What is a Real Estate Broker?
A real estate broker or real estate salesperson (often called a real estate agent) is a person who acts as an intermediary between sellers and buyers of real estate/real property. Their mission is to complete a transaction between the buyer and seller.
In the United States, the relationship was originally established by reference to the English common law of agency, with the broker having a fiduciary relationship with his or her clients. A real estate broker typically receives a commission for successfully matching a seller’s real estate with a buyer such that a sale can be made. This commission can be divided up with other participating real estate brokers or agents.
In Michigan and Metro Detroit, real estate brokers and their salespersons who assist owners in marketing, selling, or leasing properties are commonly called “listing brokers” and “listing agents.” Listing brokers and agents seek to market and sell or lease property for the highest available price under the best available terms.
Other brokers and agents may focus on representing buyers or tenants. However, licensing as a broker or salesperson authorizes the licensee to represent parties on either side of a transaction. This business decision is for the licensee to decide.
In the United States, real estate brokers and salespersons are licensed by each state, not by the federal government. Each state has its own laws defining the types of relationships that can exist between clients and real estate licensees, and the duties of real estate licensees to clients and members of the public. Rules vary substantially from state to state, for example, on subjects that include required documentation, agency relationships, inspections, disclosures, continuing education, and other subjects.
Real Estate Broker Services
Real Estate Services are also called trading services by some jurisdictions. Since each province’s and state’s laws may differ, it is generally advised that prospective sellers or buyers consult a licensed real estate professional.
Some examples:
- Comparative Market Analysis (CMA) — an estimate of the home’s value compared with others. This differs from an appraisal in that property currently for sale may be taken into consideration. (competition for the subject property)
- Total Market Overview — an objective method for determining a home’s value, where a CMA is subjective.
- Broker’s Price Opinion — estimate of a property’s value or potential selling price
- Real estate appraisal — in most states, only if the broker is also licensed as an appraiser.
- Exposure — Marketing the real property to prospective buyers.
- Facilitating a Purchase — guiding a buyer through the process.
- Facilitating a Sale — guiding a seller through the selling process.
- FSBO document preparation — preparing necessary paperwork for “For Sale By Owner” sellers.
- Home Selling Kits — guides advising how to market and sell a property.
- Hourly Consulting for a fee, based on the client’s needs.
- Leasing for a fee or percentage of the gross lease value.
- Property Management
- Exchanging property.
- Auctioning property.
- Preparing contracts and leases. (not in all states)
If you are looking for the expert advice of an established real estate brokerage, please contact 5Star Investments & Realty.