One way to enter the real estate business is to become a real estate broker which requires additional training and licensing, and understanding what exactly is a real estate brokerage vs. a real estate agent.
Real estate brokerages in Toronto play an integral role in the real estate industry, and so do real estate agents. There are many players in the real estate industry that help things run smoothly, including brokerages like Zoocasa, agents, inspectors, lawyers, house appraisers and home inspectors, just to name a few.
With all of these different positions, it can be easy to sometimes get confused or see terminology used interchangeably.
If you’re wondering what the differences between being a real estate agent and broker is, or if you want to gain a better understanding of the real estate industry and terminology, this article will help guide you.
What is the difference between a real estate broker, agent and realtor?
A real estate broker is an owner of a real estate brokerage. A real estate broker can typically be known as a step above a real estate agent. Brokers usually have more experience, training and education compared to an agent. They can either work independently or with a salesperson who helps them. A real estate broker will usually manage several real estate agents under them.
A real estate agent can be defined as a licensed salesperson. They are different from real estate brokers, in that they are not able to work independently. An agent needs to work for a broker who is now responsible for their actions. While becoming an agent will require you to take a total of six exams, though these exams are not as extensive as those that a broker is required to take.
A realtor describes an agent or the owner of a real estate brokerage in Toronto. Realtors can be brokers or agents, however not every broker or agent is considered a realtor. Being a realtor requires you to be a member of the national association, pay annual dues and subscribe to a strict code of ethics.
Real Estate Brokerage Firm Duties
Real estate brokerages like Zoocasa are responsible for the following duties:
- Training, hiring and managing all real estate agents that work for them
- Resolving internal conflicts that arise within the brokerage
- Reviewing contracts to make sure they are all up to date
- Establishing internal escrow accounts
- Distributing leads and managing market activities
- Managing property under the supervision of the brokerage
- Managing the members of the office
- Communicating with professional bodies and the government
- Managing records, compliance and relationships with vendors
How A Real Estate Brokerage Bring Value to Clients
Brokerages bring many benefits to their clients.
Brokerages are hubs that are full of real estate professionals, and they bring valuable expertise to the table. A real estate brokerage will be very familiar with how the real estate market works. They understand the ins and outs of how the buying and selling process works and they can help make sure that any transactions you are involved in will go according to plan.
Zoocasa also takes it a step further in helping both sides of the transaction. Whether you are a first time home buyer or first time seller, we offer additional services online such as a mortgage calculator and various market insights that you can download as a PDF. We are happy to help answer any questions you will have on listing your home, or starting the property viewing process.
On top of experience, brokerages will have location-specific knowledge at their fingertips. A great example of working with a real estate brokerage in Toronto, is that they will understand crime rates, the benefits of buying property in a certain neighbourhood and the particularities of the surrounding areas to help you make a decision. Knowledge of the city is essential when choosing the right home for you and knowing about transit, schools, parks and malls. They will also be able to let you know whether or not a price is fair or if it is too high.
Another major benefit is that brokerages are able to act as a middleman to all the parties involved with a transaction and help you get through negotiations with little to no hassle.
Brokerages have a huge network of clients and agents who can help during the buying or selling process, especially if you don’t have those connections yourself or a first time buyer or first time seller.
Real estate brokerages will have more experience, go through more training and make more money compared to real estate agents who work as independent contractors. If you’re ready to start working with a real estate brokerage, then sign up to start now with Zoocasa.