FAQs

Q?What is the difference between a real estate agent and a real estate broker?

A.

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.

Q?Why should I use a real estate salesperson?

A.

Real estate salesperson is more than just a “sales person.” They act on your behalf as your agent, providing you with advice and guidance and doing a job – helping you buy or sell a home. While it is true they get paid for what they do, so do other professions that provide advice, guidance, and have a service to sell –such as Certified Public Accountants and Attorneys. 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. If you’re selling a home, you gain access to the most buyers by being listed in the Multiple Listing Service. Only a licensed real estate agent who is a member of your local MLS can get you listed there – which then gets you automatically listed on some of the major real estate web sites. 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. The real estate agent is becoming more of a “guide” than a “salesperson” — your personal representative in buying or selling a home.

Q?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?

A.

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. 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.

Q?I looked at a property yesterday with a Realtor who quite obviously has no clue what he is doing. I really want to purchase that house, but don’t want the hassle of working with an agent who doesn’t know his business. Can I switch agents and still buy that house?

A.

If you want to purchase that property, the only ethical thing is to purchase it through that Realtor. Otherwise, you could set up potential conflicts between your previous agent and whatever new agent you may choose. You see, if your previous agent finds out you purchased the home with a new agent, he may want to claim all or a portion of you new agent’s commission. You may be able to resolve the issue by letting your current agent know you have doubts about their expertise and ask if a more experienced Realtor from his office can assist in the sale too. That is the only ethical way I can think of to handle your situation. One agent isn’t supposed to make an offer on a property you have already previewed with another agent. It happens, but it isn’t ethical without some sort of disclosure and agreement between the parties.

Q?What is a buyers agent, what does this specifically do for a buyer and who usually pays this “buyers agent”?

A.

On most transactions, there is usually a listing agent and a selling agent. The selling agent is sometimes referred to in media as the buyer’s agent, because he works on the buyer’s behalf and it easier than explaining each time that the “selling agent” is not the listing agent and is actually the buyer’s agent.

Q?I want to buy a home and approached two different real estate agents. One was very informative, handed us brochures, especially on the real estate law and the responsibility of the agent. The other was very informal, made a lot of gestures, and presented nothing in writing.

A.

Agents are all different in their style and how they deal with people. Some are formal and some are informal. That doesn’t necessarily have anything to do with their knowledge and ability. Go with who you like and who you trust.

Q?I agreed to buy a house and now I’ve changed my mind. How do I cancel?

A.

For the answer to this, you have to look at your contract. The contract is the legal agreement you have made with the seller. Most contracts have certain contingencies where a cancellation is acceptable. To cancel for reasons other than that, there are often consequences and such a decision should not be taken lightly. Keep in mind that while you have been preparing to close the transaction, the seller has taken his home off the market and may have entered his own contract to purchase a home. This can create a chain of sales and purchases, all depending on you to fulfill your obligation. If you do not fulfill the contract, your decision may affect many more people than just one seller. For the legal consequences of canceling a contract, you may have to consult an attorney.