A licensed professional who facilitates real estate transactions by matching buyers and sellers and representing them in negotiations is known as a real estate agent. Real estate agents' income is largely dependent on their ability to close deals because they are typically paid entirely in commissions, which are deducted from the purchase price of the property. Real estate agents are required by law in practically all states to work for or be associated with a more experienced and highly licensed real estate broker, either as an individual or through a brokerage firm.

What Does an Agent in Real Estate Do?

Typically, a real Estate Agency focuses on either residential or commercial properties. In either case, their responsibilities vary based on whether they work for the seller or the buyer. Listing agents, or agents who represent the seller, counsel clients on how to price and ready a property for sale. Usually, they offer advice on impromptu upgrades that can raise the cost or promote prompt offers. Listing services, networking, and advertising are some of the ways seller agents advertise the property.

Buyer-represented agents look for properties that fit the buyer's criteria and price range. To assist potential buyers in making a reasonable offer, these agents frequently review historical sales information on similar properties. Agents serve as the principal parties' go-betweens, escalating questions and making counteroffers. Agents on both sides frequently keep working after a bid is accepted, guiding their clients through the paperwork, communicating, offering advice on moving and inspections, and generally seeing the deal through to closing.

Customers should be aware of whether a real estate agent is working on behalf of the seller, the buyer, or both. The agent's allegiance can have a big impact on several transactional details, including the total cost. The legal term "dual agency" refers to the ability of an agent to represent both parties in a real estate transaction; state laws govern this ability. To make buyers and sellers aware of any conflicts of interest, agents are required to disclose their representation.

Compensation for Real Estate Agents

Agent commissions are typically calculated as a percentage of the sale price of the property. An agent gets paid more the more the house sells for. However, with online listings enabling customers to do much of the shopping independently without assistance from an agent, the conventional payment structure is changing.

Comparing Real Estate Agents and Brokers

States differ in their definitions and ways of differentiating between a real estate broker and an agent. However, in general, a person can be referred to as a real estate agent if they obtain a basic real estate license, which requires passing an exam and completing a specific number of accredited courses. In essence, a real estate agent is a salesperson with the ability to assist clients in purchasing or selling real estate.

A step higher on the professional food chain is a real estate broker. Brokers have completed extra coursework, passed a more difficult licensing exam, and, in the majority of states, have a minimum amount of recent experience working as an active real estate agent. The technical facets of a real estate transaction are handled by brokers. Contracts are signed by clients with brokerages rather than with specific agents. Brokers are authorized to handle other legal and financial aspects of a deal, like managing the earnest money deposit and setting up the escrow account, in many states based on their additional certification.

Typically, brokers are franchise or firm owners. Although they can work alone, they need to obtain a higher-level license to employ agents or other brokers. As was previously mentioned, a real estate agent typically needs to work through a real estate broker and cannot operate independently; however, there are some states, like Colorado and New Mexico, where it is required for all real estate professionals to hold a broker's license. However, agents typically work for brokers and share commissions with them.

Realtor vs. Real Estate Agent

That being said, not all real estate agents are brokers; not all real estate brokers are agents (or have been). What role do real estate brokers play in this?

A member of the trade association National Association of Realtors (NAR) is a realtor. Along with property managers, appraisers, and other professionals in the real estate industry, realtors can be both agents and brokers. In addition to adhering to the NAR's code of ethics, which mandates that agents uphold particular duties to clients, customers, the public, and other realtors, realtors are expected to be experts in their field. Realtors are required to be members of a state or local real estate board or association in addition to NAR.

Conclusion

Not all agents or brokers are realtors, but all real estate agents and brokers are realtors (or something similar). In the United States, there are approximately 106,500 brokerage firms and 3 million NAR members. In addition to meeting with clients, showing houses, and ensuring that the buyer-seller process proceeds, agents also invest time in market research.

A person employed in the real estate sector is known as a real estate professional. It might be a real estate agent, broker, builder, property manager, or any other real estate-related professional.