The Real Estate Broker & Realty – Why Working With a Realtor Makes Sense
There are no professions where a holder of the same job has to contend as much with so many terms and labels as do today’s commercial realty broker. In fact, broadly speaking there are only 2 major categories of commercial realty, residential and industrial. For buyers or sellers of a house or commercial property, the differences between each are not really that important, although of course for those interested in a career in commercial realty it might be important to know what the differences are.
Real estate brokers are involved in the sale and purchase of residential and commercial properties. They usually are licensed to sell or lease houses and commercial buildings but they can also work for banks, lending institutions, developers, and other types of investors who may have a need for them to help them acquire or develop land. The realty broker has a lot of responsibilities to a variety of people that include:
Buying a property. The process is fairly easy. A realtor contacts a potential property owner or manager for a property in question. Once the agent is aware of the current value of the property and what it would take to purchase and fix up the property the realty broker makes an offer.
Dealing with the seller. Once the offer is received the realty broker contacts the seller to arrange a deal on the property. The offer can be on the property itself, as part of a package, or as part of an investment.
Selling the property. Once the offer is accepted, the realty broker then offers the deal to the seller. The seller can either accept the offer or reject it at any time.
As a result of these activities the broker gains some financial benefit from the transaction. He or she also incurs expenses of maintaining relationships with the seller or the owner and/or manager of the property.
In addition to these two major categories the broker also has some additional responsibilities. These include:
Residential Real Estate Brokers
Realty brokers are the backbone of the realty business. The broker acts as the go-between for all of the parties involved and is responsible for negotiating the best possible deal for everyone involved.
There are many advantages to hiring a realty broker. It is important to understand all of the responsibilities, however, so that you can make the best decision for your needs.
One of the biggest advantages of a realty broker is that they can make money for themselves. Realtors are in business for their own profit and by having an established relationship with the property owner they can help that person to earn more money from their home than if they choose to sell.
Another advantage of hiring a realty broker is that they can take a percentage of the sale. If the buyer pays a higher price for a home than the real estate agent is going to charge the seller, the real estate broker can charge the buyer a commission for the difference. In most cases the commission will be more than the commission charged by the bank. This makes for a very lucrative situation for the broker.
Some people find that this arrangement is unfair and they don’t want to pay the commission. If this happens you might have to move on to another real estate broker.
You also need to understand the limitations of a real estate broker. They can’t buy or sell a home or commercial property if the seller doesn’t want to sell or the bank won’t allow them to do so.
When you are choosing a realty broker keep in mind the types of properties they specialize in. They will most likely specialize in a specific type of real estate and it is important to research what they specialize in before hiring them.
There are several real estate brokerage firms in the U.S. that deal with all types of real estate and the fees they charge can vary widely. Some charge a flat fee and others charge a per transaction fee. It’s also important to check the laws and regulations governing real estate transactions in your state before hiring a real estate broker to handle the transaction.
A good real estate agent will understand your needs, your budget and know how to find the best deals. When it comes to selling realty you can only get what you pay for.