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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?
- Real estate agent fees are traditionally paid for by the seller
- Make sure you discuss this with your agent just in case
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
How do realtor fees work?
- Traditionally, the seller pays a commission to the listing agent, and the listing agent then splits it with the agent representing the buyer
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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Electronics engineer, Investor
“The benefit of working with realtors in BiggerPockets is that they are investors themselves. They understand the language. They know what to look for in a deal. They give you on-the-ground information that a google search or website can't provide. I don’t think I’ll be successful in any of my deals without their help. I’ll forever be grateful to BiggerPockets and these great guys.”
Instrumental in getting my first deal
Owee Nicolas
IT Professional, Father, Bassist, Investor
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