Broker vs Agent for Investing in New Area

Atlanta, GA · Member since 2016 · 81 posts · 45 votes

Hey all -

The differences between a real estate broker & agent seems to be the level of education, additional state exams, brokers can hire agents, etc.

My question is: I'm going to be investing in a new area and as such, will need a new agent/broker. Thus far, my only experience has been with Agents.

In your experience, do you usually prefer Agents or Brokers, or does it not matter, and you typically decide based on motivation, knowledge, personality.

Eager to hear your thoughts. Thank you!

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Andrew Johnson

Real Estate Investor · Encinitas, CA · Member since 2016 · 3k+ posts · 3k+ votes

Richard Vetter My perspective is that "quality" can vary no matter what the title is on the business card. I'd find 10 properties you're interested in and call all of those agents about those properties. Some will call you have in 5 minutes, some will take 5 days, some never will because your phone prefix is different, and sometimes someone else will call you back. Some will have T12s for a multifamily and some will tell you how the owner used to play professional football (and not have the T12s). The net result is that inside of 10 minutes you'll probably have a good gauge on competence and urgency. While this isn't a definitive broker vs. agent answer, if you do a little legwork I think you'll (at the very least) figure out who you don't want to work with!

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Christopher Phillips
Real Estate Agent · Garden City, NY · Member since 2016 · 3k+ posts · 1k+ votes
9y
@Rich V.
It depends.
If the broker is running a large office they probably aren't going to do much for you unless the projects are large enough. They certainly aren't going to have a lot of time to sit down with you.
You can work with an associate broker, which is just someone with a broker's license that is hanging it under another broker. They are most likely still doing day to day work with clients.
You'd be better off working with an agent that works with other investors, or is an investor themselves, but isn't so busy that they don't have time to help you out.
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Andrew Johnson
Real Estate Investor · Encinitas, CA · Member since 2016 · 3k+ posts · 3k+ votes
9y
Richard Vetter My perspective is that "quality" can vary no matter what the title is on the business card. I'd find 10 properties you're interested in and call all of those agents about those properties. Some will call you have in 5 minutes, some will take 5 days, some never will because your phone prefix is different, and sometimes someone else will call you back. Some will have T12s for a multifamily and some will tell you how the owner used to play professional football (and not have the T12s). The net result is that inside of 10 minutes you'll probably have a good gauge on competence and urgency. While this isn't a definitive broker vs. agent answer, if you do a little legwork I think you'll (at the very least) figure out who you don't want to work with!
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Russell BrazilBusiness Member
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Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
9y
Most of the time Brokers are not taking on individual clients, but rather running a brokerage with X number of agents.
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Kenneth Reimer
Rental Property Investor · Sacramento, CA · Member since 2016 · 267 posts · 214 votes
9y
@Rich V. Hi Richard, great question. I think the topic needs to first discern the difference between a broker of record, associate broker, and agent. The broker of record is the broker in which all other associate brokers and agents hang their license under. The broker of record is responsible for all of the associate brokers and agents' conduct. Within the brokerage, the associate brokers are those in which they have complete the required education/experience, but they have chosen to hang their license under the broker of record. Associate brokers have more flexibility in activities that they can engage in compared to agents. Agents have simply passed the real estate license exam, cannot engage in as many activities as associate brokers, and hang their license with the broker of record.
In response to your inquiry regarding which type of contact is best to work with, it all depends. I know plenty of agents that are extremely successful, have incredible amounts of inventory/listings, and still choose not to pursue the broker's license.
When you're looking to work with an agent or broker, do your research into the person. Your right on track with deciding on a person based on knowledge and personality. Of course you'll have to make sure your personalities match, but knowing the market is of utmost importance. A good agent/broker needs to know their market inside and out.
Lastly, make sure the agent/broker has momentum when you're looking to work with them. Someone who has 20 years of experience, but has been out of touch for a while, will lack the connections necessary to make sure you see as many deals as possible.
Best of luck in your search Richard !
Kenny Reimer
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