REALTORS ARE INDEPENDENT CONTRACTORS.
Wikipedia defines an INDEPENDENT CONTRACTOR as a natural person, business, or corporation that provides goods or services to another entity under terms specified in a contract or within a verbal agreement. Unlike an employee, an independent contractor does not work regularly for an employer but works as and when required, during which time he or she may be subject to the Law of Agency. Independent contractors are usually paid on a freelance basis. Contractors often work through a limited company or franchise, which they themselves own, or may work through an umbrella company.
Generally speaking, independent contractors retain control over their schedule and number of hours worked, jobs accepted, and performance of their job. In addition, they may have a major investment in equipment, furnish all their own supplies, provide their own insurance, repairs, and all other expenses related to their business. They may also perform a special service that is not in the normal course of business of the employer.
REALTORS ARE NOT EMPLOYEES.
This contrasts with the situation for regular employees, who usually work at the schedule required by the employer and whose performance is directly supervised by the employer. However many companies (particularly in the freight transport industry) specify the contractor's schedule, require purchase of vehicles from the company and prohibit work for other companies.
WHAT DOES THIS MEAN TO BUYERS AND SELLERS?
While many consumers buy into the idea that a familiar company is relevant in providing buyer or seller services, the truth is, the main consideration that should be made is the individual Realtor. By definition, each Independent Contractor provides their own services, in their own style, their own professional standards, and their company affiliation is merely a sponsor, not a company that can dictate service guidelines.
That means, it's important that you hire a Realtor that you can trust personally and professionally. Ask for references. Check out their LinkedIn profile and testimonials. Look at their Facebook Fan Page to see what the represent and who they are. It's not always your friend or family member that is the best choice, its the person who knows your area, is knowledgeable, will return phone calls promptly, and will treat you with the highest level of customer service.
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