Nov
14
The vast majority of first time home buyers will work with a real estate professional when they buy their new home. Most of us are not cut out for the immense amount of research, legwork, and paperwork involved with home buying and selling. The advantages of hiring a professional are endless.
However, before signing on with any one individual, it is important for you to learn the differences between the professionals who are available to you. The three individuals we will discuss are agents, brokers, and Realtors. Let us take a look at the different levels of training, knowledge, certification, and experience of each.
Real Estate Agent
Agents are the most general of real estate professionals. Many home buyers will refer to their agent as a Realtor. Technically, the agent may or may not be a Realtor; as we will see below. At this time, we will take a look at an agent who has not yet acquired Realtor status.
Typically, a real estate agent:
- has at minimum a high school diploma and is at least 18 years of age
- completed 30 – 90 hours of formal training
- passed a written real estate exam
- holds a license to sell real estate in the state where he or she works
- renews the license every year or two
- in some states is required to work under a broker
- does not earn commission directly but receives a cut from commission earned by the brokerage
Broker
A real estate broker is an individual who is qualified to practice real estate independently. Brokers oversee and sponsor the agents who work within their brokerage. Typically a broker does not work with clients directly but plays more of a management and administrative roll. The broker is the name you see on for sale signs around the neighborhood.
To become a broker, an agent:
- completed 60 – 90 hours of formal training
- passed a more comprehensive exam than the one passed by the agent
- practiced real estate for a defined amount of time; at minimum 1-3 years
Realtor
A Realtor is an agent who is also a member of the National Association of Realtors. Important to note is that the name Realtor is actually trademarked by the NAR. For this reason, it is technically inaccurate to refer to every agent on the street as a Realtor.
A Realtor:
- pledges to uphold NAR’s organizational ethics code
- often holds multiple designations and certifications
- demonstrates specific skills, performance and knowledge
- has access to advanced education and a wealth of resources
By knowing the differences between a real estate agent, a broker and a Realtor, you can now narrow down the list of the many professionals who are eager to help you find, purchase, and move into your first home.
Elizabeth Dennis is a an editor and writer for http://www.Newbuyer.com. NewBuyer selects and organizes internet-based buying information to help home and auto buyers make confident, well-informed buying decisions. Elizabeth and Newbuyer have recently launched a new feature called “Newbuyer’s Own” on Newbuyer’s weblog. “Newbuyer’s Own” is original content covering a range of valuable information for new auto and home buyers.
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