Real Estate Agent

Real estate agents must acquire a real estate license from their respective state to represent a buyer or a seller in a real estate transaction. Also called a realtor, they receive a commission for services performed working under a real estate broker. They usually work on a 100% commission basis which is dependent upon their ability to find a buyer for a seller or to find a home for buyer. A real estate agent is the most common face in respect to a real estate transaction.

A realtor must work closely with a mortgage brokers and/or appraiser. Also, they are the "people on the front lines" of the real estate market. Some of the responsibilities of the realtor include showing homes to respective buyers and negotiating transactions on behalf of their client. They often work more than 40 hours per week. Also, since most buyers and sellers are free on weekends or nights, they may spend a considerable amount of time working these hours. However, many real estate agents work part time while having a primary "day job." To work efficiently and optimize time, the internet is used via home computers and laptops.

A Multiple Listing Service or MLS is used as a database to widely share information about a home for sale. Members in the U.S. of the National Association of Realtors are given access to this system. When a buyer is looking for a home to purchase, the MLS enables an efficient search of a respective neighborhood using various detailed criteria.

A listing contract is used by a real estate agent and seller to give the right to offer the property for sale. Often referred to as a listing agreement, it includes the following information:

• The list price and term of the listing agreement.
• Compensation offered and terms and conditions under which the brokerage fee shall be paid by the seller.
• Authorization to work with other brokers as buyer's agents and details of their respective compensation in the case they find a buyer.
• Authorization to post a sign and advertise the property.

When listing a property, certain expenses are incurred. Usually a certain minimum listing time period is agreed upon to make it worthwhile to enter into an agreement. A typical listing period is often from three to six months and can last one year prime real estate. Terms of a listing agreement vary, but usually the payment of a commission is contingent upon the successful negotiation and closing of a contract between a seller and buyer.

Types of listing contracts include:

• Exclusive right to sell - Commission is paid regardless of whether a respective buyer is obtained through the broker.
• Exclusive Agency - Property can only be listed with one brokerage office until the contract expires or property is sold.
• Open Agency - More that one brokerage office may be used to sell a respective property. Also, a commission is paid only to the brokerage which brings the buyer. If the seller finds a buyer him or herself, no commission is paid.

An ethical responsibility exists with a respective buyer or seller. For example, if selling a home, property information such as a leaky roof must be disclosed to any prospective buyer. Another example would be knowledge of an express-way being built over a respective neighborhood.

In closing, the responsibilities of a real estate agent are numerous. This may include working long hours on weekends or weeknights, advertising for home sellers, and showing multiple homes in various areas to prospective buyers.

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