Understanding the distinction is essential not only for passing the Department of State’s licensing exams, but also for choosing the path that aligns best with your professional goals. Whether you’re just starting out or thinking about advancing your real estate career, knowing the difference between a real estate salesperson and a broker will help you make informed decisions every step of the way.

What is a Real Estate Salesperson?

Becoming a real estate salesperson is often the first step in a real estate career. This role is licensed to assist clients with buying, selling, or renting properties, but must operate under the supervision of a licensed real estate broker.

Core Responsibilities –

Salespersons act as intermediaries between buyers and sellers. Their tasks typically include:

• Showing properties to potential buyers and renters
• Helping clients complete real estate transactions
• Preparing and submitting purchase offers
• Assisting with contracts and disclosures under broker guidance
• Conducting market research and pricing evaluations

Salespersons are not permitted to work independently—they must be affiliated with a sponsoring broker who oversees their activities and ensures compliance with state laws.

Licensing and Education –

To become a real estate salesperson, candidates must:

• Complete a state-approved pre-licensing course (typically 77 hours in New York)
• Pass the state licensing exam
• Be sponsored by a licensed broker to activate their license

Many new agents begin their careers as salespersons to gain experience and build a client base before considering the broker path.

What is a Real Estate Broker?

A real estate broker is a step above a salesperson in terms of both responsibility and authority. Brokers are fully licensed to operate independently, run their own real estate offices, and supervise one or more salespersons.

Expanded Responsibilities –

In addition to helping clients buy, sell, and rent properties, brokers take on greater leadership roles, including:

• Managing a brokerage or real estate office
• Supervising and mentoring licensed salespersons
• Overseeing transactions to ensure legal and ethical compliance
• Handling trust accounts and escrow funds
• Negotiating commissions and setting office policies

Brokers have more control over their business decisions and can choose to work solo or build a team of agents.

Types of Real Estate Brokers –

There are a few distinct classifications of brokers, depending on their level of involvement:

• Associate Broker: Has a broker license but chooses to work under another broker rather than run their own office.
• Managing Broker: Oversees operations of a real estate office and is responsible for compliance and supervision.
• Principal or Designated Broker: Legally responsible for the brokerage and all agents under it.

Licensing and Education –

To qualify as a broker, candidates typically must:

• Have at least 1-2 years of experience as a licensed salesperson (exact requirement varies by state)
• Complete additional education—such as a 75-hour broker course in New York
• Pass a more advanced broker licensing exam

The broker path is ideal for professionals who want more independence, higher earning potential, or the ability to lead a team.

Key Differences Between a Salesperson and Broker

While both real estate salespersons and brokers are licensed professionals who help clients buy, sell, or rent property, their roles differ significantly in terms of authority, responsibilities, and career potential.

Which Path is Right For You?

Deciding whether to pursue a real estate salesperson license or advance to a broker license depends on your career goals, time commitment, and level of experience.

1) Start as a Salesperson –

If you’re new to the real estate industry, becoming a licensed salesperson is the most practical and accessible way to get started. This role provides valuable hands-on experience working directly with clients and navigating the process of closing deals. It also offers a strong foundational understanding of how the real estate market operates, all while allowing you to learn under the supervision of an experienced broker. 

As a salesperson, you’ll have the flexibility to grow your professional network and build your reputation in the field. In fact, many successful brokers begin their careers as salespersons, using that early experience as a stepping stone toward more advanced opportunities in the industry.

2) Upgrade to Broker When You’re Ready –

Becoming a real estate broker is a smart next step for professionals who are ready to take their careers to the next level. This path is ideal if you’re looking to operate independently or start your own brokerage. It’s also well-suited for those who are interested in managing or mentoring other agents and want to boost their income potential by overseeing a team.

With the increased authority of a broker license comes added legal and financial responsibilities, so it’s important to be prepared for that commitment. For many agents, earning a broker license becomes a natural progression after gaining experience, confidence, and a solid client base as a salesperson.

3) Consider Your Goals –

As you consider your next steps in real estate, it’s important to reflect on your personal and professional goals. Ask yourself whether you want to run your own real estate business, whether you’re comfortable taking on leadership roles and legal responsibilities, and whether you enjoy training or guiding others.

Your responses to these questions can help clarify which licensing path—salesperson or broker—best aligns with your aspirations, and when it might be the right time to make that transition.

Take the Next Step

Understanding the difference between a real estate salesperson and a broker is more than just a matter of titles—it’s about choosing the right career path for your goals. Whether you’re just starting out or ready to level up, both roles offer unique opportunities in the real estate industry. Salespersons gain essential on-the-ground experience under a broker’s supervision, while brokers enjoy the freedom to lead, manage, and grow their own businesses.

Wherever you are on your journey, REEDU is here to help you move forward with confidence. Our state-approved courses are designed to prepare you for both the Salesperson Licensing Exam and the Broker Exam, giving you the tools, knowledge, and flexibility to succeed. If you’re ready to start—or advance—your career in real estate, sign up today and get one step closer to earning your license.