What is a Real Estate Broker?
A real estate broker is a professional who helps sellers sell a property. In other words, a real estate broker is an intermediary between buyers and sellers. In the United Kingdom, a real estate broker is also known as a estate agent. A real estate broker represents the buyer, but do not have power of attorney or the right to make important decisions on the client's behalf.
A real estate broker usually has salespersons, known as real estate agents, to assist him in the selling process. While it is possible for a real estate broker to represent the buyer by signing a special agreement, most work exclusively with sellers.
A license is required to act as a real estate broker. This is especially important if money will exchange hands and if there are agents working under the supervision of the broker. Unlicensed activity is not permitted unless the buyer is acting as his own real estate broker, in which case there is no need for any further paperwork. To obtain a real estate broker license, a person has first to be accredited as a real estate agent, and then take a 90-hour course and pass an exam on real estate law.
A real estate broker can provide a series of services, such as a market analysis of the home's value, property appraisal, document preparation, consulting and guidance, and auction supervision. In addition to this, a real estate broker also helps with the listing and advertising of the property, negotiating price, and drafting closing records. It's also possible for a real estate broker to provide help with loans and financing, and to organize "open houses" to showcase the property.
A real estate broker makes money on commission, generally a five to seven percent of the final selling price of the property. Flat fees are also an option but not a popular one. Working on commission usually means higher property prices, as the real estate broker will try to get the most for its work. This can either benefit or harm the seller, as a pricey property will take longer to sell.
Written by Diana Bocco
