Real Estate Brokers
Real estate brokers assist individuals in the buying and selling of homes. Real estate salespeople, also called real estate agents, often assist them. The goal of real estate brokers is to secure the best possible price along with the best possible terms for their clients. Within the United States, a real estate broker must be licensed by their state of residence. In order to become a real estate broker, an individual must first become a real estate salesperson for a period, and then, pass a state certified exam to become a broker.
Many real estate brokers, upon obtaining their broker license, choose to take a step back from the day-to-day practice of buying and selling real estate. Instead, they take on a more supervisory role. Through either franchising or opening an independent real estate office, they manage a team of licensed real estate salespeople. As a client, the individual buying or selling a home will have contact with the individual salesperson and may never meet the real estate broker. This is not true in all cases. Upon being licensed as a real estate broker, a real estate salesperson is not required to open a brokerage. Many choose to remain in their role as real estate salespeople. They are more comfortable allowing someone else to take care of the everyday responsibilities of running a small business.
Real estate brokers generate revenue by charging a commission for the sale of a home. There are business models that charge a flat fee regardless of the final price of the home, but the charging of a commission is typical. The exact amount of the commission is spelled out in the listing contract and is dependent upon the final sale price of the property. The seller always pays the commission. When potential buyers approach real estate brokers for help in finding a home, they are essentially getting professional assistance free of charge. Their representative will receive what is known as a split from the listing broker.What real estate brokers provide sellers
- They aggressively market the seller's property through a variety of mediums. They will use the Multiple Listing Service, local newspapers and circulars, signage, and arrange for open houses.
- They will pre-screen any interested buyers to ensure that no time is wasted negotiating with buyers who are unable to afford the home.
- They will negotiate the price of the home to ensure that the sellers receive as close to their asking price as possible.
- They will meet with the potential buyers to discuss the buyers' needs and requirements.
- They will then begin to search for suitable properties.
- They will arrange for the buyers to view these properties until a suitable property is found.
- When an offer is made, the agent will negotiate on the buyers' behalf to secure the property for the lowest price and the most agreeable terms possible.
Real estate brokers are not typically capable of performing appraisals, title searches, or home inspections. They do have relationships with other professionals in these fields, and can supply their clients with a list of trusted professionals if these services are required.
Real estate brokers endeavor to make the buying and selling of property an easy and stress free process. For those interested in the buying or selling of property, the services of a real estate broker can prove indispensable. Real estate brokers will handle all the time-consuming details of a property transaction, freeing their clients to focus on their own lives.