Hong Kong News

Nonpartisan, Noncommercial, unconstrained.
Friday, Mar 29, 2024

Realtor vs. real estate agent: What’s the difference?

Realtor vs. real estate agent: What’s the difference?

Though Realtors and real estate agents are very similar, there are important differences to keep in mind between these two types of professionals.

Whether you’re buying, selling or even renting a home, you may be wondering if you should enlist the help of a Realtor or real estate agent for the transaction.

Before you do, it’s important to know that these two common terms aren’t interchangeable: Realtors and real estate agents are different industry professionals.

Here’s everything you need to know about each one, including how Realtors work, how real estate agents work and which you may need most. We’ll also talk about what you need to consider when hiring either professional and where to find them.

What’s a real estate agent?


A real estate agent is licensed to assist with buying, selling or renting property. Real estate agents can work in either the residential or commercial sides of the real estate industry, and agents can represent either the buyer or the seller (or in some cases, the renter).

Real estate agents have a range of responsibilities, which may include:

*  Advising sellers when pricing and preparing their home for sale

*  Marketing and showing a property to potential buyers

*  Offering guidance and insight to buyers who are shopping for a home

*  Negotiating a sale for either buyers or sellers

*  Facilitating and filing necessary documents, such as purchase offers, counteroffers, contracts and other agreements

In most states, a real estate agent is required to work under a broker. The services that the agent performs represent that brokerage and its clients.

Each state has its own qualifications and licensing requirements for real estate agents. In general, though, agents are required to complete certain real estate courses, pass a real estate agent exam, meet background check requirements and gain the sponsorship of a real estate broker in order to hold an active real estate license in that state.

You can connect with real estate agents in your market by visiting Credible.

What’s a Realtor?


Realtors are licensed real estate professionals who facilitate or oversee the sale, purchase or rental of a commercial or residential property.

While the responsibilities of a Realtor often overlap with those of a real estate agent, these two titles aren’t interchangeable. In order to become a Realtor, agents need to belong to the National Association of Realtors, or NAR. If the agent isn’t a member of NAR, they can only be licensed in the state where they work.

Not all real estate agents are considered Realtors, but Realtors can either serve as real estate agents or brokers. Depending on how they choose to operate, their responsibilities can include:

*  Acting as brokers by overseeing a group of real estate agents and representing clients

*  Acting as real estate salespeople by helping sellers prepare their home for sale, offering guidance, listing and marketing the property and fielding offers from potential buyers

*  Representing buyers by showing properties, submitting offers and counteroffers and filing necessary documents

*  Operating as a dual agent who represents sellers and buyers within the same agency

Each state’s Realtor requirements are different, and will even vary depending on whether the Realtor operates as an agent or a broker. Generally, though, these requirements involve completing specific courses, passing a written licensing exam, submitting for a background check and completing continuing education courses as necessary.

As a licensed Realtor, agents are required to follow the NAR Code of Ethics. This code outlines the duties and standards required of each licensed Realtor, ensuring that these industry professionals conduct themselves with integrity, competency and fairness.

In order to become a member of the National Association of Realtors, agents must first join their local association of Realtors. After acceptance, agents will agree to the NAR Code of Ethics and pay any required membership dues.

How do Realtors and real estate agents get paid?


Both Realtors and real estate agents work on commission, which means that they receive a percentage of the sale price of a property following a successful real estate transaction. Generally, Realtors and real estate agents don’t receive a salary or hourly wage for their services.

The typical commission on a property is 6% of the sales price, paid by the seller. But the listing agent doesn’t necessarily pocket that full amount.

A seller’s commission is usually split between the seller’s agent and the buyer’s agent, if one exists. If there is no buyer’s agent, the seller’s agent may be able to keep the full commission.

The commission check is often made payable to the broker who manages the listing agent, if applicable. That broker typically takes a cut and then forwards the rest on to the selling agent; if there’s also a buyer’s agent involved, the broker will split the remaining commission and disburse it to both parties.

While a 6% commission for agents is common, this isn’t set in stone. Commission fees may vary in certain parts of the country or even fluctuate based on market trends. Sellers may also be able to negotiate this fee, in some cases.

You can search Credible’s database of more than 90,000 agents to find a real estate agent in your market.

Should you hire a real estate professional?


Whether you’re buying, selling or renting a home, a real estate professional can be a huge asset. But you don’t have to hire a Realtor or a real estate agent.

As a buyer, hiring a Realtor or real estate agent to represent you is often a good idea. Because sellers pay agents, it won’t cost you anything; your agent will have extensive knowledge of the real estate market, though, and they can negotiate on your behalf. They may also be able to explain certain aspects of the process or advise you when deciding on an offer.

Buyers can also choose to work directly with the listing agent instead of hiring their own representative. But it’s often in buyers’ best interests to have their own, separate representation, especially during the negotiation, home inspection, appraisal and closing process.

As a seller, you may want to consider hiring a Realtor or real estate agent to market and show your property to potential buyers. They’ll have access to industry-specific listing platforms, understand the market and can provide you with valuable insight.

Yes, sellers are responsible for paying the commission for the agents involved in the sale. Since it can be a huge amount of work to sell your home without an agent, though — and you may wind up getting a much lower price for your property in the end — you might think twice before taking this approach.

