Common Mistakes to Avoid When Selling Your House Quickly

Common Mistakes to Avoid When Selling Your House Quickly

Essential Tips for Selling Your San Diego Home Quickly

What is the Best Way to Sell My House Fast in San Diego? .

Curb Appeal and Staging

First impressions are crucial, especially when selling your San Diego home quickly. Enhance your home's curb appeal by ensuring the lawn is mowed, hedges are trimmed, and the exterior looks well-maintained. Inside, consider staging your home to make it more appealing to potential buyers. This involves decluttering spaces and arranging furniture in a way that makes rooms look spacious and inviting.

Pricing Strategically

Setting the right price for your home can make all the difference. Overpricing may deter potential buyers while underpricing could leave money on the table. To find a sweet spot, consult with local real estate agents or brokers who have an intimate knowledge of San Diego's housing market. They can provide you with a comparative market analysis (CMA) to help you set a competitive price.

Professional Photography

High-quality photos can significantly boost interest in your property listing. Hire a professional photographer who specializes in real estate to capture your home's best features. Good lighting and angles can highlight unique aspects of your house and make it stand out from other listings online.

Marketing Your Home

Effective marketing strategies go beyond simply listing your home on multiple platforms. Utilize social media channels, create virtual tours, and even consider print advertisements in local newspapers or magazines specific to San Diego neighborhoods. Collaborate with your real estate agent or broker to develop a comprehensive marketing plan aimed at attracting serious buyers quickly.

Flexibility with Showings

Being flexible with showings can speed up the selling process considerably. Potential buyers often have tight schedules, so being available for evening or weekend appointments can increase foot traffic through your home. The more people view it, the faster you're likely to receive offers.

To put it short: Selling your San Diego home quickly requires attention to detail—from enhancing curb appeal to effective marketing strategies and flexible showing times—all aimed at making sure you attract serious buyers fastly and efficiently.

What is real estate agent

A real estate agent is a person who acts as an intermediary between sellers and buyers of real estate, earning a commission for their services. An agent typically works under the supervision of a licensed broker to represent clients in negotiating sales agreements and managing the necessary documentation for closing real estate transactions. They are licensed by the state to ensure they can legally perform these duties. While brokers may operate independently, agents generally must be affiliated with a broker. The agent's primary role is to facilitate the buying or selling process, ensuring all legal requirements are met and assisting in achieving favorable terms for their clients.














Lawn signs advertising houses for sale

Real estate agents and real estate brokers are people who represents sellers or buyers of real estate or real property. While a broker may work independently, an agent usually works under a licensed broker to represent clients.[1] Brokers and agents are licensed by the state to negotiate sales agreements and manage the documentation required for closing real estate transactions. Buyers and sellers are generally advised to consult a licensed real estate professional for a written definition of an individual state's laws of agency.



Categories of representation


[edit]

A real estate broker typically receives a real estate commission for successfully completing a sale. Across the U.S, this commission can generally range between 5-6% of the property's sale price for a full-service broker but this percentage varies by state and even region.[2]


Real estate licensing and education


[edit]

In most jurisdictions in the United States, a person must have a license to perform licensed activities, and these activities are defined within the statutes of each state. The main feature of the requirement for having a license to perform those activities is the work done "for compensation". Hence, hypothetically, if a person wants to help a friend out in either selling or buying a property, and no compensation of any kind is expected in return, then a license is not needed to perform all the work. However, since most people would expect to be compensated for their efforts and skills, a license would be required by law before a person may receive remuneration for services rendered as a real estate broker or agent. Unlicensed activity is illegal and the state real estate commission has the authority to fine people who are acting as real estate licensees, but buyers and sellers acting as principals in the sale or purchase of real estate are usually not required to be licensed. It is important to note that in some states, lawyers handle real estate sales for compensation without being licensed as brokers or agents. However, even lawyers can only perform real estate activities that are incidental to their original work as a lawyer. It cannot be the case that a lawyer can become a seller's selling agent if that is all the service that is being requested by the client. Lawyers would still need to be licensed as a broker if they wish to perform licensed activities. Nevertheless, lawyers do get a break in the minimum education requirements (for example, 90 hours in Illinois).[3]

Some other states have recently eliminated the salesperson's license, instead, all licensees in those states automatically earn their broker's license.

The term "agent" is not to be confused with salesperson or broker. An agent is simply a licensee that has entered into an agency relationship with a client. A broker can also be an agent for a client. It is commonly the firm that has the actual legal relationship with the client through one of their sales staff, be they salespersons or brokers.

In all states, the real estate licensee must disclose to prospective buyers and sellers the nature of their relationship [4]


Specific representation laws


[edit]

Some U.S. state real estate commissions – notably Florida's[5] after 1992 (and extended in 2003) and Colorado's[6] after 1994 (with changes in 2003) created the option of having no agency or fiduciary relationship between brokers and sellers or buyers.

As noted by the South Broward Board of Realtors, Inc. in a letter to State of Florida legislative committees:




"The Transaction Broker crafts a transaction by bringing a willing buyer and a willing seller together and provides the legal documentation of the details of the legal agreement between the same. The Transaction Broker is not a fiduciary of any party, but must abide by the law as well as professional and ethical standards." (such as NAR Code of Ethics).


The result was that, in 2003, Florida created a system where the default brokerage relationship had "all licensees ... operating as transaction brokers, unless a single agent or no brokerage relationship is established, in writing, with the customer"[7][8] and the statute required written disclosure of the transaction brokerage relationship to the buyer or seller customer only through July 1, 2008.

In the case of both Florida[8] and Colorado,[6] dual agency and sub-agency (where both listing and selling agents represent the seller) no longer exist.

Other brokers and agents may focus on representing buyers or tenants in a real estate transaction. However, licensing as a broker or salesperson authorizes the licensee to legally represent parties on either side of a transaction and providing the necessary documentation for the legal transfer of real property. This business decision is for the licensee to decide. They are fines for people acting as real estate agents when not licensed by the state.

In the United Kingdom, an estate agent is a person or business entity whose business is to market real estate on behalf of clients. There are significant differences between the actions, powers, obligations, and liabilities of brokers and estate agents in each country, as different countries take markedly different approaches to the marketing and selling of real property.


The difference between salespersons and brokers


[edit]

Before the Multiple Listing Service (MLS) was introduced in 1967, when brokers (and their licensees) only represented sellers by providing a service to provide legal documentation on the transfer real property, the term "real estate salesperson" may have been more appropriate than it is today, given the various ways that brokers and licensees now help buyers through the legal process of transferring real property. Legally, however, the term "salesperson" is still used in many states to describe a real estate licensee.[citation needed]


Real estate broker (or, in some states, qualifying broker)


[edit]

After gaining some years of experience in real estate sales, a salesperson may decide to become licensed as a real estate broker (or Principal/qualifying broker) in order to own, manage, or operate their own brokerage. In addition, some states allow college graduates to apply for a broker's license without years of experience. College graduates fall into this category once they have completed the state-required courses as well. California allows licensed attorneys to become brokers upon passing the broker exam without having to take the requisite courses required of an agent. Commonly more coursework and a broker's state exam on real estate law must be passed. Upon obtaining a broker's license, a real estate agent may continue to work for another broker in a similar capacity as before (often referred to as a broker associate or associate broker) or take charge of their own brokerage and hire other salespersons (or broker), licensees. Becoming a branch office manager may or may not require a broker's license. Some states allow licensed attorneys to become real estate brokers without taking any exam. In some states, there are no "salespeople" as all licensees are brokers.[9]


Types of services that a broker can provide


[edit]

Real Estate Services are also called trading services [10]


Real estate brokers and sellers


[edit]


Flat-fee real estate agents


[edit]

Flat-fee real estate agents charge a seller of a property a flat fee, $500 for example,[11] as opposed to a traditional or full-service real estate agent who charges a percentage of the sale price. In exchange, the seller's property will appear in the multiple listing service (MLS), but the seller will represent him or herself when showing the property and negotiating a sales price.[11] The result is the seller pays less commission overall (roughly half) when the property sells.[11] This is because a seller will pay a percentage of the sales price to a buyer's agent but not have to pay a percentage to a seller's agent (because there isn't one; the seller is representing himself).


Brokerage commissions


[edit]

In consideration of the brokerage successfully finding a buyer for the property, a broker anticipates receiving a commission for the services the brokerage has provided. Usually, the payment of a commission to the brokerage is contingent upon finding a buyer for the real estate, the successful negotiation of a purchase contract between the buyer and seller, or the settlement of the transaction and the exchange of money between buyer and seller. Under common law, a real estate broker is eligible to receive their commission, regardless of whether the sale actually takes place, once they secure a buyer who is ready, willing, and able to purchase the dwelling.[12]

Economist Steven D. Levitt famously argued in his 2005 book Freakonomics that real estate brokers have an inherent conflict of interest with the sellers they represent because their commission gives them more motivation to sell quickly than to sell at a higher price. Levitt supported his argument with a study finding brokers tend to put their own houses on the market for longer and receive higher prices for them compared to when working for their clients. He concluded that broker commissions will reduce in future.[13] A 2008 study by other economists found that when comparing brokerage without listing services, brokerage significantly reduced the average sale price.[14]


RESPA


[edit]

Real estate brokers who work with lenders can not receive any compensation from the lender for referring a residential client to a specific lender. To do so would be a violation of a United States federal law known as the Real Estate Settlement Procedures Act (RESPA). RESPA ensures that buyers and sellers are given adequate notice of the Real Estate settlement process.[15]


Realtor


[edit]

In the United States, the term realtor is trademarked by the National Association of Realtors, which uses it to refer to its active members, who may be real estate agents or brokers.[16][17][18] In Canada, the trademark is used by members of the Canadian Real Estate Association.[19] Both organizations advise against the use of realtor as a generic synonym for real estate agent.[19]


Continuing education


[edit]

States issue licenses for an annual or multi-year period and require real estate agents and brokers to complete continuing education prior to renewing their licenses. For example, California licensees must complete 45 hours of continuing education every 4 years in topics such as agency, trust fund handling, consumer protection, fair housing, ethics, and risk management.[20]


Organizations


[edit]

Several notable groups exist to promote the real estate industry and to assist professionals.


  • The National Association of Realtors (NAR)

    • The Realtor Political Action Committee (RPAC) is the lobbying arm of the NAR.



  • The National Association of Real Estate Brokers (NAREB)

  • The Real Estate Institute of Canada (REIC)[21][22]

  • The Real Estate Roundtable[23]

  • Building Owners and Managers Association focusing on commercial property


See also


[edit]




  • Buyer brokerage

  • Closing (real estate)

  • Estate (land)

  • Exclusive buyer agent

  • Flat-fee MLS

  • Home inspection

  • Index of real estate articles

  • Investment rating for real estate

  • Listing contract

  • Mortgage broker

  • Property manager

  • Real estate contract

  • Real estate development

  • Real estate investing

  • Real estate settlement company

  • Strata management



References


[edit]




  1. ^

    "Real Estate Professionals Explained: Agent, Broker, REALTOR". Real Estate News and Advice | Realtor.com. 2014-03-10. Retrieved 2018-12-27.

  2. ^ "How Much Is Real Estate Agent Commission?". Bankrate. Retrieved 2018-12-20.

  3. ^ "FAQs". www.illinoisrealtors.org. Illinois Realtors. Retrieved August 16, 2018.

  4. ^ "Realtor Code of Ethics - Disclosure" (PDF). Real Estate Association Standards of Business Practice.

  5. ^ "Statutes & Constitution :View Statutes : Online Sunshine". Leg.state.fl.us. Retrieved 2014-02-10.

  6. ^ a b "Outline of types of representation available in Colorado, including Transaction Brokerage" (PDF). Dora.state.co.us. Retrieved 2014-02-10.

  7. ^ Evans, Blanche (2 July 2003). "Florida Implements Default Transactikn Brokerage Statute". realtytimes.com/. Realty Times. Retrieved 2 February 2014.

  8. ^ a b The 2007 Florida Statutes. Chapter 475 Real Estate Brokers — Part I; Real Estate Brokers, Sales Associates, and Schools (ss. 475.001-475.5018), Section 475.278 Authorized brokerage relationships; presumption of transaction brokerage; required disclosures (1) Brokerage Relationships: (a) Authorized brokerage relationships. — A real estate licensee in this state may enter into a brokerage relationship as either a transaction broker or as a single agent with potential buyers and sellers. A real estate licensee may not operate as a disclosed or non-disclosed dual agent ... (b)Presumption of transaction brokerage. — It shall be presumed that all licensees are operating as transaction brokers unless a single agent or no brokerage relationship is established, in writing, with a customer."

  9. ^ "Real Estate Broker's License: Examination and Licensing Application Requirements". New Mexico Administrative Code. State of New Mexico Commission of Public Records. 21 January 2021.

  10. ^ "Real Estate Laws Website". BC Real Estate Laws - Pat 1 Trading Services.

  11. ^ a b c Quigley, John M. (2000). "A Decent Home: Housing Policy in Perspective". Brookings-Wharton Papers on Urban Affairs. 2000 (1): 53–88. CiteSeerX 10.1.1.369.6806. doi:10.1353/urb.2000.0011. ISSN 1533-4449. S2CID 154714417.

  12. ^ "Getting a Brokerage Commission Paid | New York Law Journal".

  13. ^ Daniel Gross (20 February 2005). "Why a Real Estate Agent May Skip the Extra Mile". The New York Times. Archived from the original on 29 May 2015.

  14. ^ B. Douglas Bernheim; Jonathan Meer (13 January 2012). "Do Real Estate Brokers Add Value When Listing Services Are Unbundled?". The National Bureau of Economic Research. Working Paper Series. doi:10.3386/w13796. Retrieved 3 September 2016.

  15. ^ "CFPB consumer laws and regulations RESPA" (PDF). Consumer Financial Protection Bureau. Retrieved 13 October 2021.

  16. ^ Buch, Clarissa (20 April 2023). "What Is a Realtor? A Member of the National Association of Realtors". Realtor.com. National Association of Realtors. Retrieved 17 June 2023.

  17. ^ "Understanding the Difference Between a Realtor and a Real Estate Agent". The CE Shop. Retrieved 19 June 2023.

  18. ^ Colestock, Stephanie (August 13, 2021). "Realtor vs. real estate agent: What's the difference?". Fox Business. Retrieved 20 June 2023.

  19. ^ a b "Using the REALTOR® Trademark in Advertisements - CREA". 12 November 2020.

  20. ^ "Continuing Education Requirements". Ca.gov. California Department of Real Estate. Retrieved 26 June 2023.

  21. ^ "Professional Recognition of our Programs". Real Estate Division at Sauder, UBC. January 8, 2019.

  22. ^ "Real Estate Institute of Canada (REIC)". Thomson Reuters Canada Limited. Retrieved 8 January 2019.

  23. ^ "Lobbying Spending Database: National Assn of Realtors : 2007". Retrieved 2008-10-25.




[edit]


  • Media related to Real estate agents at Wikimedia Commons

































How to Choose the Right Real Estate Agent in San Diego

Choosing the right real estate agent in San Diego can make a world of difference when you want to sell your house fast. The first thing to consider is their experience and local knowledge. An agent who knows the San Diego market inside and out can provide invaluable insights into pricing, staging, and marketing strategies that work best in the area. It's not just about years in business; look for someone with a proven track record of quick sales.

Client Testimonials

Next up, don't underestimate the power of client testimonials. Reviews from previous clients can offer an unfiltered view into what it's like working with a particular agent. Look for agents who are consistently praised for their communication skills, negotiation tactics, and overall effectiveness. In some cases, word-of-mouth recommendations from friends or family can also be incredibly useful.

Availability

Another important factor is availability. Selling your home quickly means you need an agent who is readily available to show your property to potential buyers at any time. Ask prospective agents how many clients they are currently representing and whether they have enough time to dedicate to your sale.

Commission Rates

One aspect that sellers often overlook initially is commission rates. While it might be tempting to go with an agent offering lower fees, remember that higher commissions sometimes correlate with better service and faster results. Make sure you understand what services are included in their fee so there’s no surprises later on.

As a round up, choosing the right real estate agent involves more than just picking someone off a list. It's about finding an experienced professional who understands the local market, comes highly recommended by past clients, has ample time for your needs, and charges reasonable fees for their services. Getting these factors right will help ensure you sell your house fast in San Diego.

What is real estate agent

A real estate agent is a person who acts as an intermediary between sellers and buyers of real estate, earning a commission for their services. An agent typically works under the supervision of a licensed broker to represent clients in negotiating sales agreements and managing the necessary documentation for closing real estate transactions. They are licensed by the state to ensure they can legally perform these duties. While brokers may operate independently, agents generally must be affiliated with a broker. The agent's primary role is to facilitate the buying or selling process, ensuring all legal requirements are met and assisting in achieving favorable terms for their clients.














Lawn signs advertising houses for sale

Real estate agents and real estate brokers are people who represents sellers or buyers of real estate or real property. While a broker may work independently, an agent usually works under a licensed broker to represent clients.[1] Brokers and agents are licensed by the state to negotiate sales agreements and manage the documentation required for closing real estate transactions. Buyers and sellers are generally advised to consult a licensed real estate professional for a written definition of an individual state's laws of agency.



Categories of representation


[edit]

A real estate broker typically receives a real estate commission for successfully completing a sale. Across the U.S, this commission can generally range between 5-6% of the property's sale price for a full-service broker but this percentage varies by state and even region.[2]


Real estate licensing and education


[edit]

In most jurisdictions in the United States, a person must have a license to perform licensed activities, and these activities are defined within the statutes of each state. The main feature of the requirement for having a license to perform those activities is the work done "for compensation". Hence, hypothetically, if a person wants to help a friend out in either selling or buying a property, and no compensation of any kind is expected in return, then a license is not needed to perform all the work. However, since most people would expect to be compensated for their efforts and skills, a license would be required by law before a person may receive remuneration for services rendered as a real estate broker or agent. Unlicensed activity is illegal and the state real estate commission has the authority to fine people who are acting as real estate licensees, but buyers and sellers acting as principals in the sale or purchase of real estate are usually not required to be licensed. It is important to note that in some states, lawyers handle real estate sales for compensation without being licensed as brokers or agents. However, even lawyers can only perform real estate activities that are incidental to their original work as a lawyer. It cannot be the case that a lawyer can become a seller's selling agent if that is all the service that is being requested by the client. Lawyers would still need to be licensed as a broker if they wish to perform licensed activities. Nevertheless, lawyers do get a break in the minimum education requirements (for example, 90 hours in Illinois).[3]

Some other states have recently eliminated the salesperson's license, instead, all licensees in those states automatically earn their broker's license.

The term "agent" is not to be confused with salesperson or broker. An agent is simply a licensee that has entered into an agency relationship with a client. A broker can also be an agent for a client. It is commonly the firm that has the actual legal relationship with the client through one of their sales staff, be they salespersons or brokers.

In all states, the real estate licensee must disclose to prospective buyers and sellers the nature of their relationship [4]


Specific representation laws


[edit]

Some U.S. state real estate commissions – notably Florida's[5] after 1992 (and extended in 2003) and Colorado's[6] after 1994 (with changes in 2003) created the option of having no agency or fiduciary relationship between brokers and sellers or buyers.

As noted by the South Broward Board of Realtors, Inc. in a letter to State of Florida legislative committees:




"The Transaction Broker crafts a transaction by bringing a willing buyer and a willing seller together and provides the legal documentation of the details of the legal agreement between the same. The Transaction Broker is not a fiduciary of any party, but must abide by the law as well as professional and ethical standards." (such as NAR Code of Ethics).


The result was that, in 2003, Florida created a system where the default brokerage relationship had "all licensees ... operating as transaction brokers, unless a single agent or no brokerage relationship is established, in writing, with the customer"[7][8] and the statute required written disclosure of the transaction brokerage relationship to the buyer or seller customer only through July 1, 2008.

In the case of both Florida[8] and Colorado,[6] dual agency and sub-agency (where both listing and selling agents represent the seller) no longer exist.

Other brokers and agents may focus on representing buyers or tenants in a real estate transaction. However, licensing as a broker or salesperson authorizes the licensee to legally represent parties on either side of a transaction and providing the necessary documentation for the legal transfer of real property. This business decision is for the licensee to decide. They are fines for people acting as real estate agents when not licensed by the state.

In the United Kingdom, an estate agent is a person or business entity whose business is to market real estate on behalf of clients. There are significant differences between the actions, powers, obligations, and liabilities of brokers and estate agents in each country, as different countries take markedly different approaches to the marketing and selling of real property.


The difference between salespersons and brokers


[edit]

Before the Multiple Listing Service (MLS) was introduced in 1967, when brokers (and their licensees) only represented sellers by providing a service to provide legal documentation on the transfer real property, the term "real estate salesperson" may have been more appropriate than it is today, given the various ways that brokers and licensees now help buyers through the legal process of transferring real property. Legally, however, the term "salesperson" is still used in many states to describe a real estate licensee.[citation needed]


Real estate broker (or, in some states, qualifying broker)


[edit]

After gaining some years of experience in real estate sales, a salesperson may decide to become licensed as a real estate broker (or Principal/qualifying broker) in order to own, manage, or operate their own brokerage. In addition, some states allow college graduates to apply for a broker's license without years of experience. College graduates fall into this category once they have completed the state-required courses as well. California allows licensed attorneys to become brokers upon passing the broker exam without having to take the requisite courses required of an agent. Commonly more coursework and a broker's state exam on real estate law must be passed. Upon obtaining a broker's license, a real estate agent may continue to work for another broker in a similar capacity as before (often referred to as a broker associate or associate broker) or take charge of their own brokerage and hire other salespersons (or broker), licensees. Becoming a branch office manager may or may not require a broker's license. Some states allow licensed attorneys to become real estate brokers without taking any exam. In some states, there are no "salespeople" as all licensees are brokers.[9]


Types of services that a broker can provide


[edit]

Real Estate Services are also called trading services [10]


Real estate brokers and sellers


[edit]


Flat-fee real estate agents


[edit]

Flat-fee real estate agents charge a seller of a property a flat fee, $500 for example,[11] as opposed to a traditional or full-service real estate agent who charges a percentage of the sale price. In exchange, the seller's property will appear in the multiple listing service (MLS), but the seller will represent him or herself when showing the property and negotiating a sales price.[11] The result is the seller pays less commission overall (roughly half) when the property sells.[11] This is because a seller will pay a percentage of the sales price to a buyer's agent but not have to pay a percentage to a seller's agent (because there isn't one; the seller is representing himself).


Brokerage commissions


[edit]

In consideration of the brokerage successfully finding a buyer for the property, a broker anticipates receiving a commission for the services the brokerage has provided. Usually, the payment of a commission to the brokerage is contingent upon finding a buyer for the real estate, the successful negotiation of a purchase contract between the buyer and seller, or the settlement of the transaction and the exchange of money between buyer and seller. Under common law, a real estate broker is eligible to receive their commission, regardless of whether the sale actually takes place, once they secure a buyer who is ready, willing, and able to purchase the dwelling.[12]

Economist Steven D. Levitt famously argued in his 2005 book Freakonomics that real estate brokers have an inherent conflict of interest with the sellers they represent because their commission gives them more motivation to sell quickly than to sell at a higher price. Levitt supported his argument with a study finding brokers tend to put their own houses on the market for longer and receive higher prices for them compared to when working for their clients. He concluded that broker commissions will reduce in future.[13] A 2008 study by other economists found that when comparing brokerage without listing services, brokerage significantly reduced the average sale price.[14]


RESPA


[edit]

Real estate brokers who work with lenders can not receive any compensation from the lender for referring a residential client to a specific lender. To do so would be a violation of a United States federal law known as the Real Estate Settlement Procedures Act (RESPA). RESPA ensures that buyers and sellers are given adequate notice of the Real Estate settlement process.[15]


Realtor


[edit]

In the United States, the term realtor is trademarked by the National Association of Realtors, which uses it to refer to its active members, who may be real estate agents or brokers.[16][17][18] In Canada, the trademark is used by members of the Canadian Real Estate Association.[19] Both organizations advise against the use of realtor as a generic synonym for real estate agent.[19]


Continuing education


[edit]

States issue licenses for an annual or multi-year period and require real estate agents and brokers to complete continuing education prior to renewing their licenses. For example, California licensees must complete 45 hours of continuing education every 4 years in topics such as agency, trust fund handling, consumer protection, fair housing, ethics, and risk management.[20]


Organizations


[edit]

Several notable groups exist to promote the real estate industry and to assist professionals.


  • The National Association of Realtors (NAR)

    • The Realtor Political Action Committee (RPAC) is the lobbying arm of the NAR.



  • The National Association of Real Estate Brokers (NAREB)

  • The Real Estate Institute of Canada (REIC)[21][22]

  • The Real Estate Roundtable[23]

  • Building Owners and Managers Association focusing on commercial property


See also


[edit]




  • Buyer brokerage

  • Closing (real estate)

  • Estate (land)

  • Exclusive buyer agent

  • Flat-fee MLS

  • Home inspection

  • Index of real estate articles

  • Investment rating for real estate

  • Listing contract

  • Mortgage broker

  • Property manager

  • Real estate contract

  • Real estate development

  • Real estate investing

  • Real estate settlement company

  • Strata management



References


[edit]




  1. ^

    "Real Estate Professionals Explained: Agent, Broker, REALTOR". Real Estate News and Advice | Realtor.com. 2014-03-10. Retrieved 2018-12-27.

