What is the difference between a real estate agent and a real estate broker?
Most states require real estate sales professionals to be licensed by the state, so that they can control education and experience requirements and have a central authority to resolve consumer problems.
The terminology used to identify real estate professionals varies a little from state to state. Brokers are generally required to have more education and experience than real estate salespersons or agents.
The person you normally deal with is a real estate agent or salesperson. The salesperson is licensed by the state, but must work for a broker. All listings are placed in the broker’s name, not the salesperson’s.
A broker can deal directly with home buyers and sellers, or can have a staff of salespersons or agents working for him or her.
Why should I work with a Realtor?
A Realtor is more than just a “sales person.” They are professional members of the National Association of Realtors.They act on your behalf as your agent, providing you advice, guidance and objective information about each property.
The Internet has opened up a world of information that wasn’t previously available to homebuyers and seller. The data on listings available for sale is almost current – but not quite. There are times when you need the most current information about what has sold or is for sale, and the only way to get that is with an agent. Once you find the property you like, the Realtor will have the negotiation knowledge and will start crafting a purchase agreement that allows enough time for you to complete inspections of the property before you are bound to complete the purchase. A Realtor will guide you every step of the way. Having a concerned, but objective, third party helps you stay focused on the issues most important to you.
If you’re selling a home, you gain access to the most buyers by being listed in the Multiple Listing Service. Only a licensed Realtor who is a member of your local MLS can get you listed there. If you’re buying or selling a home, the MLS is your agent’s best tool.
However, the role of an agent has changed in the last couple of years. In the past, agents were the only way home buyers and sellers could access information. Now agents are evolving. Because today’s home buyers and sellers are so much better informed than in the past, expertise and ability are becoming more important. Laws and regulations change and your Realtor will always be up to date on the changes.
The real estate agent is becoming more of a “guide” than a “salesperson” — your personal representative in buying or selling a home.
I have a family friend who is a Realtor. I like her and she is a help but she gives me one price to sell my home for and I think it is too low. So I called another agent who suggested a price more in line with my expectations. Who do I choose?
You might want to consult a couple more Realtors on the market value of your home. Most of the estimates should be in the same ballpark.
It could be that your friend is being more honest with you about the value of your home and the other Realtor gave you a higher number because he already knew you expected it. This is called “Buying a Listing” and is the subject of an article on our web site.
Or it could simply be that your friend is a good friend, but not that great of a real estate agent.
Mixing business and friendships is always risky to the friendship. On the other hand, if your friend is truly competent and was providing wise advice, she may be offended if you ignore the advice and choose another agent.
New Homes vs. Existing Homes
Up front costs for new homes are generally higher; on average, you pay more for a new home versus an existing home. Insurance an a new home is in general lower, no renovations or repairs are needed, more energy efficient windows, better insulation and smart appliances, usb outlets, open floorplans. If you buy the house before construction, you have the advantage of choosing your own floorplan, style of the kitchen, flooring etc.
Existing homes have the advantage that the location is usually in an established neighborhood. Schools, stores, doctors etc are typically established in the area. Lot sizes are in general larger, so the houses will have more distance between each house. Mature trees and greenery is another advantage. If your budget allows for an existing home, be aware of maintenance down the line. An older house may be lower in price, but chances are that you will have to budget more for repairs, replacements or even renovations.
When buying a new home, what upgrades should we go for?
When buying a new home and deciding on upgrades keep in mind that the most value is in the kitchen, bathrooms and flooring. If your budget allows you than choose solid counter tops in your kitchen as they not only add value but are more durable. With solid we mean granite, corian or quartz. Same for the counter tops in the bathrooms, and for eventual resale you might consider a double vanity in the master bathroom with a separate bath tub and shower. These days a lot of people like less carpet in their homes because a solid flooring choice is more durable and easier to clean. When you choose your lot, make sure you consider the size of your Family, even if you have no children, the future might and than you want a bigger yard for the kids to play in. Or you would like a pool or an extended garage or even space for a she shed. Of course the size of the house and number of bedrooms holds the same criteria. That said, Real Estate is only a good investment if you plan on maintaining or improve the property.
.