How to find a Realtor or real estate agent


If you’re looking for a Realtor or real estate agent to help you buy, sell or rent a home, here are a few places to start.

*  Ask around. Word of mouth is one of the most valuable recommendations you can get. Ask your friends, neighbors and other trusted individuals who may have bought or sold a home recently. They’ll be able to tell you about their experience, how well the agent worked for them and whether they would work with that agent again.

*  Shop around. You can use a database, such as Realtor.com’s Find a Realtor tool, which helps you search through more than 1 million licensed Realtors nationwide. You can also search through local real estate associations and read online reviews to find potential agents.

Credible also offers a real estate agent matching tool, in addition to its mortgage options.

Once you have a list of real estate agents to consider, it’s a good idea to meet with a few of them in person. Then you can ask any questions you may have about the market, their experience and their thoughts about your specific situation. This can help you determine if they’re the right fit for you and your home.

What’s a real estate broker?


A real estate broker is an individual who meets additional licensing requirements within their state. Brokers are able to manage and oversee a group of agents, ensuring that they’re all operating as required by law and in the best interests of their clients.

Real estate brokers must sit for their state’s broker licensing exam, as well as complete required coursework for the state in which they operate. While real estate courses cover topics such as ethics, taxes, contracts and insurance, brokers’ courses tackle these subjects with even greater depth.

There are three types of real estate brokers.

*  Principal/designated broker: The principal or designated broker is responsible for overseeing all the real estate agents within a brokerage. Their job is to ensure that all agents follow all state and national real estate laws, and act according to any real estate regulations.

*  Managing broker: A managing broker is responsible for managing the agents within a brokerage. They may hire and train new agents, manage administrative staff and oversee the brokerage’s daily operations.

*  Associate broker: An associate broker may also be called a broker associate or affiliate broker. These brokers work under another broker and generally don’t oversee any other agents, though they do have a broker’s license.

The agents operating within the brokerage will complete real estate transactions and earn a commission. Brokers will then take a share of those commissions according to their contract with the agents under them.

Both Realtors and real estate agents can help ensure a smooth real estate transaction, whether you’re a buyer, seller, landlord or even a renter. Though these two types of professionals are often confused for one another, there are a few important differences to keep in mind when hiring one.

Newsletter

Related Articles

Hong Kong News
0:00
0:00
Close
It's always the people with the dirty hands pointing their fingers
Paper straws found to contain long-lasting and potentially toxic chemicals - study
FTX's Bankman-Fried headed for jail after judge revokes bail
Blackrock gets half a trillion dollar deal to rebuild Ukraine
Steve Jobs' Son Launches Venture Capital Firm With $200 Million For Cancer Treatments
Google reshuffles Assistant unit, lays off some staffers, to 'supercharge' products with A.I.
End of Viagra? FDA approved a gel against erectile dysfunction
UK sanctions Russians judges over dual British national Kara-Murza's trial
US restricts visa-free travel for Hungarian passport holders because of security concerns
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Political leader from South Africa, Julius Malema, led violent racist chants at a massive rally on Saturday
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
'I am not your servant': IndiGo crew member, passenger get into row over airline meal
Singapore Carries Out First Execution of a Woman in Two Decades Amid Capital Punishment Debate
Spanish Citizenship Granted to Iranian chess player who removed hijab
US Senate Republican Mitch McConnell freezes up, leaves press conference
Speaker McCarthy says the United States House of Representatives is getting ready to impeach Joe Biden.
San Francisco car crash
This camera man is a genius
3D ad in front of Burj Khalifa
Next level gaming
BMW driver…
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Unlike illegal imigrants coming by boats - US Citizens Will Need Visa To Travel To Europe in 2024
Musk announces Twitter name and logo change to X.com
The politician and the journalist lost control and started fighting on live broadcast.
The future of sports
Unveiling the Black Hole: The Mysterious Fate of EU's Aid to Ukraine
Farewell to a Music Titan: Tony Bennett, Renowned Jazz and Pop Vocalist, Passes Away at 96
Alarming Behavior Among Florida's Sharks Raises Concerns Over Possible Cocaine Exposure
Transgender Exclusion in Miss Italy Stirs Controversy Amidst Changing Global Beauty Pageant Landscape
Joe Biden admitted, in his own words, that he delivered what he promised in exchange for the $10 million bribe he received from the Ukraine Oil Company.
TikTok Takes On Spotify And Apple, Launches Own Music Service
Global Trend: Using Anti-Fake News Laws as Censorship Tools - A Deep Dive into Tunisia's Scenario
Arresting Putin During South African Visit Would Equate to War Declaration, Asserts President Ramaphosa
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
The Changing Face of Europe: How Mass Migration is Reshaping the Political Landscape
China Urges EU to Clarify Strategic Partnership Amid Trade Tensions
The Last Pour: Anchor Brewing, America's Pioneer Craft Brewer, Closes After 127 Years
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
BBC Anchor Huw Edwards Hospitalized Amid Child Sex Abuse Allegations, Family Confirms
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Distorted Mirror of actual approval ratings: Examining the True Threat to Democracy Beyond the Persona of Putin
40,000 child slaves in Congo are forced to work in cobalt mines so we can drive electric cars.
×