  2. ^ "How Much Is Real Estate Agent Commission?". Bankrate. Retrieved 2018-12-20.

  3. ^ "FAQs". www.illinoisrealtors.org. Illinois Realtors. Retrieved August 16, 2018.

  4. ^ "Realtor Code of Ethics - Disclosure" (PDF). Real Estate Association Standards of Business Practice.

  5. ^ "Statutes & Constitution :View Statutes : Online Sunshine". Leg.state.fl.us. Retrieved 2014-02-10.

  6. ^ a b "Outline of types of representation available in Colorado, including Transaction Brokerage" (PDF). Dora.state.co.us. Retrieved 2014-02-10.

  7. ^ Evans, Blanche (2 July 2003). "Florida Implements Default Transactikn Brokerage Statute". realtytimes.com/. Realty Times. Retrieved 2 February 2014.

  8. ^ a b The 2007 Florida Statutes. Chapter 475 Real Estate Brokers — Part I; Real Estate Brokers, Sales Associates, and Schools (ss. 475.001-475.5018), Section 475.278 Authorized brokerage relationships; presumption of transaction brokerage; required disclosures (1) Brokerage Relationships: (a) Authorized brokerage relationships. — A real estate licensee in this state may enter into a brokerage relationship as either a transaction broker or as a single agent with potential buyers and sellers. A real estate licensee may not operate as a disclosed or non-disclosed dual agent ... (b)Presumption of transaction brokerage. — It shall be presumed that all licensees are operating as transaction brokers unless a single agent or no brokerage relationship is established, in writing, with a customer."

  9. ^ "Real Estate Broker's License: Examination and Licensing Application Requirements". New Mexico Administrative Code. State of New Mexico Commission of Public Records. 21 January 2021.

  10. ^ "Real Estate Laws Website". BC Real Estate Laws - Pat 1 Trading Services.

  11. ^ a b c Quigley, John M. (2000). "A Decent Home: Housing Policy in Perspective". Brookings-Wharton Papers on Urban Affairs. 2000 (1): 53–88. CiteSeerX 10.1.1.369.6806. doi:10.1353/urb.2000.0011. ISSN 1533-4449. S2CID 154714417.

  12. ^ "Getting a Brokerage Commission Paid | New York Law Journal".

  13. ^ Daniel Gross (20 February 2005). "Why a Real Estate Agent May Skip the Extra Mile". The New York Times. Archived from the original on 29 May 2015.

  14. ^ B. Douglas Bernheim; Jonathan Meer (13 January 2012). "Do Real Estate Brokers Add Value When Listing Services Are Unbundled?". The National Bureau of Economic Research. Working Paper Series. doi:10.3386/w13796. Retrieved 3 September 2016.

  15. ^ "CFPB consumer laws and regulations RESPA" (PDF). Consumer Financial Protection Bureau. Retrieved 13 October 2021.

  16. ^ Buch, Clarissa (20 April 2023). "What Is a Realtor? A Member of the National Association of Realtors". Realtor.com. National Association of Realtors. Retrieved 17 June 2023.

  17. ^ "Understanding the Difference Between a Realtor and a Real Estate Agent". The CE Shop. Retrieved 19 June 2023.

  18. ^ Colestock, Stephanie (August 13, 2021). "Realtor vs. real estate agent: What's the difference?". Fox Business. Retrieved 20 June 2023.

  19. ^ a b "Using the REALTOR® Trademark in Advertisements - CREA". 12 November 2020.

  20. ^ "Continuing Education Requirements". Ca.gov. California Department of Real Estate. Retrieved 26 June 2023.

  21. ^ "Professional Recognition of our Programs". Real Estate Division at Sauder, UBC. January 8, 2019.

  22. ^ "Real Estate Institute of Canada (REIC)". Thomson Reuters Canada Limited. Retrieved 8 January 2019.

  23. ^ "Lobbying Spending Database: National Assn of Realtors : 2007". Retrieved 2008-10-25.




[edit]


  • Media related to Real estate agents at Wikimedia Commons

































The Benefits of Using a Real Estate Broker to Sell Your House

Expertise and Market Knowledge

Selling a house in San Diego can be a complex process, but using a real estate broker can simplify it significantly. Brokers possess extensive knowledge of the local market, ensuring that your property is priced competitively. They understand the intricacies of neighborhood trends, buyer behavior, and pricing strategies. This expertise allows them to set a price that's not too high to scare off potential buyers, but also not too low to leave money on the table.

Marketing Strategies

A real estate broker has access to advanced marketing tools that are essential for selling your home quickly. From professional photoshoots and virtual tours to listing your property on multiple platforms, brokers ensure maximum visibility. Their established network of contacts and relationships with other agents means they can spread the word about your property far more effectively than you could on your own.

Negotiation Skills

When offers start coming in, having a skilled negotiator on your side can make all the difference. Real estate brokers are trained in negotiation tactics and know how to handle various types of buyers—from those looking for bargains to serious contenders ready to purchase at market value or higher. They work tirelessly to get you the best possible deal while managing any contingencies that may arise during negotiations.

Simplified Paperwork

Real estate transactions involve a ton of paperwork—contracts, disclosures, inspection reports, and closing documents, just to name a few. A licensed broker will manage all these details for you, ensuring everything is completed correctly and on time. This reduces stress and minimizes the risk of legal issues down the line by making sure all state laws are followed properly.

To put it shot: Using a real estate broker when selling your house in San Diego offers numerous advantages that can expedite the process while maximizing profit. From expert market knowledge and robust marketing strategies to adept negotiation skills and meticulous handling of paperwork—brokers provide invaluable support every step of the way.

What is real estate agent

A real estate agent is a person who acts as an intermediary between sellers and buyers of real estate, earning a commission for their services. An agent typically works under the supervision of a licensed broker to represent clients in negotiating sales agreements and managing the necessary documentation for closing real estate transactions. They are licensed by the state to ensure they can legally perform these duties. While brokers may operate independently, agents generally must be affiliated with a broker. The agent's primary role is to facilitate the buying or selling process, ensuring all legal requirements are met and assisting in achieving favorable terms for their clients.














Lawn signs advertising houses for sale

Real estate agents and real estate brokers are people who represents sellers or buyers of real estate or real property. While a broker may work independently, an agent usually works under a licensed broker to represent clients.[1] Brokers and agents are licensed by the state to negotiate sales agreements and manage the documentation required for closing real estate transactions. Buyers and sellers are generally advised to consult a licensed real estate professional for a written definition of an individual state's laws of agency.



Categories of representation


[edit]

A real estate broker typically receives a real estate commission for successfully completing a sale. Across the U.S, this commission can generally range between 5-6% of the property's sale price for a full-service broker but this percentage varies by state and even region.[2]


Real estate licensing and education


[edit]

In most jurisdictions in the United States, a person must have a license to perform licensed activities, and these activities are defined within the statutes of each state. The main feature of the requirement for having a license to perform those activities is the work done "for compensation". Hence, hypothetically, if a person wants to help a friend out in either selling or buying a property, and no compensation of any kind is expected in return, then a license is not needed to perform all the work. However, since most people would expect to be compensated for their efforts and skills, a license would be required by law before a person may receive remuneration for services rendered as a real estate broker or agent. Unlicensed activity is illegal and the state real estate commission has the authority to fine people who are acting as real estate licensees, but buyers and sellers acting as principals in the sale or purchase of real estate are usually not required to be licensed. It is important to note that in some states, lawyers handle real estate sales for compensation without being licensed as brokers or agents. However, even lawyers can only perform real estate activities that are incidental to their original work as a lawyer. It cannot be the case that a lawyer can become a seller's selling agent if that is all the service that is being requested by the client. Lawyers would still need to be licensed as a broker if they wish to perform licensed activities. Nevertheless, lawyers do get a break in the minimum education requirements (for example, 90 hours in Illinois).[3]

Some other states have recently eliminated the salesperson's license, instead, all licensees in those states automatically earn their broker's license.

The term "agent" is not to be confused with salesperson or broker. An agent is simply a licensee that has entered into an agency relationship with a client. A broker can also be an agent for a client. It is commonly the firm that has the actual legal relationship with the client through one of their sales staff, be they salespersons or brokers.

In all states, the real estate licensee must disclose to prospective buyers and sellers the nature of their relationship [4]


Specific representation laws


[edit]

Some U.S. state real estate commissions – notably Florida's[5] after 1992 (and extended in 2003) and Colorado's[6] after 1994 (with changes in 2003) created the option of having no agency or fiduciary relationship between brokers and sellers or buyers.

As noted by the South Broward Board of Realtors, Inc. in a letter to State of Florida legislative committees:




"The Transaction Broker crafts a transaction by bringing a willing buyer and a willing seller together and provides the legal documentation of the details of the legal agreement between the same. The Transaction Broker is not a fiduciary of any party, but must abide by the law as well as professional and ethical standards." (such as NAR Code of Ethics).


The result was that, in 2003, Florida created a system where the default brokerage relationship had "all licensees ... operating as transaction brokers, unless a single agent or no brokerage relationship is established, in writing, with the customer"[7][8] and the statute required written disclosure of the transaction brokerage relationship to the buyer or seller customer only through July 1, 2008.

In the case of both Florida[8] and Colorado,[6] dual agency and sub-agency (where both listing and selling agents represent the seller) no longer exist.

Other brokers and agents may focus on representing buyers or tenants in a real estate transaction. However, licensing as a broker or salesperson authorizes the licensee to legally represent parties on either side of a transaction and providing the necessary documentation for the legal transfer of real property. This business decision is for the licensee to decide. They are fines for people acting as real estate agents when not licensed by the state.

In the United Kingdom, an estate agent is a person or business entity whose business is to market real estate on behalf of clients. There are significant differences between the actions, powers, obligations, and liabilities of brokers and estate agents in each country, as different countries take markedly different approaches to the marketing and selling of real property.


The difference between salespersons and brokers


[edit]

Before the Multiple Listing Service (MLS) was introduced in 1967, when brokers (and their licensees) only represented sellers by providing a service to provide legal documentation on the transfer real property, the term "real estate salesperson" may have been more appropriate than it is today, given the various ways that brokers and licensees now help buyers through the legal process of transferring real property. Legally, however, the term "salesperson" is still used in many states to describe a real estate licensee.[citation needed]


Real estate broker (or, in some states, qualifying broker)


[edit]

After gaining some years of experience in real estate sales, a salesperson may decide to become licensed as a real estate broker (or Principal/qualifying broker) in order to own, manage, or operate their own brokerage. In addition, some states allow college graduates to apply for a broker's license without years of experience. College graduates fall into this category once they have completed the state-required courses as well. California allows licensed attorneys to become brokers upon passing the broker exam without having to take the requisite courses required of an agent. Commonly more coursework and a broker's state exam on real estate law must be passed. Upon obtaining a broker's license, a real estate agent may continue to work for another broker in a similar capacity as before (often referred to as a broker associate or associate broker) or take charge of their own brokerage and hire other salespersons (or broker), licensees. Becoming a branch office manager may or may not require a broker's license. Some states allow licensed attorneys to become real estate brokers without taking any exam. In some states, there are no "salespeople" as all licensees are brokers.[9]


Types of services that a broker can provide


[edit]

Real Estate Services are also called trading services [10]


Real estate brokers and sellers


[edit]


Flat-fee real estate agents


[edit]

Flat-fee real estate agents charge a seller of a property a flat fee, $500 for example,[11] as opposed to a traditional or full-service real estate agent who charges a percentage of the sale price. In exchange, the seller's property will appear in the multiple listing service (MLS), but the seller will represent him or herself when showing the property and negotiating a sales price.[11] The result is the seller pays less commission overall (roughly half) when the property sells.[11] This is because a seller will pay a percentage of the sales price to a buyer's agent but not have to pay a percentage to a seller's agent (because there isn't one; the seller is representing himself).


Brokerage commissions


[edit]

In consideration of the brokerage successfully finding a buyer for the property, a broker anticipates receiving a commission for the services the brokerage has provided. Usually, the payment of a commission to the brokerage is contingent upon finding a buyer for the real estate, the successful negotiation of a purchase contract between the buyer and seller, or the settlement of the transaction and the exchange of money between buyer and seller. Under common law, a real estate broker is eligible to receive their commission, regardless of whether the sale actually takes place, once they secure a buyer who is ready, willing, and able to purchase the dwelling.[12]

Economist Steven D. Levitt famously argued in his 2005 book Freakonomics that real estate brokers have an inherent conflict of interest with the sellers they represent because their commission gives them more motivation to sell quickly than to sell at a higher price. Levitt supported his argument with a study finding brokers tend to put their own houses on the market for longer and receive higher prices for them compared to when working for their clients. He concluded that broker commissions will reduce in future.[13] A 2008 study by other economists found that when comparing brokerage without listing services, brokerage significantly reduced the average sale price.[14]


RESPA


[edit]

Real estate brokers who work with lenders can not receive any compensation from the lender for referring a residential client to a specific lender. To do so would be a violation of a United States federal law known as the Real Estate Settlement Procedures Act (RESPA). RESPA ensures that buyers and sellers are given adequate notice of the Real Estate settlement process.[15]


Realtor


[edit]

In the United States, the term realtor is trademarked by the National Association of Realtors, which uses it to refer to its active members, who may be real estate agents or brokers.[16][17][18] In Canada, the trademark is used by members of the Canadian Real Estate Association.[19] Both organizations advise against the use of realtor as a generic synonym for real estate agent.[19]


Continuing education


[edit]

States issue licenses for an annual or multi-year period and require real estate agents and brokers to complete continuing education prior to renewing their licenses. For example, California licensees must complete 45 hours of continuing education every 4 years in topics such as agency, trust fund handling, consumer protection, fair housing, ethics, and risk management.[20]


Organizations


[edit]

Several notable groups exist to promote the real estate industry and to assist professionals.


  • The National Association of Realtors (NAR)

    • The Realtor Political Action Committee (RPAC) is the lobbying arm of the NAR.



  • The National Association of Real Estate Brokers (NAREB)

  • The Real Estate Institute of Canada (REIC)[21][22]

  • The Real Estate Roundtable[23]

  • Building Owners and Managers Association focusing on commercial property


See also


[edit]




  • Buyer brokerage

  • Closing (real estate)

  • Estate (land)

  • Exclusive buyer agent

  • Flat-fee MLS

  • Home inspection

  • Index of real estate articles

  • Investment rating for real estate

  • Listing contract

  • Mortgage broker

  • Property manager

  • Real estate contract

  • Real estate development

  • Real estate investing

  • Real estate settlement company

  • Strata management



References


[edit]




  1. ^

    "Real Estate Professionals Explained: Agent, Broker, REALTOR". Real Estate News and Advice | Realtor.com. 2014-03-10. Retrieved 2018-12-27.

  2. ^ "How Much Is Real Estate Agent Commission?". Bankrate. Retrieved 2018-12-20.

  3. ^ "FAQs". www.illinoisrealtors.org. Illinois Realtors. Retrieved August 16, 2018.

  4. ^ "Realtor Code of Ethics - Disclosure" (PDF). Real Estate Association Standards of Business Practice.

  5. ^ "Statutes & Constitution :View Statutes : Online Sunshine". Leg.state.fl.us. Retrieved 2014-02-10.

  6. ^ a b "Outline of types of representation available in Colorado, including Transaction Brokerage" (PDF). Dora.state.co.us. Retrieved 2014-02-10.

  7. ^ Evans, Blanche (2 July 2003). "Florida Implements Default Transactikn Brokerage Statute". realtytimes.com/. Realty Times. Retrieved 2 February 2014.

  8. ^ a b The 2007 Florida Statutes. Chapter 475 Real Estate Brokers — Part I; Real Estate Brokers, Sales Associates, and Schools (ss. 475.001-475.5018), Section 475.278 Authorized brokerage relationships; presumption of transaction brokerage; required disclosures (1) Brokerage Relationships: (a) Authorized brokerage relationships. — A real estate licensee in this state may enter into a brokerage relationship as either a transaction broker or as a single agent with potential buyers and sellers. A real estate licensee may not operate as a disclosed or non-disclosed dual agent ... (b)Presumption of transaction brokerage. — It shall be presumed that all licensees are operating as transaction brokers unless a single agent or no brokerage relationship is established, in writing, with a customer."

  9. ^ "Real Estate Broker's License: Examination and Licensing Application Requirements". New Mexico Administrative Code. State of New Mexico Commission of Public Records. 21 January 2021.

  10. ^ "Real Estate Laws Website". BC Real Estate Laws - Pat 1 Trading Services.

  11. ^ a b c Quigley, John M. (2000). "A Decent Home: Housing Policy in Perspective". Brookings-Wharton Papers on Urban Affairs. 2000 (1): 53–88. CiteSeerX 10.1.1.369.6806. doi:10.1353/urb.2000.0011. ISSN 1533-4449. S2CID 154714417.

  12. ^ "Getting a Brokerage Commission Paid | New York Law Journal".

  13. ^ Daniel Gross (20 February 2005). "Why a Real Estate Agent May Skip the Extra Mile". The New York Times. Archived from the original on 29 May 2015.

  14. ^ B. Douglas Bernheim; Jonathan Meer (13 January 2012). "Do Real Estate Brokers Add Value When Listing Services Are Unbundled?". The National Bureau of Economic Research. Working Paper Series. doi:10.3386/w13796. Retrieved 3 September 2016.

  15. ^ "CFPB consumer laws and regulations RESPA" (PDF). Consumer Financial Protection Bureau. Retrieved 13 October 2021.

  16. ^ Buch, Clarissa (20 April 2023). "What Is a Realtor? A Member of the National Association of Realtors". Realtor.com. National Association of Realtors. Retrieved 17 June 2023.

  17. ^ "Understanding the Difference Between a Realtor and a Real Estate Agent". The CE Shop. Retrieved 19 June 2023.

  18. ^ Colestock, Stephanie (August 13, 2021). "Realtor vs. real estate agent: What's the difference?". Fox Business. Retrieved 20 June 2023.

  19. ^ a b "Using the REALTOR® Trademark in Advertisements - CREA". 12 November 2020.

  20. ^ "Continuing Education Requirements". Ca.gov. California Department of Real Estate. Retrieved 26 June 2023.

  21. ^ "Professional Recognition of our Programs". Real Estate Division at Sauder, UBC. January 8, 2019.

  22. ^ "Real Estate Institute of Canada (REIC)". Thomson Reuters Canada Limited. Retrieved 8 January 2019.

  23. ^ "Lobbying Spending Database: National Assn of Realtors : 2007". Retrieved 2008-10-25.




[edit]


  • Media related to Real estate agents at Wikimedia Commons

































Top Mistakes to Avoid When Selling Your San Diego Property

Overpricing Your Property

One of the biggest missteps sellers make is overpricing their property. While it may be tempting to list your home at a high price to see what you can get, this strategy often backfires. Buyers and real estate agents alike tend to avoid overpriced listings, leading to prolonged market time. The longer a house sits unsold, the more likely potential buyers are to suspect something is wrong with it. In San Diego's competitive market, it's essential to price your home correctly from the start.

Neglecting Necessary Repairs

Another common mistake is neglecting necessary repairs before putting your house on the market. Even small issues like peeling paint or leaky faucets can turn off prospective buyers. A well-maintained home not only attracts more interest but also gives you leverage during negotiations. If buyers see that they need to invest additional money for repairs, they might offer less than your asking price or look elsewhere entirely.

Poor Marketing Strategy

Simply listing your property isn't enough; you need an effective marketing strategy to attract potential buyers quickly. Relying solely on traditional methods like yard signs and newspaper ads won't cut it in today's digital age (without using generic phrases). High-quality photos, virtual tours, and engaging descriptions are crucial for making a strong first impression online. Additionally, consider hiring a professional stager to showcase your home's best features.

Ignoring Professional Advice

Too many sellers think they can go it alone without consulting real estate professionals, which can be a costly mistake. Real estate agents and brokers have extensive knowledge about local market trends and pricing strategies that can help sell your home faster and at a better price point. They also handle complex paperwork and negotiations efficiently, reducing stress for you as the seller.

To put it short: Avoid these common pitfalls when selling your San Diego property by setting a realistic price, making necessary repairs, implementing an effective marketing strategy, and leveraging professional advice from licensed real estate agents or brokers.

What is real estate agent

A real estate agent is a person who acts as an intermediary between sellers and buyers of real estate, earning a commission for their services. An agent typically works under the supervision of a licensed broker to represent clients in negotiating sales agreements and managing the necessary documentation for closing real estate transactions. They are licensed by the state to ensure they can legally perform these duties. While brokers may operate independently, agents generally must be affiliated with a broker. The agent's primary role is to facilitate the buying or selling process, ensuring all legal requirements are met and assisting in achieving favorable terms for their clients.














Lawn signs advertising houses for sale

Real estate agents and real estate brokers are people who represents sellers or buyers of real estate or real property. While a broker may work independently, an agent usually works under a licensed broker to represent clients.[1] Brokers and agents are licensed by the state to negotiate sales agreements and manage the documentation required for closing real estate transactions. Buyers and sellers are generally advised to consult a licensed real estate professional for a written definition of an individual state's laws of agency.



Categories of representation


[edit]

A real estate broker typically receives a real estate commission for successfully completing a sale. Across the U.S, this commission can generally range between 5-6% of the property's sale price for a full-service broker but this percentage varies by state and even region.[2]


Real estate licensing and education


[edit]

In most jurisdictions in the United States, a person must have a license to perform licensed activities, and these activities are defined within the statutes of each state. The main feature of the requirement for having a license to perform those activities is the work done "for compensation". Hence, hypothetically, if a person wants to help a friend out in either selling or buying a property, and no compensation of any kind is expected in return, then a license is not needed to perform all the work. However, since most people would expect to be compensated for their efforts and skills, a license would be required by law before a person may receive remuneration for services rendered as a real estate broker or agent. Unlicensed activity is illegal and the state real estate commission has the authority to fine people who are acting as real estate licensees, but buyers and sellers acting as principals in the sale or purchase of real estate are usually not required to be licensed. It is important to note that in some states, lawyers handle real estate sales for compensation without being licensed as brokers or agents. However, even lawyers can only perform real estate activities that are incidental to their original work as a lawyer. It cannot be the case that a lawyer can become a seller's selling agent if that is all the service that is being requested by the client. Lawyers would still need to be licensed as a broker if they wish to perform licensed activities. Nevertheless, lawyers do get a break in the minimum education requirements (for example, 90 hours in Illinois).[3]

Some other states have recently eliminated the salesperson's license, instead, all licensees in those states automatically earn their broker's license.

The term "agent" is not to be confused with salesperson or broker. An agent is simply a licensee that has entered into an agency relationship with a client. A broker can also be an agent for a client. It is commonly the firm that has the actual legal relationship with the client through one of their sales staff, be they salespersons or brokers.

In all states, the real estate licensee must disclose to prospective buyers and sellers the nature of their relationship [4]


Specific representation laws


[edit]

Some U.S. state real estate commissions – notably Florida's[5] after 1992 (and extended in 2003) and Colorado's[6] after 1994 (with changes in 2003) created the option of having no agency or fiduciary relationship between brokers and sellers or buyers.

As noted by the South Broward Board of Realtors, Inc. in a letter to State of Florida legislative committees:




"The Transaction Broker crafts a transaction by bringing a willing buyer and a willing seller together and provides the legal documentation of the details of the legal agreement between the same. The Transaction Broker is not a fiduciary of any party, but must abide by the law as well as professional and ethical standards." (such as NAR Code of Ethics).


The result was that, in 2003, Florida created a system where the default brokerage relationship had "all licensees ... operating as transaction brokers, unless a single agent or no brokerage relationship is established, in writing, with the customer"[7][8] and the statute required written disclosure of the transaction brokerage relationship to the buyer or seller customer only through July 1, 2008.

In the case of both Florida[8] and Colorado,[6] dual agency and sub-agency (where both listing and selling agents represent the seller) no longer exist.

Other brokers and agents may focus on representing buyers or tenants in a real estate transaction. However, licensing as a broker or salesperson authorizes the licensee to legally represent parties on either side of a transaction and providing the necessary documentation for the legal transfer of real property. This business decision is for the licensee to decide. They are fines for people acting as real estate agents when not licensed by the state.

In the United Kingdom, an estate agent is a person or business entity whose business is to market real estate on behalf of clients. There are significant differences between the actions, powers, obligations, and liabilities of brokers and estate agents in each country, as different countries take markedly different approaches to the marketing and selling of real property.


The difference between salespersons and brokers


[edit]

Before the Multiple Listing Service (MLS) was introduced in 1967, when brokers (and their licensees) only represented sellers by providing a service to provide legal documentation on the transfer real property, the term "real estate salesperson" may have been more appropriate than it is today, given the various ways that brokers and licensees now help buyers through the legal process of transferring real property. Legally, however, the term "salesperson" is still used in many states to describe a real estate licensee.[citation needed]


Real estate broker (or, in some states, qualifying broker)


[edit]

After gaining some years of experience in real estate sales, a salesperson may decide to become licensed as a real estate broker (or Principal/qualifying broker) in order to own, manage, or operate their own brokerage. In addition, some states allow college graduates to apply for a broker's license without years of experience. College graduates fall into this category once they have completed the state-required courses as well. California allows licensed attorneys to become brokers upon passing the broker exam without having to take the requisite courses required of an agent. Commonly more coursework and a broker's state exam on real estate law must be passed. Upon obtaining a broker's license, a real estate agent may continue to work for another broker in a similar capacity as before (often referred to as a broker associate or associate broker) or take charge of their own brokerage and hire other salespersons (or broker), licensees. Becoming a branch office manager may or may not require a broker's license. Some states allow licensed attorneys to become real estate brokers without taking any exam. In some states, there are no "salespeople" as all licensees are brokers.[9]


Types of services that a broker can provide


[edit]

Real Estate Services are also called trading services [10]


Real estate brokers and sellers


[edit]


Flat-fee real estate agents


[edit]

Flat-fee real estate agents charge a seller of a property a flat fee, $500 for example,[11] as opposed to a traditional or full-service real estate agent who charges a percentage of the sale price. In exchange, the seller's property will appear in the multiple listing service (MLS), but the seller will represent him or herself when showing the property and negotiating a sales price.[11] The result is the seller pays less commission overall (roughly half) when the property sells.[11] This is because a seller will pay a percentage of the sales price to a buyer's agent but not have to pay a percentage to a seller's agent (because there isn't one; the seller is representing himself).


