What is the difference between Real Estate Agents, brokers, and Realtors?
Whether you wanted to purchase or sell a house, you want some to streamline the process, so who should you hire?
Nowadays, most Individuals confuse the term real estate broker, agent, and Realtor- and use them interchangeably. But, is there a difference in all these terms? The answer is ‘YES.’ These three are separate individuals with different levels of experience, affiliation, and education.
Below we will discuss a comprehensive review of the notable distinction between all the 3 terms.
Real Estate Agent: He is a professionally licensed person who represents buyers and sellers in real estate transactions. In order to get this license, states require individuals to appear for prelicensing training. This training typically includes a minimum number of instructional hours. Once that training is completed, the aspirant takes a written licensing exam. Also, in many states, they need to pass a state background check and have business insurance. After that, they can join a brokerage to start working with home sellers, buyers, and renters. These agents are also referred to as real estate associates.
Real Estate Broker: He is someone who has pursued their education past the real estate agent level as required by state laws and successfully receives a real estate broker license. The extra coursework covers the subject such as professional ethics, contracts, taxes, insurance, etc.
Also, a prospective broker can learn about real estate legal issues and how the law applies to operating brokerage, real estate investment plans, property management, and construction.
He can work as independent agents or may hire other agents. Once a Real estate agent who passes a broker exam, but wish to work under another broker, are known as real estate brokers. These associate brokers get much more share in brokerage profit then the agent commission.
Realtor: Now comes the Realtor. He is a professional in the trade who is a member of the National Association of Realtors. To enroll as a NAR member, a real estate professional has to agree and abide by the set of ethics and guidelines. These ethics and policies carry weight for a realtor in their daily business practices and cover several pledges:
- Will put the interest of buyers and sellers ahead of their own.
- Will cooperate with other brokers if it’s in the best interest of the client.
- Will refuses fees from more than one party without consent.
- Will not discriminate in any condition.
- Will always presents the truth in advertising.
- Will not comingle the client’s fund with agents own money.
- Will ensure that all the written documents are easy to understand.
- Will agree to not “bad mouth” competition, also agree not to file an unfounded ethics complaint.
These ethics offers a specific outline for how Realtor should frame his mindset and perform these duties accordingly.
Takeaway:
Whether you prefer to hire a Realtor, broker, or agent, we recommend carefully interview them. The perfect fit candidate will be different for every transaction, homebuyer, and seller. But lastly, that’s your call whether you decide to go with the individual having more years of experience and knowledge or adherence to a specific code of ethics, which helps you draw a better picture and hiring one person over another.
Also, No matter whom you decide to hire, we recommend carefully interviewing all the candidates to select the best Real Estate professional.
