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A property is a home. And like any other proud owner, you want to find the best person who will take care of it for you when your not around. Real estate agents represent sellers in real-estate transactions and come from all walks of life with different levels of experience that I am sure would have gone through some rigorous training before they were given this job–so don’t let them scare or intimidate you because there are plenty more tricks up their sleeve than just showing houses.
Real Estate Agents are the people that help you find and purchase a home. Real estate agents can be anyone from an individual to a company, but they all have one thing in common: They know their way around buying and selling homes!
Studying real estate law is a must before taking the state licensure exam. Most states require that an applicant take a certain number of classroom hours to study such, and in order to provide this type of instruction, most schools offer professional-quality courses. The course curriculum is typically geared towards preparing you for your new career as a licensee by covering topics like contract law or property rights legislation from all angles so that when it’s time for you to go into practice on your own after graduation; no detail will be left behind!
Once a salesperson is licensed in most states, they are labelled as such by the state and must work under their broker. In some other states where licences have recently been abolished for all licensees, this process is automatic.
A real estate agent’s license must be held by a managing broker. Within a firm, numerous licensees may have brokers licenses but only one individual or the entire company is legally accountable for all of them and they are called the “managing” or principal broker that has to hold their own licence under this designation as well.
The tone of voice should be professional so as to make the customer feel at ease. Professionalism is an important part of this industry, and it’s a reflection on you if your customers are not happy with their experience or think that they’re being taken advantage of by shoddy service.
The nature of the real estate licensee’s relationship within a transaction and with parties must be disclosed to prospective buyers and sellers in all states. A broker/licensee or contactor relationship is shown below.
Real Estate Services are also called trading services by some jurisdictions. Since each province’s and state’s laws may differ, it is generally advised that prospective sellers or buyers consult a licensed real estate professional.
Comparative Market Analysis (CMA) — an estimate of a property’s value compared with others. This differs from an appraisal in that property currently for sale may be taken into consideration. (competition for the subject property)
Total Market Overview — an objective method for determining a property’s value, where a CMA is subjective.
Broker’s Price Opinion — estimate of a property’s value or potential selling price
Real estate appraisal — in most states, only if the broker is also licensed as an appraiser.
Exposure — Marketing the real property to prospective buyers.
Facilitating a Purchase — guiding a buyer through the process.
Facilitating a Sale — guiding a seller through the selling process.
FSBO document preparation — preparing the necessary paperwork for “For Sale By Owner” sellers.
Home Selling Kits — guides advising how to market and sell a property.
In most states, brokers must act in a fiduciary capacity and sign an agreement with the party they are representing. In this case that means commission-based brokerage services for sellers or “buyer representation” agreements for buyers which triggers agency obligations under common law – meaning all parties have to be honest about what is going on at any given time as well as abide by their duty of loyalty.
In residential real estate transactions, a broker’s job is to represent the principle in all of their dealings. Brokers are there for buyers and sellers alike; they work with them on paperwork and contracts so that both can be satisfied with the process.
A real estate broker and his sales staff work with a principal known as the broker’s customer when there is no contractual agreement or fiduciary relationship. When you buy property without entering into an agency arrangement, that agent will be sub-agent to your seller’s brokers interests. There won’t be any remuneration on either side of the transaction if both sides agree upfront how they want to proceed in dealing with one another.
A broker expects to be paid a commission for the services supplied if they are successful in finding you, an interested buyer. The payment of a commission is usually conditional on successfully negotiating and exchanging money with both parties after locating someone who wants your home or office as much as you do!
A real estate broker is entitled to get their commission under common law, regardless of whether the sale actually occurs. If they find a buyer who is ready, willing and able to acquire the property then it becomes an easy win-win situation for all parties involved with no need for negotiation.
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