Brokerage commissions


[edit]

In consideration of the brokerage successfully finding a buyer for the property, a broker anticipates receiving a commission for the services the brokerage has provided. Usually, the payment of a commission to the brokerage is contingent upon finding a buyer for the real estate, the successful negotiation of a purchase contract between the buyer and seller, or the settlement of the transaction and the exchange of money between buyer and seller. Under common law, a real estate broker is eligible to receive their commission, regardless of whether the sale actually takes place, once they secure a buyer who is ready, willing, and able to purchase the dwelling.[12]

Economist Steven D. Levitt famously argued in his 2005 book Freakonomics that real estate brokers have an inherent conflict of interest with the sellers they represent because their commission gives them more motivation to sell quickly than to sell at a higher price. Levitt supported his argument with a study finding brokers tend to put their own houses on the market for longer and receive higher prices for them compared to when working for their clients. He concluded that broker commissions will reduce in future.[13] A 2008 study by other economists found that when comparing brokerage without listing services, brokerage significantly reduced the average sale price.[14]


RESPA


[edit]

Real estate brokers who work with lenders can not receive any compensation from the lender for referring a residential client to a specific lender. To do so would be a violation of a United States federal law known as the Real Estate Settlement Procedures Act (RESPA). RESPA ensures that buyers and sellers are given adequate notice of the Real Estate settlement process.[15]


Realtor


[edit]

In the United States, the term realtor is trademarked by the National Association of Realtors, which uses it to refer to its active members, who may be real estate agents or brokers.[16][17][18] In Canada, the trademark is used by members of the Canadian Real Estate Association.[19] Both organizations advise against the use of realtor as a generic synonym for real estate agent.[19]


Continuing education


[edit]

States issue licenses for an annual or multi-year period and require real estate agents and brokers to complete continuing education prior to renewing their licenses. For example, California licensees must complete 45 hours of continuing education every 4 years in topics such as agency, trust fund handling, consumer protection, fair housing, ethics, and risk management.[20]


Organizations


[edit]

Several notable groups exist to promote the real estate industry and to assist professionals.


  • The National Association of Realtors (NAR)

    • The Realtor Political Action Committee (RPAC) is the lobbying arm of the NAR.



  • The National Association of Real Estate Brokers (NAREB)

  • The Real Estate Institute of Canada (REIC)[21][22]

  • The Real Estate Roundtable[23]

  • Building Owners and Managers Association focusing on commercial property


See also


[edit]




  • Buyer brokerage

  • Closing (real estate)

  • Estate (land)

  • Exclusive buyer agent

  • Flat-fee MLS

  • Home inspection

  • Index of real estate articles

  • Investment rating for real estate

  • Listing contract

  • Mortgage broker

  • Property manager

  • Real estate contract

  • Real estate development

  • Real estate investing

  • Real estate settlement company

  • Strata management



References


[edit]




  1. ^

    "Real Estate Professionals Explained: Agent, Broker, REALTOR". Real Estate News and Advice | Realtor.com. 2014-03-10. Retrieved 2018-12-27.

  2. ^ "How Much Is Real Estate Agent Commission?". Bankrate. Retrieved 2018-12-20.

  3. ^ "FAQs". www.illinoisrealtors.org. Illinois Realtors. Retrieved August 16, 2018.

  4. ^ "Realtor Code of Ethics - Disclosure" (PDF). Real Estate Association Standards of Business Practice.

  5. ^ "Statutes & Constitution :View Statutes : Online Sunshine". Leg.state.fl.us. Retrieved 2014-02-10.

  6. ^ a b "Outline of types of representation available in Colorado, including Transaction Brokerage" (PDF). Dora.state.co.us. Retrieved 2014-02-10.

  7. ^ Evans, Blanche (2 July 2003). "Florida Implements Default Transactikn Brokerage Statute". realtytimes.com/. Realty Times. Retrieved 2 February 2014.

  8. ^ a b The 2007 Florida Statutes. Chapter 475 Real Estate Brokers — Part I; Real Estate Brokers, Sales Associates, and Schools (ss. 475.001-475.5018), Section 475.278 Authorized brokerage relationships; presumption of transaction brokerage; required disclosures (1) Brokerage Relationships: (a) Authorized brokerage relationships. — A real estate licensee in this state may enter into a brokerage relationship as either a transaction broker or as a single agent with potential buyers and sellers. A real estate licensee may not operate as a disclosed or non-disclosed dual agent ... (b)Presumption of transaction brokerage. — It shall be presumed that all licensees are operating as transaction brokers unless a single agent or no brokerage relationship is established, in writing, with a customer."

  9. ^ "Real Estate Broker's License: Examination and Licensing Application Requirements". New Mexico Administrative Code. State of New Mexico Commission of Public Records. 21 January 2021.

  10. ^ "Real Estate Laws Website". BC Real Estate Laws - Pat 1 Trading Services.

  11. ^ a b c Quigley, John M. (2000). "A Decent Home: Housing Policy in Perspective". Brookings-Wharton Papers on Urban Affairs. 2000 (1): 53–88. CiteSeerX 10.1.1.369.6806. doi:10.1353/urb.2000.0011. ISSN 1533-4449. S2CID 154714417.

  12. ^ "Getting a Brokerage Commission Paid | New York Law Journal".

  13. ^ Daniel Gross (20 February 2005). "Why a Real Estate Agent May Skip the Extra Mile". The New York Times. Archived from the original on 29 May 2015.

  14. ^ B. Douglas Bernheim; Jonathan Meer (13 January 2012). "Do Real Estate Brokers Add Value When Listing Services Are Unbundled?". The National Bureau of Economic Research. Working Paper Series. doi:10.3386/w13796. Retrieved 3 September 2016.

  15. ^ "CFPB consumer laws and regulations RESPA" (PDF). Consumer Financial Protection Bureau. Retrieved 13 October 2021.

  16. ^ Buch, Clarissa (20 April 2023). "What Is a Realtor? A Member of the National Association of Realtors". Realtor.com. National Association of Realtors. Retrieved 17 June 2023.

  17. ^ "Understanding the Difference Between a Realtor and a Real Estate Agent". The CE Shop. Retrieved 19 June 2023.

  18. ^ Colestock, Stephanie (August 13, 2021). "Realtor vs. real estate agent: What's the difference?". Fox Business. Retrieved 20 June 2023.

  19. ^ a b "Using the REALTOR® Trademark in Advertisements - CREA". 12 November 2020.

  20. ^ "Continuing Education Requirements". Ca.gov. California Department of Real Estate. Retrieved 26 June 2023.

  21. ^ "Professional Recognition of our Programs". Real Estate Division at Sauder, UBC. January 8, 2019.

  22. ^ "Real Estate Institute of Canada (REIC)". Thomson Reuters Canada Limited. Retrieved 8 January 2019.

  23. ^ "Lobbying Spending Database: National Assn of Realtors : 2007". Retrieved 2008-10-25.




[edit]


  • Media related to Real estate agents at Wikimedia Commons

































Understanding the Role of a Real Estate Agent in San Diego

Expertise and Local Market Knowledge

Selling a house quickly in San Diego can be a intricate task, but a real estate agent's expertise simplifies the process. With extensive knowledge of the local market, they can provide accurate property valuations and identify potential buyers swiftly. This localized understanding enables them to market your house effectively, making it more appealing to prospective buyers. They also have access to multiple listing services (MLS) that broaden the reach of your property beyond traditional methods.

Negotiation Skills

Real estate agents are skilled negotiators who strive to get you the best price for your home. They understand the art of negotiation and can handle discussions with potential buyers professionally. Their goal is to ensure that sellers receive fair offers while also accommodating any reasonable demands from buyers. By leveraging their experience, agents help avoid common pitfalls that could delay or derail the sale.

Legalities and Documentation

Navigating through the legal aspects of selling a property can be daunting without professional assistance. Real estate agents manage all necessary documentation and ensure compliance with state laws governing property sales in San Diego. From drafting contracts to overseeing inspections and appraisals, they make sure every step adheres to legal requirements. This minimizes errors and reduces the risk of future disputes.

Marketing Strategies

Effective marketing is crucial when trying to sell your house fast in San Diego. Real estate agents employ diverse strategies such as online listings, social media campaigns, open houses, and professional photography to showcase your property's best features. Their marketing plans are designed not just to attract interest but also convert that interest into serious offers quickly.

As a round up, working with a real estate agent streamlines the selling process by combining their market knowledge, negotiation skills, legal expertise, and marketing prowess. In effect this means faster transactions with fewer complications for homeowners looking to sell their properties swiftly in San Diego

What is real estate agent

A real estate agent is a person who acts as an intermediary between sellers and buyers of real estate, earning a commission for their services. An agent typically works under the supervision of a licensed broker to represent clients in negotiating sales agreements and managing the necessary documentation for closing real estate transactions. They are licensed by the state to ensure they can legally perform these duties. While brokers may operate independently, agents generally must be affiliated with a broker. The agent's primary role is to facilitate the buying or selling process, ensuring all legal requirements are met and assisting in achieving favorable terms for their clients.














Lawn signs advertising houses for sale

Real estate agents and real estate brokers are people who represents sellers or buyers of real estate or real property. While a broker may work independently, an agent usually works under a licensed broker to represent clients.[1] Brokers and agents are licensed by the state to negotiate sales agreements and manage the documentation required for closing real estate transactions. Buyers and sellers are generally advised to consult a licensed real estate professional for a written definition of an individual state's laws of agency.



Categories of representation


[edit]

A real estate broker typically receives a real estate commission for successfully completing a sale. Across the U.S, this commission can generally range between 5-6% of the property's sale price for a full-service broker but this percentage varies by state and even region.[2]


Real estate licensing and education


[edit]

In most jurisdictions in the United States, a person must have a license to perform licensed activities, and these activities are defined within the statutes of each state. The main feature of the requirement for having a license to perform those activities is the work done "for compensation". Hence, hypothetically, if a person wants to help a friend out in either selling or buying a property, and no compensation of any kind is expected in return, then a license is not needed to perform all the work. However, since most people would expect to be compensated for their efforts and skills, a license would be required by law before a person may receive remuneration for services rendered as a real estate broker or agent. Unlicensed activity is illegal and the state real estate commission has the authority to fine people who are acting as real estate licensees, but buyers and sellers acting as principals in the sale or purchase of real estate are usually not required to be licensed. It is important to note that in some states, lawyers handle real estate sales for compensation without being licensed as brokers or agents. However, even lawyers can only perform real estate activities that are incidental to their original work as a lawyer. It cannot be the case that a lawyer can become a seller's selling agent if that is all the service that is being requested by the client. Lawyers would still need to be licensed as a broker if they wish to perform licensed activities. Nevertheless, lawyers do get a break in the minimum education requirements (for example, 90 hours in Illinois).[3]

Some other states have recently eliminated the salesperson's license, instead, all licensees in those states automatically earn their broker's license.

The term "agent" is not to be confused with salesperson or broker. An agent is simply a licensee that has entered into an agency relationship with a client. A broker can also be an agent for a client. It is commonly the firm that has the actual legal relationship with the client through one of their sales staff, be they salespersons or brokers.

In all states, the real estate licensee must disclose to prospective buyers and sellers the nature of their relationship [4]


Specific representation laws


[edit]

Some U.S. state real estate commissions – notably Florida's[5] after 1992 (and extended in 2003) and Colorado's[6] after 1994 (with changes in 2003) created the option of having no agency or fiduciary relationship between brokers and sellers or buyers.

As noted by the South Broward Board of Realtors, Inc. in a letter to State of Florida legislative committees:




"The Transaction Broker crafts a transaction by bringing a willing buyer and a willing seller together and provides the legal documentation of the details of the legal agreement between the same. The Transaction Broker is not a fiduciary of any party, but must abide by the law as well as professional and ethical standards." (such as NAR Code of Ethics).


The result was that, in 2003, Florida created a system where the default brokerage relationship had "all licensees ... operating as transaction brokers, unless a single agent or no brokerage relationship is established, in writing, with the customer"[7][8] and the statute required written disclosure of the transaction brokerage relationship to the buyer or seller customer only through July 1, 2008.

In the case of both Florida[8] and Colorado,[6] dual agency and sub-agency (where both listing and selling agents represent the seller) no longer exist.

Other brokers and agents may focus on representing buyers or tenants in a real estate transaction. However, licensing as a broker or salesperson authorizes the licensee to legally represent parties on either side of a transaction and providing the necessary documentation for the legal transfer of real property. This business decision is for the licensee to decide. They are fines for people acting as real estate agents when not licensed by the state.

In the United Kingdom, an estate agent is a person or business entity whose business is to market real estate on behalf of clients. There are significant differences between the actions, powers, obligations, and liabilities of brokers and estate agents in each country, as different countries take markedly different approaches to the marketing and selling of real property.


The difference between salespersons and brokers


[edit]

Before the Multiple Listing Service (MLS) was introduced in 1967, when brokers (and their licensees) only represented sellers by providing a service to provide legal documentation on the transfer real property, the term "real estate salesperson" may have been more appropriate than it is today, given the various ways that brokers and licensees now help buyers through the legal process of transferring real property. Legally, however, the term "salesperson" is still used in many states to describe a real estate licensee.[citation needed]


Real estate broker (or, in some states, qualifying broker)


[edit]

After gaining some years of experience in real estate sales, a salesperson may decide to become licensed as a real estate broker (or Principal/qualifying broker) in order to own, manage, or operate their own brokerage. In addition, some states allow college graduates to apply for a broker's license without years of experience. College graduates fall into this category once they have completed the state-required courses as well. California allows licensed attorneys to become brokers upon passing the broker exam without having to take the requisite courses required of an agent. Commonly more coursework and a broker's state exam on real estate law must be passed. Upon obtaining a broker's license, a real estate agent may continue to work for another broker in a similar capacity as before (often referred to as a broker associate or associate broker) or take charge of their own brokerage and hire other salespersons (or broker), licensees. Becoming a branch office manager may or may not require a broker's license. Some states allow licensed attorneys to become real estate brokers without taking any exam. In some states, there are no "salespeople" as all licensees are brokers.[9]


Types of services that a broker can provide


[edit]

Real Estate Services are also called trading services [10]


Real estate brokers and sellers


[edit]


Flat-fee real estate agents


[edit]

Flat-fee real estate agents charge a seller of a property a flat fee, $500 for example,[11] as opposed to a traditional or full-service real estate agent who charges a percentage of the sale price. In exchange, the seller's property will appear in the multiple listing service (MLS), but the seller will represent him or herself when showing the property and negotiating a sales price.[11] The result is the seller pays less commission overall (roughly half) when the property sells.[11] This is because a seller will pay a percentage of the sales price to a buyer's agent but not have to pay a percentage to a seller's agent (because there isn't one; the seller is representing himself).


Brokerage commissions


[edit]

In consideration of the brokerage successfully finding a buyer for the property, a broker anticipates receiving a commission for the services the brokerage has provided. Usually, the payment of a commission to the brokerage is contingent upon finding a buyer for the real estate, the successful negotiation of a purchase contract between the buyer and seller, or the settlement of the transaction and the exchange of money between buyer and seller. Under common law, a real estate broker is eligible to receive their commission, regardless of whether the sale actually takes place, once they secure a buyer who is ready, willing, and able to purchase the dwelling.[12]

Economist Steven D. Levitt famously argued in his 2005 book Freakonomics that real estate brokers have an inherent conflict of interest with the sellers they represent because their commission gives them more motivation to sell quickly than to sell at a higher price. Levitt supported his argument with a study finding brokers tend to put their own houses on the market for longer and receive higher prices for them compared to when working for their clients. He concluded that broker commissions will reduce in future.[13] A 2008 study by other economists found that when comparing brokerage without listing services, brokerage significantly reduced the average sale price.[14]


RESPA


[edit]

Real estate brokers who work with lenders can not receive any compensation from the lender for referring a residential client to a specific lender. To do so would be a violation of a United States federal law known as the Real Estate Settlement Procedures Act (RESPA). RESPA ensures that buyers and sellers are given adequate notice of the Real Estate settlement process.[15]


Realtor


[edit]

In the United States, the term realtor is trademarked by the National Association of Realtors, which uses it to refer to its active members, who may be real estate agents or brokers.[16][17][18] In Canada, the trademark is used by members of the Canadian Real Estate Association.[19] Both organizations advise against the use of realtor as a generic synonym for real estate agent.[19]


Continuing education


[edit]

States issue licenses for an annual or multi-year period and require real estate agents and brokers to complete continuing education prior to renewing their licenses. For example, California licensees must complete 45 hours of continuing education every 4 years in topics such as agency, trust fund handling, consumer protection, fair housing, ethics, and risk management.[20]


Organizations


[edit]

Several notable groups exist to promote the real estate industry and to assist professionals.


  • The National Association of Realtors (NAR)

    • The Realtor Political Action Committee (RPAC) is the lobbying arm of the NAR.



  • The National Association of Real Estate Brokers (NAREB)

  • The Real Estate Institute of Canada (REIC)[21][22]

  • The Real Estate Roundtable[23]

  • Building Owners and Managers Association focusing on commercial property


See also


[edit]




  • Buyer brokerage

  • Closing (real estate)

  • Estate (land)

  • Exclusive buyer agent

  • Flat-fee MLS

  • Home inspection

  • Index of real estate articles

  • Investment rating for real estate

  • Listing contract

  • Mortgage broker

  • Property manager

  • Real estate contract

  • Real estate development

  • Real estate investing

  • Real estate settlement company

  • Strata management



References


[edit]




  1. ^

    "Real Estate Professionals Explained: Agent, Broker, REALTOR". Real Estate News and Advice | Realtor.com. 2014-03-10. Retrieved 2018-12-27.

  2. ^ "How Much Is Real Estate Agent Commission?". Bankrate. Retrieved 2018-12-20.

  3. ^ "FAQs". www.illinoisrealtors.org. Illinois Realtors. Retrieved August 16, 2018.

  4. ^ "Realtor Code of Ethics - Disclosure" (PDF). Real Estate Association Standards of Business Practice.

  5. ^ "Statutes & Constitution :View Statutes : Online Sunshine". Leg.state.fl.us. Retrieved 2014-02-10.

  6. ^ a b "Outline of types of representation available in Colorado, including Transaction Brokerage" (PDF). Dora.state.co.us. Retrieved 2014-02-10.

  7. ^ Evans, Blanche (2 July 2003). "Florida Implements Default Transactikn Brokerage Statute". realtytimes.com/. Realty Times. Retrieved 2 February 2014.

  8. ^ a b The 2007 Florida Statutes. Chapter 475 Real Estate Brokers — Part I; Real Estate Brokers, Sales Associates, and Schools (ss. 475.001-475.5018), Section 475.278 Authorized brokerage relationships; presumption of transaction brokerage; required disclosures (1) Brokerage Relationships: (a) Authorized brokerage relationships. — A real estate licensee in this state may enter into a brokerage relationship as either a transaction broker or as a single agent with potential buyers and sellers. A real estate licensee may not operate as a disclosed or non-disclosed dual agent ... (b)Presumption of transaction brokerage. — It shall be presumed that all licensees are operating as transaction brokers unless a single agent or no brokerage relationship is established, in writing, with a customer."

  9. ^ "Real Estate Broker's License: Examination and Licensing Application Requirements". New Mexico Administrative Code. State of New Mexico Commission of Public Records. 21 January 2021.

  10. ^ "Real Estate Laws Website". BC Real Estate Laws - Pat 1 Trading Services.

  11. ^ a b c Quigley, John M. (2000). "A Decent Home: Housing Policy in Perspective". Brookings-Wharton Papers on Urban Affairs. 2000 (1): 53–88. CiteSeerX 10.1.1.369.6806. doi:10.1353/urb.2000.0011. ISSN 1533-4449. S2CID 154714417.

  12. ^ "Getting a Brokerage Commission Paid | New York Law Journal".

  13. ^ Daniel Gross (20 February 2005). "Why a Real Estate Agent May Skip the Extra Mile". The New York Times. Archived from the original on 29 May 2015.

  14. ^ B. Douglas Bernheim; Jonathan Meer (13 January 2012). "Do Real Estate Brokers Add Value When Listing Services Are Unbundled?". The National Bureau of Economic Research. Working Paper Series. doi:10.3386/w13796. Retrieved 3 September 2016.

  15. ^ "CFPB consumer laws and regulations RESPA" (PDF). Consumer Financial Protection Bureau. Retrieved 13 October 2021.

  16. ^ Buch, Clarissa (20 April 2023). "What Is a Realtor? A Member of the National Association of Realtors". Realtor.com. National Association of Realtors. Retrieved 17 June 2023.

  17. ^ "Understanding the Difference Between a Realtor and a Real Estate Agent". The CE Shop. Retrieved 19 June 2023.

  18. ^ Colestock, Stephanie (August 13, 2021). "Realtor vs. real estate agent: What's the difference?". Fox Business. Retrieved 20 June 2023.

  19. ^ a b "Using the REALTOR® Trademark in Advertisements - CREA". 12 November 2020.

  20. ^ "Continuing Education Requirements". Ca.gov. California Department of Real Estate. Retrieved 26 June 2023.

  21. ^ "Professional Recognition of our Programs". Real Estate Division at Sauder, UBC. January 8, 2019.

  22. ^ "Real Estate Institute of Canada (REIC)". Thomson Reuters Canada Limited. Retrieved 8 January 2019.

  23. ^ "Lobbying Spending Database: National Assn of Realtors : 2007". Retrieved 2008-10-25.




[edit]


  • Media related to Real estate agents at Wikimedia Commons

































How to Prepare Your Home for a Quick Sale in San Diego

Curb Appeal is Key

First impressions are crucial when it comes to selling your home quickly in San Diego. Make sure the exterior of your house is visually appealing. This can include simple tasks like mowing the lawn, trimming bushes, and power-washing the driveway and walkways. A fresh coat of paint on the front door or window sills can also make a big difference. Remember that buyers often drive by homes before deciding whether to schedule a viewing, so curb appeal can significantly impact their decision.

Declutter and Depersonalize

Inside your home, less is more. Clear out any excessive furniture and personal items to create a clean, open space that allows potential buyers to envision themselves living there. Remove family photos, personal collections, and anything else that might distract from the home's features. Consider renting a storage unit if you need somewhere to store these items temporarily. A well-staged home can help buyers imagine how they would utilize each space effectively.

Repairs and Upgrades

Before putting your house on the market, take care of minor repairs that could turn off potential buyers. Fix leaky faucets, replace burnt-out light bulbs, and repair any holes in walls or broken tiles. If you have older appliances or fixtures, consider upgrading them; modern amenities can be a significant selling point for many buyers looking for move-in ready homes in San Diego's competitive market.

Work with Professionals

Consulting with real estate agents or brokers who know the San Diego market well can provide valuable insights into what local buyers are looking for. These professionals can offer advice on pricing your home competitively based on recent sales data and current market trends. Additionally, they handle negotiations and paperwork efficiently ensuring a smooth closing process which is essential when you're aiming for a quick sale.

Marketing Your Home

Effective marketing strategies are vital for attracting serious buyers quickly. High-quality photographs showcasing your home's best features should be included in all listings online and offline platforms where people search "Sell My House Fast San Diego". Virtual tours can also give prospective buyers an opportunity to explore your property without physically being there first creating interest even faster especially among tech-savvy millennials.

In effect this means preparing your home thoroughly both inside-and-out while leveraging professional help will significantly increase chances of achieving that fast sale you're aiming for in sunny San Diego!

What is real estate agent

A real estate agent is a person who acts as an intermediary between sellers and buyers of real estate, earning a commission for their services. An agent typically works under the supervision of a licensed broker to represent clients in negotiating sales agreements and managing the necessary documentation for closing real estate transactions. They are licensed by the state to ensure they can legally perform these duties. While brokers may operate independently, agents generally must be affiliated with a broker. The agent's primary role is to facilitate the buying or selling process, ensuring all legal requirements are met and assisting in achieving favorable terms for their clients.














Lawn signs advertising houses for sale

Real estate agents and real estate brokers are people who represents sellers or buyers of real estate or real property. While a broker may work independently, an agent usually works under a licensed broker to represent clients.[1] Brokers and agents are licensed by the state to negotiate sales agreements and manage the documentation required for closing real estate transactions. Buyers and sellers are generally advised to consult a licensed real estate professional for a written definition of an individual state's laws of agency.



