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Purchasing a Home with a Real Estate Agent, Broker or Realtor Choosing someone as your representive in a real estate transaction can be a challenge. But thanks to the Internet, not only will you find a real estate office on nearly every corner, but you’ll also be able to access to an almost infinite list of prospective agents and brokers. Going through all of this can be time-consuming and full of pitfalls along the way, particularly for first-time home buyers. Fortunately, there are real estate professionals who can always help. The question is, which one of them – agent, broker or realtor? Such terms are used interchangeably several times by people who don’t actually know how they differ from one another. A real estate agent, for one, is an individual who’s finished some basic training classes and passed a state licensing examination. What this means is, as long they work under a licensed broker, anyone can be a real estate agent. Also, they have to take continuing education courses as a requirement for renewing license periodically.
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On the other hand, a real estate broker, is required to take more classes in different subjects before they qualify to take the broker’s license exam, and take continuing education courses to keep their license active. However, unlike sales agents, brokers can work independently, that is, without being affiliated with another real estate professional.
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As long as they are licensed, brokers and agents alike can legally represent buyers and sellers in any real estate transaction. However, one thing they are not allowed to do is call themselves a REALTOR(R), except when they are members of the National Association of REALTORS(R) (NAR). REALTOR(R) is basically a trademark owned by NAR, which follows a very strict Code of Ethics. A Buyer’s Agent and Reasons You Need One No matter the strength or weakness of the your target area’s housing inventory at any certain time, there are real estate professionals who are not keen on pursuing potential sellers for the purpose of racking up listings. But some agents and brokers actually prefer to only represent buyers, hence they are known as buyers’ agents. They do not need a special license for this, but the NAR has instituted a certain course of study for those who want to be an Accredited Buyer’s Representative (ABR(R)). On top of completing this course, agents and brokers who have this accreditation have worked on no less than least five transactions as well, acting exclusively as the representative of the buyers. Certainly, they also have to be members of good standing of NAR and the Real Estate Buyer’s Agent Council. As a first-time home buyer, being represented by a buyer’s agent is no doubt a wise idea, what with their expertise in promoting buyers’ interests and in the buying process itself.