Type of Real Estate Agents
Licenses, Duties and More
Any person who engages in real estate transactions as an agent for another must first obtain a real estate license in the state in which they will work. Each state has its own rules, regulations and examination for obtaining a real estate license. Most states offer two types of real estate licenses: sales and broker. Real estate salespeople and provisional brokers work for and under the umbrella of a designated broker. Many real estate salesperson licensees decide to complete the necessary coursework and exams to ultimately become brokers, as this often provides more flexibility and career opportunities. Here are the different types of real estate agents that you can become.
Real Estate Agent
A real estate agent is someone who has a professional license to help people buy, sell, or rent all sorts of housing and real estate. To get that license, states require that individuals take prelicensing training. The required number of training hours can vary significantly by jurisdiction. In New Jersey, real estate agents must take 75 hours of a prelicensing course. Once that training is done, aspiring agents take a written licensing exam. These exams are typically divided into two portions: one on federal real estate laws and general real estate principles, the second on state specific laws. Once they pass their exams, they’re considered “real estate agent” and can begin working with home buyers, sellers, and renters. Agents are paid a commission on each sale that they are involved in – the better the deal they provide, the better their pay will be. To be a highly effective real estate agent, one must be a critical thinker, excellent communicator, strong negotiator, and more.
Realtors
A realtor is a real estate agent who has taken the next step in their career and joined the National Association of Realtors. Realtors must abide by certain standards of ethics and morals, which in turn allows those using a realtor to feel more confident about their decision. Realtors have access to property listings that entry-level real estate agents won’t have access to – properties that are listed on the Multiple Listing Service. Since they can access more properties, they have more potential in markets and can often find homes and properties that others can’t access. In order to become a realtor, agents must take additional courses and a licensing exam – usually after working as a real estate agent for a set period of time.
Real Estate Broker
A real estate broker is someone who has taken education beyond the agent level as required by state laws and passed a broker’s license exam. Similar to real estate agent exams, each state sets its own broker education and exam requirements. The extra coursework covers topics such as ethics, contracts, taxes, and insurance. Prospective brokers also learn about real estate legal issues and how the law applies to operating a brokerage, real estate investments, construction, and property management. Once a broker obtains their brokerage license, they are the type of real estate agents who actually own real estate firms. They’ll have real estate agents that work for the, earning a percentage of every sale that each agent completes on their behalf. The following are three types of real estate brokers:
Principal/designated broker: Each real estate office has a principal/designated broker. This person oversees all licensed real estate agents at the firm and ensures that agents are operating in compliance with state and national real estate law.
Managing broker: This person oversees the day-to-day operation of the office and typically takes a hands-on approach to hiring agents, training new agents, and managing administrative staff.
Associate broker: This real estate professional – sometimes called a broker associate, broker salesperson, or affiliate broker – has a broker’s license but is working under a managing broker. This person typically is not responsible for supervising other agents.
Listing Agent
A listing agent is a real estate agent who represents a home seller. Listing agents help home sellers with a wide range of tasks, including pricing home, recommending home improvements or staging, marketing their home, holding open houses, coordinating showings with home buyers, negotiating with buyers, and overseeing the home inspection process and closing procedures. Listing agents only gets paid if the home gets sold.
Buyer’s Agent
Buyer’s agents represent home buyers and assist them through every step of the home buying process, including finding the right home, negotiating an offer, recommending other professionals, home inspection and appraisal issues. The seller usually pays the commission for both the seller’s agent and the buyer’s agent from the listing agent’s fee.
Dual Agent
Dual agents represent the buyer and the seller in the same transaction. However, these types of real estate agents may be illegal since the conflict of interest that arises from managing both sides of the transaction could create issues.
Rental Agent
In addition to helping people buy and sell homes, many real estate professionals help consumers find properties to rent. What these agents do depends on the location – whether it’s a large city or small town and the agent. Your rental agent will guide your search from the very start, helping you find the right neighborhood, apartment size, and price range, then go with you to open houses. Agents will also send you listings that might be of interest to you. Once you’ve decided on a rental and have been approved by the landlord or management company, your agent should help you read and understand your lease.