If you are currently in the process of buying a house or about to start the process, you probably have heard the term “broker” or “brokerage.” This is a huge part of the real estate world and in a few other realms of business. However, let us just focus on the real estate aspect of a brokerage.

When you deal with a brokerage or broker, this is a firm (or person within a firm) that facilitates a transaction between buyer and seller for a commission or fee. Basically this is to say that the brokerage helps you throughout the process of purchasing a house in the most painless way possible.

In return? They get paid a fee or commission from the sell of the house. Nice!

A broker is different from a real estate agent because an agent works with clients in a similar ways, but must have a sponsoring broker that checks their work and ensures that they are following all laws, protocols, and regulations. Basically a broker can do everything for you whereas an agent can only go so far without the broker.

There are different types of brokers as well. There are:

1.      Designated Broker

-          This is someone who is in charge of all business operations, hiring agents, and basically running the agency or firm.

2.      Managing Broker

-          This is one step below a designated broker. They can also hire staff and usually will handle the more day-to-day operations. They work with clients as well, but their primary job is to help assist the other employees and focus on their work and wellbeing.

3.      Associate Broker

-          This is someone with a broker license but works at a firm owned by another broker. They are not usually in charge of monitoring any other staff as their primary jobs is to work with clients.

Now that you know a little about a broker and a brokerage, you should feel a little more at ease about buying and selling a home.