While dealing with the real estate business you often came across the terms like an agent, broker, and dealer, or realtor. Many people think these are alike words for the person who cracks deals. These terms are used interchangeably, but they aren't the same.
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Let’s find out the difference between these three terms.
Real Estate Agents
Real estate agents are people who are authorized to assist with the peopling purchase, sell, and lease the property. They are eventually liable for uniting purchasers and vendors and are paid a commission—typically a level of the property's sale price. Real estate agents called real estate associates and salespeople too.
What does a real estate agent do?
Real estate agents organize transactions between buyers and sellers, as well as those between owners and renters. Agents are responsible for carrying offers and counteroffers between each party, along with any queries they may have. An agent will work with another agent when an offer is accepted, guiding clients through the process of filling out paperwork. They also make sure their clients are fully aware of any requirements to complete the sale including home inspections, moving, and important dates such as the closing.
Agents who represent sellers are called listing agents. These agents help set listing prices, suggest home updates that will increase the home's value (and the chance of a successful sale), help with home staging, and market the home. They also negotiate sales prices closing costs and other fees and help prepare, submit, and file documents.
Agents who represent buyers are known as buyer's agents. These agents find properties that match the buyer's requirements (aka the "wish list") and price range and help arrange home appraisals and inspections. Like listing agents, buyer's agents negotiate terms and help prepare, submit, and file the necessary documents.
How do real estate agents get paid?
Real estate agents work for brokers or agencies and are normally paid on a commission basis. This means they receive a percentage of the sale price of a property—so, the higher the sale price, the higher the commission.
Real Estate Broker
A real estate broker is a real estate agent who continues their education and successfully receives a state real estate broker license. Unlike real estate agents, brokers can work independently and start their own brokerage and hire other real estate agents.
What do real estate brokers do?
Real estate brokers do many of the same things that agents do. Brokers who work with buyers normally look for properties that match the criteria set forth by their clients, conduct negotiations, prepare offers, and help the buyers with any other issues leading up to the closing date. Sellers' brokers, on the other hand, determine the market values of their clients' properties, list and show properties, communicate with sellers about offers, and assist in the offer process.
How do real estate brokers get paid?
Real estate brokers earn money by taking a share of the commissions earned by the real estate agents who work under them. They also earn commissions from their own deals, but unlike real estate agents, they don't have to split their commission with "the office."
Realtor
A Realtor is a real estate professional. Although the term "Realtor" is commonly confused with that of "real estate agent," the designation is open to a variety of professions within the real estate industry, including:
Residential and commercial real estate brokers
Salespeople
Property managers
Appraisers
How to become a Realtor
Anyone who wants to become a Realtor must meet four requirements:
Have a valid and active real estate license
Be actively engaged in the real estate business
Not have a record of official sanctions involving unprofessional conduct
Not have filed for any recent or pending bankruptcy
The above points cleared the concept between the three terms. After reading this article you can easily differentiate between these persons which also helps you in dealing with any real estate business.
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