Real Estate Broker vs Agent in NYC – What’s the Difference in NYC? (2019) | Hauseit®


Real Estate Broker vs. Agent You’ve heard both terms used before, sometimes interchangeably. So what’s the difference between a real estate broker and a real estate agent in New York City? Is it better to work with a broker or an agent? Let’s start with the basics: What Is a Real Estate Broker? A Real Estate Broker is technically the Broker of Record or Principal Broker of a real estate brokerage. The official New York Department of State titles for Brokers of Record are Corporate Broker, Limited Liability Company Broker, or Individual Broker depending on whether the operation is structured as a corporation, an LLC or a sole proprietorship. A real estate broker can also mean a company itself, especially when organized as a corporation. What Is a Real Estate Agent? A real estate agent is anyone who acts on behalf of a principal in the buying, selling or renting of real estate. Because this term is so expansive, it can technically include Principal Brokers, Licensed Associate Real Estate Brokers and Licensed Real Estate Salespersons. In practice, this unofficial term is most often used by Licensed Real Estate Salespersons and sometimes Licensed Associate Real Estate Brokers to describe themselves. That’s because this term is quite popular and well understood by the general population, and it may even sound more authoritative than an officially sanctioned title such as a Licensed Real Estate Salesperson. What Is a Licensed Associate Real Estate Broker? A Licensed Associate Real Estate Broker is someone who has passed the broker exam and is qualified to start their own brokerage but chooses to work under another real estate broker. A broker who associates with another Real Estate Broker is called a Licensed Associate Real Estate Broker. Real estate agents often take the extra coursework and time to become an associate broker primarily so they can use this officially sanctioned title. There is typically no extra work or responsibility involved just because an agent is an associate broker. However, many experienced agents feel that there is a benefit in perceived knowledge and experience with this bump in title. Are there other titles in real estate brokerage aside from broker, agent and salesperson? The New York Department of State has issued several memorandums which prohibit Licensed Real Estate Salespersons and Licensed Associate Real Estate Brokers from using titles such as President, Vice President, Senior Vice President, Executive Vice President or Managing Director. The government wants to prevent real estate agents from falsely advertising that they hold corporate positions within a real estate brokerage. Is It Better to Work with a Broker or an Agent? It’s important not to over-analyze the importance of titles in real estate. Instead, focus on how many listings the agent has and how many deals the agent has done. Does the agent have good customer reviews? Most importantly, is the agent able to offer you an attractive commission structure? If you’re buying a home in NYC, is your buyer agent willing to help cover some of your closing costs by offering you a buyer closing credit? Thinking of buying or selling in New York City? Save money with Hauseit, New York City’s largest and most trusted For Sale by Owner and Buyer Closing Credit Company. Hauseit has saved New Yorkers millions of dollars in commission since 2014, and we’d love to help you too. Subscribe to our channel and check us out at www.hauseit.com

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