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 they can control their education and experience requirements and have a central authority to solve consumer problems. The terminology used to describe real estate professionals differs slightly from state to state. Brokers are often required to have more education and experience than real estate salespeople or agents. Your normal contact person 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 name of the agent, not the name of the salesperson. A broker may deal directly with home buyers and sellers or may have a staff of salespeople or agents working for them.
Why should I use a real estate salesperson?
A real estate salesperson is more than just a salesperson. They act on your behalf as your agent, provide you with advice and guidance, and run a business – helping you buy or sell a home. While it is true that they get paid for what they do, there are other professions that provide advice, guidance and have a service to sell – such as Chartered Accountants and Lawyers.
The Internet has opened up a world of information previously unavailable to home buyers and sellers. The data on the listings for sale is almost up-to-date – but not quite. There are times when you need the most up-to-date information on what is for sale or is for sale, and an agent is the only way to get it.
If you are selling a home, you will gain access to most buyers by being listed on the Multiple Listing Service. Only a licensed real estate agent who is a member of your local MLS can list you there – which will automatically list you on some of the major real estate websites. If you are buying or selling a home, MLS is your agent's best tool.
However, the role of an agent has changed over the past few years. In the past, agents were the only way for home buyers and sellers to access information. Agents are evolving now. As today's home buyers and sellers are much more knowledgeable than in the past, expertise and talent are becoming more important.
The real estate agent becomes more of a “guide” than a “salesperson” – your personal representative when buying or selling a home.
I have a family friend who is a realtor. I like him and he helps me but he gives me one price to sell my house and I think that's too low. So I called another agent who offered a better price to my expectations. Who will I choose?
You may want to consult a few more Realtors about the market value of your home. Most of the guesses must be on the same playing court.
Your friend may be more honest with you about the value of your home, and the other Realtor may have given you a higher figure because they already know what to expect. This is called “Listing Purchase” and is the subject of an article on our website.
Or your friend may be a good friend but not a very good real estate agent.
Mixing business and friendships is always risky for friendship. On the other hand, if your friend is truly competent and gives wise advice, they may be offended if you ignore the advice and choose another representative.
I have to choose between an updated home in an older neighborhood or a newer home in a more modern neighborhood. The old quarter house has almost everything I want and is much bigger, but which one makes more sense as an investment?
If your goal is to buy a house for resale price and the house you are considering buying in the old neighborhood is above the values of that neighborhood, then this may not be a wise choice. If it's similar or lower in price, it shouldn't be a problem because pricing should be considered in relation to the local neighborhood, not in comparison to homes in other neighborhoods (mostly).
Plus, is it a neighborhood in decline, or will others fix things so it's a thriving neighborhood? It can be a very good deal as long as you don't "overpay" due to recent developments.
Remember that you, too, are buying a home that has value to you as a “home,” and that is another thing to consider. In which neighborhood would you and your family feel most comfortable?
When buying a new home, what upgrades should we go for? What holds the most value? Are we raising the track? Choosing more square footage at home? Add an extra bedroom?, etc.
A lot depends on why you bought the house. Are you buying more as a home or as an investment? There is a difference.
For the most part, upgrades are highly profitable items for builders. They are not designed to increase the value of the home, but they will make you happier with the home you buy.
If you're treating your home as an investment, you'll buy smaller to mid-size on site and spend only a minimal amount on upgrades. If you are treating your purchase as a home, you choose upgrades that will improve your quality of life.
A rule of thumb is to always upgrade the carpet and padding.
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