When purchasing or selling real estate, hiring a trained agent is crucial to the process. But what are the different kinds of agents out there?
This article introduces various positions within the industry and can help you select an agent who meets your needs, such as dual agency, broker and transaction coordinator credentials.
Specialty
As the real estate industry expands, professionals specialize in different areas. While some may focus exclusively on commercial real estate transactions or property management services, others might specialize in residential sales or management instead. Picking your area of specialty in real estate is similar to selecting your major in college – it helps set yourself apart from competitors!
Agents specializing in residential sales provide assistance for both homebuyers and sellers. Agents working with buyers search for properties within their price range and wish list, advise clients about inspections and other issues, guide buyers through the closing process, while agents representing sellers provide comparable market data, advice on preparing a property for sale, negotiate with buyers and negotiate closing agreements. Sometimes known as dual agents, these agents assist both sides simultaneously during a transaction.
Real estate agents who specialize in commercial sales sell office buildings, industrial space, retail spaces and planned urban developments (PUDs). These professionals may also find tenants for such properties. Some agents work with investment buyers who purchase properties solely with the intention of renting them out or selling them at a higher profit; such buyers search out cash flow properties such as desirable neighborhoods or properties which could be renovated quickly for quick profit gains.
Specializing in real estate can help an agent build her credibility as a local expert and set herself apart from her peers. Furthermore, specialization may increase marketability; prospective clients may more readily contact an expert rather than someone more generalized.
No matter their area of expertise, all real estate agents must possess several key skills to be successful. Networking with both buyers and sellers as well as other real estate professionals to promote their services; effectively marketing properties across various mediums including the internet, websites, television/radio spots, flyers, open houses; maintaining financial records as well as setting career goals are just some of them.
Geographical Area
Real estate agents typically focus on one geographical area – from neighborhoods and cities to states or countries – for which they operate. This is necessary because real estate agents require an in-depth knowledge of the market to facilitate transactions; by choosing to specialize in one sector of that market segment they can form strong connections with clients while providing personalized service.
Real estate agents’ service territories typically encompass the areas in which they have been licensed to conduct business. However, under certain conditions they can extend this further; for instance they may need to travel across town in order to meet with clients or attend industry seminars, which requires flexibility and willingness. As their geographic reach expands so too does their real estate services.
Real estate agents looking to expand their geographic coverage can join a Multiple Listing Service, or MLS. By joining one, they gain access to property data in other markets that allows them to identify market trends and provide valuable advice to their clientele. Zillow makes this process straightforward while giving real estate agents access to an abundance of sales data in their farming areas.
Real estate agents looking to broaden their service area may wish to focus on cultivating local community ties by forging relationships with homeowners as a source of referrals. Doing this means becoming known as an expert on local culture, schools and neighborhoods while showing genuine enthusiasm about them all.
Some real estate agents combine geographic farming with direct mail marketing in order to reach specific groups of home owners. For instance, they might send postcards with home sales data encouraging owners to contact them as agents – this approach, known as neighborhood farming, has long been employed by real estate professionals as an effective strategy – whether moving across town or across states! Selecting the ideal real estate agent is key when looking for your perfect home!
License Type
Like other industries, real estate has its own set of unique jargon that may prove puzzling for non-industry professionals. When considering a career in real estate, terms like real estate agent, Realtor and broker may seem interchangeable; each term actually has specific definitions that should be respected when choosing a career path and fulfilling client expectations.
Real estate agents are licensed professionals who provide real estate transactions for homebuyers and sellers alike. Utilizing knowledge of local markets, property values, negotiation tactics and negotiation techniques they assist their clients to successfully close sales for homes, commercial properties or land purchases.
Though there are various kinds of real estate agents, all must possess a license in order to legally conduct business. The type of license required depends on your state of residence as each has different licensing criteria.
Virginia requires real estate agents to complete 60 hours of pre-licensing courses before being eligible to be licensed, while in New York that number increases to 75 hours. Once licensed, real estate agents have the flexibility of either working independently or as part of a team at a brokerage.
Real estate brokers who have passed their brokerage exam are qualified to act as managers for other real estate agents or be independent and take on their own clients. Brokers must complete at least 45 hours of additional continuing education annually.
Brokers take an active approach to overseeing the buying and selling process, helping their clients locate a mortgage lender or guide them through home inspections. Furthermore, brokers ensure their clients follow all regulations and laws when it comes to purchasing properties.
A designated broker (sometimes known as principal broker ) is the owner of a real estate brokerage and responsible for hiring staff, setting sales goals and setting commissions. They must also ensure all real estate agents in their firm comply with state and federal laws.
Team
There are various kinds of real estate teams, each running differently. From small teams with only a few licensed agents and staff helping with administration to larger ones with multiple real estate agents and brokers as well as teams providing services like accounting, marketing, transaction support insurance or legal support – they all vary in how they function according to McKenna.
Start-up teams may be initiated by experienced agents looking to add new skills or expertise to their client roster. Other teams form organically when two agents working in highly competitive niches decide to collaborate or when agents in one office come together with the aim of expanding market share.
Real estate teams offer many advantages for both sellers and buyers, including having more resources to handle complex transactions with greater precision, providing more specialized attention, and keeping sales processes on schedule through coordinated task completion and scheduling inspections, open houses and closings.
As you make the decision between starting your own real estate team or going it alone, carefully assess both of your own strengths and weaknesses. If you’re newer agent, joining an established real estate team could provide invaluable experience as a foundation for building your career; but for agents already successful enough, going solo could offer more freedom and freedom while giving them time to focus on expanding their business.
No matter which real estate team you select, all members must possess a license from their state’s education and licensing requirements. Agents have legal obligations to act in their client’s best interest – acting in fiduciary capacity.
Real estate teams vary depending on their specialty and location, with traditional teams being the most common model. A team leader typically handles the listing side while team members focus on home buyer leads for homebuyer leads generated. There is typically an ongoing shared pool of home buyer leads with commission split that ranges between 60/40 or higher; or members could generate leads themselves and share in commission according to how much business each generates.