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.
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