The real estate market consists of buying and selling of properties; most commonly, housing and rental properties. When buyers and sellers meet, they do so under a legal environment, sign up for transactions and end up buying or selling the property.
To make the two meet, real estate brokers come into play. This means that a real estate broker acts as a midway person between the transaction and the activity.
But a real estate broker and real estate agent are different; read below to know everything about real estate brokers and agents, what they do and how much they make.
Table of Contents
Real Estate Broker Meaning
A real estate broker is a qualified person in the real estate market, and is relatively more experienced (than real estate agents) when it comes to making buyers and sellers of the property to meet.
They work on a commission basis, which is a percentage of the sale price of the property. A broker may work independently and gain independent clients too, or can start their own brokerage firm and hire real estate agents to work for them. There is no major difference between a real estate broker and a real estate agent, and often they’re referred to being the same in a context.
Real Estate Broker Responsibilities
The main job of the real estate broker is to make buyers and sellers meet in the market, and help them with successful transactions. Other than that, these are some of the responsibilities of a real estate broker.
- Partner with clients to buy, sell and rent real estate properties within the target market you have identified.
- Actively seek and solicit clients by promoting brand, networking, advertising and offering services to potentially interested parties.
- Show various properties to prospective buyers and renters in order to showcase options and help them find the right property.
- Advertise and promote properties and the general brand in order to attract clients and draw traffic to properties for sale or rent.
- Draft sale and purchase contracts for respective parties to be completed upon the closing of a real estate transaction.
- Advise clients on best practices in light of market conditions, general prospects and other relevant impacting factors.
- Negotiate between buyers and sellers to facilitate agreements that best serve both parties involved and maintain the value of the property at hand.
- Ensure that all real estate transactions initiated are in complete compliance with the applicable laws and regulations relating to the purchase, sale or lease of a property
What does a Real Estate Agent do?
A real estate agent primarily has the duties of a real estate broker- there is not much difference. The one factor that distinguishes is that real estate agents may be representatives of a company and are surely licensed by them.
Here are some of the responsibilities of a real estate agent:
- Present purchase offers to sellers for consideration.
- Negotiate prices or other sales terms.
- Compare a property with similar properties that have recently sold to determine its competitive market price.
- Appraise property values.
- Advise clients on market conditions, prices, mortgages, legal requirements, and related matters.
- Promote sales of properties through advertisements, open houses, and participation in multiple listing services.
- Develop content for sales presentations and other materials.
- Accompany buyers during visits to and inspections of property, and advise them on the suitability and value of the property they are visiting.
- Prepare documents such as representation contracts, purchase agreements, closing statements, deeds, and leases.
- Confer with escrow companies, lenders, home inspectors, and pest control operators to ensure that terms and conditions of the purchase agreement are met before closing dates.
- Coordinate property closings, overseeing the signing of documents and disbursement of funds.
As you can see, real estate brokers and agents both have similar responsibilities, thus apart from a very minor difference, there is not a major factor that distinguishes the two.
Real Estate Broker License
Each broker is dependent upon regulations and guidelines set for them. Brokers and agents in the U.S. are authorized by each state, not by the government. Each state has its own laws characterizing the kinds of connections that can exist among buyers and sellers, and the obligations of brokers to customers and individuals from people in general.
Like real estate sales agents, brokers must be licensed by their state. To fit the bill for a broker license, one should initially hold a valid real estate sales agent license and work under that permit for various years. In numerous states, specialists must have two years of involvement functioning as a sales agent, however a few states require just a single year of experience. Different states may require three.
Apart from having a reputed experience, brokers must complete training courses and schedules that are endorsed by their state. A broker training course can take a little while to finish and covers subjects like land law, money, office law, agreements, and property management. When the course is completed, students can take their state’s broker licensing examination. Agents who breeze through this assessment may likewise be needed to pass a criminal history historical verification to fit the bill for a license.
Real Estate Broker Salary
A real estate broker earns a good salary, and in five states they earn more than the national average. In other states, the salary level is just average. Thus, it is important to be mindful of where you’re living before you opt for a career as a real estate broker.
Here is a table that identifies the state and how much a real estate broker earns annually, monthly, weekly and hourly.
|State||Annual Salary||Monthly Pay||Weekly Pay||Hourly Wage|
Note: Sample rates have been extracted online, courtesy of ZipRecruiter
The real estate community is a tricky market where thousands of dollars are risked into buying and selling of properties. For the transaction to run as smoothly as possible, a real estate broker or real estate agent functions as an intermediary between the two parties to provide trust and a genuine connection.
They work on a commission basis and earn a good amount of overall salary, but only in five states where they earn a pay that is above average. A real estate broker must have strong communication and interpersonal skills, along with research skills. They should stay up-to-date with all properties and the trends of the real estate market to close big deals.