If you’re ready to sell or buy a house, you may be wondering, “What does a real estate broker do?” After all, you’ve probably debated whether it’s worth hiring one or going it alone. Juggling the responsibilities of a real estate transaction is a lot of work, so having a licensed professional at your side can make the process much easier.
Curious to find out more? Keep reading to learn more about what a real estate agent does!
The Broker’s Responsibilities
In a nutshell, a broker is your guide through the real estate process. Unloading one home with the goal of buying another sounds easy enough, but there are a lot of steps — and a ton of paperwork required — to get there. Without knowing the ropes of the real estate industry, you can make a lot of mistakes that will hurt you financially.
Brokers will help you determine a reasonable selling or offer price because they’ll be informed about the neighborhood comps that can inform the pricetag. In other words, they’ll be the first one to tell you that you shouldn’t buy the most expensive house in the area!
Real estate brokers handle the transactional details, like negotiating prices and writing offers. They’ll also handle the showings, sales pitches, and marketing efforts to make even the most dated home look a little better. Think of them as the go-between linking you with your dream home.
A Day On the Job For a Real Estate Broker
Becoming a real estate broker is a process that requires strong time management and a willingness to be on the move at all times. A broker needs to know the territory they’re covering and the preferences of its clients. And they’ll expect to spend a lot of weekends giving home tours.
A broker may be negotiating a counter-offer one day and staging a home the next. And if a broker has a staff, they’ll need to delegate responsibilities like photographing new homes on the market, meeting with clients, and handling closings.
Brokers also need to be personable since they’ll be engaging with a number of people who ultimately will determine if they get a commission. Knowing the nuts and bolts of the job — and being able to simplify the jargon for clients — is a key part of winning over a buyer or seller.
If a broker makes a sale, the commission fee usually is split between the buyer’s agent and the seller’s. That can map out to a few thousand dollars per sale, though the broker will not get the full half. Others involved in the process will receive a portion of that commission, as well.
There’s a common perception that using a real estate broker will drive up the selling price of a home, but some studies suggest otherwise. Even though it might be tempting to go it alone when selling a house in order to keep the selling price lower (and avoid scaring people away), you actually won’t need to inflate the sticker price if you go with a broker.
The Difference Between Real Estate Agents and Brokers
That’s right — not all of the professionals involved in a real estate transaction are the same. Some have more training than others, and some are more involved in the face-to-face components of the job.
Real estate agents must go through training that involves multiples classes, and then they take an exam in order to gain licensure. They typically work for a broker and sometimes are known as associates. Expect to see agents more often during showings, tours, and other parts of the process that involve legwork and discussion.
The term “agent” covers a broad scope of positions within real estate. Agents can be involved in sales, but they also can be involved in appraisals and management.
Real estate brokers tend to be more experienced, having taken both the agent’s licensure exam and a broker’s license exam. A perk of being a broker? You’ll make more money. Agents usually need to have at least a few years under their belt before working their way up to being a broker.
And a broker can go one step further and register as a Realtor. Membership with the National Association of Realtors means that a broker needs to agree to certain terms and pay an annual membership fee.
All of these distinctions can get in the way of what you really want when you’re making a move: someone to sell your house and find a good new one. There are discount real estate brokers, too, who can do all that and keep the costs manageable when you’re in the market for a new place.
What Does a Real Estate Broker Do? Get You the Perfect Home
Purchasing a new home can be a stressful experience. A broker can help stage your home so it looks more attractive to potential buyers, and they’ll know which features are trendy and make your house stand out.
With real estate commissions at around six percent, it can seem like hiring a real estate broker is just one more expense. While it does add to the cost of your home, having an ally to handle the details saves you time and headaches.
In short, a real estate broker puts in the hours to make a hectic life transition into the smoothest experience possible.
The Bottom Line
Still wondering, “What does a real estate broker do?” It’s a job that requires juggling a lot of tasks, and often for multiple properties. Brokers have to manage their time well and be available to help their clients land in the best new space.
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