Categories of representation


[edit]

A real estate broker typically receives a real estate commission for successfully completing a sale. Across the U.S, this commission can generally range between 5-6% of the property's sale price for a full-service broker but this percentage varies by state and even region.[2]


Real estate licensing and education


[edit]

In most jurisdictions in the United States, a person must have a license to perform licensed activities, and these activities are defined within the statutes of each state. The main feature of the requirement for having a license to perform those activities is the work done "for compensation". Hence, hypothetically, if a person wants to help a friend out in either selling or buying a property, and no compensation of any kind is expected in return, then a license is not needed to perform all the work. However, since most people would expect to be compensated for their efforts and skills, a license would be required by law before a person may receive remuneration for services rendered as a real estate broker or agent. Unlicensed activity is illegal and the state real estate commission has the authority to fine people who are acting as real estate licensees, but buyers and sellers acting as principals in the sale or purchase of real estate are usually not required to be licensed. It is important to note that in some states, lawyers handle real estate sales for compensation without being licensed as brokers or agents. However, even lawyers can only perform real estate activities that are incidental to their original work as a lawyer. It cannot be the case that a lawyer can become a seller's selling agent if that is all the service that is being requested by the client. Lawyers would still need to be licensed as a broker if they wish to perform licensed activities. Nevertheless, lawyers do get a break in the minimum education requirements (for example, 90 hours in Illinois).[3]

Some other states have recently eliminated the salesperson's license, instead, all licensees in those states automatically earn their broker's license.

The term "agent" is not to be confused with salesperson or broker. An agent is simply a licensee that has entered into an agency relationship with a client. A broker can also be an agent for a client. It is commonly the firm that has the actual legal relationship with the client through one of their sales staff, be they salespersons or brokers.

In all states, the real estate licensee must disclose to prospective buyers and sellers the nature of their relationship [4]


Specific representation laws


[edit]

Some U.S. state real estate commissions – notably Florida's[5] after 1992 (and extended in 2003) and Colorado's[6] after 1994 (with changes in 2003) created the option of having no agency or fiduciary relationship between brokers and sellers or buyers.

As noted by the South Broward Board of Realtors, Inc. in a letter to State of Florida legislative committees:




"The Transaction Broker crafts a transaction by bringing a willing buyer and a willing seller together and provides the legal documentation of the details of the legal agreement between the same. The Transaction Broker is not a fiduciary of any party, but must abide by the law as well as professional and ethical standards." (such as NAR Code of Ethics).


The result was that, in 2003, Florida created a system where the default brokerage relationship had "all licensees ... operating as transaction brokers, unless a single agent or no brokerage relationship is established, in writing, with the customer"[7][8] and the statute required written disclosure of the transaction brokerage relationship to the buyer or seller customer only through July 1, 2008.

In the case of both Florida[8] and Colorado,[6] dual agency and sub-agency (where both listing and selling agents represent the seller) no longer exist.

Other brokers and agents may focus on representing buyers or tenants in a real estate transaction. However, licensing as a broker or salesperson authorizes the licensee to legally represent parties on either side of a transaction and providing the necessary documentation for the legal transfer of real property. This business decision is for the licensee to decide. They are fines for people acting as real estate agents when not licensed by the state.

In the United Kingdom, an estate agent is a person or business entity whose business is to market real estate on behalf of clients. There are significant differences between the actions, powers, obligations, and liabilities of brokers and estate agents in each country, as different countries take markedly different approaches to the marketing and selling of real property.


The difference between salespersons and brokers


[edit]

Before the Multiple Listing Service (MLS) was introduced in 1967, when brokers (and their licensees) only represented sellers by providing a service to provide legal documentation on the transfer real property, the term "real estate salesperson" may have been more appropriate than it is today, given the various ways that brokers and licensees now help buyers through the legal process of transferring real property. Legally, however, the term "salesperson" is still used in many states to describe a real estate licensee.[citation needed]


Real estate broker (or, in some states, qualifying broker)


[edit]

After gaining some years of experience in real estate sales, a salesperson may decide to become licensed as a real estate broker (or Principal/qualifying broker) in order to own, manage, or operate their own brokerage. In addition, some states allow college graduates to apply for a broker's license without years of experience. College graduates fall into this category once they have completed the state-required courses as well. California allows licensed attorneys to become brokers upon passing the broker exam without having to take the requisite courses required of an agent. Commonly more coursework and a broker's state exam on real estate law must be passed. Upon obtaining a broker's license, a real estate agent may continue to work for another broker in a similar capacity as before (often referred to as a broker associate or associate broker) or take charge of their own brokerage and hire other salespersons (or broker), licensees. Becoming a branch office manager may or may not require a broker's license. Some states allow licensed attorneys to become real estate brokers without taking any exam. In some states, there are no "salespeople" as all licensees are brokers.[9]


Types of services that a broker can provide


[edit]

Real Estate Services are also called trading services [10]


Real estate brokers and sellers


[edit]


Flat-fee real estate agents


[edit]

Flat-fee real estate agents charge a seller of a property a flat fee, $500 for example,[11] as opposed to a traditional or full-service real estate agent who charges a percentage of the sale price. In exchange, the seller's property will appear in the multiple listing service (MLS), but the seller will represent him or herself when showing the property and negotiating a sales price.[11] The result is the seller pays less commission overall (roughly half) when the property sells.[11] This is because a seller will pay a percentage of the sales price to a buyer's agent but not have to pay a percentage to a seller's agent (because there isn't one; the seller is representing himself).


Brokerage commissions


[edit]

In consideration of the brokerage successfully finding a buyer for the property, a broker anticipates receiving a commission for the services the brokerage has provided. Usually, the payment of a commission to the brokerage is contingent upon finding a buyer for the real estate, the successful negotiation of a purchase contract between the buyer and seller, or the settlement of the transaction and the exchange of money between buyer and seller. Under common law, a real estate broker is eligible to receive their commission, regardless of whether the sale actually takes place, once they secure a buyer who is ready, willing, and able to purchase the dwelling.[12]

Economist Steven D. Levitt famously argued in his 2005 book Freakonomics that real estate brokers have an inherent conflict of interest with the sellers they represent because their commission gives them more motivation to sell quickly than to sell at a higher price. Levitt supported his argument with a study finding brokers tend to put their own houses on the market for longer and receive higher prices for them compared to when working for their clients. He concluded that broker commissions will reduce in future.[13] A 2008 study by other economists found that when comparing brokerage without listing services, brokerage significantly reduced the average sale price.[14]


RESPA


[edit]

Real estate brokers who work with lenders can not receive any compensation from the lender for referring a residential client to a specific lender. To do so would be a violation of a United States federal law known as the Real Estate Settlement Procedures Act (RESPA). RESPA ensures that buyers and sellers are given adequate notice of the Real Estate settlement process.[15]


Realtor


[edit]

In the United States, the term realtor is trademarked by the National Association of Realtors, which uses it to refer to its active members, who may be real estate agents or brokers.[16][17][18] In Canada, the trademark is used by members of the Canadian Real Estate Association.[19] Both organizations advise against the use of realtor as a generic synonym for real estate agent.[19]


Continuing education


[edit]

States issue licenses for an annual or multi-year period and require real estate agents and brokers to complete continuing education prior to renewing their licenses. For example, California licensees must complete 45 hours of continuing education every 4 years in topics such as agency, trust fund handling, consumer protection, fair housing, ethics, and risk management.[20]


Organizations


[edit]

Several notable groups exist to promote the real estate industry and to assist professionals.


  • The National Association of Realtors (NAR)

    • The Realtor Political Action Committee (RPAC) is the lobbying arm of the NAR.



  • The National Association of Real Estate Brokers (NAREB)

  • The Real Estate Institute of Canada (REIC)[21][22]

  • The Real Estate Roundtable[23]

  • Building Owners and Managers Association focusing on commercial property


See also


[edit]




  • Buyer brokerage

  • Closing (real estate)

  • Estate (land)

  • Exclusive buyer agent

  • Flat-fee MLS

  • Home inspection

  • Index of real estate articles

  • Investment rating for real estate

  • Listing contract

  • Mortgage broker

  • Property manager

  • Real estate contract

  • Real estate development

  • Real estate investing

  • Real estate settlement company

  • Strata management



References


[edit]




  1. ^

    "Real Estate Professionals Explained: Agent, Broker, REALTOR". Real Estate News and Advice | Realtor.com. 2014-03-10. Retrieved 2018-12-27.

  2. ^ "How Much Is Real Estate Agent Commission?". Bankrate. Retrieved 2018-12-20.

  3. ^ "FAQs". www.illinoisrealtors.org. Illinois Realtors. Retrieved August 16, 2018.

  4. ^ "Realtor Code of Ethics - Disclosure" (PDF). Real Estate Association Standards of Business Practice.

  5. ^ "Statutes & Constitution :View Statutes : Online Sunshine". Leg.state.fl.us. Retrieved 2014-02-10.

  6. ^ a b "Outline of types of representation available in Colorado, including Transaction Brokerage" (PDF). Dora.state.co.us. Retrieved 2014-02-10.

  7. ^ Evans, Blanche (2 July 2003). "Florida Implements Default Transactikn Brokerage Statute". realtytimes.com/. Realty Times. Retrieved 2 February 2014.

  8. ^ a b The 2007 Florida Statutes. Chapter 475 Real Estate Brokers — Part I; Real Estate Brokers, Sales Associates, and Schools (ss. 475.001-475.5018), Section 475.278 Authorized brokerage relationships; presumption of transaction brokerage; required disclosures (1) Brokerage Relationships: (a) Authorized brokerage relationships. — A real estate licensee in this state may enter into a brokerage relationship as either a transaction broker or as a single agent with potential buyers and sellers. A real estate licensee may not operate as a disclosed or non-disclosed dual agent ... (b)Presumption of transaction brokerage. — It shall be presumed that all licensees are operating as transaction brokers unless a single agent or no brokerage relationship is established, in writing, with a customer."

  9. ^ "Real Estate Broker's License: Examination and Licensing Application Requirements". New Mexico Administrative Code. State of New Mexico Commission of Public Records. 21 January 2021.

  10. ^ "Real Estate Laws Website". BC Real Estate Laws - Pat 1 Trading Services.

  11. ^ a b c Quigley, John M. (2000). "A Decent Home: Housing Policy in Perspective". Brookings-Wharton Papers on Urban Affairs. 2000 (1): 53–88. CiteSeerX 10.1.1.369.6806. doi:10.1353/urb.2000.0011. ISSN 1533-4449. S2CID 154714417.

  12. ^ "Getting a Brokerage Commission Paid | New York Law Journal".

  13. ^ Daniel Gross (20 February 2005). "Why a Real Estate Agent May Skip the Extra Mile". The New York Times. Archived from the original on 29 May 2015.

  14. ^ B. Douglas Bernheim; Jonathan Meer (13 January 2012). "Do Real Estate Brokers Add Value When Listing Services Are Unbundled?". The National Bureau of Economic Research. Working Paper Series. doi:10.3386/w13796. Retrieved 3 September 2016.

  15. ^ "CFPB consumer laws and regulations RESPA" (PDF). Consumer Financial Protection Bureau. Retrieved 13 October 2021.

  16. ^ Buch, Clarissa (20 April 2023). "What Is a Realtor? A Member of the National Association of Realtors". Realtor.com. National Association of Realtors. Retrieved 17 June 2023.

  17. ^ "Understanding the Difference Between a Realtor and a Real Estate Agent". The CE Shop. Retrieved 19 June 2023.

  18. ^ Colestock, Stephanie (August 13, 2021). "Realtor vs. real estate agent: What's the difference?". Fox Business. Retrieved 20 June 2023.

  19. ^ a b "Using the REALTOR® Trademark in Advertisements - CREA". 12 November 2020.

  20. ^ "Continuing Education Requirements". Ca.gov. California Department of Real Estate. Retrieved 26 June 2023.

  21. ^ "Professional Recognition of our Programs". Real Estate Division at Sauder, UBC. January 8, 2019.

  22. ^ "Real Estate Institute of Canada (REIC)". Thomson Reuters Canada Limited. Retrieved 8 January 2019.

  23. ^ "Lobbying Spending Database: National Assn of Realtors : 2007". Retrieved 2008-10-25.




[edit]


  • Media related to Real estate agents at Wikimedia Commons

































The Ultimate Guide to Selling Your Home Fast in San Diego

Understanding the San Diego Real Estate Market

San Diego's real estate market is unique, characterized by its coastal charm and diverse neighborhoods. It's crucial to understand local trends and pricing strategies to sell your home swiftly. Research recent sales in your area, paying attention to homes similar to yours. This will give you a realistic idea of what buyers are willing to pay. Pricing your home competitively from the start can attract more potential buyers and lead to quicker offers.

Enhancing Curb Appeal

First impressions matter immensly when selling your house fast in San Diego. Your home's curb appeal can significantly impact a buyer's interest. Simple tasks like mowing the lawn, planting flowers, or painting the front door can make a huge difference. A well-maintained exterior suggests that the interior is also well cared for, making buyers more likely to schedule a viewing.

The Power of Staging

Staging your home can be a game changer in attracting serious buyers quickly. By depersonalizing the space and arranging furniture strategically, you create an inviting atmosphere where potential buyers can envision themselves living. Consider hiring professional stagers who have an eye for design and know how to highlight your home's best features.

Effective Online Listings

In today's marketplace, most buyers start their search online—making it essential that your listing stands out on platforms like Zillow or Realtor.com. High-quality photos taken during daylight hours showcase your property best light possible. Additionally, consider virtual tours which allow prospective buyers to explore each room without stepping foot inside.

Working with Real Estate Professionals

Partnering with experienced real estate agents or brokers in San Diego can expedite the selling process substantially. These professionals have extensive networks and marketing tools at their disposal ensuring maximum exposure for your property. They also handle negotiations skillfully aiming for favorable terms that meet both parties' needs efficiently.

Open Houses and Private Showings

Hosting open houses provides an opportunity for multiple interested parties view your home at once creating a sense urgency among potential bidders who don’t want miss out on great deal! Conversely private showings offer personalized experience allowing serious buyers ask specific questions about property while getting feel future residence firsthand.

As round up:

Selling house fast requires combination smart strategies including understanding market dynamics improving curb appeal staging effectively leveraging online listings collaborating skilled real estate professionals hosting engaging open houses private showings—all contributing towards achieving quick successful sale!

What is real estate agent

A real estate agent is a person who acts as an intermediary between sellers and buyers of real estate, earning a commission for their services. An agent typically works under the supervision of a licensed broker to represent clients in negotiating sales agreements and managing the necessary documentation for closing real estate transactions. They are licensed by the state to ensure they can legally perform these duties. While brokers may operate independently, agents generally must be affiliated with a broker. The agent's primary role is to facilitate the buying or selling process, ensuring all legal requirements are met and assisting in achieving favorable terms for their clients.














Lawn signs advertising houses for sale

Real estate agents and real estate brokers are people who represents sellers or buyers of real estate or real property. While a broker may work independently, an agent usually works under a licensed broker to represent clients.[1] Brokers and agents are licensed by the state to negotiate sales agreements and manage the documentation required for closing real estate transactions. Buyers and sellers are generally advised to consult a licensed real estate professional for a written definition of an individual state's laws of agency.



Categories of representation


[edit]

A real estate broker typically receives a real estate commission for successfully completing a sale. Across the U.S, this commission can generally range between 5-6% of the property's sale price for a full-service broker but this percentage varies by state and even region.[2]


Real estate licensing and education


[edit]

In most jurisdictions in the United States, a person must have a license to perform licensed activities, and these activities are defined within the statutes of each state. The main feature of the requirement for having a license to perform those activities is the work done "for compensation". Hence, hypothetically, if a person wants to help a friend out in either selling or buying a property, and no compensation of any kind is expected in return, then a license is not needed to perform all the work. However, since most people would expect to be compensated for their efforts and skills, a license would be required by law before a person may receive remuneration for services rendered as a real estate broker or agent. Unlicensed activity is illegal and the state real estate commission has the authority to fine people who are acting as real estate licensees, but buyers and sellers acting as principals in the sale or purchase of real estate are usually not required to be licensed. It is important to note that in some states, lawyers handle real estate sales for compensation without being licensed as brokers or agents. However, even lawyers can only perform real estate activities that are incidental to their original work as a lawyer. It cannot be the case that a lawyer can become a seller's selling agent if that is all the service that is being requested by the client. Lawyers would still need to be licensed as a broker if they wish to perform licensed activities. Nevertheless, lawyers do get a break in the minimum education requirements (for example, 90 hours in Illinois).[3]

Some other states have recently eliminated the salesperson's license, instead, all licensees in those states automatically earn their broker's license.

The term "agent" is not to be confused with salesperson or broker. An agent is simply a licensee that has entered into an agency relationship with a client. A broker can also be an agent for a client. It is commonly the firm that has the actual legal relationship with the client through one of their sales staff, be they salespersons or brokers.

In all states, the real estate licensee must disclose to prospective buyers and sellers the nature of their relationship [4]


Specific representation laws


[edit]

Some U.S. state real estate commissions – notably Florida's[5] after 1992 (and extended in 2003) and Colorado's[6] after 1994 (with changes in 2003) created the option of having no agency or fiduciary relationship between brokers and sellers or buyers.

As noted by the South Broward Board of Realtors, Inc. in a letter to State of Florida legislative committees:




"The Transaction Broker crafts a transaction by bringing a willing buyer and a willing seller together and provides the legal documentation of the details of the legal agreement between the same. The Transaction Broker is not a fiduciary of any party, but must abide by the law as well as professional and ethical standards." (such as NAR Code of Ethics).


The result was that, in 2003, Florida created a system where the default brokerage relationship had "all licensees ... operating as transaction brokers, unless a single agent or no brokerage relationship is established, in writing, with the customer"[7][8] and the statute required written disclosure of the transaction brokerage relationship to the buyer or seller customer only through July 1, 2008.

In the case of both Florida[8] and Colorado,[6] dual agency and sub-agency (where both listing and selling agents represent the seller) no longer exist.

Other brokers and agents may focus on representing buyers or tenants in a real estate transaction. However, licensing as a broker or salesperson authorizes the licensee to legally represent parties on either side of a transaction and providing the necessary documentation for the legal transfer of real property. This business decision is for the licensee to decide. They are fines for people acting as real estate agents when not licensed by the state.

In the United Kingdom, an estate agent is a person or business entity whose business is to market real estate on behalf of clients. There are significant differences between the actions, powers, obligations, and liabilities of brokers and estate agents in each country, as different countries take markedly different approaches to the marketing and selling of real property.


The difference between salespersons and brokers


[edit]

Before the Multiple Listing Service (MLS) was introduced in 1967, when brokers (and their licensees) only represented sellers by providing a service to provide legal documentation on the transfer real property, the term "real estate salesperson" may have been more appropriate than it is today, given the various ways that brokers and licensees now help buyers through the legal process of transferring real property. Legally, however, the term "salesperson" is still used in many states to describe a real estate licensee.[citation needed]


Real estate broker (or, in some states, qualifying broker)


[edit]

After gaining some years of experience in real estate sales, a salesperson may decide to become licensed as a real estate broker (or Principal/qualifying broker) in order to own, manage, or operate their own brokerage. In addition, some states allow college graduates to apply for a broker's license without years of experience. College graduates fall into this category once they have completed the state-required courses as well. California allows licensed attorneys to become brokers upon passing the broker exam without having to take the requisite courses required of an agent. Commonly more coursework and a broker's state exam on real estate law must be passed. Upon obtaining a broker's license, a real estate agent may continue to work for another broker in a similar capacity as before (often referred to as a broker associate or associate broker) or take charge of their own brokerage and hire other salespersons (or broker), licensees. Becoming a branch office manager may or may not require a broker's license. Some states allow licensed attorneys to become real estate brokers without taking any exam. In some states, there are no "salespeople" as all licensees are brokers.[9]


Types of services that a broker can provide


[edit]

Real Estate Services are also called trading services [10]


Real estate brokers and sellers


[edit]


Flat-fee real estate agents


[edit]

Flat-fee real estate agents charge a seller of a property a flat fee, $500 for example,[11] as opposed to a traditional or full-service real estate agent who charges a percentage of the sale price. In exchange, the seller's property will appear in the multiple listing service (MLS), but the seller will represent him or herself when showing the property and negotiating a sales price.[11] The result is the seller pays less commission overall (roughly half) when the property sells.[11] This is because a seller will pay a percentage of the sales price to a buyer's agent but not have to pay a percentage to a seller's agent (because there isn't one; the seller is representing himself).


Brokerage commissions


[edit]

In consideration of the brokerage successfully finding a buyer for the property, a broker anticipates receiving a commission for the services the brokerage has provided. Usually, the payment of a commission to the brokerage is contingent upon finding a buyer for the real estate, the successful negotiation of a purchase contract between the buyer and seller, or the settlement of the transaction and the exchange of money between buyer and seller. Under common law, a real estate broker is eligible to receive their commission, regardless of whether the sale actually takes place, once they secure a buyer who is ready, willing, and able to purchase the dwelling.[12]

Economist Steven D. Levitt famously argued in his 2005 book Freakonomics that real estate brokers have an inherent conflict of interest with the sellers they represent because their commission gives them more motivation to sell quickly than to sell at a higher price. Levitt supported his argument with a study finding brokers tend to put their own houses on the market for longer and receive higher prices for them compared to when working for their clients. He concluded that broker commissions will reduce in future.[13] A 2008 study by other economists found that when comparing brokerage without listing services, brokerage significantly reduced the average sale price.[14]


RESPA


[edit]

Real estate brokers who work with lenders can not receive any compensation from the lender for referring a residential client to a specific lender. To do so would be a violation of a United States federal law known as the Real Estate Settlement Procedures Act (RESPA). RESPA ensures that buyers and sellers are given adequate notice of the Real Estate settlement process.[15]


Realtor


[edit]

In the United States, the term realtor is trademarked by the National Association of Realtors, which uses it to refer to its active members, who may be real estate agents or brokers.[16][17][18] In Canada, the trademark is used by members of the Canadian Real Estate Association.[19] Both organizations advise against the use of realtor as a generic synonym for real estate agent.[19]


Continuing education


[edit]

States issue licenses for an annual or multi-year period and require real estate agents and brokers to complete continuing education prior to renewing their licenses. For example, California licensees must complete 45 hours of continuing education every 4 years in topics such as agency, trust fund handling, consumer protection, fair housing, ethics, and risk management.[20]


Organizations


[edit]

Several notable groups exist to promote the real estate industry and to assist professionals.


  • The National Association of Realtors (NAR)

    • The Realtor Political Action Committee (RPAC) is the lobbying arm of the NAR.



  • The National Association of Real Estate Brokers (NAREB)

  • The Real Estate Institute of Canada (REIC)[21][22]

  • The Real Estate Roundtable[23]

  • Building Owners and Managers Association focusing on commercial property


See also


[edit]




  • Buyer brokerage

  • Closing (real estate)

  • Estate (land)

  • Exclusive buyer agent

  • Flat-fee MLS

  • Home inspection

  • Index of real estate articles

  • Investment rating for real estate

  • Listing contract

  • Mortgage broker

  • Property manager

  • Real estate contract

  • Real estate development

  • Real estate investing

  • Real estate settlement company

  • Strata management



References


[edit]




  1. ^

    "Real Estate Professionals Explained: Agent, Broker, REALTOR". Real Estate News and Advice | Realtor.com. 2014-03-10. Retrieved 2018-12-27.

  2. ^ "How Much Is Real Estate Agent Commission?". Bankrate. Retrieved 2018-12-20.

  3. ^ "FAQs". www.illinoisrealtors.org. Illinois Realtors. Retrieved August 16, 2018.

  4. ^ "Realtor Code of Ethics - Disclosure" (PDF). Real Estate Association Standards of Business Practice.

  5. ^ "Statutes & Constitution :View Statutes : Online Sunshine". Leg.state.fl.us. Retrieved 2014-02-10.

  6. ^ a b "Outline of types of representation available in Colorado, including Transaction Brokerage" (PDF). Dora.state.co.us. Retrieved 2014-02-10.

  7. ^ Evans, Blanche (2 July 2003). "Florida Implements Default Transactikn Brokerage Statute". realtytimes.com/. Realty Times. Retrieved 2 February 2014.

  8. ^ a b The 2007 Florida Statutes. Chapter 475 Real Estate Brokers — Part I; Real Estate Brokers, Sales Associates, and Schools (ss. 475.001-475.5018), Section 475.278 Authorized brokerage relationships; presumption of transaction brokerage; required disclosures (1) Brokerage Relationships: (a) Authorized brokerage relationships. — A real estate licensee in this state may enter into a brokerage relationship as either a transaction broker or as a single agent with potential buyers and sellers. A real estate licensee may not operate as a disclosed or non-disclosed dual agent ... (b)Presumption of transaction brokerage. — It shall be presumed that all licensees are operating as transaction brokers unless a single agent or no brokerage relationship is established, in writing, with a customer."

  9. ^ "Real Estate Broker's License: Examination and Licensing Application Requirements". New Mexico Administrative Code. State of New Mexico Commission of Public Records. 21 January 2021.

  10. ^ "Real Estate Laws Website". BC Real Estate Laws - Pat 1 Trading Services.

  11. ^ a b c Quigley, John M. (2000). "A Decent Home: Housing Policy in Perspective". Brookings-Wharton Papers on Urban Affairs. 2000 (1): 53–88. CiteSeerX 10.1.1.369.6806. doi:10.1353/urb.2000.0011. ISSN 1533-4449. S2CID 154714417.

  12. ^ "Getting a Brokerage Commission Paid | New York Law Journal".

