Understanding the Real Estate Agent

05 Jan

A real estate agent, real estate broker or realtor is someone who represents buyers or sellers of commercial real estate or residential real estate. While a real estate agent can work alone, most often an agent is employed by a brokerage firm to represent the interests of the brokerage firm. Brokerages firms are large groups of companies, which often own, lease, manage and sell real estate properties. They carry out the necessary investigation, negotiation and closing on the sale of a property. Many times, they also carry out title searches and related negotiations.

This serves to keep the market price from fluctuating too much between the agents and the buyer or seller.
In addition to commission, real estate agents also get a share of the money that comes in through the closed deal. The most common form of this is in the form of a lock-box or escrow fund. These funds are kept separate from the money the seller has paid to the broker or agent. Whenever an offer is made on a house, the money paid to the real estate agents is held in a separate account for that transaction. Upon an offer being accepted, the escrow fund is transferred to the offer amount.
Another way real estate agents make money is through the use of their real estate license. Each state has different rules regarding how to qualify for a real estate license. Some requirements include a background check, completion of education or training and completion of a training or education program in a specific subject.

While some states require no formal education or training, many states will require real estate agents to at least hold a real estate license. This can be beneficial to those wanting to enter the field, as it will help reduce the amount of training and education required. Most states licensing laws require re-licensing every three years or else the agent will have to start all over again.

When looking at potential, Ontario real estate agents or brokers, it is always important to look at their licensing and background. States that require licensing will not only be a good place to start, but also a good place to start to learn about the laws or regulations in that particular state. It is always a good idea to do your research ahead of time in case certain states might require extra paperwork or training before becoming licensed. This ensures that you will be ready and able to handle whatever situation you are presented with. Here is an alternative post for more info on the topic: https://www.huffpost.com/entry/how-searching-for-the-right-real-estate-agent-is-like-trying-to-find-your-soul-mate_b_9154936.

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