What is a real estate broker?
A real estate broker is a professional who acts as an intermediary between buyers and sellers in the real estate market.
Real estate brokers perform numerous functions in order to sell a property. From the moment a property is listed to the closing of the transaction, the broker works hard to achieve the best deal for both parties. The goal of brokers is to sell a property in the shortest time possible, at the best price and with the fewest inconveniences.
For real estate brokers to do their job effectively, it’s very important to consider several aspects such as: listing the property at a marketable price, designing an effective marketing plan, pre-qualifying prospective buyers, facilitating financing alternatives, signing the contract and closing the deal, among others.
Main functions of a real estate broker
List the property and put a price on it
Successful property sales occur when they are listed at a real and adequate price. It’s advisable to do an appraisal. When the owner is not aware of the value of his property, a professional broker can be of great help. They are trained to perform market studies and analyze the sale of similar properties that have recently been sold.
Design a strategic marketing plan
Professional brokers design an effective marketing plan exclusively for your property. Each property is unique and has attributes that differentiate it from the rest, so it requires a personalized strategy.
Pre-qualify buyer prospects
A very important aspect in the sale of a property is the prequalification of the prospects. Owners often don’t know how to rate clients and could waste valuable time showing the property to anyone. A real estate broker has the experience and knowledge to pre-qualify prospects and make sure the property is shown only to interesting and capable buyer prospects.
Another important function of the real estate broker is to guide and provide prospective buyers with alternatives for property financing. A broker interacts with bank executives on a daily basis so he can help streamline the process.
Prepare the contract
A licensed real estate broker can prepare purchase and sale contracts for both buyers and sellers.
Close the deal
A real estate broker will make sure to follow up with all parties involved to achieve the long-awaited closing. These are just a few of the parties involved: sellers, buyers, banks, appraisers, insurers, residents’ associations, property managers, and attorneys, among others. This follow-up is essential to close the sale or purchase of a property.
What’s the difference between a real estate agent and a real estate broker?
Although they can work in the same real estate company, their functions vary, since there are differences between the activities carried out by real estate agents and brokers.
Here are the main differences between a real estate agent and a real estate broker:
Same purpose, different functions
The main job of a real estate agent and broker is to generate income through real estate, either through the sale, rental or purchase of real estate or land. The difference is that a real estate agent will be in greater contact with potential clients. He/she will act as a filter to find the client who accepts the agreement and conditions.
On the other hand, the real estate broker will be in charge of analyzing the market to acquire land or real estate that can generate income for posterity.
Different relationship with the client
Another difference between a broker and a real estate agent lies in their interaction with the client. The real estate agent is the first person the client comes in contact with. He provides clients with reports, offers proposals according to what the client requests and takes care of closing the deal.
On the other hand, the real estate broker is in contact with clients who wish to sell a property. The broker only agrees to acquire properties that represent a favorable investment, based on the capital gain of the area, state of the property and the legal situation of the property.
Services they provide
Real estate brokers generally have more experience and knowledge than real estate agents, due to their ability to detect business opportunities. Furthermore, a real estate broker may own or be associated with more than one real estate agency, for which it can offer its services.
In contrast, the real estate agent focuses its efforts on interacting with clients, from the moment of providing reports, approaching them with proposals for rent or sale of real estate and advising them about the area they seek to live in. Their work is more focused on public relations.
Different areas of expertise
As we have already mentioned, a real estate broker can own or collaborate with more than one real estate agency, to which it will offer its services and knowledge, which will be used to carry out procedures, investments and real estate operations.
On the other hand, a real estate agent guides potential clients and leverages his knowledge and experience to focus on sales, venturing into development areas such as real estate marketing, public relations, social media, among others.
Work routine for a real estate agent
There are many professionals in the business who think that real estate brokers don’t have an established work routine because they don’t have fixed working hours and their field of activity generally happens outside the real estate brokerage firm.
The work routine of this professional consists of knowing how to manage his portfolio of clients and real estate, since they will have to be in contact with clients with different profiles and different real estate needs on a daily basis. Their meetings can take place in the property in which the client is interested, in a sales stand, in an office, in the client’s own house or even in a public place such as a cafe or restaurant.
How to choose a real estate broker
Choosing the best real estate broker is crucial to sell your property at the right price quickly. Here are some important aspects that you should consider when choosing your real estate broker:
When setting the price for your property, professional real estate brokers or agents must respect and adapt to the needs and interests of their clients. If your interest as a homeowner is to sell the property as soon as possible, then a good option is to price the house slightly below the market price.
On the other hand, if you’re interested in making high profits and you’re in no rush to sell, then you can start with a higher bid and wait for some good deals. All in all, it’s best to evaluate and analyze the broker’s proposal to sell your property, and then choose the most appropriate proposal according to your needs.
5 traps to avoid when selling your property
Fees and commissions
Traditional real estate brokers typically charge a 3 to 10% commission based on the terms of sale. Different brokers offer different conditions when it comes to fees and commissions, so make sure to analyze this information to pick the offer that best fits your needs.
Owners generally can’t show their properties during office hours because they are busy working, so it’s important to talk to your real estate broker regarding their availability.
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Benefits of working with a real estate broker
They know the market like nobody else
Someone who works in the industry will always have privileged knowledge. A real estate broker has his own list of potential clients and is aware of the prices that are shuffled in the market. He will study your property from top to bottom, pamper it and then be able to present it to future interested parties as if it were his.
They know how to distinguish the good from the bad
Remember that you will no longer have to receive phone calls at all hours. A real estate broker will be at your disposal to act as a filter. He will serve as a shield to avoid potential buyers who are not reliable and want to rip you off. Professional brokers will answer the phone to decide if a client meets the essential requirements to acquire or rent your home.
Collaborate with other professionals
The broker works side by side with other professionals in the sector. If you want your property to have maximum visibility, a real estate professional will offer a showcase that is visible to everyone. An expert usually has connections that will allow your property to go as far as possible to land potential buyers.
Sales in record time
If you do not want the “for sale” or “for rent” sign to remain on your balcony until the ink fades, we recommend that you hire a real estate broker. Another benefit that you will enjoy is the short time it takes for brokers to close the deal. Did you know that Équipe Tardif has an average sales time of 28 days?
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They handle paperwork seamlessly
When they hear the word paperwork, most people freak out. Nobody wants to take over that part of the job. Well, no one except the real estate broker, of course. Real estate brokers are in charge of drawing up the contract of sale or rental and taking care of the procedures related to the notary’s office or the property registry.