  13. ^ Daniel Gross (20 February 2005). "Why a Real Estate Agent May Skip the Extra Mile". The New York Times. Archived from the original on 29 May 2015.

  14. ^ B. Douglas Bernheim; Jonathan Meer (13 January 2012). "Do Real Estate Brokers Add Value When Listing Services Are Unbundled?". The National Bureau of Economic Research. Working Paper Series. doi:10.3386/w13796. Retrieved 3 September 2016.

  15. ^ "CFPB consumer laws and regulations RESPA" (PDF). Consumer Financial Protection Bureau. Retrieved 13 October 2021.

  16. ^ Buch, Clarissa (20 April 2023). "What Is a Realtor? A Member of the National Association of Realtors". Realtor.com. National Association of Realtors. Retrieved 17 June 2023.

  17. ^ "Understanding the Difference Between a Realtor and a Real Estate Agent". The CE Shop. Retrieved 19 June 2023.

  18. ^ Colestock, Stephanie (August 13, 2021). "Realtor vs. real estate agent: What's the difference?". Fox Business. Retrieved 20 June 2023.

  19. ^ a b "Using the REALTOR® Trademark in Advertisements - CREA". 12 November 2020.

  20. ^ "Continuing Education Requirements". Ca.gov. California Department of Real Estate. Retrieved 26 June 2023.

  21. ^ "Professional Recognition of our Programs". Real Estate Division at Sauder, UBC. January 8, 2019.

  22. ^ "Real Estate Institute of Canada (REIC)". Thomson Reuters Canada Limited. Retrieved 8 January 2019.

  23. ^ "Lobbying Spending Database: National Assn of Realtors : 2007". Retrieved 2008-10-25.




[edit]


  • Media related to Real estate agents at Wikimedia Commons

































Why Hire a Licensed Broker for Selling Property in San Diego?

Expert Negotiation Skills

Hiring a licensed broker for selling property in San Diego can be immensely beneficial due to their expert negotiation skills. Licensed brokers are trained to negotiate the best possible price for your property, ensuring you get maximum value. They understand market trends and have access to data that can help position your property competitively. This is particularly important in a dynamic market like San Diego where prices fluctuate frequently.

Comprehensive Market Knowledge

Licensed brokers possess deep knowledge about the local real estate market. They know the neighborhoods, schools, amenities, and other factors that might affect your property's value. Their insights can help you set a realistic asking price and develop an effective marketing strategy tailored specifically for San Diego's unique market conditions.

Networking and Connections

One of the significant advantages of hiring a licensed broker is their extensive network of connections within the industry. From potential buyers to other real estate professionals, brokers have relationships that can expedite the selling process. They can leverage these connections to find qualified buyers quickly, which is crucial when you're looking to sell your house fast in San Diego.

Legal Expertise

Real estate transactions involve complex legal documentation and procedures that need careful handling. Licensed brokers are well-versed in state laws and regulations governing real estate sales. They ensure all paperwork is completed accurately and submitted on time, reducing the risk of legal issues down the line.

Marketing Resources

Selling a property requires more than just listing it online; it demands effective marketing strategies to attract potential buyers. Licensed brokers have access to advanced marketing tools and resources that individual sellers might not possess. From professional photography to virtual tours, they use various techniques to showcase your property in its best light.

Time-Saving Convenience

Managing every aspect of selling a home can be incredibly time-consuming and stressful, especially if you're juggling other responsibilities. A licensed broker handles everything from scheduling showings to negotiating offers, freeing up your time so you can focus on other important matters.

As a round up

Working with a licensed broker provides peace of mind knowing that an experienced professional is managing one of your most significant financial transactions. In effect this means, you benefit from their expertise in negotiation, comprehensive market knowledge, invaluable industry connections, legal proficiency, advanced marketing strategies, and overall convenience—making it easier for you when aiming to sell my house fast San Diego.

What is real estate agent

A real estate agent is a person who acts as an intermediary between sellers and buyers of real estate, earning a commission for their services. An agent typically works under the supervision of a licensed broker to represent clients in negotiating sales agreements and managing the necessary documentation for closing real estate transactions. They are licensed by the state to ensure they can legally perform these duties. While brokers may operate independently, agents generally must be affiliated with a broker. The agent's primary role is to facilitate the buying or selling process, ensuring all legal requirements are met and assisting in achieving favorable terms for their clients.














Lawn signs advertising houses for sale

Real estate agents and real estate brokers are people who represents sellers or buyers of real estate or real property. While a broker may work independently, an agent usually works under a licensed broker to represent clients.[1] Brokers and agents are licensed by the state to negotiate sales agreements and manage the documentation required for closing real estate transactions. Buyers and sellers are generally advised to consult a licensed real estate professional for a written definition of an individual state's laws of agency.



Categories of representation


[edit]

A real estate broker typically receives a real estate commission for successfully completing a sale. Across the U.S, this commission can generally range between 5-6% of the property's sale price for a full-service broker but this percentage varies by state and even region.[2]


Real estate licensing and education


[edit]

In most jurisdictions in the United States, a person must have a license to perform licensed activities, and these activities are defined within the statutes of each state. The main feature of the requirement for having a license to perform those activities is the work done "for compensation". Hence, hypothetically, if a person wants to help a friend out in either selling or buying a property, and no compensation of any kind is expected in return, then a license is not needed to perform all the work. However, since most people would expect to be compensated for their efforts and skills, a license would be required by law before a person may receive remuneration for services rendered as a real estate broker or agent. Unlicensed activity is illegal and the state real estate commission has the authority to fine people who are acting as real estate licensees, but buyers and sellers acting as principals in the sale or purchase of real estate are usually not required to be licensed. It is important to note that in some states, lawyers handle real estate sales for compensation without being licensed as brokers or agents. However, even lawyers can only perform real estate activities that are incidental to their original work as a lawyer. It cannot be the case that a lawyer can become a seller's selling agent if that is all the service that is being requested by the client. Lawyers would still need to be licensed as a broker if they wish to perform licensed activities. Nevertheless, lawyers do get a break in the minimum education requirements (for example, 90 hours in Illinois).[3]

Some other states have recently eliminated the salesperson's license, instead, all licensees in those states automatically earn their broker's license.

The term "agent" is not to be confused with salesperson or broker. An agent is simply a licensee that has entered into an agency relationship with a client. A broker can also be an agent for a client. It is commonly the firm that has the actual legal relationship with the client through one of their sales staff, be they salespersons or brokers.

In all states, the real estate licensee must disclose to prospective buyers and sellers the nature of their relationship [4]


Specific representation laws


[edit]

Some U.S. state real estate commissions – notably Florida's[5] after 1992 (and extended in 2003) and Colorado's[6] after 1994 (with changes in 2003) created the option of having no agency or fiduciary relationship between brokers and sellers or buyers.

As noted by the South Broward Board of Realtors, Inc. in a letter to State of Florida legislative committees:




"The Transaction Broker crafts a transaction by bringing a willing buyer and a willing seller together and provides the legal documentation of the details of the legal agreement between the same. The Transaction Broker is not a fiduciary of any party, but must abide by the law as well as professional and ethical standards." (such as NAR Code of Ethics).


The result was that, in 2003, Florida created a system where the default brokerage relationship had "all licensees ... operating as transaction brokers, unless a single agent or no brokerage relationship is established, in writing, with the customer"[7][8] and the statute required written disclosure of the transaction brokerage relationship to the buyer or seller customer only through July 1, 2008.

In the case of both Florida[8] and Colorado,[6] dual agency and sub-agency (where both listing and selling agents represent the seller) no longer exist.

Other brokers and agents may focus on representing buyers or tenants in a real estate transaction. However, licensing as a broker or salesperson authorizes the licensee to legally represent parties on either side of a transaction and providing the necessary documentation for the legal transfer of real property. This business decision is for the licensee to decide. They are fines for people acting as real estate agents when not licensed by the state.

In the United Kingdom, an estate agent is a person or business entity whose business is to market real estate on behalf of clients. There are significant differences between the actions, powers, obligations, and liabilities of brokers and estate agents in each country, as different countries take markedly different approaches to the marketing and selling of real property.


The difference between salespersons and brokers


[edit]

Before the Multiple Listing Service (MLS) was introduced in 1967, when brokers (and their licensees) only represented sellers by providing a service to provide legal documentation on the transfer real property, the term "real estate salesperson" may have been more appropriate than it is today, given the various ways that brokers and licensees now help buyers through the legal process of transferring real property. Legally, however, the term "salesperson" is still used in many states to describe a real estate licensee.[citation needed]


Real estate broker (or, in some states, qualifying broker)


[edit]

After gaining some years of experience in real estate sales, a salesperson may decide to become licensed as a real estate broker (or Principal/qualifying broker) in order to own, manage, or operate their own brokerage. In addition, some states allow college graduates to apply for a broker's license without years of experience. College graduates fall into this category once they have completed the state-required courses as well. California allows licensed attorneys to become brokers upon passing the broker exam without having to take the requisite courses required of an agent. Commonly more coursework and a broker's state exam on real estate law must be passed. Upon obtaining a broker's license, a real estate agent may continue to work for another broker in a similar capacity as before (often referred to as a broker associate or associate broker) or take charge of their own brokerage and hire other salespersons (or broker), licensees. Becoming a branch office manager may or may not require a broker's license. Some states allow licensed attorneys to become real estate brokers without taking any exam. In some states, there are no "salespeople" as all licensees are brokers.[9]


Types of services that a broker can provide


[edit]

Real Estate Services are also called trading services [10]


Real estate brokers and sellers


[edit]


Flat-fee real estate agents


[edit]

Flat-fee real estate agents charge a seller of a property a flat fee, $500 for example,[11] as opposed to a traditional or full-service real estate agent who charges a percentage of the sale price. In exchange, the seller's property will appear in the multiple listing service (MLS), but the seller will represent him or herself when showing the property and negotiating a sales price.[11] The result is the seller pays less commission overall (roughly half) when the property sells.[11] This is because a seller will pay a percentage of the sales price to a buyer's agent but not have to pay a percentage to a seller's agent (because there isn't one; the seller is representing himself).


Brokerage commissions


[edit]

In consideration of the brokerage successfully finding a buyer for the property, a broker anticipates receiving a commission for the services the brokerage has provided. Usually, the payment of a commission to the brokerage is contingent upon finding a buyer for the real estate, the successful negotiation of a purchase contract between the buyer and seller, or the settlement of the transaction and the exchange of money between buyer and seller. Under common law, a real estate broker is eligible to receive their commission, regardless of whether the sale actually takes place, once they secure a buyer who is ready, willing, and able to purchase the dwelling.[12]

Economist Steven D. Levitt famously argued in his 2005 book Freakonomics that real estate brokers have an inherent conflict of interest with the sellers they represent because their commission gives them more motivation to sell quickly than to sell at a higher price. Levitt supported his argument with a study finding brokers tend to put their own houses on the market for longer and receive higher prices for them compared to when working for their clients. He concluded that broker commissions will reduce in future.[13] A 2008 study by other economists found that when comparing brokerage without listing services, brokerage significantly reduced the average sale price.[14]


RESPA


[edit]

Real estate brokers who work with lenders can not receive any compensation from the lender for referring a residential client to a specific lender. To do so would be a violation of a United States federal law known as the Real Estate Settlement Procedures Act (RESPA). RESPA ensures that buyers and sellers are given adequate notice of the Real Estate settlement process.[15]


Realtor


[edit]

In the United States, the term realtor is trademarked by the National Association of Realtors, which uses it to refer to its active members, who may be real estate agents or brokers.[16][17][18] In Canada, the trademark is used by members of the Canadian Real Estate Association.[19] Both organizations advise against the use of realtor as a generic synonym for real estate agent.[19]


Continuing education


[edit]

States issue licenses for an annual or multi-year period and require real estate agents and brokers to complete continuing education prior to renewing their licenses. For example, California licensees must complete 45 hours of continuing education every 4 years in topics such as agency, trust fund handling, consumer protection, fair housing, ethics, and risk management.[20]


Organizations


[edit]

Several notable groups exist to promote the real estate industry and to assist professionals.


  • The National Association of Realtors (NAR)

    • The Realtor Political Action Committee (RPAC) is the lobbying arm of the NAR.



  • The National Association of Real Estate Brokers (NAREB)

  • The Real Estate Institute of Canada (REIC)[21][22]

  • The Real Estate Roundtable[23]

  • Building Owners and Managers Association focusing on commercial property


See also


[edit]




  • Buyer brokerage

  • Closing (real estate)

  • Estate (land)

  • Exclusive buyer agent

  • Flat-fee MLS

  • Home inspection

  • Index of real estate articles

  • Investment rating for real estate

  • Listing contract

  • Mortgage broker

  • Property manager

  • Real estate contract

  • Real estate development

  • Real estate investing

  • Real estate settlement company

  • Strata management



References


[edit]




  1. ^

    "Real Estate Professionals Explained: Agent, Broker, REALTOR". Real Estate News and Advice | Realtor.com. 2014-03-10. Retrieved 2018-12-27.

  2. ^ "How Much Is Real Estate Agent Commission?". Bankrate. Retrieved 2018-12-20.

  3. ^ "FAQs". www.illinoisrealtors.org. Illinois Realtors. Retrieved August 16, 2018.

  4. ^ "Realtor Code of Ethics - Disclosure" (PDF). Real Estate Association Standards of Business Practice.

  5. ^ "Statutes & Constitution :View Statutes : Online Sunshine". Leg.state.fl.us. Retrieved 2014-02-10.

  6. ^ a b "Outline of types of representation available in Colorado, including Transaction Brokerage" (PDF). Dora.state.co.us. Retrieved 2014-02-10.

  7. ^ Evans, Blanche (2 July 2003). "Florida Implements Default Transactikn Brokerage Statute". realtytimes.com/. Realty Times. Retrieved 2 February 2014.

  8. ^ a b The 2007 Florida Statutes. Chapter 475 Real Estate Brokers — Part I; Real Estate Brokers, Sales Associates, and Schools (ss. 475.001-475.5018), Section 475.278 Authorized brokerage relationships; presumption of transaction brokerage; required disclosures (1) Brokerage Relationships: (a) Authorized brokerage relationships. — A real estate licensee in this state may enter into a brokerage relationship as either a transaction broker or as a single agent with potential buyers and sellers. A real estate licensee may not operate as a disclosed or non-disclosed dual agent ... (b)Presumption of transaction brokerage. — It shall be presumed that all licensees are operating as transaction brokers unless a single agent or no brokerage relationship is established, in writing, with a customer."

  9. ^ "Real Estate Broker's License: Examination and Licensing Application Requirements". New Mexico Administrative Code. State of New Mexico Commission of Public Records. 21 January 2021.

  10. ^ "Real Estate Laws Website". BC Real Estate Laws - Pat 1 Trading Services.

  11. ^ a b c Quigley, John M. (2000). "A Decent Home: Housing Policy in Perspective". Brookings-Wharton Papers on Urban Affairs. 2000 (1): 53–88. CiteSeerX 10.1.1.369.6806. doi:10.1353/urb.2000.0011. ISSN 1533-4449. S2CID 154714417.

  12. ^ "Getting a Brokerage Commission Paid | New York Law Journal".

  13. ^ Daniel Gross (20 February 2005). "Why a Real Estate Agent May Skip the Extra Mile". The New York Times. Archived from the original on 29 May 2015.

  14. ^ B. Douglas Bernheim; Jonathan Meer (13 January 2012). "Do Real Estate Brokers Add Value When Listing Services Are Unbundled?". The National Bureau of Economic Research. Working Paper Series. doi:10.3386/w13796. Retrieved 3 September 2016.

  15. ^ "CFPB consumer laws and regulations RESPA" (PDF). Consumer Financial Protection Bureau. Retrieved 13 October 2021.

  16. ^ Buch, Clarissa (20 April 2023). "What Is a Realtor? A Member of the National Association of Realtors". Realtor.com. National Association of Realtors. Retrieved 17 June 2023.

  17. ^ "Understanding the Difference Between a Realtor and a Real Estate Agent". The CE Shop. Retrieved 19 June 2023.

  18. ^ Colestock, Stephanie (August 13, 2021). "Realtor vs. real estate agent: What's the difference?". Fox Business. Retrieved 20 June 2023.

  19. ^ a b "Using the REALTOR® Trademark in Advertisements - CREA". 12 November 2020.

  20. ^ "Continuing Education Requirements". Ca.gov. California Department of Real Estate. Retrieved 26 June 2023.

  21. ^ "Professional Recognition of our Programs". Real Estate Division at Sauder, UBC. January 8, 2019.

  22. ^ "Real Estate Institute of Canada (REIC)". Thomson Reuters Canada Limited. Retrieved 8 January 2019.

  23. ^ "Lobbying Spending Database: National Assn of Realtors : 2007". Retrieved 2008-10-25.




[edit]


  • Media related to Real estate agents at Wikimedia Commons

































Key Differences Between Real Estate Agents and Brokers

When looking to sell your house fast in San Diego, understanding the roles of real estate agents and brokers can be crucial. Both professionals play significant roles in the real estate process but have distinct differences that can impact your experience and results.

Roles and Responsibilities

Real estate agents are typically more hands-on with clients, handling day-to-day tasks such as arranging showings, negotiating offers, and guiding you through the buying or selling process. They work under a licensed broker who oversees their activities. Brokers, on the other hand, often manage broader responsibilities including overseeing transactions for multiple agents, ensuring compliance with state laws, and even running their own real estate firms.

Licensing and Education

One key difference between an agent and a broker is the level of education required. Agents must complete a set number of hours in pre-licensing courses before taking a state exam to get licensed. Brokers generally need additional education beyond what is required for an agent's license; they also need to pass a more comprehensive exam. This extra layer of training equips brokers with advanced knowledge about legal issues, contracts, taxes, and property management.

Level of Autonomy

Another distinction lies in their autonomy within the industry. Real estate agents cannot operate independently; they must be affiliated with a brokerage firm. Brokers have more freedom; they can either work alone or employ other agents under them. If you're trying to sell your home quickly in San Diego, opting for a broker might offer you faster service due to their greater flexibility and usually wider network.

Financial Aspects

In terms of financials, both agents and brokers earn commissions based on sales transactions but the way these commissions are divided differs. Agents typically receive a portion of the commission from each sale they close while working under a broker who takes another cut from that transaction. Brokers keep all of their earnings if they're working solo or take portions from any sales completed by agents under them.

To put it shot: Whether you choose an agent or a broker when aiming to sell your house rapidly in San Diego can influence not only how smooth your transaction goes but also how swiftly you achieve your goal. Each role brings its own advantages depending on what exactly you need in your unique situation.

What is real estate agent

A real estate agent is a person who acts as an intermediary between sellers and buyers of real estate, earning a commission for their services. An agent typically works under the supervision of a licensed broker to represent clients in negotiating sales agreements and managing the necessary documentation for closing real estate transactions. They are licensed by the state to ensure they can legally perform these duties. While brokers may operate independently, agents generally must be affiliated with a broker. The agent's primary role is to facilitate the buying or selling process, ensuring all legal requirements are met and assisting in achieving favorable terms for their clients.














Lawn signs advertising houses for sale

Real estate agents and real estate brokers are people who represents sellers or buyers of real estate or real property. While a broker may work independently, an agent usually works under a licensed broker to represent clients.[1] Brokers and agents are licensed by the state to negotiate sales agreements and manage the documentation required for closing real estate transactions. Buyers and sellers are generally advised to consult a licensed real estate professional for a written definition of an individual state's laws of agency.



Categories of representation


[edit]

A real estate broker typically receives a real estate commission for successfully completing a sale. Across the U.S, this commission can generally range between 5-6% of the property's sale price for a full-service broker but this percentage varies by state and even region.[2]


Real estate licensing and education


[edit]

In most jurisdictions in the United States, a person must have a license to perform licensed activities, and these activities are defined within the statutes of each state. The main feature of the requirement for having a license to perform those activities is the work done "for compensation". Hence, hypothetically, if a person wants to help a friend out in either selling or buying a property, and no compensation of any kind is expected in return, then a license is not needed to perform all the work. However, since most people would expect to be compensated for their efforts and skills, a license would be required by law before a person may receive remuneration for services rendered as a real estate broker or agent. Unlicensed activity is illegal and the state real estate commission has the authority to fine people who are acting as real estate licensees, but buyers and sellers acting as principals in the sale or purchase of real estate are usually not required to be licensed. It is important to note that in some states, lawyers handle real estate sales for compensation without being licensed as brokers or agents. However, even lawyers can only perform real estate activities that are incidental to their original work as a lawyer. It cannot be the case that a lawyer can become a seller's selling agent if that is all the service that is being requested by the client. Lawyers would still need to be licensed as a broker if they wish to perform licensed activities. Nevertheless, lawyers do get a break in the minimum education requirements (for example, 90 hours in Illinois).[3]

Some other states have recently eliminated the salesperson's license, instead, all licensees in those states automatically earn their broker's license.

The term "agent" is not to be confused with salesperson or broker. An agent is simply a licensee that has entered into an agency relationship with a client. A broker can also be an agent for a client. It is commonly the firm that has the actual legal relationship with the client through one of their sales staff, be they salespersons or brokers.

In all states, the real estate licensee must disclose to prospective buyers and sellers the nature of their relationship [4]


Specific representation laws


[edit]

Some U.S. state real estate commissions – notably Florida's[5] after 1992 (and extended in 2003) and Colorado's[6] after 1994 (with changes in 2003) created the option of having no agency or fiduciary relationship between brokers and sellers or buyers.

As noted by the South Broward Board of Realtors, Inc. in a letter to State of Florida legislative committees:




"The Transaction Broker crafts a transaction by bringing a willing buyer and a willing seller together and provides the legal documentation of the details of the legal agreement between the same. The Transaction Broker is not a fiduciary of any party, but must abide by the law as well as professional and ethical standards." (such as NAR Code of Ethics).


The result was that, in 2003, Florida created a system where the default brokerage relationship had "all licensees ... operating as transaction brokers, unless a single agent or no brokerage relationship is established, in writing, with the customer"[7][8] and the statute required written disclosure of the transaction brokerage relationship to the buyer or seller customer only through July 1, 2008.

In the case of both Florida[8] and Colorado,[6] dual agency and sub-agency (where both listing and selling agents represent the seller) no longer exist.

Other brokers and agents may focus on representing buyers or tenants in a real estate transaction. However, licensing as a broker or salesperson authorizes the licensee to legally represent parties on either side of a transaction and providing the necessary documentation for the legal transfer of real property. This business decision is for the licensee to decide. They are fines for people acting as real estate agents when not licensed by the state.

In the United Kingdom, an estate agent is a person or business entity whose business is to market real estate on behalf of clients. There are significant differences between the actions, powers, obligations, and liabilities of brokers and estate agents in each country, as different countries take markedly different approaches to the marketing and selling of real property.


The difference between salespersons and brokers


[edit]

Before the Multiple Listing Service (MLS) was introduced in 1967, when brokers (and their licensees) only represented sellers by providing a service to provide legal documentation on the transfer real property, the term "real estate salesperson" may have been more appropriate than it is today, given the various ways that brokers and licensees now help buyers through the legal process of transferring real property. Legally, however, the term "salesperson" is still used in many states to describe a real estate licensee.[citation needed]


Real estate broker (or, in some states, qualifying broker)


[edit]

After gaining some years of experience in real estate sales, a salesperson may decide to become licensed as a real estate broker (or Principal/qualifying broker) in order to own, manage, or operate their own brokerage. In addition, some states allow college graduates to apply for a broker's license without years of experience. College graduates fall into this category once they have completed the state-required courses as well. California allows licensed attorneys to become brokers upon passing the broker exam without having to take the requisite courses required of an agent. Commonly more coursework and a broker's state exam on real estate law must be passed. Upon obtaining a broker's license, a real estate agent may continue to work for another broker in a similar capacity as before (often referred to as a broker associate or associate broker) or take charge of their own brokerage and hire other salespersons (or broker), licensees. Becoming a branch office manager may or may not require a broker's license. Some states allow licensed attorneys to become real estate brokers without taking any exam. In some states, there are no "salespeople" as all licensees are brokers.[9]


Types of services that a broker can provide


[edit]

Real Estate Services are also called trading services [10]


Real estate brokers and sellers


[edit]


Flat-fee real estate agents


[edit]

Flat-fee real estate agents charge a seller of a property a flat fee, $500 for example,[11] as opposed to a traditional or full-service real estate agent who charges a percentage of the sale price. In exchange, the seller's property will appear in the multiple listing service (MLS), but the seller will represent him or herself when showing the property and negotiating a sales price.[11] The result is the seller pays less commission overall (roughly half) when the property sells.[11] This is because a seller will pay a percentage of the sales price to a buyer's agent but not have to pay a percentage to a seller's agent (because there isn't one; the seller is representing himself).


