When discussing the world of investing, especially when we are talking about real estate in general, three terms often confuse every person who directly or indirectly wants to get in the respective field. These three words are real estate agents, brokers, and realtors. It is essential to understand the difference between the 3 of them as although they are terms that are used interchangeably; they aren’t the same.
Who are Real Estate Agents?
Real estate agents refer to formally licensed individuals to help people purchase and sell their property. They also help in providing lease and rent services. These individuals are usually reimbursed in a commission percentage of the property’s transaction price. They are mostly mediators who help bring buyers and sellers together to make the sale and strike a deal. They often help in negotiating to get the best deal possible.
Who Are Real Estate Brokers?
More often than not, real estate brokers perform many of the same activities that real estate agents engage in. Still, the main difference lies in the fact that most brokers are people who have formally completed their education and have successfully obtained a state real estate broker license. This means they can work independently, open their brokerage firm, and hire several real estate agents to work on their behalf and strike more deals.
They are more than just agents who help get buyers and sellers together. They can also work with their expertise to tailor and act as a representative for the entire time for their clients and get paid a significant amount of money for the same. They may be of 3 main types – Associate brokers, managing brokers, and designated brokers.
Who is a Realtor?
A realtor is usually a real estate professional who is usually registered under a professional body known as the National Association of Realtors, also referred to as NAR, which also happens to be the largest trade association in the United States of America. A realtor is way more powerful and should never be interchanged with a real estate agent. This designation is made for professionally engaged real estate professionals, including residential and commercial real estate brokers, salespeople, property managers, or appraisers.
Is it Better To Go Ahead with a Real Estate Broker or A Real Estate Agent?
One of the most pressing questions people have while engaging in real estate transactions is finding a reason to choose an agent or a broker. More often than not, it does not matter which one chooses as they both will help make the whole deal happen. The difference lies in that a broker may have more access to agencies and get better deals, but they often come at a more fantastic price. A broker may also be able to pull some strings and get you a better deal for your money.
Conclusion
While the three are very different from each other, with the discussion above, it is only prudent that you have a thorough check on the resources you have and the various parameters that you are looking for in your real estate representative.
