Overview
A real estate broker is someone who acts as an
intermediary between a buyer and seller of property. Brokers operate
real estate agencies and employ real estate agents to help sell
property. Brokers can operate a generalized business, or they can
specialize in specific areas like commercial real estate, new homes, and
investment properties.
Most states require brokers and real estate agents to earn a license
by passing a series of courses and examinations. Once licensed, brokers
and agents can perform a range of services for consulting, market
analyses, sale facilitation, property management, and lease preparation.
Duties will vary state by states, and in some cases, attorneys can
perform these duties without taking a formal brokerage exam. A broker
can own, operate, and manage a brokerage, which is a term that describes
a broker business. Real estate agents are brokerage employees who can
act under the broker's direction. A real estate agent can earn a broker
license by taking additional courses and passing additional tests.Commercial real estate brokers facilitate transactions related to business properties, and brokers who specialize in residential real estate help people who wish to buy or sell property. Brokers can even help building associations and development agencies sell new homes.
How it Works
A broker can act as an agent of the buyer, seller, or both. When acting as an agent, a broker is bound by a set of fiduciary duties, which are legal obligations. These obligations may vary on a state-by-state basis depending on the type of real estate service that the broker is contracted to provide.When a broker acts as the buyer's agent, he or she cannot exchange confidential or proprietary information with the seller's agent. When a broker acts a seller's agent, he or she cannot exchange confidential or proprietary information with the buyer's agent. Sometimes, a buyer and seller may work with the same realtor. Clients might be working with two brokers who work for the same agency or one broker who happens to represent two clients. In these situations, the broker or brokerage is serving as a dual agent and must maintain loyalty and standards of confidentiality to each client independently. In some states, it is illegal for a broker to serve as a dual agent.
Brokers do not necessarily have to specialize in buying and selling and are trained to act as agents of both buyers and sellers. Brokers who act as agents of buyers might provide advice on home plans, house loans, or commercial property loans. Commercial real estate brokers can even act as business transfer agents for companies that are looking to transfer ownership. Brokers who act on behalf of sellers can provide marketing and advertising services while providing insight regarding competing homes for sale. A broker can help even when a home is in danger of foreclosure.
Benefits
Real estate brokers are considered experts in their field. Requirements are strict so that consumers are not misled. Because brokers are highly skilled, they are subject to strict legal consequences of they cause harm or act unethically. If you are looking to buy or sell your home, a brokerage is well-equipped with the resources to provide sound expertise.When you sell property, there is extensive work involved. You must advertise and market your listing, and you must make sure that you are not violating any laws. Information can be complicated to process, and you do not necessarily have the time to sort through details and regulations. By employing a broker, you can devote your time and attention to your business, family, and career. When you are looking to buy property, there is also extensive work involved. There are lots of properties on the market, but you will want someone to help you find real estate that fits your needs and price range.
Realtors, brokers, and associates also have access to resources that are generally too expensive or complicated for the general public. An example is the multiple listing service (MLS), which is a database of cooperating brokers, real estate listings, and appraisal information. MLS listings give brokers a strategic edge in helping clients make decisions.
You might want to read realtor reviews or browse through realtor listings to make sure that you are working with someone who specializes in your needs. You want to feel comfortable, since this is an important financial decision for you. Be an educated consumer and maintain power over your transactions.