Many people simply do not realize there is a difference between a real estate agent and a Realtor. Understanding the roles of a buyer’s agent and a seller’s agent is crucial, as they play significant roles in real estate transactions. When choosing a buyer’s agent, it is important to look for specific traits and qualities such as negotiation skills, being communicative, knowledgeable about the market, and having a track record of recent successful sales. When selecting a seller’s agent, consider their negotiation skills, hard work, and ability to sell quickly at or above the listing price. There are significant differences and if you are entering into a real estate sale, it is important to be as informed as possible. After all, you want to be armed with as much information as you can when embarking on a very important financial journey.
What is a Real Estate Agent?
Definition and Role
Let’s first get into what exactly is a real estate agent. Well, for starters, a real estate agent is a licensed professional who arranges property transactions, connects buyers and sellers, and represents them in negotiations. A real estate professional encompasses agents, brokers, and other professionals involved in real estate transactions. Real estate agents usually specialize in either commercial or residential real estate. They act as go-betweens for the principal parties, conveying offers, counteroffers, and other questions back and forth, essentially negotiating on the client’s behalf. Luxurypresence.com helps us even further, “You see, a real estate agent is anyone who has earned a license to sell property, which involves taking 100+ hours of coursework and passing a state exam. Real estate agents can help people buy, sell, or rent all sorts of properties, and they have to hang their license with a broker who oversees their transactions and takes a cut of their commission.”
Real Estate Agent Compensation
How Agents Get Paid
If you are looking at selling your home are looking to buy, it is important to understand how agents get paid because it can impact your profit significantly if you are selling your home. Traditionally, agents were paid a percentage of the property’s sale price through commission. Payment arrangements for real estate agents are changing, with online listings allowing consumers to do much of the shopping on their own without help from an agent. Some brokerages charge a lower commission for more expensive properties, and some handle the entire transaction for a flat fee that ends up lower than a regular commission. Bankrate.com gives us even more information,”Of course, real estate commissions can be negotiated, and nowadays they typically run somewhere closer to 5 percent of a home’s sale price. The exact terms of an agent’s commission vary from sale to sale, and can depend on the region and which firm they work for.” When selling your home, 5% of the profit can be a substantial amount of money that does not go into your bank account.
Real Estate Agent vs. Realtor
Key Differences
Now let’s get into the key differences between a real estate agent and a realtor. Every real estate broker is or has been a real estate agent, but not every real estate agent is a broker. Sounds a bit confusing, doesn’t it? Well, a realtor is a member of the National Association of Realtors (NAR), a trade association. Realtors are expected to be experts in their field and must follow the NAR’s code of ethics. When you work with a realtor, you are working with a professional that has spent countless hours to earn that title. The hope is that when working with a realtor, you are working with an individual that is cream of the crop and is operating with honesty and integrity. As we all know, this isn’t always the case and it is oftentimes challenging to find a reputable realtor that won’t lead you astray.
The Role of Real Estate Brokers
Supervising Agents and Transactions
A real estate broker is a step up the professional ladder, with additional training and education, and has a broker’s license. In addition, brokers handle the technical aspects of the real estate transaction, and a client signs a contract with a brokerage, not an individual agent. In almost every state, a real estate agent must work for or be affiliated with a real estate broker. In California, real estate agents must work with a licensed broker or brokerage firm.
Daily Responsibilities of Real Estate Agents
Showing Properties and Negotiating Offers
Understanding the daily responsibilities of a real estate agent will help you understand their job more fully. A real estate agent juggles various tasks, like property appraisals, negotiations, and administrative duties while also meeting with clients. In addition, their research typically involves studying market trends, property values, local zoning laws, neighborhood features, and marketing strategies. They work with buyers to find their dream home and with sellers to sell their property at the best possible price. The job of a real estate agent is often an emotional one as they need to navigate the ever changing world of a traditional real estate transaction and it can be a stressful and frustrating experience.
Choosing the Right Real Estate Agent
Research and Interviewing
When choosing a real estate agent, consider qualities such as negotiation skills, communicativeness, and knowledge of the market. Having a reliable partner to guide and assist you throughout the home selling process is crucial to ensure the best price and alleviate the burdensome tasks associated with selling a home. Look for agents who have a high number of recent sales and a strong track record. Also, consider agents who specialize in your specific zip code or area, and in our case San Diego. There are many areas within San Diego and it is important to find an agent that understands your specific area. Look for agents who have a strong online presence and good reviews from past clients. If the idea of searching for a trustworthy and upstanding real estate agent in your area, well, you aren’t alone. If selling your home the traditional route seems a bit arduous, consider selling to a cash buyer like Trusted House Buyers.
Trusted House Buyers
As we learned today, there is a difference between Realtors and real estate agents. While their jobs seem to overlap considerably, the most important point to take away from today is that a Realtor is set to a higher level of standards than real estate agents due to the fact that they have membership in NAR. Trying to navigate the world of realtors and real estate agents in San Diego, CA can be challenging and it isn’t for everyone. If you have a home that you want to sell quickly and avoid the ups and downs of working with a real estate agent or Realtor within the traditional sales process, consider selling to Trusted House Buyers. At Trusted House Buyers, we buy homes for cash and can close quickly, usually within 10 days. There is no need for hefty agent commissions, stressful inspections, or preparing your home for a sale. You can say goodbye to open houses, showings, and decluttering, renovating, or repairing your home. We take your home in the condition that it stands today and will write you a fair offer based on the location, comparables in the area, and your home’s current condition. If you want to avoid dealing with Realtors and real estate agents, give us a call today at 619-786-0973 to see how we can help simplify and speed up your home sale!
