Difference between Agent and Broker
Key difference: An agent represents the company is any and all transactions. Brokers represent the customer on a per transaction basis..
Both agents and brokers have the responsibility of bringing together buyers and sellers. They act as the middle-men and are responsible for facilitating the transaction. They are also responsible for maintaining a flow of information between the customer and company. They could be insurance agents/brokers, real estate agents/brokers, etc. They would also need to have certificates and licenses allowing them to work as a professional in their field.
However, a major difference between them is that agents are mainly known to represent a company in the transactions, whereas brokers are mainly found representing the customer. Also, brokers would require additional certification and licensing, as opposed to an agent who can get by with the minimum. This is mainly because the agent works directly for a company and is required only the basic knowledge of the industry and a detailed knowledge of the company’s products.
A broker, on the other hand, needs to have a greater knowledge of the industry and the various products available from the different companies in the market. Only then can a broker give a customer different options and suggest the best product depending on the customer’s needs. A broker does not represent a single company like an agent, but serves the best interests of the customer, giving them the most knowledge and the best advice, so they can make an informed decision.
Furthermore, an agent is the representative of a company to the customer. They are the link between the customer and company, ensuring that the paperwork is complete and process, and that the deal goes through. They usually end their relationship with the client once the transaction is done. Whereas, brokers work on a commission basis, and represent the customer, ensuring that the customer gets the best deal possible.
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