If you’re in the process of buying or selling a home, it’s a good idea to make yourself as knowledgeable as possible about the process and lingo that are used in the industry. Many people think that the terms real estate broker and real estate agent are interchangeable. However, this is not the case. Although there are similarities, agents and brokers are not identical. Here’s what you need to know about real estate brokers and how they differ from real estate agents.
Real estate brokers are licensed professionals who assist with the process of buying and selling property. Similar to a real estate agent, brokers can help their clients find the right property or market their existing one, provide insight into the local real estate market, negotiate a fair and suitable price, and complete necessary paperwork. Real estate brokers may choose to specialize in specific types of properties, such as residential homes, commercial properties, or land. They may also focus on a particular geographic area, such as a city, county, or state. Additionally, some real estate brokers may offer additional services, such as property management or real estate development.
Real estate brokers and agents are both important players in the world of real estate, but understanding the differences between the two is essential in making an informed decision on who to work with when buying or selling a home. Real estate agents must complete a certain amount of education and training to become a licensed agent. Brokers must also fulfill this requirement as well as complete additional coursework beyond that of an agent. Once they have done so, they must also pass an exam and meet certain experience requirements before being allowed to practice as a real estate broker.
Another key difference between brokers and agents is that brokers have the option to manage agencies. That means brokers usually have several agents working for them and they can also complete certain real estate transactions that an agent can’t do on their own.
Real estate brokers typically work in one of two ways. They can either act as a buyer’s agent or a seller’s agent. If working as a buyer’s agent, the broker will represent the buyer in the transaction. They will help the buyer search for suitable properties, negotiate a fair price, and ensure all necessary paperwork is completed. On the other hand, if working as a seller’s agent, the broker will represent the seller in the transaction. They will help the seller list their property, show the property to potential buyers, negotiate the best offer, and ensure all necessary paperwork is completed.
Choosing to work with a real estate broker comes with many benefits. Because of their additional training and responsibilities, brokers can engage in certain real estate transactions that agents can’t. So, if you’re looking for someone who can help you with more complex real estate transactions, a broker may be the way the go. This could be especially helpful in the case of a foreclosure or short sale.
Because brokers often have more training and experience, they may also make the process of negotiation and finalizing paperwork easier. But, this isn’t always the case. Don’t just assume that more time on the job means better customer service. There are many agents who have several years in their role and an exceptional reputation with their clients, they have just never pursued becoming a broker.
Although hiring a broker can come with many positives, there are some potential drawbacks to be aware of. First, brokers usually have a lot on their plate with managing multiple clients and agents. As a result, you may not get the quick response you might otherwise get if you were working with an agent. Second, hiring a broker will likely cost more since you’re paying for someone who has additional education and licenses. How much more you have to pay may depend on the type of broker you work with as there are three different levels: associate, managing, and principal.
Whether you choose to work with a broker or a real estate agent, there are several things you should consider when selecting the person you’re going to work with. Don’t just assume that “you get what you pay for” or that someone who has more experience is definitely better. If that person doesn’t know the area or isn’t good at returning calls, then you’ll probably have a bad experience overall.
Some brokers are customer service oriented and well worth their cost and some agents have years of experience and dozens of 5-star reviews. The best way to go about it is to not be caught up in titles or rush into finding someone to work with. Do your homework, ask around, read testimonials, and then make your decision.
Need to find someone to help you buy or sell a home and not sure where to begin? Start by asking for recommendations. If a friend or neighbor has had a good experience, then they’ll be happy to pass along a name. On the other hand, if you don’t know anyone in the area where you’ll be moving, consider doing an online search to find real estate professionals in the area. Once you find some possible candidates, don’t be shy about contacting them directly and asking a few questions to decide which one is the best fit.
If you’re looking for a real estate professional in the St. Augustine, Florida area, give me a call! Or, check out some of our other helpful blogs for more information about buying or selling a home in Northeastern Florida.
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