If you have been looking for property in the last few days, then there are chances that you have come across the most confusing terminologies in the Real Estate directory. A Real Estate broker and a Real Estate agent are two terms that you will hear from time to time. But what exactly is the difference between the two? Well for starters, an agent may be a person who works under a registered broker. Or in certain cases, a broker does not have anyone working under him and he prefers to be the agent as well. In most cases the person that you deal with when finalizing Real Estate deals is a Real Estate agent. A Real Estate broker is its true sense is the party who acts as an intermediary between sellers and buyers of real estate and attempts to find sellers who wish to sell and buyers who wish to buy. A broker is a person with a lot more experience and a lot more knowledge under his belt.
Both these people have licenses but the realtor/broker has more credentials to his name. The training and the experience that one needs in order to be a realtor is much more when compared to a Real Estate agent. Most realtors are members of an organization called the National Association of Realtors. This is an extremely professional organization which has strict code of ethics. These codes are a way of proving to the public that this is a profession that requires a lot of dedication and integrity. Agents are also required to have certain credentials when it comes to acquiring a license but it is far lesser than a realtor. Confidentiality, obeying property rules, giving priority to the interests of the clients, reporting any issues etc, are some of the obligations of the agent. The broker also follows these regulations but he also follows much more stringent regulations under the NAR.
Which one to choose?
When it comes to finding a property or selling your property, both of them can help you. On many occasions the realtor will hire the agent himself. When this happens, the agent’s behavior and his performance is the responsibility of the realtor and you no longer have to worry. The agent will follow the high code of ethics that are set by the more experienced realtor. It is also important to mention that each one has its own pros and cons.
You can look at certain points before choosing a Real Estate agent or a broker. You need to look at whether the broker is licensed or not. All brokers and agents need to be licensed in the US but the rules may vary for other countries. There are separate registrations and license needed by certain states. Look for listing options, services and selling ideas that they may have. When you have this with you, you can always do a comparison between couple of brokers. Ask for the pricing and the fee structure. Ask them to cover all kinds of charges and fees that may be involved in the transaction. At any point of time during the transaction, if you do not feel comfortable about anything make sure that you negotiate it with the chosen party. The commission, the term of the contract etc are some of the things that can be discussed and negotiated openly.