Real estate refers to any part of land in use for the purpose of building houses, apartments, commercial spaces or other such structures. Real estate agents play a very important role in the transaction of real estate agent. They are generally referred as real estate brokers or real estate agents.
They are responsible for making connections between buyers and sellers of real estate and facilitating the transaction. Brokers have to make detailed inquiries about properties, carry out proper research, negotiate with the seller, check the title, check the financial aspects, consult other professionals such as lawyer, assess the worth etc.
To ensure accuracy, real estate agents are expected to undertake extensive training programs apart from their general knowledge of real estate.
A real estate agent, real estate broker or agent is someone who acts on behalf of buyers or sellers of real estate or property. Though an agent may work on his/her own, most agents today work under a registered agent to represent the interests of their clients.
Real Estate Broker
This means that they have to abide by the rules and regulations set forth by the National Association of Realtors or NAR. Though it is the responsibility of the broker or agent to perform all the tasks required under the law, it is the duty of the client to find out about the background and registration status of the agent before engaging him/her for a real estate transaction.
Though most agents have undergone thorough background checks, it is still necessary for the client to do his own background check, in order to prevent issues arising in the future.
Clients need to be aware of the different types of real estate agents and their commission rates. Most agents work on a fixed rate, however, there are a select few who work on a per buyer or per sale basis.
The buyer’s cost is where the agent gets his cut from the final amount of the sale. The sale price of the house, as determined by the seller, is what the buyer will ultimately pay to the real estate agent.
The seller’s cut, or commission, usually takes care of expenses such as appraisals, escrow payments, marketing costs, and other miscellaneous expenses incurred during the selling process.