Real estate terms explained for easy understanding

I am confused. I hear these people called real estate agents, agents, brokers, and now professionals. What is the proper term, and what do the other terms mean?

According the National Association of REALTORS, the term real estate agent is merely a generic term to describe any person or company involved in the real estate trade. A real estate agent is a skilled and, in most states, a licensed individual who works for a real estate broker as a salesperson.

A real estate broker is a skilled and licensed individual or company who is the intermediary between sellers and buyers of real estate receiving a commission for the work.

A real estate broker is the owner of a real estate office that employs real estate agents. Duties of these two depend on the state legal requirements in their licensing and the common practice of that location.

As you can see, these terms are easy to confuse. The biggest thing is that the real estate agents and brokers are licensed professionals who provide services to both real estate buyers and sellers, and can be a huge asset to a future home buyer.

How can I select the best real estate agent for my needs?

You can ask friends, family, and business associates for recommendations. If you are new to the area, your human resources department may also be able to provide you with a list of recommended real estate professionals. You may want to speak with several before deciding who understands your needs the best.

The ideal real estate agent knows the area very well, is knowledgeable about the real estate market, has resources and contacts to help you obtain your perfect house, makes you feel comfortable, listens to your desires, respects your wishes, and will work hard to find you a home. It is not easy to figure out if a person has all those qualities in just one meeting.

Before you meet with a real estate agent, you may want to do some research on that person and the company he or she works for. Start with the Internet—does the real estate agent or the company he or she works for have a presence on the Internet? Is the website informative? Does the website provide information that you can use? A website can display not only homes for sale, but also the knowledge of the real estate agent about the area. It also gives you a feeling about how a professional does his or her job.

If you are not comfortable with the Internet, look in the local newspapers and at the “for sale” signs in the community. Does the real estate agent advertise in the local newspaper? Does the agent or his or her company have several listings in the area you are looking to move into? The more homes listed by this agent, the more experienced this agent is in this locale.

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