No matter if you are buying or selling, working with a licensed real estate agent is wise and can save time, but not all agents are created equal.
Understanding the differences between real estate agents and realtors is vital when making an informed decision on who you work with in real estate transactions. NerdWallet’s guide can assist in helping make this choice.
Professionalism
Real estate agents are licensed professionals who help people purchase or sell commercial or residential real estate. Most states issue licenses to such agents, which requires taking certain classes and passing an exam before being awarded their license. They must maintain it by taking ongoing education courses every four years as well as taking an examination every year.
Real estate agents who wish to gain extra credibility within the industry may opt to become Realtors, an additional designation that carries more weight within the industry. Realtors must become members of the National Association of Realtors and adhere to its Code of Ethics; in doing so, the NAR offers ample bargaining power with state and federal governments, providing its members with more legal protection when buying or selling homes.
Realtors differentiate themselves from real estate agents through their level of professionalism. A Realtor must abide by a code of ethics and maintain fiduciary responsibilities towards their clients – this means putting the interests of clients first while not disclosing information that could be used against them during negotiations, for instance a Realtor cannot disclose to other parties such as newspapers that you’re seeking a home in a particular price range; nor can they inform sellers of your intended offer amount.
While the difference may seem slight, it can make an enormous impactful statement about your homebuying or selling experience. Both agents and realtors are trained to assist clients through the home buying or selling process – however realtors have additional credentials and ethical behavior commitment that may make your experience much less stressful.
“Realtor” may seem confusing at a real estate office, but it’s important to keep in mind that it’s trademarked by the National Association of Realtors – coined in 1916 and trademarked in 1950 – so when asking for one at your local real estate office it should always be capitalized.
Networking
If you’re in the market to buy or sell property, enlisting the services of a real estate agent is invaluable in managing the entire process from start to finish. They can assist with market analysis, pricing properties accurately, negotiating deals that best suit you, as well as handling all necessary paperwork involved with real estate transactions. When selecting an agent make sure they belong to National Association of Realtors (NAR); membership ensures they abide by a strict code of ethics as well as maintain high levels of professionalism.
Capitalize “Realtor,” since the National Association of Realtors trademarked it in 1916 to distinguish its members from non-members; today it remains one of the largest trade organizations in the US with 1.5 million real estate agents, brokers, appraisers and other professionals as active members.
Although the distinction may seem subtle, it’s crucial to understand. Many people make an assumption that all real estate agents are Realtors when in fact that’s not necessarily true; asking for one when you mean tissue. Knowing this distinction can make working with someone with strong network of buyers and sellers much simpler.
Real estate agents are licensed professionals who assist in real estate transactions on commission. To become licensed, they must attend classes and pass a state exam; once licensed they often specialize in certain areas of the market such as buyer’s agents who assist clients find homes within their price range or listing agents who work on behalf of sellers to secure the highest price for their properties. Broker deals may enlist real estate agents as partners since these professionals often possess greater expertise than other professionals as well as offering advice regarding financing solutions.
Knowledge of the Local Market
Real estate professionals possess an expert understanding of local markets. This makes them invaluable resources for clients purchasing or selling properties in these locales; they can help clients determine fair property pricing while assuring both parties involved are satisfied with the transaction – a factor especially valuable in commercial real estate where an in-depth knowledge of trends is key to closing deals successfully.
Real estate agents and brokers rely heavily on their networks of professional contacts when selling or purchasing real estate, connecting clients with trusted mortgage lenders as well as industry specialists like inspectors. Furthermore, agents provide information regarding school districts, crime rates and any other neighborhood factors which might alter property value.
Real estate agents specialize in different areas depending on their focus. A listing agent works with sellers to list their homes; buyers’ agents assist prospective homebuyers; rental agents help tenants find suitable rentals within their areas; while brokers have the flexibility of taking care of both residential and commercial properties as well as solely offering homes for sale.
The National Association of Realtors (NAR) owns the trademark for “Realtor,” although any licensed real estate agent can use this title; only members of NAR may call themselves Realtor(r). Becoming part of NAR requires paying membership dues and adhering to its code of ethics.
Real estate agents specialize in various property types – residential and commercial alike – though most have one primary specialty area. Furthermore, agents must obtain their state or territory’s licensing before continuing education courses to keep abreast with industry standards.
Brokers are real estate professionals responsible for overseeing the day-to-day operations of a real estate business, often including other agents under their charge. A broker may share commission with those under them or choose to close deals themselves and earn more out of overall commission earnings.
Negotiation Skills
Negotiation skills are a cornerstone of real estate agent success, regardless of whether they represent buyers or sellers. Effective negotiation can mean the difference between an efficient transaction and one that goes sour. Skilled real estate agents possess strong strategies, communication abilities, problem-solving expertise and will demonstrate strong professionalism to build relationships and credibility with clients.
Successful real estate agents need the ability to actively listen, in order to comprehend their clients’ needs and preferences as well as ask the necessary questions during negotiations. Furthermore, successful agents should understand body language to understand how their client feels about an offer or deal.
Real estate agents should possess an ability to think outside the box and come up with creative solutions, particularly during real estate negotiations that often include unexpected obstacles like low appraisals or loan denials. Reacting positively by finding mutually satisfying solutions helps close more deals and gain new business.
As part of your preparations for real estate negotiations, it is crucial that you establish what areas of compromise you are willing and unwilling to offer. Doing this will save time during negotiations and avoid unnecessary tension. Furthermore, being aware of other parties’ motivations and expectations allows you to create a win-win scenario for both sides involved.
Investment in negotiation training can help expand your skillset and increase your odds of success in real estate. Real estate agents who hone their negotiation abilities are better able to offer exceptional client service while keeping transactions running as smoothly as possible – leaving clients satisfied and more likely to recommend them to others. Displaying that you have taken negotiation classes also make an impression during interviews and shows potential clients that your career in real estate is serious.