SHARE THISEmail ThisPin ThisTweet ThisTOPICBuy & Sell, Buy, Buy a Home: Step-by-Step, Expert Home TipsPrint article
For every journey, there is a guide. To explore the West, Lewis and Clark had Sacagawea. To navigate his magical powers, Harry Potter had Dumbledore. And to discover our best lives, America has Oprah.
Then there’s the all-too-real journey of buying a home. For that, you have an Oprah of your own: your real estate agent — a licensed professional who’s familiar with local home values and neighborhood perks, understands real estate trends, can write an offer on your behalf, and who negotiates with home sellers so you don’t have to.
Think of your agent as a therapist/consultant for your home search. A collaborator. A co-conspirator. A mentor. Someone who amps up your confidence and counsels you through big decisions (teamwork makes the dream work, after all). And, someone who wants you to find a house you can be happy in because they’re invested in your happiness.
If the housing market doesn’t line up with your needs and budget, your agent will go back to the drawing board with you. They interpret raw housing data through the filter of your unique search, then tell you what’s important and why. They help you map the path to your goal, and connect you with trusted experts who can get you into your dream home. (Cue selfie of you drinking wine in your new living room. First like on Instagram? Probably your agent.)
That’s a lot of responsibility. And a lot of pressure. There’s obviously a lot at stake: money and time, of course, but also your happiness. So reach out to an agent sooner in the process rather than later, and you’ll be on the fast track to picking out paint swatches for your new kitchen.
Agents, Brokers, and REALTORS®: What’s the Difference?
“Agent” is a catchall phrase that is used, in casual conversation, to describe the three types of professionals who buy and sell real estate: agents, brokers, and REALTORS®.
No, they’re not really the same. Yes, you should care about what makes them different. Here’s a breakdown:
A real estate agent is a licensed professional who helps people buy, sell, rent, or invest in homes. To become an agent, a person must take pre-licensing training from a certified institution (these vary from state to state) and pass their state’s real estate licensing exam. Once they have their license, an agent must affiliate themselves with a real estate brokerage.
Some agents specialize in representing buyers, some specialize in representing sellers. Some do both. An agent who represents both the buyer and the seller in the same real estate transaction is called a dual agent. By law, a dual agent must disclose dual agency to both parties. (If an agent is seeing other people, you obviously need to know.)
A real estate broker is a professional who has additional education beyond the agent level, as required by state law, and who has passed a broker’s exam. In some cases, brokers also have more years of experience than agents. The biggest difference between a broker and an agent is that a broker may work independently. An agent must be overseen by a broker.
A REALTOR® is a broker or agent who belongs to the National Association of REALTORS® (NAR), the largest trade group in the country. (Full disclosure: NAR publishes HouseLogic.com). A REALTOR® commits to following a strict Code of Ethics intended to protect buyers and sellers; for example, REALTORS® pledge themselves to protect and promote the interests of their client. Agents and brokers who are not NAR members can’t call themselves REALTORS®. There are more than 1 million REALTORS® in the United States. You can use realtor.com®’s Find a REALTOR® tool to connect with one in your area.
In most cases, using an agent, broker, or REALTOR® won’t cost you a penny because the seller typically pays both the listing agent and buyer’s agent’s commissions. However, some buyers’ agents request a representation fee from the buyer. That’s rare.