A real estate broker is in the business of brokering real estate transactions; that is, finding sellers for those who want to buy real estate and finding buyers for those trying to sell real estate. Real estate brokers and their salespersons assist sellers in marketing their property and selling it for the highest possible price under the best terms and assist buyers by helping them purchase property for the best possible price under the best terms. In many jurisdictions, particularly in the United States, a person is required to have a license in order to be remunerated for services rendered as a real estate broker. In particular, any of the following descriptions could refer to a real estate broker in the USA:

A person owning, managing, or being in charge of a real estate brokerage firm, even if the broker just works for him- or herself.

The real estate brokerage itself. The brokerage is the firm or business of the broker which can also be called a real estate agency.

A licensed real estate professional who has obtained a broker's license (which entitles them to operate a real estate brokerage). By default, a real estate broker of this kind has already met the requirements of "salesperson" or "agent" licensure. A real estate broker can still be designated as such without owning a real estate brokerage.

Some people may refer to any licensed real estate agent as a real estate broker. A licensed real estate agent is a professional who has obtained either a real estate salesperson's license or a real estate broker's license.

Real estate licensees and realtors

In the United States, there are commonly two levels of real estate professionals licensed by the individual states, not by the federal government:

When a person first becomes licensed to become a real estate agent, the person obtains a real estate saleperson's license from the state in which the person will practice. To become a real estate salesperson, the candidate must pass some specific coursework and then pass a state exam on real estate sales. Then in order to work legally, these salespersons must be associated with (and act under the authority of) a real estate broker as described above. Many states also have reciprocal agreements with specific other states, allowing a licensed individual from a qualified other state to take the second state's exam without completing the course requirements.

Then, usually after getting some experience in real estate sales, a salesperson may decide to become licensed as a real estate broker. Commonly more coursework and a broker's state exam on real estate must be passed. Upon obtaining a broker's license, a real estate agent may continue to work for another broker in a similar capacity as before (often referred to as a broker associate), become a real estate office branch manager, or become in charge of his/her own brokerage and be able to hire other salesperson (or broker) licensees.

Typically, a real estate license is needed to perform a "real estate act" (such as showing properties for sale) for compensation, but principals (sellers or buyers) can perform these acts themselves without a license.

A REALTOR is a real estate agent or broker who is a member of the National Association of Realtors and adheres to the association's Code of Ethics. All REALTORS are brokers/salespersons, but not all brokers/salespersons are REALTORS.

A La Carte Real Estate Services are professional real estate services that are given one transaction at a time instead of the conventional full-service, commission-based brokerage relationship. Some services are listed below.

Comparative Market Analysis

Facilitating a Purchase

Facilitating a Sale

FSBO Document Preparation

Full Residential Appraisal

Full Service Agent

Home Selling Kits

Hourly Consulting

MLS Marketing Service

Estate agent is the term used in the United Kingdom to describe a person or organization whose business is to market real estate on behalf of clients.

Listing contract and commission

Although there can be other possible ways of doing business, a real estate brokerage usually earns its commission (fee) as follows. A real estate broker and a seller who decides to sell his/her real estate through that broker sign a listing contract. The seller's real estate is then listed for sale. In consideration of the brokerage successfully finding a satisfactory buyer for the property, a real estate broker anticipates receiving a commission for the service the brokerage provided. Usually, the payment of a commission to the brokerage is contingent upon finding a satisfactory buyer for the real estate for sale. The details are typically determined by the listing contract. In the United States a 6% commission is considered "standard" for residential real estate and is typically paid by the seller. This is generally split 50/50 between the listing agent and the selling agent. However some brokers charge as much as 10% while others will offer services for 1%. Fee-for-service real estate brokerages are also increasing in popularity. This is not, however, the norm throughout the world. In Australia, for example, listing agents are paid 1% and very few buyers use an agent. If they do, they pay out of pocket.

Real estate commissions are becoming a point of controversy. Home values in many areas have quadrupled over the past 20 years and yet the actual work, local knowledge, and expertise required by real estate agents has decreased due mostly to technological improvements and the internet. This may be contributing to the increased number of licensed agents. Another controversy exists for the commissions of real estate agents. If a listing agent sells a property for an additional $100,000, he in turn will make an additional $3000. In theory this will motivate him or her to get top dollar price for his buyer. The controversy is even more heated, however with regards to the selling agent. If a buyer attempts to get a lower sales price by $100,000, then his agent would actually make $3000 less. It's in the agent's best interest to advise his client to purchase the property at a higher price. Hence a conflict of interest for myopic agents, as an agent is likely to make much more money through satisfied clients and their subsequent referrals than foul play on a transaction.