Brokerage commissions


[edit]

In consideration of the brokerage successfully finding a buyer for the property, a broker anticipates receiving a commission for the services the brokerage has provided. Usually, the payment of a commission to the brokerage is contingent upon finding a buyer for the real estate, the successful negotiation of a purchase contract between the buyer and seller, or the settlement of the transaction and the exchange of money between buyer and seller. Under common law, a real estate broker is eligible to receive their commission, regardless of whether the sale actually takes place, once they secure a buyer who is ready, willing, and able to purchase the dwelling.[12]

Economist Steven D. Levitt famously argued in his 2005 book Freakonomics that real estate brokers have an inherent conflict of interest with the sellers they represent because their commission gives them more motivation to sell quickly than to sell at a higher price. Levitt supported his argument with a study finding brokers tend to put their own houses on the market for longer and receive higher prices for them compared to when working for their clients. He concluded that broker commissions will reduce in future.[13] A 2008 study by other economists found that when comparing brokerage without listing services, brokerage significantly reduced the average sale price.[14]


RESPA


[edit]

Real estate brokers who work with lenders can not receive any compensation from the lender for referring a residential client to a specific lender. To do so would be a violation of a United States federal law known as the Real Estate Settlement Procedures Act (RESPA). RESPA ensures that buyers and sellers are given adequate notice of the Real Estate settlement process.[15]


Realtor


[edit]

In the United States, the term realtor is trademarked by the National Association of Realtors, which uses it to refer to its active members, who may be real estate agents or brokers.[16][17][18] In Canada, the trademark is used by members of the Canadian Real Estate Association.[19] Both organizations advise against the use of realtor as a generic synonym for real estate agent.[19]


Continuing education


[edit]

States issue licenses for an annual or multi-year period and require real estate agents and brokers to complete continuing education prior to renewing their licenses. For example, California licensees must complete 45 hours of continuing education every 4 years in topics such as agency, trust fund handling, consumer protection, fair housing, ethics, and risk management.[20]


Organizations


[edit]

Several notable groups exist to promote the real estate industry and to assist professionals.


  • The National Association of Realtors (NAR)

    • The Realtor Political Action Committee (RPAC) is the lobbying arm of the NAR.



  • The National Association of Real Estate Brokers (NAREB)

  • The Real Estate Institute of Canada (REIC)[21][22]

  • The Real Estate Roundtable[23]

  • Building Owners and Managers Association focusing on commercial property


See also


[edit]




  • Buyer brokerage

  • Closing (real estate)

  • Estate (land)

  • Exclusive buyer agent

  • Flat-fee MLS

  • Home inspection

  • Index of real estate articles

  • Investment rating for real estate

  • Listing contract

  • Mortgage broker

  • Property manager

  • Real estate contract

  • Real estate development

  • Real estate investing

  • Real estate settlement company

  • Strata management



References


[edit]




  1. ^

    "Real Estate Professionals Explained: Agent, Broker, REALTOR". Real Estate News and Advice | Realtor.com. 2014-03-10. Retrieved 2018-12-27.

  2. ^ "How Much Is Real Estate Agent Commission?". Bankrate. Retrieved 2018-12-20.

  3. ^ "FAQs". www.illinoisrealtors.org. Illinois Realtors. Retrieved August 16, 2018.

  4. ^ "Realtor Code of Ethics - Disclosure" (PDF). Real Estate Association Standards of Business Practice.

  5. ^ "Statutes & Constitution :View Statutes : Online Sunshine". Leg.state.fl.us. Retrieved 2014-02-10.

  6. ^ a b "Outline of types of representation available in Colorado, including Transaction Brokerage" (PDF). Dora.state.co.us. Retrieved 2014-02-10.

  7. ^ Evans, Blanche (2 July 2003). "Florida Implements Default Transactikn Brokerage Statute". realtytimes.com/. Realty Times. Retrieved 2 February 2014.

  8. ^ a b The 2007 Florida Statutes. Chapter 475 Real Estate Brokers — Part I; Real Estate Brokers, Sales Associates, and Schools (ss. 475.001-475.5018), Section 475.278 Authorized brokerage relationships; presumption of transaction brokerage; required disclosures (1) Brokerage Relationships: (a) Authorized brokerage relationships. — A real estate licensee in this state may enter into a brokerage relationship as either a transaction broker or as a single agent with potential buyers and sellers. A real estate licensee may not operate as a disclosed or non-disclosed dual agent ... (b)Presumption of transaction brokerage. — It shall be presumed that all licensees are operating as transaction brokers unless a single agent or no brokerage relationship is established, in writing, with a customer."

  9. ^ "Real Estate Broker's License: Examination and Licensing Application Requirements". New Mexico Administrative Code. State of New Mexico Commission of Public Records. 21 January 2021.

  10. ^ "Real Estate Laws Website". BC Real Estate Laws - Pat 1 Trading Services.

  11. ^ a b c Quigley, John M. (2000). "A Decent Home: Housing Policy in Perspective". Brookings-Wharton Papers on Urban Affairs. 2000 (1): 53–88. CiteSeerX 10.1.1.369.6806. doi:10.1353/urb.2000.0011. ISSN 1533-4449. S2CID 154714417.

  12. ^ "Getting a Brokerage Commission Paid | New York Law Journal".

  13. ^ Daniel Gross (20 February 2005). "Why a Real Estate Agent May Skip the Extra Mile". The New York Times. Archived from the original on 29 May 2015.

  14. ^ B. Douglas Bernheim; Jonathan Meer (13 January 2012). "Do Real Estate Brokers Add Value When Listing Services Are Unbundled?". The National Bureau of Economic Research. Working Paper Series. doi:10.3386/w13796. Retrieved 3 September 2016.

  15. ^ "CFPB consumer laws and regulations RESPA" (PDF). Consumer Financial Protection Bureau. Retrieved 13 October 2021.

  16. ^ Buch, Clarissa (20 April 2023). "What Is a Realtor? A Member of the National Association of Realtors". Realtor.com. National Association of Realtors. Retrieved 17 June 2023.

  17. ^ "Understanding the Difference Between a Realtor and a Real Estate Agent". The CE Shop. Retrieved 19 June 2023.

  18. ^ Colestock, Stephanie (August 13, 2021). "Realtor vs. real estate agent: What's the difference?". Fox Business. Retrieved 20 June 2023.

  19. ^ a b "Using the REALTOR® Trademark in Advertisements - CREA". 12 November 2020.

  20. ^ "Continuing Education Requirements". Ca.gov. California Department of Real Estate. Retrieved 26 June 2023.

  21. ^ "Professional Recognition of our Programs". Real Estate Division at Sauder, UBC. January 8, 2019.

  22. ^ "Real Estate Institute of Canada (REIC)". Thomson Reuters Canada Limited. Retrieved 8 January 2019.

  23. ^ "Lobbying Spending Database: National Assn of Realtors : 2007". Retrieved 2008-10-25.




[edit]


  • Media related to Real estate agents at Wikimedia Commons

































Best Practices for Staging Your Home in San Diego

Maximizing Curb Appeal

First impressions are crucial. Ensure that the exterior of your home is immaculate by keeping the lawn trimmed, hedges pruned, and walkways clear. A fresh coat of paint on the front door and a few well-placed potted plants can make a huge difference. Given San Diego's favorable climate, consider highlighting any outdoor living spaces such as patios or decks to showcase additional usable square footage.

Declutter and Depersonalize

Potential buyers need to envision themselves living in your space. Remove personal items like family photos, collections, and memorabilia. Clear out clutter from countertops, shelves, and closets to create an open and inviting atmosphere. This not only makes rooms appear larger but also allows buyers to focus on the potential of the property rather than being distracted by personal belongings.

Highlight Natural Light

San Diego is known for its abundant sunshine; use this to your advantage. Open curtains and blinds to let in as much natural light as possible during showings. Clean windows inside and out so they sparkle. If certain areas don't get enough light, strategically place lamps to brighten dark corners.

Neutralize Color Schemes

Bright colors may be appealing to some but could be off-putting to others. Stick with neutral tones like beige, gray or soft whites for walls and larger pieces of furniture. These colors create a blank canvas that allows potential buyers to imagine their own decor fitting into the space seamlessly.

As a round up

Staging your home effectively can significantly accelerate the selling process in San Diego’s competitive real estate market . By enhancing curb appeal , decluttering , maximizing natural light ,and opting for neutral color schemes , you’re ensureing your house stands out . In effect this means more interested buyers walking through your doors , faster offers ,and ultimately closing deals quicker .

What is real estate agent

A real estate agent is a person who acts as an intermediary between sellers and buyers of real estate, earning a commission for their services. An agent typically works under the supervision of a licensed broker to represent clients in negotiating sales agreements and managing the necessary documentation for closing real estate transactions. They are licensed by the state to ensure they can legally perform these duties. While brokers may operate independently, agents generally must be affiliated with a broker. The agent's primary role is to facilitate the buying or selling process, ensuring all legal requirements are met and assisting in achieving favorable terms for their clients.














Lawn signs advertising houses for sale

Real estate agents and real estate brokers are people who represents sellers or buyers of real estate or real property. While a broker may work independently, an agent usually works under a licensed broker to represent clients.[1] Brokers and agents are licensed by the state to negotiate sales agreements and manage the documentation required for closing real estate transactions. Buyers and sellers are generally advised to consult a licensed real estate professional for a written definition of an individual state's laws of agency.



Categories of representation


[edit]

A real estate broker typically receives a real estate commission for successfully completing a sale. Across the U.S, this commission can generally range between 5-6% of the property's sale price for a full-service broker but this percentage varies by state and even region.[2]


Real estate licensing and education


[edit]

In most jurisdictions in the United States, a person must have a license to perform licensed activities, and these activities are defined within the statutes of each state. The main feature of the requirement for having a license to perform those activities is the work done "for compensation". Hence, hypothetically, if a person wants to help a friend out in either selling or buying a property, and no compensation of any kind is expected in return, then a license is not needed to perform all the work. However, since most people would expect to be compensated for their efforts and skills, a license would be required by law before a person may receive remuneration for services rendered as a real estate broker or agent. Unlicensed activity is illegal and the state real estate commission has the authority to fine people who are acting as real estate licensees, but buyers and sellers acting as principals in the sale or purchase of real estate are usually not required to be licensed. It is important to note that in some states, lawyers handle real estate sales for compensation without being licensed as brokers or agents. However, even lawyers can only perform real estate activities that are incidental to their original work as a lawyer. It cannot be the case that a lawyer can become a seller's selling agent if that is all the service that is being requested by the client. Lawyers would still need to be licensed as a broker if they wish to perform licensed activities. Nevertheless, lawyers do get a break in the minimum education requirements (for example, 90 hours in Illinois).[3]

Some other states have recently eliminated the salesperson's license, instead, all licensees in those states automatically earn their broker's license.

The term "agent" is not to be confused with salesperson or broker. An agent is simply a licensee that has entered into an agency relationship with a client. A broker can also be an agent for a client. It is commonly the firm that has the actual legal relationship with the client through one of their sales staff, be they salespersons or brokers.

In all states, the real estate licensee must disclose to prospective buyers and sellers the nature of their relationship [4]


Specific representation laws


[edit]

Some U.S. state real estate commissions – notably Florida's[5] after 1992 (and extended in 2003) and Colorado's[6] after 1994 (with changes in 2003) created the option of having no agency or fiduciary relationship between brokers and sellers or buyers.

As noted by the South Broward Board of Realtors, Inc. in a letter to State of Florida legislative committees:




"The Transaction Broker crafts a transaction by bringing a willing buyer and a willing seller together and provides the legal documentation of the details of the legal agreement between the same. The Transaction Broker is not a fiduciary of any party, but must abide by the law as well as professional and ethical standards." (such as NAR Code of Ethics).


The result was that, in 2003, Florida created a system where the default brokerage relationship had "all licensees ... operating as transaction brokers, unless a single agent or no brokerage relationship is established, in writing, with the customer"[7][8] and the statute required written disclosure of the transaction brokerage relationship to the buyer or seller customer only through July 1, 2008.

In the case of both Florida[8] and Colorado,[6] dual agency and sub-agency (where both listing and selling agents represent the seller) no longer exist.

Other brokers and agents may focus on representing buyers or tenants in a real estate transaction. However, licensing as a broker or salesperson authorizes the licensee to legally represent parties on either side of a transaction and providing the necessary documentation for the legal transfer of real property. This business decision is for the licensee to decide. They are fines for people acting as real estate agents when not licensed by the state.

In the United Kingdom, an estate agent is a person or business entity whose business is to market real estate on behalf of clients. There are significant differences between the actions, powers, obligations, and liabilities of brokers and estate agents in each country, as different countries take markedly different approaches to the marketing and selling of real property.


The difference between salespersons and brokers


[edit]

Before the Multiple Listing Service (MLS) was introduced in 1967, when brokers (and their licensees) only represented sellers by providing a service to provide legal documentation on the transfer real property, the term "real estate salesperson" may have been more appropriate than it is today, given the various ways that brokers and licensees now help buyers through the legal process of transferring real property. Legally, however, the term "salesperson" is still used in many states to describe a real estate licensee.[citation needed]


Real estate broker (or, in some states, qualifying broker)


[edit]

After gaining some years of experience in real estate sales, a salesperson may decide to become licensed as a real estate broker (or Principal/qualifying broker) in order to own, manage, or operate their own brokerage. In addition, some states allow college graduates to apply for a broker's license without years of experience. College graduates fall into this category once they have completed the state-required courses as well. California allows licensed attorneys to become brokers upon passing the broker exam without having to take the requisite courses required of an agent. Commonly more coursework and a broker's state exam on real estate law must be passed. Upon obtaining a broker's license, a real estate agent may continue to work for another broker in a similar capacity as before (often referred to as a broker associate or associate broker) or take charge of their own brokerage and hire other salespersons (or broker), licensees. Becoming a branch office manager may or may not require a broker's license. Some states allow licensed attorneys to become real estate brokers without taking any exam. In some states, there are no "salespeople" as all licensees are brokers.[9]


Types of services that a broker can provide


[edit]

Real Estate Services are also called trading services [10]


Real estate brokers and sellers


[edit]


Flat-fee real estate agents


[edit]

Flat-fee real estate agents charge a seller of a property a flat fee, $500 for example,[11] as opposed to a traditional or full-service real estate agent who charges a percentage of the sale price. In exchange, the seller's property will appear in the multiple listing service (MLS), but the seller will represent him or herself when showing the property and negotiating a sales price.[11] The result is the seller pays less commission overall (roughly half) when the property sells.[11] This is because a seller will pay a percentage of the sales price to a buyer's agent but not have to pay a percentage to a seller's agent (because there isn't one; the seller is representing himself).


Brokerage commissions


[edit]

In consideration of the brokerage successfully finding a buyer for the property, a broker anticipates receiving a commission for the services the brokerage has provided. Usually, the payment of a commission to the brokerage is contingent upon finding a buyer for the real estate, the successful negotiation of a purchase contract between the buyer and seller, or the settlement of the transaction and the exchange of money between buyer and seller. Under common law, a real estate broker is eligible to receive their commission, regardless of whether the sale actually takes place, once they secure a buyer who is ready, willing, and able to purchase the dwelling.[12]

Economist Steven D. Levitt famously argued in his 2005 book Freakonomics that real estate brokers have an inherent conflict of interest with the sellers they represent because their commission gives them more motivation to sell quickly than to sell at a higher price. Levitt supported his argument with a study finding brokers tend to put their own houses on the market for longer and receive higher prices for them compared to when working for their clients. He concluded that broker commissions will reduce in future.[13] A 2008 study by other economists found that when comparing brokerage without listing services, brokerage significantly reduced the average sale price.[14]


RESPA


[edit]

Real estate brokers who work with lenders can not receive any compensation from the lender for referring a residential client to a specific lender. To do so would be a violation of a United States federal law known as the Real Estate Settlement Procedures Act (RESPA). RESPA ensures that buyers and sellers are given adequate notice of the Real Estate settlement process.[15]


Realtor


[edit]

In the United States, the term realtor is trademarked by the National Association of Realtors, which uses it to refer to its active members, who may be real estate agents or brokers.[16][17][18] In Canada, the trademark is used by members of the Canadian Real Estate Association.[19] Both organizations advise against the use of realtor as a generic synonym for real estate agent.[19]


Continuing education


[edit]

States issue licenses for an annual or multi-year period and require real estate agents and brokers to complete continuing education prior to renewing their licenses. For example, California licensees must complete 45 hours of continuing education every 4 years in topics such as agency, trust fund handling, consumer protection, fair housing, ethics, and risk management.[20]


Organizations


[edit]

Several notable groups exist to promote the real estate industry and to assist professionals.


  • The National Association of Realtors (NAR)

    • The Realtor Political Action Committee (RPAC) is the lobbying arm of the NAR.



  • The National Association of Real Estate Brokers (NAREB)

  • The Real Estate Institute of Canada (REIC)[21][22]

  • The Real Estate Roundtable[23]

  • Building Owners and Managers Association focusing on commercial property


See also


[edit]




  • Buyer brokerage

  • Closing (real estate)

  • Estate (land)

  • Exclusive buyer agent

  • Flat-fee MLS

  • Home inspection

  • Index of real estate articles

  • Investment rating for real estate

  • Listing contract

  • Mortgage broker

  • Property manager

  • Real estate contract

  • Real estate development

  • Real estate investing

  • Real estate settlement company

  • Strata management



References


[edit]




  1. ^

    "Real Estate Professionals Explained: Agent, Broker, REALTOR". Real Estate News and Advice | Realtor.com. 2014-03-10. Retrieved 2018-12-27.

  2. ^ "How Much Is Real Estate Agent Commission?". Bankrate. Retrieved 2018-12-20.

  3. ^ "FAQs". www.illinoisrealtors.org. Illinois Realtors. Retrieved August 16, 2018.

  4. ^ "Realtor Code of Ethics - Disclosure" (PDF). Real Estate Association Standards of Business Practice.

  5. ^ "Statutes & Constitution :View Statutes : Online Sunshine". Leg.state.fl.us. Retrieved 2014-02-10.

  6. ^ a b "Outline of types of representation available in Colorado, including Transaction Brokerage" (PDF). Dora.state.co.us. Retrieved 2014-02-10.

  7. ^ Evans, Blanche (2 July 2003). "Florida Implements Default Transactikn Brokerage Statute". realtytimes.com/. Realty Times. Retrieved 2 February 2014.

  8. ^ a b The 2007 Florida Statutes. Chapter 475 Real Estate Brokers — Part I; Real Estate Brokers, Sales Associates, and Schools (ss. 475.001-475.5018), Section 475.278 Authorized brokerage relationships; presumption of transaction brokerage; required disclosures (1) Brokerage Relationships: (a) Authorized brokerage relationships. — A real estate licensee in this state may enter into a brokerage relationship as either a transaction broker or as a single agent with potential buyers and sellers. A real estate licensee may not operate as a disclosed or non-disclosed dual agent ... (b)Presumption of transaction brokerage. — It shall be presumed that all licensees are operating as transaction brokers unless a single agent or no brokerage relationship is established, in writing, with a customer."

  9. ^ "Real Estate Broker's License: Examination and Licensing Application Requirements". New Mexico Administrative Code. State of New Mexico Commission of Public Records. 21 January 2021.

  10. ^ "Real Estate Laws Website". BC Real Estate Laws - Pat 1 Trading Services.

  11. ^ a b c Quigley, John M. (2000). "A Decent Home: Housing Policy in Perspective". Brookings-Wharton Papers on Urban Affairs. 2000 (1): 53–88. CiteSeerX 10.1.1.369.6806. doi:10.1353/urb.2000.0011. ISSN 1533-4449. S2CID 154714417.

  12. ^ "Getting a Brokerage Commission Paid | New York Law Journal".

  13. ^ Daniel Gross (20 February 2005). "Why a Real Estate Agent May Skip the Extra Mile". The New York Times. Archived from the original on 29 May 2015.

  14. ^ B. Douglas Bernheim; Jonathan Meer (13 January 2012). "Do Real Estate Brokers Add Value When Listing Services Are Unbundled?". The National Bureau of Economic Research. Working Paper Series. doi:10.3386/w13796. Retrieved 3 September 2016.

  15. ^ "CFPB consumer laws and regulations RESPA" (PDF). Consumer Financial Protection Bureau. Retrieved 13 October 2021.

  16. ^ Buch, Clarissa (20 April 2023). "What Is a Realtor? A Member of the National Association of Realtors". Realtor.com. National Association of Realtors. Retrieved 17 June 2023.

  17. ^ "Understanding the Difference Between a Realtor and a Real Estate Agent". The CE Shop. Retrieved 19 June 2023.

  18. ^ Colestock, Stephanie (August 13, 2021). "Realtor vs. real estate agent: What's the difference?". Fox Business. Retrieved 20 June 2023.

  19. ^ a b "Using the REALTOR® Trademark in Advertisements - CREA". 12 November 2020.

  20. ^ "Continuing Education Requirements". Ca.gov. California Department of Real Estate. Retrieved 26 June 2023.

  21. ^ "Professional Recognition of our Programs". Real Estate Division at Sauder, UBC. January 8, 2019.

  22. ^ "Real Estate Institute of Canada (REIC)". Thomson Reuters Canada Limited. Retrieved 8 January 2019.

  23. ^ "Lobbying Spending Database: National Assn of Realtors : 2007". Retrieved 2008-10-25.




[edit]


  • Media related to Real estate agents at Wikimedia Commons

































How Market Trends Affect Home Sales in San Diego

Influence of Economic Indicators

Market trends in San Diego are significantly influenced by economic indicators such as employment rates, interest rates, and overall economic growth. When the economy is booming, people feel more financially secure and are more likely to invest in real estate. Conversely, during a downturn, potential buyers may hesitate to commit to large purchases like homes. This see-saw effect can make it tricky for homeowners looking to sell their property quickly.

Supply and Demand Dynamics

The balance between supply and demand plays a crucial role in determining how fast homes sell in San Diego. A high inventory of homes means more options for buyers but less urgency to make a quick decision, which can slow down sales. On the flip side, limited inventory creates a seller's market where homes can sell rapidly and often above the asking price due to bidding wars among desperate buyers.

Seasonal Trends

Seasonality also affects home sales in San Diego. Spring and summer months usually witness higher activity levels compared to fall and winter. Families prefer moving during school vacations, making these seasons particularly busy times for real estate transactions. Sellers who aim to sell their house fast should consider listing during these peak periods for quicker results.

Impact of Mortgage Rates

Mortgage rates have a direct impact on buyer affordability and consequently on home sales speed. Lower mortgage rates mean lower monthly payments, making homeownership accessible to more people. When rates rise, fewer buyers qualify for loans or they opt for cheaper properties which could delay the sale of your home if it's priced higher.

As a round up

Real estate agents and brokers play an essential role in navigating these market trends effectively. Brokers might work independently while agents typically operate under licensed brokers; both are state-licensed professionals skilled at negotiating sales agreements and managing necessary documentation for closing deals seamlessly.

What is real estate agent

A real estate agent is a person who acts as an intermediary between sellers and buyers of real estate, earning a commission for their services. An agent typically works under the supervision of a licensed broker to represent clients in negotiating sales agreements and managing the necessary documentation for closing real estate transactions. They are licensed by the state to ensure they can legally perform these duties. While brokers may operate independently, agents generally must be affiliated with a broker. The agent's primary role is to facilitate the buying or selling process, ensuring all legal requirements are met and assisting in achieving favorable terms for their clients.














Lawn signs advertising houses for sale

Real estate agents and real estate brokers are people who represents sellers or buyers of real estate or real property. While a broker may work independently, an agent usually works under a licensed broker to represent clients.[1] Brokers and agents are licensed by the state to negotiate sales agreements and manage the documentation required for closing real estate transactions. Buyers and sellers are generally advised to consult a licensed real estate professional for a written definition of an individual state's laws of agency.



Categories of representation


[edit]

A real estate broker typically receives a real estate commission for successfully completing a sale. Across the U.S, this commission can generally range between 5-6% of the property's sale price for a full-service broker but this percentage varies by state and even region.[2]


Real estate licensing and education


[edit]

In most jurisdictions in the United States, a person must have a license to perform licensed activities, and these activities are defined within the statutes of each state. The main feature of the requirement for having a license to perform those activities is the work done "for compensation". Hence, hypothetically, if a person wants to help a friend out in either selling or buying a property, and no compensation of any kind is expected in return, then a license is not needed to perform all the work. However, since most people would expect to be compensated for their efforts and skills, a license would be required by law before a person may receive remuneration for services rendered as a real estate broker or agent. Unlicensed activity is illegal and the state real estate commission has the authority to fine people who are acting as real estate licensees, but buyers and sellers acting as principals in the sale or purchase of real estate are usually not required to be licensed. It is important to note that in some states, lawyers handle real estate sales for compensation without being licensed as brokers or agents. However, even lawyers can only perform real estate activities that are incidental to their original work as a lawyer. It cannot be the case that a lawyer can become a seller's selling agent if that is all the service that is being requested by the client. Lawyers would still need to be licensed as a broker if they wish to perform licensed activities. Nevertheless, lawyers do get a break in the minimum education requirements (for example, 90 hours in Illinois).[3]

Some other states have recently eliminated the salesperson's license, instead, all licensees in those states automatically earn their broker's license.

The term "agent" is not to be confused with salesperson or broker. An agent is simply a licensee that has entered into an agency relationship with a client. A broker can also be an agent for a client. It is commonly the firm that has the actual legal relationship with the client through one of their sales staff, be they salespersons or brokers.

In all states, the real estate licensee must disclose to prospective buyers and sellers the nature of their relationship [4]


Specific representation laws


[edit]

Some U.S. state real estate commissions – notably Florida's[5] after 1992 (and extended in 2003) and Colorado's[6] after 1994 (with changes in 2003) created the option of having no agency or fiduciary relationship between brokers and sellers or buyers.

As noted by the South Broward Board of Realtors, Inc. in a letter to State of Florida legislative committees:




"The Transaction Broker crafts a transaction by bringing a willing buyer and a willing seller together and provides the legal documentation of the details of the legal agreement between the same. The Transaction Broker is not a fiduciary of any party, but must abide by the law as well as professional and ethical standards." (such as NAR Code of Ethics).


