Articles About Real Estate Broker

Consumer Guide to Selecting a Real Estate Professional

Buying or selling real estate - especially for the first time - needn't be the equivalent of unlocking a book with seven seals. That's the word from Uncle Sam, aka the United States Government, which recently published an informative pamphlet designed to guide the real estate novice through the red tape of inking a first-time real estate deal.

Written and published by the Federal Trade Commission, the U.S. Government's consumer watchdog agency, the booklet is surprisingly brief and to the point for a government document. The PDF document, which is titled "Selling Your Home? Tips for Selecting a Real Estate Professional", is a quick read at just four pages. Although brief, it still offers on point, useful information that can every first-time buyer or seller of property.

The pamphlet's primary focus is on educating the reader about the ins and outs of dealing with a real estate broker or agent. While the distinction between a broker and and agent may seem like a distinction without a difference to some, the FTC makes the point that it's still a distinction worth understanding.

Real estate brokers and real estate agents are both licensed professionals who assist sellers and prospective buyers of homes. Real estate agents, however, work under the supervision of a real estate broker. Commissions earned from the sale or purchase of real estate go to the real estate broker, who in turn pays the agent part of the commission.

Real estate brokers fall into two main categories.

Traditional, or full-service brokers, offer a complete palette of services that range from preparing a property for sale and recommending an asking price to advertising the home, setting up meetings and negotiating with prospective buyers, arranging home inspections, and handling the many details associated with closing the transaction.

Non-traditional, or discount brokers, offer many of the same services as their full-service counterparts, but do so on a so-called "a la carte" basis. To belabor the restaurant metaphor a bit more, you choose from a menu of services you want the broker to perform and pay accordingly, usually in the form of a flat fee or reduced commission rate.

An important point to remember is that the fewer services you choose, the more work you'll have to do on your own to sell your home or property. For example, if your choose a discount broker for the sole purpose of listing your home with your local Multiple Listing Service, or MLS, you'll have to handle things like advertising, open houses, negotiating with potential buyers, and closing the sale.

Of course, there's more to understanding the real estate game that being able to tell a real estate broker and agent apart. Here, too, "Selling Your Home? Tips for Selecting a Real Estate Professional" covers surprising ground in explaining some of the more critical aspects of interacting with a broker or agent. The booklet is particularly strong in its advice on finding and interviewing an agent, negotiating commissions and explaining the two basic kinds of listing contracts you can enter into with a real estate broker or agent. You can read the rest of the pamphlet at ftc-dot-gov-slash-credit.

Make sure you interview several real estate brokers or agents before deciding to list your home. To find a broker or agent, talk to friends or neighbors who have recently bought or sold homes or check your local or online yellow pages for a list of real estate professionals in your area.

Matthew Paolini is Citybook.com's communications manager for the Boise, ID online Yellow Pages division.

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