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Difference Between Real Estate Agent, Broker, and a Realtor

Do you think buying or selling a property is an easy task?

People usually feel that they can easily buy or sell property through websites. But no, buying or selling a property is not everybody’s cup of coffee. It involves different processes right from listing the property to finalizing the deal and completing legal formalities. Sounds complicated right? So the easiest thing to do is contact a real estate agent, or a broker, or a realtor. 

Now you may wonder how these entities differ from each other. Even though all three are involved in San Antonio real estate dealings but still, each differs concerning their roles, qualification, specialization, and responsibilities.

So, let’s have a clear picture of the difference between a real estate agent, broker, and realtor. And then, you will undoubtedly contact the top realtors in San Antonio without a second thought.

Real estate agent:

A Real estate agent in San Antonio is a professional dealing in renting, buying, or selling property on behalf of clients. A real estate agent title is the starting point for those intending to build a career in the real estate field. They have to acquire a professional license by undergoing a state’s pre-licensing training and clearing the licensing exam. They cannot operate independently but have to join a brokerage firm. They work on a commission basis which is a percentage of the sale price of a property.

A real estate agent can represent both the buyer and the seller. When representing a home seller they act as a listing agent. They list the seller’s property on different websites and MLS to solicit buyers. They help in pricing the property as per the current market value and try to get the best possible deal. They recommend home improvements, conduct property viewing, supervise home inspection, and closing the process.

A listing agent gets a commission along with listing agent fees. This commission amount is divided between the listing agent and the buyer’s agent.

A real estate agent representing a buyer works in the best interest of the buyers. A buyer’s agent finds a dream house for his client based on their priorities. They advise the buyers concerning the neighborhood, accessibility, and community. They help the buyer in getting a mortgage and assist them through the due diligence process. They also request the seller to conduct repairs, if required. They negotiate with the seller and settle the deal at the best price beneficial to the buyer. They negotiate with the attorney and guide the client in completing the paperwork and closing process.

Usually, the seller pays a commission to both the buyer’s agent as well as the seller’s agent.

Sometimes real estate agents from a brokerage firm represent both the seller and the buyer i.e. they work as a dual agency. A dual agency is not legal in many states.

Apart from helping clients in buying or selling property, a real estate agent also help clients who are looking out for rentals. There is an important role of a real estate agent in buying or selling a home. A rental agent helps the client in finding the right home in the right neighborhood and at the right rental price. They conduct house viewing and guide tenants in understanding the lease contract terms. Rental agents also help the landlord in finding the desirable tenant.  

The rental agent receives a broker fee from the tenant which is usually equal to one month’s rent or 15% of the annual rent.            

Similar to a real estate agent, a real estate broker also helps the client in buying, selling, or renting a property, but they are a step ahead. A real estate broker is more educated and trained than an agent. Along with the real estate license, he also acquires a state real estate broker license. He has in-depth knowledge about contracts, taxes, insurance, legal issues, laws for operating a brokerage, construction management company, and real estate investments. 

Real estate brokers are of three types:

Designated brokers: 

Designated brokers are usually, the owner of the brokerage who supervises the work of every real estate agent working under them. If the owner appoints a designated broker then he is paid a commission on the sale of property or a monthly salary. Designated brokers are legally responsible for all the transactions completed by the real estate agent.

Managing brokers: 

Managing brokers look after the day-to-day administration and transaction of the office. They also hire and train real estate agents. Sometimes designated brokers, work as managing brokers too.

Associate brokers: 

A real estate broker who opts to work for another real estate broker is an associate broker. An associate broker is not responsible for the work of other real estate agents working with him.

Any real estate agent or broker who becomes a member of the National Association of Realtors (NAR) is a realtor. They have to abide by the standards and code of ethics of the association. The work of realtors is similar to that of an agent and broker but they are more reliable as they are accountable to the NAR for their professional behavior. Realtors in San Antonio are required to pay annual fees to become a member of NAR.  

Realtors: 

Any real estate agent or broker who becomes a member of the National Association of Realtors (NAR) is a realtor. They have to abide by the standards and code of ethics of the association. The work of realtors is similar to that of an agent and broker but they are more reliable as they are accountable to the NAR for their professional behavior. Realtors in San Antonio are required to pay annual fees to become a member of NAR.

Conclusion:

We hope with this blog we have successfully helped you in understanding the difference between the three terms, their expertise, and the role they play in San Antonio real estate. So without wasting any more time contact Reyes Signature Properties, the top realtors in San Antonio to make your property dealing effective and hassle-free.