What is a Real Estate Broker?

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  • Written By: Diana Bocco
  • Edited By: Bronwyn Harris
  • Last Modified Date: 23 May 2020
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A real estate broker is a professional who helps sellers sell a property — an intermediary between buyers and sellers. In the United Kingdom, this person is also known as an estate agent. The broker represents the buyer, but does not have power of attorney or the right to make important decisions on the client's behalf.

Real estate agents are salespeople who assist the broker 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 in most places. This is especially important if money will exchange hands and if there are agents working under the supervision of the broker. Unlicensed activity is usually not permitted unless the buyer is acting as his own broker, in which case there is no need for any further paperwork. To obtain a license in the US, 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 number of different services, such as providing a market analysis of the home's value or a property appraisal, preparing documents, consulting and guiding the seller, and supervising real estate auctions. In addition, he or she helps with the listing and advertising of the property, negotiating price, and drafting closing records. It's also possible for a broker to provide help with loans and financing, and to organize "open houses" to showcase the property.

The broker makes money on commission, generally 5 to 7% of the final selling price of the property. Flat fees are also an option, but not a popular one in most places. Working on commission usually means higher property prices, as the real estate broker will try to get the most for his or her work. This can either benefit or harm the seller, as a pricey property may take longer to sell.

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Post 12

I really want to invest in real estate, I just don't know if right now is the the right time.

Post 11

The last house we moved out of we tried to sell on our own. We had already moved into our new house, and advertised it for sale at as many places as we could think of.

We had several calls on the house and made several trips back over there to show it, but never got it sold. After about 4 months, we decided we needed to get a real estate broker.

Within a few weeks of doing this, our house was sold. Looking back, we wish we had done this from the very beginning. I know some people are successful selling a house on their own to avoid fees, but for us, we ended up relying on a real estate broker to help us.

Post 10

I was considering getting my real estate license in Texas to avoid paying a real estate agent the high commission when we sell our luxury home and manage our personal future transactions.

I know I would have to be sponsored by a broker. Can you tell me how much the broker takes from the real estate agent, on average?

Post 8

i couldn't agree with you more.

Post 6

As a real estate broker what is the best form of ownership for this business?

Why is that the best form ownership for this particular business?

What are the advantages of this form of ownership for this particular business?

What are the disadvantages of this form of ownership for this particular business?

Post 4

I want to know about how do i prevent from contact between buyer and seller?

Post 1

I appreciate the concerns which have been raised. These things need to be sorted out because it is about the individual but it can be with everyone.

-- albert p.

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