The result was that, in 2003, Florida created a system where the default brokerage relationship had "all licensees ... operating as transaction brokers, unless a single agent or no brokerage relationship is established, in writing, with the customer"[7][8] and the statute required written disclosure of the transaction brokerage relationship to the buyer or seller customer only through July 1, 2008.

In the case of both Florida[8] and Colorado,[6] dual agency and sub-agency (where both listing and selling agents represent the seller) no longer exist.

Other brokers and agents may focus on representing buyers or tenants in a real estate transaction. However, licensing as a broker or salesperson authorizes the licensee to legally represent parties on either side of a transaction and providing the necessary documentation for the legal transfer of real property. This business decision is for the licensee to decide. They are fines for people acting as real estate agents when not licensed by the state.

In the United Kingdom, an estate agent is a person or business entity whose business is to market real estate on behalf of clients. There are significant differences between the actions, powers, obligations, and liabilities of brokers and estate agents in each country, as different countries take markedly different approaches to the marketing and selling of real property.


The difference between salespersons and brokers


[edit]

Before the Multiple Listing Service (MLS) was introduced in 1967, when brokers (and their licensees) only represented sellers by providing a service to provide legal documentation on the transfer real property, the term "real estate salesperson" may have been more appropriate than it is today, given the various ways that brokers and licensees now help buyers through the legal process of transferring real property. Legally, however, the term "salesperson" is still used in many states to describe a real estate licensee.[citation needed]


Real estate broker (or, in some states, qualifying broker)


[edit]

After gaining some years of experience in real estate sales, a salesperson may decide to become licensed as a real estate broker (or Principal/qualifying broker) in order to own, manage, or operate their own brokerage. In addition, some states allow college graduates to apply for a broker's license without years of experience. College graduates fall into this category once they have completed the state-required courses as well. California allows licensed attorneys to become brokers upon passing the broker exam without having to take the requisite courses required of an agent. Commonly more coursework and a broker's state exam on real estate law must be passed. Upon obtaining a broker's license, a real estate agent may continue to work for another broker in a similar capacity as before (often referred to as a broker associate or associate broker) or take charge of their own brokerage and hire other salespersons (or broker), licensees. Becoming a branch office manager may or may not require a broker's license. Some states allow licensed attorneys to become real estate brokers without taking any exam. In some states, there are no "salespeople" as all licensees are brokers.[9]


Types of services that a broker can provide


[edit]

Real Estate Services are also called trading services [10]


Real estate brokers and sellers


[edit]


Flat-fee real estate agents


[edit]

Flat-fee real estate agents charge a seller of a property a flat fee, $500 for example,[11] as opposed to a traditional or full-service real estate agent who charges a percentage of the sale price. In exchange, the seller's property will appear in the multiple listing service (MLS), but the seller will represent him or herself when showing the property and negotiating a sales price.[11] The result is the seller pays less commission overall (roughly half) when the property sells.[11] This is because a seller will pay a percentage of the sales price to a buyer's agent but not have to pay a percentage to a seller's agent (because there isn't one; the seller is representing himself).


Brokerage commissions


[edit]

In consideration of the brokerage successfully finding a buyer for the property, a broker anticipates receiving a commission for the services the brokerage has provided. Usually, the payment of a commission to the brokerage is contingent upon finding a buyer for the real estate, the successful negotiation of a purchase contract between the buyer and seller, or the settlement of the transaction and the exchange of money between buyer and seller. Under common law, a real estate broker is eligible to receive their commission, regardless of whether the sale actually takes place, once they secure a buyer who is ready, willing, and able to purchase the dwelling.[12]

Economist Steven D. Levitt famously argued in his 2005 book Freakonomics that real estate brokers have an inherent conflict of interest with the sellers they represent because their commission gives them more motivation to sell quickly than to sell at a higher price. Levitt supported his argument with a study finding brokers tend to put their own houses on the market for longer and receive higher prices for them compared to when working for their clients. He concluded that broker commissions will reduce in future.[13] A 2008 study by other economists found that when comparing brokerage without listing services, brokerage significantly reduced the average sale price.[14]


RESPA


[edit]

Real estate brokers who work with lenders can not receive any compensation from the lender for referring a residential client to a specific lender. To do so would be a violation of a United States federal law known as the Real Estate Settlement Procedures Act (RESPA). RESPA ensures that buyers and sellers are given adequate notice of the Real Estate settlement process.[15]


Realtor


[edit]

In the United States, the term realtor is trademarked by the National Association of Realtors, which uses it to refer to its active members, who may be real estate agents or brokers.[16][17][18] In Canada, the trademark is used by members of the Canadian Real Estate Association.[19] Both organizations advise against the use of realtor as a generic synonym for real estate agent.[19]


Continuing education


[edit]

States issue licenses for an annual or multi-year period and require real estate agents and brokers to complete continuing education prior to renewing their licenses. For example, California licensees must complete 45 hours of continuing education every 4 years in topics such as agency, trust fund handling, consumer protection, fair housing, ethics, and risk management.[20]


Organizations


[edit]

Several notable groups exist to promote the real estate industry and to assist professionals.


  • The National Association of Realtors (NAR)

    • The Realtor Political Action Committee (RPAC) is the lobbying arm of the NAR.



  • The National Association of Real Estate Brokers (NAREB)

  • The Real Estate Institute of Canada (REIC)[21][22]

  • The Real Estate Roundtable[23]

  • Building Owners and Managers Association focusing on commercial property


See also


[edit]




  • Buyer brokerage

  • Closing (real estate)

  • Estate (land)

  • Exclusive buyer agent

  • Flat-fee MLS

  • Home inspection

  • Index of real estate articles

  • Investment rating for real estate

  • Listing contract

  • Mortgage broker

  • Property manager

  • Real estate contract

  • Real estate development

  • Real estate investing

  • Real estate settlement company

  • Strata management



References


[edit]




  1. ^

    "Real Estate Professionals Explained: Agent, Broker, REALTOR". Real Estate News and Advice | Realtor.com. 2014-03-10. Retrieved 2018-12-27.

  2. ^ "How Much Is Real Estate Agent Commission?". Bankrate. Retrieved 2018-12-20.

  3. ^ "FAQs". www.illinoisrealtors.org. Illinois Realtors. Retrieved August 16, 2018.

  4. ^ "Realtor Code of Ethics - Disclosure" (PDF). Real Estate Association Standards of Business Practice.

  5. ^ "Statutes & Constitution :View Statutes : Online Sunshine". Leg.state.fl.us. Retrieved 2014-02-10.

  6. ^ a b "Outline of types of representation available in Colorado, including Transaction Brokerage" (PDF). Dora.state.co.us. Retrieved 2014-02-10.

  7. ^ Evans, Blanche (2 July 2003). "Florida Implements Default Transactikn Brokerage Statute". realtytimes.com/. Realty Times. Retrieved 2 February 2014.

  8. ^ a b The 2007 Florida Statutes. Chapter 475 Real Estate Brokers — Part I; Real Estate Brokers, Sales Associates, and Schools (ss. 475.001-475.5018), Section 475.278 Authorized brokerage relationships; presumption of transaction brokerage; required disclosures (1) Brokerage Relationships: (a) Authorized brokerage relationships. — A real estate licensee in this state may enter into a brokerage relationship as either a transaction broker or as a single agent with potential buyers and sellers. A real estate licensee may not operate as a disclosed or non-disclosed dual agent ... (b)Presumption of transaction brokerage. — It shall be presumed that all licensees are operating as transaction brokers unless a single agent or no brokerage relationship is established, in writing, with a customer."

  9. ^ "Real Estate Broker's License: Examination and Licensing Application Requirements". New Mexico Administrative Code. State of New Mexico Commission of Public Records. 21 January 2021.

  10. ^ "Real Estate Laws Website". BC Real Estate Laws - Pat 1 Trading Services.

  11. ^ a b c Quigley, John M. (2000). "A Decent Home: Housing Policy in Perspective". Brookings-Wharton Papers on Urban Affairs. 2000 (1): 53–88. CiteSeerX 10.1.1.369.6806. doi:10.1353/urb.2000.0011. ISSN 1533-4449. S2CID 154714417.

  12. ^ "Getting a Brokerage Commission Paid | New York Law Journal".

  13. ^ Daniel Gross (20 February 2005). "Why a Real Estate Agent May Skip the Extra Mile". The New York Times. Archived from the original on 29 May 2015.

  14. ^ B. Douglas Bernheim; Jonathan Meer (13 January 2012). "Do Real Estate Brokers Add Value When Listing Services Are Unbundled?". The National Bureau of Economic Research. Working Paper Series. doi:10.3386/w13796. Retrieved 3 September 2016.

  15. ^ "CFPB consumer laws and regulations RESPA" (PDF). Consumer Financial Protection Bureau. Retrieved 13 October 2021.

  16. ^ Buch, Clarissa (20 April 2023). "What Is a Realtor? A Member of the National Association of Realtors". Realtor.com. National Association of Realtors. Retrieved 17 June 2023.

  17. ^ "Understanding the Difference Between a Realtor and a Real Estate Agent". The CE Shop. Retrieved 19 June 2023.

  18. ^ Colestock, Stephanie (August 13, 2021). "Realtor vs. real estate agent: What's the difference?". Fox Business. Retrieved 20 June 2023.

  19. ^ a b "Using the REALTOR® Trademark in Advertisements - CREA". 12 November 2020.

  20. ^ "Continuing Education Requirements". Ca.gov. California Department of Real Estate. Retrieved 26 June 2023.

  21. ^ "Professional Recognition of our Programs". Real Estate Division at Sauder, UBC. January 8, 2019.

  22. ^ "Real Estate Institute of Canada (REIC)". Thomson Reuters Canada Limited. Retrieved 8 January 2019.

  23. ^ "Lobbying Spending Database: National Assn of Realtors : 2007". Retrieved 2008-10-25.




[edit]


  • Media related to Real estate agents at Wikimedia Commons

































Strategies for Pricing Your House Right in the San Diego Market

Understand the Local Market

San Diego's real estate market is unique, and understanding its nuances can be crucial for pricing your house right. The city has a strong demand for properties, but prices can fluctuate based on various factors like location, amenities, and even school districts. Start by researching recent sales in your neighborhood to get a sense of what similar homes are selling for. You don’t want to overprice your home because it might sit on the market too long. Conversely, underpricing could mean losing out on potential profits.

Consult a Real Estate Professional

Leveraging the expertise of licensed real estate agents or brokers can provide you with invaluable insights into San Diego’s housing market. These professionals have access to comprehensive data and tools that can help you pinpoint the optimal price range for your property. They also understand the documentation required for closing deals and negotiating sales agreements, which can save you a lot of time and hassle. Remember that while an agent typically works under a broker, both are licensed by the state to represent clients effectively.

Assess Property Condition and Upgrades

The condition of your house plays a significant role in its pricing strategy. If your home requires significant repairs or lacks modern amenities, you might need to adjust your asking price accordingly. On the flip side, if you've recently invested in upgrades like new kitchen appliances or energy-efficient windows, make sure these improvements are highlighted in your listing. Small investments in curb appeal—like fresh paint or landscaping—can also boost perceived value without breaking the bank.

Timing Your Sale

Timing can be everything when it comes to selling fast in San Diego’s competitive market. Spring and summer months generally see higher buyer activity due to favorable weather conditions and families looking to move before the new school year starts. However, this also means increased competition among sellers. If you're not in a rush, consider listing during off-peak months when there may be fewer homes available but still enough buyers actively looking.

In effect this means taking a multifaceted approach is essential for setting the right price for your San Diego home. From understanding local market trends to consulting with real estate professionals and evaluating property conditions meticulously—you'll be well on your way towards attracting serious buyers quickly.

What is real estate agent

A real estate agent is a person who acts as an intermediary between sellers and buyers of real estate, earning a commission for their services. An agent typically works under the supervision of a licensed broker to represent clients in negotiating sales agreements and managing the necessary documentation for closing real estate transactions. They are licensed by the state to ensure they can legally perform these duties. While brokers may operate independently, agents generally must be affiliated with a broker. The agent's primary role is to facilitate the buying or selling process, ensuring all legal requirements are met and assisting in achieving favorable terms for their clients.














Lawn signs advertising houses for sale

Real estate agents and real estate brokers are people who represents sellers or buyers of real estate or real property. While a broker may work independently, an agent usually works under a licensed broker to represent clients.[1] Brokers and agents are licensed by the state to negotiate sales agreements and manage the documentation required for closing real estate transactions. Buyers and sellers are generally advised to consult a licensed real estate professional for a written definition of an individual state's laws of agency.



Categories of representation


[edit]

A real estate broker typically receives a real estate commission for successfully completing a sale. Across the U.S, this commission can generally range between 5-6% of the property's sale price for a full-service broker but this percentage varies by state and even region.[2]


Real estate licensing and education


[edit]

In most jurisdictions in the United States, a person must have a license to perform licensed activities, and these activities are defined within the statutes of each state. The main feature of the requirement for having a license to perform those activities is the work done "for compensation". Hence, hypothetically, if a person wants to help a friend out in either selling or buying a property, and no compensation of any kind is expected in return, then a license is not needed to perform all the work. However, since most people would expect to be compensated for their efforts and skills, a license would be required by law before a person may receive remuneration for services rendered as a real estate broker or agent. Unlicensed activity is illegal and the state real estate commission has the authority to fine people who are acting as real estate licensees, but buyers and sellers acting as principals in the sale or purchase of real estate are usually not required to be licensed. It is important to note that in some states, lawyers handle real estate sales for compensation without being licensed as brokers or agents. However, even lawyers can only perform real estate activities that are incidental to their original work as a lawyer. It cannot be the case that a lawyer can become a seller's selling agent if that is all the service that is being requested by the client. Lawyers would still need to be licensed as a broker if they wish to perform licensed activities. Nevertheless, lawyers do get a break in the minimum education requirements (for example, 90 hours in Illinois).[3]

Some other states have recently eliminated the salesperson's license, instead, all licensees in those states automatically earn their broker's license.

The term "agent" is not to be confused with salesperson or broker. An agent is simply a licensee that has entered into an agency relationship with a client. A broker can also be an agent for a client. It is commonly the firm that has the actual legal relationship with the client through one of their sales staff, be they salespersons or brokers.

In all states, the real estate licensee must disclose to prospective buyers and sellers the nature of their relationship [4]


Specific representation laws


[edit]

Some U.S. state real estate commissions – notably Florida's[5] after 1992 (and extended in 2003) and Colorado's[6] after 1994 (with changes in 2003) created the option of having no agency or fiduciary relationship between brokers and sellers or buyers.

As noted by the South Broward Board of Realtors, Inc. in a letter to State of Florida legislative committees:




"The Transaction Broker crafts a transaction by bringing a willing buyer and a willing seller together and provides the legal documentation of the details of the legal agreement between the same. The Transaction Broker is not a fiduciary of any party, but must abide by the law as well as professional and ethical standards." (such as NAR Code of Ethics).


The result was that, in 2003, Florida created a system where the default brokerage relationship had "all licensees ... operating as transaction brokers, unless a single agent or no brokerage relationship is established, in writing, with the customer"[7][8] and the statute required written disclosure of the transaction brokerage relationship to the buyer or seller customer only through July 1, 2008.

In the case of both Florida[8] and Colorado,[6] dual agency and sub-agency (where both listing and selling agents represent the seller) no longer exist.

Other brokers and agents may focus on representing buyers or tenants in a real estate transaction. However, licensing as a broker or salesperson authorizes the licensee to legally represent parties on either side of a transaction and providing the necessary documentation for the legal transfer of real property. This business decision is for the licensee to decide. They are fines for people acting as real estate agents when not licensed by the state.

In the United Kingdom, an estate agent is a person or business entity whose business is to market real estate on behalf of clients. There are significant differences between the actions, powers, obligations, and liabilities of brokers and estate agents in each country, as different countries take markedly different approaches to the marketing and selling of real property.


The difference between salespersons and brokers


[edit]

Before the Multiple Listing Service (MLS) was introduced in 1967, when brokers (and their licensees) only represented sellers by providing a service to provide legal documentation on the transfer real property, the term "real estate salesperson" may have been more appropriate than it is today, given the various ways that brokers and licensees now help buyers through the legal process of transferring real property. Legally, however, the term "salesperson" is still used in many states to describe a real estate licensee.[citation needed]


Real estate broker (or, in some states, qualifying broker)


[edit]

After gaining some years of experience in real estate sales, a salesperson may decide to become licensed as a real estate broker (or Principal/qualifying broker) in order to own, manage, or operate their own brokerage. In addition, some states allow college graduates to apply for a broker's license without years of experience. College graduates fall into this category once they have completed the state-required courses as well. California allows licensed attorneys to become brokers upon passing the broker exam without having to take the requisite courses required of an agent. Commonly more coursework and a broker's state exam on real estate law must be passed. Upon obtaining a broker's license, a real estate agent may continue to work for another broker in a similar capacity as before (often referred to as a broker associate or associate broker) or take charge of their own brokerage and hire other salespersons (or broker), licensees. Becoming a branch office manager may or may not require a broker's license. Some states allow licensed attorneys to become real estate brokers without taking any exam. In some states, there are no "salespeople" as all licensees are brokers.[9]


Types of services that a broker can provide


[edit]

Real Estate Services are also called trading services [10]


Real estate brokers and sellers


[edit]


Flat-fee real estate agents


[edit]

Flat-fee real estate agents charge a seller of a property a flat fee, $500 for example,[11] as opposed to a traditional or full-service real estate agent who charges a percentage of the sale price. In exchange, the seller's property will appear in the multiple listing service (MLS), but the seller will represent him or herself when showing the property and negotiating a sales price.[11] The result is the seller pays less commission overall (roughly half) when the property sells.[11] This is because a seller will pay a percentage of the sales price to a buyer's agent but not have to pay a percentage to a seller's agent (because there isn't one; the seller is representing himself).


Brokerage commissions


[edit]

In consideration of the brokerage successfully finding a buyer for the property, a broker anticipates receiving a commission for the services the brokerage has provided. Usually, the payment of a commission to the brokerage is contingent upon finding a buyer for the real estate, the successful negotiation of a purchase contract between the buyer and seller, or the settlement of the transaction and the exchange of money between buyer and seller. Under common law, a real estate broker is eligible to receive their commission, regardless of whether the sale actually takes place, once they secure a buyer who is ready, willing, and able to purchase the dwelling.[12]

Economist Steven D. Levitt famously argued in his 2005 book Freakonomics that real estate brokers have an inherent conflict of interest with the sellers they represent because their commission gives them more motivation to sell quickly than to sell at a higher price. Levitt supported his argument with a study finding brokers tend to put their own houses on the market for longer and receive higher prices for them compared to when working for their clients. He concluded that broker commissions will reduce in future.[13] A 2008 study by other economists found that when comparing brokerage without listing services, brokerage significantly reduced the average sale price.[14]


RESPA


[edit]

Real estate brokers who work with lenders can not receive any compensation from the lender for referring a residential client to a specific lender. To do so would be a violation of a United States federal law known as the Real Estate Settlement Procedures Act (RESPA). RESPA ensures that buyers and sellers are given adequate notice of the Real Estate settlement process.[15]


Realtor


[edit]

In the United States, the term realtor is trademarked by the National Association of Realtors, which uses it to refer to its active members, who may be real estate agents or brokers.[16][17][18] In Canada, the trademark is used by members of the Canadian Real Estate Association.[19] Both organizations advise against the use of realtor as a generic synonym for real estate agent.[19]


Continuing education


[edit]

States issue licenses for an annual or multi-year period and require real estate agents and brokers to complete continuing education prior to renewing their licenses. For example, California licensees must complete 45 hours of continuing education every 4 years in topics such as agency, trust fund handling, consumer protection, fair housing, ethics, and risk management.[20]


Organizations


[edit]

Several notable groups exist to promote the real estate industry and to assist professionals.


  • The National Association of Realtors (NAR)

    • The Realtor Political Action Committee (RPAC) is the lobbying arm of the NAR.



  • The National Association of Real Estate Brokers (NAREB)

  • The Real Estate Institute of Canada (REIC)[21][22]

  • The Real Estate Roundtable[23]

  • Building Owners and Managers Association focusing on commercial property


See also


[edit]




  • Buyer brokerage

  • Closing (real estate)

  • Estate (land)

  • Exclusive buyer agent

  • Flat-fee MLS

  • Home inspection

  • Index of real estate articles

  • Investment rating for real estate

  • Listing contract

  • Mortgage broker

  • Property manager

  • Real estate contract

  • Real estate development

  • Real estate investing

  • Real estate settlement company

  • Strata management



References


[edit]




  1. ^

    "Real Estate Professionals Explained: Agent, Broker, REALTOR". Real Estate News and Advice | Realtor.com. 2014-03-10. Retrieved 2018-12-27.

  2. ^ "How Much Is Real Estate Agent Commission?". Bankrate. Retrieved 2018-12-20.

  3. ^ "FAQs". www.illinoisrealtors.org. Illinois Realtors. Retrieved August 16, 2018.

  4. ^ "Realtor Code of Ethics - Disclosure" (PDF). Real Estate Association Standards of Business Practice.

  5. ^ "Statutes & Constitution :View Statutes : Online Sunshine". Leg.state.fl.us. Retrieved 2014-02-10.

  6. ^ a b "Outline of types of representation available in Colorado, including Transaction Brokerage" (PDF). Dora.state.co.us. Retrieved 2014-02-10.

  7. ^ Evans, Blanche (2 July 2003). "Florida Implements Default Transactikn Brokerage Statute". realtytimes.com/. Realty Times. Retrieved 2 February 2014.

  8. ^ a b The 2007 Florida Statutes. Chapter 475 Real Estate Brokers — Part I; Real Estate Brokers, Sales Associates, and Schools (ss. 475.001-475.5018), Section 475.278 Authorized brokerage relationships; presumption of transaction brokerage; required disclosures (1) Brokerage Relationships: (a) Authorized brokerage relationships. — A real estate licensee in this state may enter into a brokerage relationship as either a transaction broker or as a single agent with potential buyers and sellers. A real estate licensee may not operate as a disclosed or non-disclosed dual agent ... (b)Presumption of transaction brokerage. — It shall be presumed that all licensees are operating as transaction brokers unless a single agent or no brokerage relationship is established, in writing, with a customer."

  9. ^ "Real Estate Broker's License: Examination and Licensing Application Requirements". New Mexico Administrative Code. State of New Mexico Commission of Public Records. 21 January 2021.

  10. ^ "Real Estate Laws Website". BC Real Estate Laws - Pat 1 Trading Services.

  11. ^ a b c Quigley, John M. (2000). "A Decent Home: Housing Policy in Perspective". Brookings-Wharton Papers on Urban Affairs. 2000 (1): 53–88. CiteSeerX 10.1.1.369.6806. doi:10.1353/urb.2000.0011. ISSN 1533-4449. S2CID 154714417.

  12. ^ "Getting a Brokerage Commission Paid | New York Law Journal".

  13. ^ Daniel Gross (20 February 2005). "Why a Real Estate Agent May Skip the Extra Mile". The New York Times. Archived from the original on 29 May 2015.

  14. ^ B. Douglas Bernheim; Jonathan Meer (13 January 2012). "Do Real Estate Brokers Add Value When Listing Services Are Unbundled?". The National Bureau of Economic Research. Working Paper Series. doi:10.3386/w13796. Retrieved 3 September 2016.

  15. ^ "CFPB consumer laws and regulations RESPA" (PDF). Consumer Financial Protection Bureau. Retrieved 13 October 2021.

  16. ^ Buch, Clarissa (20 April 2023). "What Is a Realtor? A Member of the National Association of Realtors". Realtor.com. National Association of Realtors. Retrieved 17 June 2023.

  17. ^ "Understanding the Difference Between a Realtor and a Real Estate Agent". The CE Shop. Retrieved 19 June 2023.

  18. ^ Colestock, Stephanie (August 13, 2021). "Realtor vs. real estate agent: What's the difference?". Fox Business. Retrieved 20 June 2023.

  19. ^ a b "Using the REALTOR® Trademark in Advertisements - CREA". 12 November 2020.

  20. ^ "Continuing Education Requirements". Ca.gov. California Department of Real Estate. Retrieved 26 June 2023.

  21. ^ "Professional Recognition of our Programs". Real Estate Division at Sauder, UBC. January 8, 2019.

  22. ^ "Real Estate Institute of Canada (REIC)". Thomson Reuters Canada Limited. Retrieved 8 January 2019.

  23. ^ "Lobbying Spending Database: National Assn of Realtors : 2007". Retrieved 2008-10-25.




[edit]


  • Media related to Real estate agents at Wikimedia Commons

































The Importance of Curb Appeal When Selling Fast in San Diego

First Impressions Matter

When aiming to sell your house quickly in San Diego, curb appeal can make a world of difference. Potential buyers often form their first impressions within seconds of seeing your property. If the exterior is well-maintained and visually appealing, it sets a positive tone for the rest of the viewing experience. This initial impression can greatly influence a buyer's decision-making process, making them more likely to consider your home seriously.

Boosting Market Value

A well-kept exterior doesn't just attract attention; it can also boost the market value of your home. Simple enhancements like fresh paint, manicured lawns, and clean walkways can give your property a polished look that appeals to buyers. In a competitive market like San Diego, these small investments in curb appeal can yield significant returns by increasing your home's perceived value.

