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FAQs about Real Estate Agents
What is the difference between a realtor, a real estate agent, and a real estate broker?
- A realtor is a member of the national association of realtors
- A real estate agent is anyone who has taken and passed the coursework required by their state
- The definition of broker varies by state. Some states denote brokers as those who have taken extra coursework and licensure and are approved to manage real estate agents, while other states such as Colorado have the broker designation for all agents.
Who pays for real estate agent fees?
- As of August 17, 2024, homebuyers may have to pay their own real estate agent fees separately from the seller. This is the result of a settlement agreement between the National Association of Realtors (NAR) and other parties. The agreement includes the following changes that are important for you to know:
- Listing agents: No longer specify how much the buyer's agent will be paid
- Buyer-agent compensation: Not allowed in listings on Multiple Listing Services
- Contracts: Buyers must sign a contract with their agent before touring any potential homes
- Sellers: Can choose to offer compensation to the buyer's brokers
Why do I need an agent?
- Real estate agents are experts in their field, and can help you negotiate the purchase of your home. There is an added benefits when agents invest themselves, as they have personal experience in REI.
- And not just the actual price, but they will help you navigate the many steps involved in the purchase process
- You are not legally required to use a real estate agent to help you buy or sell your home, but transactions involving agents typically sell faster
What changed with the latest NAR Settlement?
- If buyers have to pay for their agent's representation, they can pay upfront with the down payment and closing costs, or roll it into the mortgage. Be sure to talk to your agent about this.
- Click here to get the facts https://www.nar.realtor/the-facts
Advice from the BiggerPockets community
"If you want an agent to help you identify residential properties suitable as investments, be sure to find agents who themselves are experienced investors (either as landlords, flippers, or developers).”
Mitch Messer, Investor in Atlanta
BiggerPockets Member
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