You’ve seen the titles everywhere - real estate agent, broker, maybe even Realtor. They sound interchangeable. But they’re not.

And if you’re in the business, or thinking about getting into it, understanding the difference isn’t just helpful. It’s critical. It impacts how much you can earn, what responsibilities you hold, and how much control you actually have over your career.

Let’s clear it up once and for all.

First, what is a real estate agent?

A real estate agent is someone who’s passed their state’s licensing exam and is legally allowed to help people buy, sell, or rent properties. They’re the boots on the ground. The ones showing homes, writing offers, hosting open houses, negotiating deals.

But here’s the catch:
An agent must work under a licensed broker.

They can’t operate independently. They need to be affiliated with a brokerage, that’s the law. The broker is responsible for overseeing the agent’s transactions, making sure everything is compliant, and in many cases, taking a split of the commission.

Agents do the work. Brokers hold the license that makes the work legal.

So, what is a broker then?

A broker is someone who’s gone a step further. After working as a licensed agent for a set period (usually 2–3 years, depending on the state), they can take a separate licensing exam to become a broker.

And with that title comes more power.

Brokers can work independently, start their own brokerage, and hire and manage other agents.

Think of it like this:
All brokers can be agents, but not all agents can be brokers.

Some brokers still work with clients directly. Others focus on growing a team, managing offices, and collecting overrides from their agents’ deals.

Why this difference matters:

If you're in real estate? The difference can change the entire trajectory of your career.

Want more control over your deals?
Want to build a team or run your own office?
Want to stop splitting commissions with someone else?

Becoming a broker is the path.

But, and this is important, with more power comes more responsibility. Brokers are liable for the deals that happen under their license. That means more paperwork. More legal exposure. More training. You’re not just closing, you’re managing risk.

So which should you be?

If you love working with clients, want to stay in the trenches, and don’t want the extra admin, staying an agent under a strong brokerage might be the right fit.

But if you’re entrepreneurial, crave autonomy, and want to build something bigger than yourself, going broker could be the move.

At the end of the day, it comes down to what you want your real estate career to feel like.

Freedom? Scale? Simplicity?
There’s a path for each.

Just make sure you’re choosing it on purpose, not by default.

Because the titles may sound similar…
But the future they create? Totally different.