The key difference between agent and broker is that agents represent a company while brokers represent the customers.
Agent and broker are two professionals who work in fields like insurance and real estate. They generally serve as middlemen between a company (insurance companies or real estate developers) and the customer. Agents and brokers typically facilitate the transaction and information between the companies and the consumers. Therefore, agents and brokers are the people you should go to when getting insurance or a home, as they are there to help you.
CONTENTS
1. Overview and Key Difference
2. Who is an Agent
3. Who is a Broker
4. Agent vs Broker in Tabular Form
5. Summary – Agent vs Broker
Who is an Agent?
An agent is a person who acts for or represents another. In the job market, the designation agent usually refers to a person working as an insurance agent or a real estate agent. Usually, an agent represents the company he or she is working for. Agents always have a fiduciary duty to act in the best interest of the company.
In an insurance company, gents process all the paperwork relating to insurance policies and claims and usually end their relationship with the client once the transaction is done. It is not the work of an agent to give you different options of which plan is better. Similarly, real estate agents work with clients to find a property that suits their needs. They help with negotiating and legal issues as well. Agents typically earn through commissions.
Who is a Broker?
A broker is a person that usually represents the customer and not the company. Brokers should have certifications and must be duly licensed to perform this profession. It is his role to lay down all the cards on the table so that customers will be better informed. Most brokers do not work for a certain company but work on a commission basis, which allows them to carry multiple services which will benefit potential customers.
In the field of insurance, brokers are independent professionals who represent the customer, not the insurance company. They work with multiple insurance companies and can shop around for the best coverage options for their clients. They have a duty to act in the best interest of their clients.
What is the Difference Between Agent and Broker?
When wanting to get an insurance policy or buy real estate, you will need the help of an agent and a broker. Agents are the link between you and a company, serving as intermediaries between the two parties and typically working on administrative tasks such as completing your papers and checking if you are qualified. On the other hand, brokers are there to help you, the customers, to make a wise decision by helping you get information on different insurance policies or real estate prices and helping you choose the ones that fit your needs.
The key difference between agent and broker is that agents represent a company while brokers represent the customers. Moreover, agents usually work on administrative tasks and paperwork, unlike brokers, who are at the forefront of selling and giving advice to clients.
Summary – Agent vs Broker
Agent and broker are two professionals who work in fields like insurance and real estate. Both should have certifications and licenses to be able to work as a professional in this field. More importantly, both work as middle-man; agents represent a company while brokers represent the customers. This is the summary of the difference between agent and broker.
Reference:
1. “What Is a Real Estate Agent?” KAPLAN Real Estate Education.
Image Courtesy:
1. “A Real Estate Agent Looking at the Happy Family” by MART PRODUCTION (CC0) via Pexles