What’s the Difference Between an Agent, a REALTOR®, an Investor, and a Broker?
The terms REALTOR®, agent, and broker are often used interchangeably, but they don’t have the same meaning. And this can make things confusing. The main thing to know is that their levels of qualifications vary, even though they are each qualified in their own right – especially in Southwest Florida. There is also the real estate investor. Let’s take a look at what those differences are and what they mean for you.
Real Estate Agents
A real estate agent is someone who has taken the required course hours (this varies state by state but usually between 60-75 hours) and passes the state exam to become a licensed real estate agent. They also must pay license and supplemental fees, on top of the course and exam fees, and pay to renew their license every 2 years.
You’ll most likely be working with real estate agents directly since it’s their job to oversee all parts of the transaction. Depending on whether you’re buying a home or selling one, you’ll either be working with a buyer’s agent or a listing agent.
Buyer’s Agent
A buyer’s agent is a real estate agent who represents only the home buyer in a real estate transaction. It’s their job and duty to protect the buyer’s best interests throughout the entire buying process.
Listing Agent
A listing agent is a real estate agent who represents the home seller in a real estate transaction. A listing agent helps you accurately price your home, recommend repairs and improvements, get your house listed on the MLS, and market your property until it’s sold.
No matter what type of agent you’re working with, the need to be represented under a brokerage before they can legally work with clients. That’s where a broker comes in.
Brokers
A broker is a real estate agent who has completed extended education, met certain qualifications, and passed a broker’s real estate exam to attain a brokerage license. When brokers obtain their brokerage license, they have the ability to start their own real estate company and hire agents to work there.
To simplify what a broker does, they are who can actually conduct the transaction. While the real estate agent does most of the heavy lifting, only the broker can conduct the transaction and complete the real estate process. Not all brokers have other agents working under them. Many choose to represent themselves. Why would they do this? They cut out the middleman and conduct the transaction themselves and won’t have to split the commission.
REALTORS®
REALTORS® are real estate agents but not all real estate agents are REALTORS®. Sounds confusing right? A REALTOR® is anyone (real estate agent or broker) who is part of the National Association of REALTORS® (NAR). This association grant them extra benefits like access to helpful resources, up-to-date listing data on the MLS, tools to obtain accurate market data, and many other professional development offerings.
Real Estate Investor
An Investor is a person who buys & sells properties by working out a contract with the buyer or seller directly. They are instrumental in helping those who have an unwanted home (sell as-is), are underwater, or need to sell quick and buyers with bad credit become homeowners through a variety of programs.
When selling through an investor, a seller can cut out the high fees and commissions usually seen when working with agents and get an easy, stress-free sale of their house. Logical Choice Realty Group has home buying & selling solutions!
Conclusion
When it comes to hiring a real estate specialist, there are many options to choose from so do your homework. Check out websites, social media business pages, etc. and see what kind of reviews they have. While all real estate professionals are qualified, at the end of the day, you decide who is the right real estate professional for you, depending on your needs and unique situation. Whoever you choose, Logical Choice Realty Group is here to lend a helping hand.
