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Real Estate Broker
Real estate broker licensing sits above the standard agent license in most U.S. states, typically requiring several years of prior experience as a licensed agent plus additional coursework and a separate broker's licensing exam, reflecting the broker's expanded legal responsibilities. Brokers are legally permitted to operate independently and to supervise other licensed real estate agents working under their brokerage, a supervisory and business-ownership role that standard agents are not licensed to perform on their own. Many successful real estate agents pursue broker licensure specifically to open their own independent brokerage or team, since broker status is generally required to receive commission splits directly and to build a business employing other agents. Real estate broker licensing's combination of its added supervisory legal authority and its role as the standard path to independent brokerage ownership has made it one of the most significant career advancement steps within the real estate industry.
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Real Estate Agent
Real estate agents became a formally licensed profession in the United States in the early 20th century, as growing home ownership and increasingly complex property transactions created demand for dedicated intermediaries between buyers and sellers. Becoming a licensed real estate agent typically requires completing state-mandated pre-licensing coursework and passing a state licensing exam, a substantially lower barrier to entry than many other professional careers, and agents generally work under the supervision of a licensed broker rather than independently. The profession is almost entirely commission-based, meaning agents earn income only when transactions actually close, a compensation structure that creates significant early-career income volatility but lets top-performing agents earn substantially more than a comparable salaried role might offer. Real estate agency's combination of its relatively accessible licensing requirements and its purely commission-based compensation structure has made it one of the most common entry points into the real estate industry, alongside one of its most financially variable careers.
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