, terms, and conditions are subject to change and may vary based on credit worthiness, qualifications, and collateral conditions.