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Real estate broker vs licensed agent

The differences between real estate brokers and licensed agents can be seen in a few details. Each job has different responsibilities and duties. Additionally, a real estate broker has an average salary of $80,250, which is higher than the $42,315 average annual salary of a licensed agent.

The top three skills for a real estate broker include real estate sales, purchase agreements and financial resources. The most important skills for a licensed agent are HIPAA, customer service, and inbound calls.

Real estate broker vs licensed agent overview

Real Estate BrokerLicensed Agent
Yearly salary$80,250$42,315
Hourly rate$38.58$20.34
Growth rate5%6%
Number of jobs19,15168,666
Job satisfaction--
Most common degreeBachelor's Degree, 65%Bachelor's Degree, 52%
Average age4946
Years of experience--

What does a real estate broker do?

Real estate appraisers are unique in that many of them are self-employed. Nevertheless, it is a career that will require an enterprising, inquisitive, and motivated personality, as well as impartiality and unbiased nature. Appraisers will provide objective opinions on the value of properties, as well as assist the owners/managers/investors for real estate. They must also verify legal real estate records, inspect properties, photograph interior and exterior structures, and prepare and maintain written reports on property values.

What does a licensed agent do?

Licensed Agents act as authorized brokers acting on behalf of an individual owner or organization in selling a product, service, or property. There are many different pathways a licensed agent can delve into, such as in real estate, insurance, and banking. For instance, a real estate agent uses its license to be able to sell and rent properties. Their duties include gathering property information, evaluating property estimates, marketing properties, and represent sellers in the process of negotiation. They seek prospective buyers, monitor the sale process between stakeholders, and reach a mutually agreed price.

Real estate broker vs licensed agent salary

Real estate brokers and licensed agents have different pay scales, as shown below.

Real Estate BrokerLicensed Agent
Average salary$80,250$42,315
Salary rangeBetween $56,000 And $114,000Between $28,000 And $62,000
Highest paying CityNew York, NYKirkland, WA
Highest paying stateNew YorkAlaska
Best paying companyVillage Real EstateHPOne
Best paying industryFinanceInsurance

Differences between real estate broker and licensed agent education

There are a few differences between a real estate broker and a licensed agent in terms of educational background:

Real Estate BrokerLicensed Agent
Most common degreeBachelor's Degree, 65%Bachelor's Degree, 52%
Most common majorBusinessBusiness
Most common collegeUniversity of Southern CaliforniaUniversity of Pennsylvania

Real estate broker vs licensed agent demographics

Here are the differences between real estate brokers' and licensed agents' demographics:

Real Estate BrokerLicensed Agent
Average age4946
Gender ratioMale, 54.3% Female, 45.7%Male, 41.3% Female, 58.7%
Race ratioBlack or African American, 5.3% Unknown, 4.3% Hispanic or Latino, 13.2% Asian, 6.9% White, 70.0% American Indian and Alaska Native, 0.3%Black or African American, 9.2% Unknown, 3.6% Hispanic or Latino, 15.8% Asian, 4.9% White, 66.4% American Indian and Alaska Native, 0.1%
LGBT Percentage13%7%

Differences between real estate broker and licensed agent duties and responsibilities

Real estate broker example responsibilities.

  • Manage all accounting, cash management, budgeting and financing for individual LLC's and for corporate entity.
  • Prepare all marketing materials, coordinate closings, enter necessary data into the MLS to ensure homes are represent correctly
  • Review, analyze and process moderately complex homeowner property, contents and liability claims within assign work with REO properties.
  • Stabilize operations and financial performance of underperforming properties, directing investors in maximizing value and/or divesting assets to optimize ROI.
  • Process the movement of funds and equities.
  • Prepare and submit probate and administration petitions.
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Licensed agent example responsibilities.

  • Train and manage employees and achieve significant improvements in their productivity & maintain sales go9als consistently.
  • Educate and advise in different investment products, such as life insurance and fix annuities.
  • Work with clients to satisfy financial needs offering products such as life insurance, annuities, and Medicare supplements.
  • Provide education on Medicare/ Medicaid coverage, rights and responsibilities.
  • Provide objective information pertaining to coverage and how to obtain Medicaid coverage.
  • Generate referral business and cultivate individual lead sources, using networking and prospecting techniques to grow potential sales opportunities.
  • Show more

Real estate broker vs licensed agent skills

Common real estate broker skills
  • Real Estate Sales, 14%
  • Purchase Agreements, 11%
  • Financial Resources, 8%
  • Property Management, 7%
  • Open Houses, 5%
  • Client Relationships, 4%
Common licensed agent skills
  • HIPAA, 31%
  • Customer Service, 11%
  • Inbound Calls, 9%
  • Casualty Insurance, 6%
  • Life Insurance Products, 6%
  • Financial Services, 5%