There are so many ins and out’s when it comes to the transaction process in Real Estate. But your first step into the Real Estate world should be to know what a realtor really means.
What is a Realtor?
A realtor is a licensed agent who acts for the sale and purchase of buildings and land. Most realtors are a part of the NAR, also called the National Association of Realtors. But you need to remember that not every real estate agent is a realtor. The difference between a realtor and a real estate agent is that a realtor holds a higher ethical standard than a real estate agent. Most of 1st time home buyers like to hire a licensed professional real estate agent that will assure them of the right service from beginning to end.
What to expect from your realtor?
Most homebuyers should buy or sell with a local realtor. When you choose your local realtor they are provided with continuing education that perfects their skills, and tools to help negotiate contacts, and connect with other members of the real estate business.
All members of the NAR also access market data, transaction management, and other benefits in the buying and selling process.
Realtor vs. Broker
The real question is what is the difference between a realtor and a broker? Did you know that some realtors are brokers? The brokers are usually managers that run an agency and have agents working under them as salespeople. To be a certified broker you will need to take additional courses and pay additional fees. On the other hand, an agent is a salesperson who sells on behalf of the broker.
Real Estate agent qualifications
Before working as a real estate agent, you must take a course and pass a written license exam before qualifying for your state- license. But each state has its own licensing law and standard practice. Some states just mandate all agents to take additional courses, pass another test to become brokers, and just eliminate the real estate license.
How much money do Realtors make?
When buying a home with your local realtor the process may be a long and drawn-out process. A buyer will go through searches for around 12 weeks and look at around 10 properties before even buying or selling the home. Then it takes an additional 30 days for the deal to close and the agents to receive their commission. When it comes to the selling process of a deal it all runs with faith and trust. In real estate, the selling part is a commission-only business, which means an agent can work with a buyer or seller and not ever make any commission off of it because a deal falls through and not every listing sells.
At the closing deal, the commission is split in many ways. The agent isn’t the only one walking away with it all. You must remember the agent works for the brokers. The commission check is made payable to the brokerage, which then cuts a check to the listing agent and the buyer’s agent. In addition, too, all agents are responsible for paying all of their own federal and state income taxes, Social Security tax, and health insurance.
How to find the right realtor for you
Finding the right realtor for you is the most important in the selling and buying process. Whether it be a local realtor or even through realtor.com. When trying to find the one doesn’t be afraid to ask multiple realtors to see which one best fits your needs and the transaction you are looking for.