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When you hear someone say they "sell houses," you’re probably picturing a person who shows you rooms, negotiates offers, and hands over the keys. The official name for that role is a real estate agent a licensed professional who represents buyers or sellers in real‑estate transactions. In everyday conversation, people toss around other titles-"housing salesperson," "property broker," or even just "realtor." Understanding the subtle differences helps you know who to call when you’re ready to move.
Why the wording matters
Real estate terminology isn’t just academic; it shapes expectations. If you hire someone called a "salesperson" you might expect a focus on closing deals fast, while a "broker" suggests deeper market knowledge and the ability to manage other agents. Knowing the exact title tells you what licensing, training, and fiduciary duties are in play.
Common titles and what they really mean
- Real Estate Agent a licensed individual who can list, market, and sell properties on behalf of a client
- Real Estate Broker someone who has earned a broker’s license, can own a brokerage, and may supervise agents
- Housing Salesperson - a colloquial term that often refers to an agent working for a single brokerage.
- Listing Agent - the professional representing the seller in a transaction.
- Buying Agent - the professional representing the buyer.
- Realtor™ - a trademarked term for members of the National Association of Realtors who adhere to a specific code of ethics.
Licensing and legal responsibilities
All agents must pass a state exam and maintain a real‑estate license. Brokers go a step further: they complete additional coursework, pass a tougher exam, and can operate their own firm. This hierarchy matters because only brokers can hold client funds in an escrow account and hire other agents.
Most states require agents to work under a broker’s supervision. That’s why you’ll often see the broker’s name on listings, even though the day‑to‑day work is handled by the agent you meet on the showing.
How agents earn - the commission model
Typical compensation is a percentage of the final sale price, split between the listing and buying agents, then divided again between the broker and the individual agent. For a $300,000 home, a 6% total commission translates to $18,000. After the broker’s cut (often 30‑40%), the agent might walk away with $10,800 to $12,600.
Some agents work on a salary or flat‑fee model, especially in large corporate brokerages, but the percentage‑based system remains the industry norm.
When to choose an agent vs. a broker
If you’re a first‑time homebuyer, a diligent listing or buying agent will handle most of the legwork: market analysis, paperwork, and negotiations. However, if you’re selling multiple properties, a broker can provide strategic oversight, access to a network of agents, and a higher‑level marketing plan.
Large commercial deals often bypass agents entirely and go straight to brokers who have the credentials to handle complex contracts and financing.
Common misconceptions
- “All agents are Realtors.” - False. Only members of the NAR can use the trademarked term.
- “Agents own the houses they sell.” - No. They act as intermediaries and are paid only after a deal closes.
- “You must pay the agent up front.” - Typically, payment is taken from the sale proceeds.
Quick reference table
| Title | License Level | Can Supervise Others? | Typical Commission Split | Typical Use Cases |
|---|---|---|---|---|
| Real Estate Agent | Agent | No | 50/50 with broker | Buying or selling a single‑family home |
| Real Estate Broker | Broker | Yes | 40/60 (broker/agent) | Managing a team, commercial deals |
| Housing Salesperson | Agent | No | Varies by firm | Entry‑level listings, new agents |
| Realtor™ | Agent or Broker (NAR member) | Depends on membership | Same as license level | Clients seeking ethical standards |
How to verify an agent’s credentials
Each state maintains an online license lookup. Look for a current license number, any disciplinary actions, and the broker’s name. The NAR directory lets you confirm if someone truly is a Realtor™.
Final takeaway
In short, the person who sells houses is most accurately called a real estate agent. If you need someone with broader authority, look for a broker. Knowing the exact title helps you set the right expectations, avoid hidden fees, and find the professional best suited to your transaction.
What is the difference between a real estate agent and a broker?
A broker has a higher‑level license, can own a brokerage, and supervise agents. An agent works under a broker and cannot hold client funds independently.
Can a real estate agent work for themselves?
No. Agents must be affiliated with a licensed broker. Only brokers can operate independently.
Is every real estate agent a Realtor™?
No. "Realtor" is a trademarked term for members of the National Association of Realtors who follow a specific code of ethics.
How is an agent’s commission calculated?
Typically it’s a percentage of the sale price (often 5‑6%). The total commission is split between the listing and buying agents, then between each agent and their broker.
Do I have to pay a real estate agent if my house doesn’t sell?
Most contracts stipulate a commission only upon a successful transaction. Some agents may charge a flat fee for marketing services regardless of sale.