Are you tired of renting and desire your own property? Do you want to upgrade from a petite house to a mansion? Maybe you’re relocating to a new job in another city and want to buy a house or maybe you just want to sell your house. Whatever your answer is most people will come in contact with a Realtor.
There are several kinds of Realtors zooming about the housing circuit. The most familiar is the Real Estate Agent. Real Estate Agents are go-betweens. They aren’t their own boss and don’t own their own agency or business. Instead they work under Real Estate Brokers or Realtors. The agent must have a license to sell properties much in the same way you have to be bonded or have a license to sell fireworks even though you don’t own the firework stand. However, they can’t run out and sell properties on their own and charge a fee for their services. If they did that they would be a business and they aren’t licensed to be a business. Of course nobody said the Agent couldn’t purchase a fixer up house on his or her own and flip it. Anyone can do that.
What is the difference between Real Estate Brokers and Realtors?
A Real Estate Broker is State Licensed. The Broker can then charge a fee to work out a satisfactory deal between the seller and buyer, but only in the state they have been licensed for. They can’t run off to another state and start selling houses unless they obtain a license for that state.
The Realtor is almost the same as the Real Estate Broker except that they are members of the National Association of Realtors. They have a license that allows them to be able to sell properties in the whole country and not just in a particular state.
If you don’t want to use a Real Estate Broker, Realtor or a Real Estate Agent there are a few other Brokers you might want to consider. They are the known as the Discount Brokers and then there’s the Buyer’s Broker.
Discount Brokers take a cut in commission usually half of the six-percent commission rate the Real Estate Brokers and Realtors charge. The savings the seller gets from using Discount Brokers can be an incentive for the seller to reduce their initial price for a faster sale and make for a happier buyer. The negative side of hiring a Discount Broker is they don’t show houses to potential buyers. You have to do that and you’ll be the one who, like flea market vendors, are haggled for the best price whether you decide to take the deal or not. So really all a Discount Broker does is advertise or list your property for sale and refer buyers to you.
Buyer’s Brokers are paid directly by someone looking to purchase a house. Just tell them what kind of a house you are looking for and how much you are willing to pay for the house and they will do all the leg work on your behalf. If they find you a house that another broker has listed for sale they will half the six-percent commission with the listing broker. In addition the Buyer’s broker may charge an hourly rate, a flat fee or a retainer fee. This type of Broker is more expensive then regular Real Estate Brokers, but supposedly they get you a better deal on the house you are buying.