Some brokerages charge a lower commission for more expensive houses, and some handle the entire transaction for a flat fee that’s much less than a regular commission. Other companies offer a fee-for-service pricing structure that lets sellers pay only for certain parts of the sale process, such as adding the property to a multiple listing service (MLS).
The exact definitions of and distinctions between a real estate agent and a real estate broker vary among states. Generally, however, anyone who earns a basic real estate license (which involves taking a certain number of accredited courses and passing an exam) can be called a real estate agent. A real estate agent is essentially a salesperson, qualified to help consumers buy or sell a property.
Real estate agents usually specialize in either commercial or residential real estate. Either way, they perform different duties, depending on whether they work for the buyer or the seller. Agents who work for the seller, also known as listing agents, advise clients on how to price the property and prepare it for a sale, including providing tips on last-minute improvements that can boost the price or encourage speedy offers. Seller agents market the property through listing services, networking, and advertisements.
A real estate agent is a licensed professional who arranges real estate transactions, putting buyers and sellers together and acting as their representative in negotiations. Real estate agents usually are compensated completely by a commission—a percentage of the property’s purchase price—so their income depends on their ability to close a deal. In almost every state a real estate agent must work for or be affiliated with a real estate broker (an individual or a brokerage firm), who is more experienced and licensed to a higher degree.
It’s important for consumers to understand whether a real estate agent represents the buyer, the seller, or both parties; obviously, the agent’s loyalty can greatly affect several details of the transaction, including the final price. State laws regulate whether an agent can represent both parties in a real estate transaction, technically known as “dual agency.” Agents must disclose their representation, so that buyers and sellers are aware of any conflicts of interest.
Real estate agents usually specialize in either commercial or residential real estate. Either way, they perform different duties, depending on whether they work for the buyer or the seller. Agents who work for the seller, also known as listing agents, advise clients on how to price the property and prepare it for a sale, including providing tips on last-minute improvements that can boost the price or encourage speedy offers. Seller agents market the property through listing services, networking, and advertisements.

Each state’s real estate licensing requirements are different. Your state’s real estate commission website will list the official prelicensing requirements. Kaplan Real Estate Education offers a couple pages that narrow this knowledge gap down. The Steps to Licensing page is designed to show, in simple steps, what it takes to become licensed in each state. In addition, Kaplan offers a page dedicated to each state’s real estate licensing and continuing education requirements. See the link below for your state’s pages.


Do you know how to calculate the fair market value of a house? What about the capitalization rate or real estate conversion? Do you know what is the right type of appraisal for the house? The situs definition, as well as the replacement cost or income approach, may seem foreign to you. Moreover, as a real estate investor, do you know how to convert a warehouse into a loft? Or what novation in real estate means? Real estate agents are like copilots - they help home buyers, sellers and renters navigate through all the real estate documents they need to sign explaining all the unfamiliar real estate terms. And business gets a lot more complex as we dive into commercial real estate.
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