What Does a Real Estate Broker Do?
In real estate, brokers guide and support the transactions of their clients. While that seems similar to a real estate agent, these professions serve rather different purposes that you should be aware of. This article will discuss the responsibilities and duties of brokers, the differences between other real estate professionals, and their commissions structures. We'll also throw in some tips for those who are looking to navigate the real estate market as a bonus.
Brokers are industry experts who are licensed to assist people during the process of buying, selling, or renting any type of property. What sets brokers apart from agents is their advanced license that allows them to start their own business and employ other agents. They're responsible for ensuring that all transactions are compliant with legal requirements and ethical standards. This includes mediating conflict in legal disputes, handling money in escrow accounts, and hiring and overseeing agents.
One has to have been a licensed agent for a certain length of time before becoming a broker. Seeing that they meet the minimum age requirement (21 years old), they must then complete education courses and pass a state licensing exam to make it official. It's worth noting that all three terms - agent, broker, and Realtor - refer to real estate professionals that are licensed to assist home buyers and sellers. However, only agents are required to work under the supervision of a licensed broker.
In terms of the hierarchy of a brokerage, the Principal or Designated Broker is responsible for overseeing the operations of the firm. In addition, there may also be Managing and Associate Brokers, each with specific duties and responsibilities within the brokerage.
Realtors are members of the National Association of Realtors (NAR), an organization that outlines a strict Code of Ethics. Any state-licensed agent can join by paying annual dues and agreeing to abide by the NAR's code of conduct.
In terms of the relationship between buyers and agents/brokers, it's worth noting that buyers usually look for an agent relationship and use the brokerage that holds their license. This means that the agent will work with the buyer to find properties that match their criteria and negotiate offers on their behalf. On the other hand, seller's agents are responsible for determining market values, listing and showing properties, communicating with sellers about offers, and assisting in the offer process.
The typical commission for a successful real estate transaction is 6% of the sale price, which is split evenly between the listing and selling brokerages. However, it's worth noting that commission splits can vary between brokers and agents. High-volume agents may pay less commission while inexperienced agents may pay more.
We hope that this post has provided a better understanding of the unique role of brokers. Whether you're looking to buy, sell, or rent a home, you should know what you're getting into if you decide to work with someone from the industry. While these professionals have valuable expertise and knowledge, it's not the only way to enter into the housing market. Unreal Estate aims to help you take back the market, by cutting out the middleman and ditching unnecessary fees. Our team of experts is always here to simplify the complex world of real estate.
At Unreal Estate, we strive to make the complex world of real estate simple and easy to understand. We'd love to hear your thoughts about this article and our blog. Let us know how we did by completing the Unreal Estate Blog Feedback Survey.
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