If you’re buying property, like a vacation home, the right representation will get you the best price possible. However, many people aren’t sure whether to enlist the help of a real estate agent or broker. While both professionals are licensed to represent you, there are differences between what they offer. Use this guide to learn more about each position, and when you may need one over the other.

Agent

These professionals are licensed to help people buy, sell, or rent real estate. To become licensed, an individual must complete certification courses and pass a state licensing exam. The test assesses their understanding of state practices and federal and state laws, ensuring they have the knowledge to complete lawful industry transactions.

Once licensed, agents typically find a sponsoring broker or brokerage firm to work with and complete regular continuing education courses to maintain their licenses. Real estate agents are paid in commission, which is typically an agreed-upon percentage of the purchase price. This fee is taken out of the money that the seller receives after closing a property.

Broker

A broker is an individual who has taken their career beyond the agent level. Becoming a broker requires further education and a separate licensing exam. Like agents, brokers are required to take continuing education to renew and maintain their certifications.

Once the licensing requirements are met, a broker can sell property independently or open a brokerage firm where they manage and supervise other agents. Brokers also receive a commission for sales; however, an individual who works independently typically makes a larger commission since the percentage is split with fewer parties. Those who work with a brokerage firm receive a cut that’s dependent on their agency agreement.

After you purchase a property, contact the skilled team at Hawaiian Management in Maui, HI, to help you manage it and generate income. This owner-operated company provides full-service property management for vacation rentals and condos, and it’s dedicated to customer satisfaction. Get more information about their services online, or call (808) 205-0781 to schedule an appointment.