Standing Out in Listings

In today's real estate market, where online listings are often the first point of contact between buyers and properties, having an attractive exterior is crucial. High-quality photos showcasing excellent curb appeal will make your listing stand out among numerous others. This increased visibility can lead to more showings and potentially quicker offers.

Role of Real Estate Professionals

Real estate agents and brokers play an essential role in advising sellers on how to enhance their home's curb appeal effectively. These professionals understand what local buyers are looking for and can provide tailored recommendations to make your property more appealing. Working closely with an experienced agent or broker who knows the San Diego market can help you prioritize improvements that offer the best return on investment.

As A Round Up

As a round up, emphasizing curb appeal when trying to sell fast in San Diego is not just about aesthetics; it's about creating a strong first impression, increasing market value, standing out in listings, and leveraging professional advice. Investing time and resources into improving your home's exterior could be the key factor that accelerates its sale.

What is real estate agent

A real estate agent is a person who acts as an intermediary between sellers and buyers of real estate, earning a commission for their services. An agent typically works under the supervision of a licensed broker to represent clients in negotiating sales agreements and managing the necessary documentation for closing real estate transactions. They are licensed by the state to ensure they can legally perform these duties. While brokers may operate independently, agents generally must be affiliated with a broker. The agent's primary role is to facilitate the buying or selling process, ensuring all legal requirements are met and assisting in achieving favorable terms for their clients.














Lawn signs advertising houses for sale

Real estate agents and real estate brokers are people who represents sellers or buyers of real estate or real property. While a broker may work independently, an agent usually works under a licensed broker to represent clients.[1] Brokers and agents are licensed by the state to negotiate sales agreements and manage the documentation required for closing real estate transactions. Buyers and sellers are generally advised to consult a licensed real estate professional for a written definition of an individual state's laws of agency.



Categories of representation


[edit]

A real estate broker typically receives a real estate commission for successfully completing a sale. Across the U.S, this commission can generally range between 5-6% of the property's sale price for a full-service broker but this percentage varies by state and even region.[2]


Real estate licensing and education


[edit]

In most jurisdictions in the United States, a person must have a license to perform licensed activities, and these activities are defined within the statutes of each state. The main feature of the requirement for having a license to perform those activities is the work done "for compensation". Hence, hypothetically, if a person wants to help a friend out in either selling or buying a property, and no compensation of any kind is expected in return, then a license is not needed to perform all the work. However, since most people would expect to be compensated for their efforts and skills, a license would be required by law before a person may receive remuneration for services rendered as a real estate broker or agent. Unlicensed activity is illegal and the state real estate commission has the authority to fine people who are acting as real estate licensees, but buyers and sellers acting as principals in the sale or purchase of real estate are usually not required to be licensed. It is important to note that in some states, lawyers handle real estate sales for compensation without being licensed as brokers or agents. However, even lawyers can only perform real estate activities that are incidental to their original work as a lawyer. It cannot be the case that a lawyer can become a seller's selling agent if that is all the service that is being requested by the client. Lawyers would still need to be licensed as a broker if they wish to perform licensed activities. Nevertheless, lawyers do get a break in the minimum education requirements (for example, 90 hours in Illinois).[3]

Some other states have recently eliminated the salesperson's license, instead, all licensees in those states automatically earn their broker's license.

The term "agent" is not to be confused with salesperson or broker. An agent is simply a licensee that has entered into an agency relationship with a client. A broker can also be an agent for a client. It is commonly the firm that has the actual legal relationship with the client through one of their sales staff, be they salespersons or brokers.

In all states, the real estate licensee must disclose to prospective buyers and sellers the nature of their relationship [4]


Specific representation laws


[edit]

Some U.S. state real estate commissions – notably Florida's[5] after 1992 (and extended in 2003) and Colorado's[6] after 1994 (with changes in 2003) created the option of having no agency or fiduciary relationship between brokers and sellers or buyers.

As noted by the South Broward Board of Realtors, Inc. in a letter to State of Florida legislative committees:




"The Transaction Broker crafts a transaction by bringing a willing buyer and a willing seller together and provides the legal documentation of the details of the legal agreement between the same. The Transaction Broker is not a fiduciary of any party, but must abide by the law as well as professional and ethical standards." (such as NAR Code of Ethics).


The result was that, in 2003, Florida created a system where the default brokerage relationship had "all licensees ... operating as transaction brokers, unless a single agent or no brokerage relationship is established, in writing, with the customer"[7][8] and the statute required written disclosure of the transaction brokerage relationship to the buyer or seller customer only through July 1, 2008.

In the case of both Florida[8] and Colorado,[6] dual agency and sub-agency (where both listing and selling agents represent the seller) no longer exist.

Other brokers and agents may focus on representing buyers or tenants in a real estate transaction. However, licensing as a broker or salesperson authorizes the licensee to legally represent parties on either side of a transaction and providing the necessary documentation for the legal transfer of real property. This business decision is for the licensee to decide. They are fines for people acting as real estate agents when not licensed by the state.

In the United Kingdom, an estate agent is a person or business entity whose business is to market real estate on behalf of clients. There are significant differences between the actions, powers, obligations, and liabilities of brokers and estate agents in each country, as different countries take markedly different approaches to the marketing and selling of real property.


The difference between salespersons and brokers


[edit]

Before the Multiple Listing Service (MLS) was introduced in 1967, when brokers (and their licensees) only represented sellers by providing a service to provide legal documentation on the transfer real property, the term "real estate salesperson" may have been more appropriate than it is today, given the various ways that brokers and licensees now help buyers through the legal process of transferring real property. Legally, however, the term "salesperson" is still used in many states to describe a real estate licensee.[citation needed]


Real estate broker (or, in some states, qualifying broker)


[edit]

After gaining some years of experience in real estate sales, a salesperson may decide to become licensed as a real estate broker (or Principal/qualifying broker) in order to own, manage, or operate their own brokerage. In addition, some states allow college graduates to apply for a broker's license without years of experience. College graduates fall into this category once they have completed the state-required courses as well. California allows licensed attorneys to become brokers upon passing the broker exam without having to take the requisite courses required of an agent. Commonly more coursework and a broker's state exam on real estate law must be passed. Upon obtaining a broker's license, a real estate agent may continue to work for another broker in a similar capacity as before (often referred to as a broker associate or associate broker) or take charge of their own brokerage and hire other salespersons (or broker), licensees. Becoming a branch office manager may or may not require a broker's license. Some states allow licensed attorneys to become real estate brokers without taking any exam. In some states, there are no "salespeople" as all licensees are brokers.[9]


Types of services that a broker can provide


[edit]

Real Estate Services are also called trading services [10]


Real estate brokers and sellers


[edit]


Flat-fee real estate agents


[edit]

Flat-fee real estate agents charge a seller of a property a flat fee, $500 for example,[11] as opposed to a traditional or full-service real estate agent who charges a percentage of the sale price. In exchange, the seller's property will appear in the multiple listing service (MLS), but the seller will represent him or herself when showing the property and negotiating a sales price.[11] The result is the seller pays less commission overall (roughly half) when the property sells.[11] This is because a seller will pay a percentage of the sales price to a buyer's agent but not have to pay a percentage to a seller's agent (because there isn't one; the seller is representing himself).


Brokerage commissions


[edit]

In consideration of the brokerage successfully finding a buyer for the property, a broker anticipates receiving a commission for the services the brokerage has provided. Usually, the payment of a commission to the brokerage is contingent upon finding a buyer for the real estate, the successful negotiation of a purchase contract between the buyer and seller, or the settlement of the transaction and the exchange of money between buyer and seller. Under common law, a real estate broker is eligible to receive their commission, regardless of whether the sale actually takes place, once they secure a buyer who is ready, willing, and able to purchase the dwelling.[12]

Economist Steven D. Levitt famously argued in his 2005 book Freakonomics that real estate brokers have an inherent conflict of interest with the sellers they represent because their commission gives them more motivation to sell quickly than to sell at a higher price. Levitt supported his argument with a study finding brokers tend to put their own houses on the market for longer and receive higher prices for them compared to when working for their clients. He concluded that broker commissions will reduce in future.[13] A 2008 study by other economists found that when comparing brokerage without listing services, brokerage significantly reduced the average sale price.[14]


RESPA


[edit]

Real estate brokers who work with lenders can not receive any compensation from the lender for referring a residential client to a specific lender. To do so would be a violation of a United States federal law known as the Real Estate Settlement Procedures Act (RESPA). RESPA ensures that buyers and sellers are given adequate notice of the Real Estate settlement process.[15]


Realtor


[edit]

In the United States, the term realtor is trademarked by the National Association of Realtors, which uses it to refer to its active members, who may be real estate agents or brokers.[16][17][18] In Canada, the trademark is used by members of the Canadian Real Estate Association.[19] Both organizations advise against the use of realtor as a generic synonym for real estate agent.[19]


Continuing education


[edit]

States issue licenses for an annual or multi-year period and require real estate agents and brokers to complete continuing education prior to renewing their licenses. For example, California licensees must complete 45 hours of continuing education every 4 years in topics such as agency, trust fund handling, consumer protection, fair housing, ethics, and risk management.[20]


Organizations


[edit]

Several notable groups exist to promote the real estate industry and to assist professionals.


  • The National Association of Realtors (NAR)

    • The Realtor Political Action Committee (RPAC) is the lobbying arm of the NAR.



  • The National Association of Real Estate Brokers (NAREB)

  • The Real Estate Institute of Canada (REIC)[21][22]

  • The Real Estate Roundtable[23]

  • Building Owners and Managers Association focusing on commercial property


See also


[edit]




  • Buyer brokerage

  • Closing (real estate)

  • Estate (land)

  • Exclusive buyer agent

  • Flat-fee MLS

  • Home inspection

  • Index of real estate articles

  • Investment rating for real estate

  • Listing contract

  • Mortgage broker

  • Property manager

  • Real estate contract

  • Real estate development

  • Real estate investing

  • Real estate settlement company

  • Strata management



References


[edit]




  1. ^

    "Real Estate Professionals Explained: Agent, Broker, REALTOR". Real Estate News and Advice | Realtor.com. 2014-03-10. Retrieved 2018-12-27.

  2. ^ "How Much Is Real Estate Agent Commission?". Bankrate. Retrieved 2018-12-20.

  3. ^ "FAQs". www.illinoisrealtors.org. Illinois Realtors. Retrieved August 16, 2018.

  4. ^ "Realtor Code of Ethics - Disclosure" (PDF). Real Estate Association Standards of Business Practice.

  5. ^ "Statutes & Constitution :View Statutes : Online Sunshine". Leg.state.fl.us. Retrieved 2014-02-10.

  6. ^ a b "Outline of types of representation available in Colorado, including Transaction Brokerage" (PDF). Dora.state.co.us. Retrieved 2014-02-10.

  7. ^ Evans, Blanche (2 July 2003). "Florida Implements Default Transactikn Brokerage Statute". realtytimes.com/. Realty Times. Retrieved 2 February 2014.

  8. ^ a b The 2007 Florida Statutes. Chapter 475 Real Estate Brokers — Part I; Real Estate Brokers, Sales Associates, and Schools (ss. 475.001-475.5018), Section 475.278 Authorized brokerage relationships; presumption of transaction brokerage; required disclosures (1) Brokerage Relationships: (a) Authorized brokerage relationships. — A real estate licensee in this state may enter into a brokerage relationship as either a transaction broker or as a single agent with potential buyers and sellers. A real estate licensee may not operate as a disclosed or non-disclosed dual agent ... (b)Presumption of transaction brokerage. — It shall be presumed that all licensees are operating as transaction brokers unless a single agent or no brokerage relationship is established, in writing, with a customer."

  9. ^ "Real Estate Broker's License: Examination and Licensing Application Requirements". New Mexico Administrative Code. State of New Mexico Commission of Public Records. 21 January 2021.

  10. ^ "Real Estate Laws Website". BC Real Estate Laws - Pat 1 Trading Services.

  11. ^ a b c Quigley, John M. (2000). "A Decent Home: Housing Policy in Perspective". Brookings-Wharton Papers on Urban Affairs. 2000 (1): 53–88. CiteSeerX 10.1.1.369.6806. doi:10.1353/urb.2000.0011. ISSN 1533-4449. S2CID 154714417.

  12. ^ "Getting a Brokerage Commission Paid | New York Law Journal".

  13. ^ Daniel Gross (20 February 2005). "Why a Real Estate Agent May Skip the Extra Mile". The New York Times. Archived from the original on 29 May 2015.

  14. ^ B. Douglas Bernheim; Jonathan Meer (13 January 2012). "Do Real Estate Brokers Add Value When Listing Services Are Unbundled?". The National Bureau of Economic Research. Working Paper Series. doi:10.3386/w13796. Retrieved 3 September 2016.

  15. ^ "CFPB consumer laws and regulations RESPA" (PDF). Consumer Financial Protection Bureau. Retrieved 13 October 2021.

  16. ^ Buch, Clarissa (20 April 2023). "What Is a Realtor? A Member of the National Association of Realtors". Realtor.com. National Association of Realtors. Retrieved 17 June 2023.

  17. ^ "Understanding the Difference Between a Realtor and a Real Estate Agent". The CE Shop. Retrieved 19 June 2023.

  18. ^ Colestock, Stephanie (August 13, 2021). "Realtor vs. real estate agent: What's the difference?". Fox Business. Retrieved 20 June 2023.

  19. ^ a b "Using the REALTOR® Trademark in Advertisements - CREA". 12 November 2020.

  20. ^ "Continuing Education Requirements". Ca.gov. California Department of Real Estate. Retrieved 26 June 2023.

  21. ^ "Professional Recognition of our Programs". Real Estate Division at Sauder, UBC. January 8, 2019.

  22. ^ "Real Estate Institute of Canada (REIC)". Thomson Reuters Canada Limited. Retrieved 8 January 2019.

  23. ^ "Lobbying Spending Database: National Assn of Realtors : 2007". Retrieved 2008-10-25.




[edit]


  • Media related to Real estate agents at Wikimedia Commons

































Legal Considerations When Selling Property in California

When it comes to selling property in California, especially if you're aiming to sell your house fast in San Diego, there are numerous legal considerations to keep in mind. Understanding these regulations can help you navigate the process more efficiently and avoid potential pitfalls.

Disclosure Requirements

California law mandates that sellers disclose specific information about the property's condition. This includes any known issues such as water damage, pest infestations, or structural problems. Not disclosing such information can lead to legal repercussions down the line. It's crucial to be upfront and transparent with prospective buyers, as failing to do so could result not only in a lost sale but also in possible lawsuits.

Real Estate Agents and Brokers

Real estate agents and brokers play an essential role in facilitating property transactions. In California, both agents and brokers must be licensed by the state. While brokers can operate independently, agents usually work under a licensed broker's supervision. These professionals are responsible for negotiating sales agreements and handling all necessary documentation for closing deals. Buyers and sellers are often advised to consult with a licensed real estate professional who understands the specific laws of agency within the state.

Escrow Process

The escrow process is another critical aspect when selling property quickly in San Diego or anywhere else in California. During this phase, an impartial third party holds onto funds until all conditions of the sale are met. This ensures that neither party can access these funds prematurely, providing both buyer and seller with a level of security throughout the transaction. The escrow company also manages documents like the deed of trust and title insurance, ensuring everything is handled correctly before closing.

Taxes and Fees

Selling property involves various taxes and fees that must be paid at closing. In California, sellers may need to pay capital gains tax on any profit made from selling their home unless they qualify for exemptions like those available under federal law for primary residences. Additionally, there are transfer taxes imposed by counties or cities that vary based on location; it's essential to factor these costs into your financial planning.

As a round up

Understanding legal considerations when selling property is vital for anyone looking to sell their house fast in San Diego or elsewhere in California. From disclosure requirements to working with licensed real estate professionals and navigating escrow processes—each step has its own set of rules that must be followed meticulously To put it shot ignoring these legalities can cost you time money—and even jeopardize your entire transaction.

What is real estate agent

A real estate agent is a person who acts as an intermediary between sellers and buyers of real estate, earning a commission for their services. An agent typically works under the supervision of a licensed broker to represent clients in negotiating sales agreements and managing the necessary documentation for closing real estate transactions. They are licensed by the state to ensure they can legally perform these duties. While brokers may operate independently, agents generally must be affiliated with a broker. The agent's primary role is to facilitate the buying or selling process, ensuring all legal requirements are met and assisting in achieving favorable terms for their clients.














Lawn signs advertising houses for sale

Real estate agents and real estate brokers are people who represents sellers or buyers of real estate or real property. While a broker may work independently, an agent usually works under a licensed broker to represent clients.[1] Brokers and agents are licensed by the state to negotiate sales agreements and manage the documentation required for closing real estate transactions. Buyers and sellers are generally advised to consult a licensed real estate professional for a written definition of an individual state's laws of agency.



Categories of representation


[edit]

A real estate broker typically receives a real estate commission for successfully completing a sale. Across the U.S, this commission can generally range between 5-6% of the property's sale price for a full-service broker but this percentage varies by state and even region.[2]


Real estate licensing and education


[edit]

In most jurisdictions in the United States, a person must have a license to perform licensed activities, and these activities are defined within the statutes of each state. The main feature of the requirement for having a license to perform those activities is the work done "for compensation". Hence, hypothetically, if a person wants to help a friend out in either selling or buying a property, and no compensation of any kind is expected in return, then a license is not needed to perform all the work. However, since most people would expect to be compensated for their efforts and skills, a license would be required by law before a person may receive remuneration for services rendered as a real estate broker or agent. Unlicensed activity is illegal and the state real estate commission has the authority to fine people who are acting as real estate licensees, but buyers and sellers acting as principals in the sale or purchase of real estate are usually not required to be licensed. It is important to note that in some states, lawyers handle real estate sales for compensation without being licensed as brokers or agents. However, even lawyers can only perform real estate activities that are incidental to their original work as a lawyer. It cannot be the case that a lawyer can become a seller's selling agent if that is all the service that is being requested by the client. Lawyers would still need to be licensed as a broker if they wish to perform licensed activities. Nevertheless, lawyers do get a break in the minimum education requirements (for example, 90 hours in Illinois).[3]

Some other states have recently eliminated the salesperson's license, instead, all licensees in those states automatically earn their broker's license.

The term "agent" is not to be confused with salesperson or broker. An agent is simply a licensee that has entered into an agency relationship with a client. A broker can also be an agent for a client. It is commonly the firm that has the actual legal relationship with the client through one of their sales staff, be they salespersons or brokers.

In all states, the real estate licensee must disclose to prospective buyers and sellers the nature of their relationship [4]


Specific representation laws


[edit]

Some U.S. state real estate commissions – notably Florida's[5] after 1992 (and extended in 2003) and Colorado's[6] after 1994 (with changes in 2003) created the option of having no agency or fiduciary relationship between brokers and sellers or buyers.

As noted by the South Broward Board of Realtors, Inc. in a letter to State of Florida legislative committees:




"The Transaction Broker crafts a transaction by bringing a willing buyer and a willing seller together and provides the legal documentation of the details of the legal agreement between the same. The Transaction Broker is not a fiduciary of any party, but must abide by the law as well as professional and ethical standards." (such as NAR Code of Ethics).


The result was that, in 2003, Florida created a system where the default brokerage relationship had "all licensees ... operating as transaction brokers, unless a single agent or no brokerage relationship is established, in writing, with the customer"[7][8] and the statute required written disclosure of the transaction brokerage relationship to the buyer or seller customer only through July 1, 2008.

In the case of both Florida[8] and Colorado,[6] dual agency and sub-agency (where both listing and selling agents represent the seller) no longer exist.

Other brokers and agents may focus on representing buyers or tenants in a real estate transaction. However, licensing as a broker or salesperson authorizes the licensee to legally represent parties on either side of a transaction and providing the necessary documentation for the legal transfer of real property. This business decision is for the licensee to decide. They are fines for people acting as real estate agents when not licensed by the state.

In the United Kingdom, an estate agent is a person or business entity whose business is to market real estate on behalf of clients. There are significant differences between the actions, powers, obligations, and liabilities of brokers and estate agents in each country, as different countries take markedly different approaches to the marketing and selling of real property.


The difference between salespersons and brokers


[edit]

Before the Multiple Listing Service (MLS) was introduced in 1967, when brokers (and their licensees) only represented sellers by providing a service to provide legal documentation on the transfer real property, the term "real estate salesperson" may have been more appropriate than it is today, given the various ways that brokers and licensees now help buyers through the legal process of transferring real property. Legally, however, the term "salesperson" is still used in many states to describe a real estate licensee.[citation needed]


Real estate broker (or, in some states, qualifying broker)


[edit]

After gaining some years of experience in real estate sales, a salesperson may decide to become licensed as a real estate broker (or Principal/qualifying broker) in order to own, manage, or operate their own brokerage. In addition, some states allow college graduates to apply for a broker's license without years of experience. College graduates fall into this category once they have completed the state-required courses as well. California allows licensed attorneys to become brokers upon passing the broker exam without having to take the requisite courses required of an agent. Commonly more coursework and a broker's state exam on real estate law must be passed. Upon obtaining a broker's license, a real estate agent may continue to work for another broker in a similar capacity as before (often referred to as a broker associate or associate broker) or take charge of their own brokerage and hire other salespersons (or broker), licensees. Becoming a branch office manager may or may not require a broker's license. Some states allow licensed attorneys to become real estate brokers without taking any exam. In some states, there are no "salespeople" as all licensees are brokers.[9]


Types of services that a broker can provide


[edit]

Real Estate Services are also called trading services [10]


Real estate brokers and sellers


[edit]


Flat-fee real estate agents


[edit]

Flat-fee real estate agents charge a seller of a property a flat fee, $500 for example,[11] as opposed to a traditional or full-service real estate agent who charges a percentage of the sale price. In exchange, the seller's property will appear in the multiple listing service (MLS), but the seller will represent him or herself when showing the property and negotiating a sales price.[11] The result is the seller pays less commission overall (roughly half) when the property sells.[11] This is because a seller will pay a percentage of the sales price to a buyer's agent but not have to pay a percentage to a seller's agent (because there isn't one; the seller is representing himself).


Brokerage commissions


[edit]

In consideration of the brokerage successfully finding a buyer for the property, a broker anticipates receiving a commission for the services the brokerage has provided. Usually, the payment of a commission to the brokerage is contingent upon finding a buyer for the real estate, the successful negotiation of a purchase contract between the buyer and seller, or the settlement of the transaction and the exchange of money between buyer and seller. Under common law, a real estate broker is eligible to receive their commission, regardless of whether the sale actually takes place, once they secure a buyer who is ready, willing, and able to purchase the dwelling.[12]

Economist Steven D. Levitt famously argued in his 2005 book Freakonomics that real estate brokers have an inherent conflict of interest with the sellers they represent because their commission gives them more motivation to sell quickly than to sell at a higher price. Levitt supported his argument with a study finding brokers tend to put their own houses on the market for longer and receive higher prices for them compared to when working for their clients. He concluded that broker commissions will reduce in future.[13] A 2008 study by other economists found that when comparing brokerage without listing services, brokerage significantly reduced the average sale price.[14]


RESPA


[edit]

Real estate brokers who work with lenders can not receive any compensation from the lender for referring a residential client to a specific lender. To do so would be a violation of a United States federal law known as the Real Estate Settlement Procedures Act (RESPA). RESPA ensures that buyers and sellers are given adequate notice of the Real Estate settlement process.[15]


Realtor


[edit]

In the United States, the term realtor is trademarked by the National Association of Realtors, which uses it to refer to its active members, who may be real estate agents or brokers.[16][17][18] In Canada, the trademark is used by members of the Canadian Real Estate Association.[19] Both organizations advise against the use of realtor as a generic synonym for real estate agent.[19]


Continuing education


[edit]

States issue licenses for an annual or multi-year period and require real estate agents and brokers to complete continuing education prior to renewing their licenses. For example, California licensees must complete 45 hours of continuing education every 4 years in topics such as agency, trust fund handling, consumer protection, fair housing, ethics, and risk management.[20]


Organizations


[edit]

Several notable groups exist to promote the real estate industry and to assist professionals.


  • The National Association of Realtors (NAR)

    • The Realtor Political Action Committee (RPAC) is the lobbying arm of the NAR.



  • The National Association of Real Estate Brokers (NAREB)

  • The Real Estate Institute of Canada (REIC)[21][22]

  • The Real Estate Roundtable[23]

  • Building Owners and Managers Association focusing on commercial property


See also


[edit]




  • Buyer brokerage

  • Closing (real estate)

  • Estate (land)

  • Exclusive buyer agent

  • Flat-fee MLS

  • Home inspection

  • Index of real estate articles

  • Investment rating for real estate

  • Listing contract

  • Mortgage broker

  • Property manager

  • Real estate contract

  • Real estate development

  • Real estate investing

  • Real estate settlement company

  • Strata management



References


[edit]




  1. ^

    "Real Estate Professionals Explained: Agent, Broker, REALTOR". Real Estate News and Advice | Realtor.com. 2014-03-10. Retrieved 2018-12-27.

  2. ^ "How Much Is Real Estate Agent Commission?". Bankrate. Retrieved 2018-12-20.

  3. ^ "FAQs". www.illinoisrealtors.org. Illinois Realtors. Retrieved August 16, 2018.

  4. ^ "Realtor Code of Ethics - Disclosure" (PDF). Real Estate Association Standards of Business Practice.

  5. ^ "Statutes & Constitution :View Statutes : Online Sunshine". Leg.state.fl.us. Retrieved 2014-02-10.

  6. ^ a b "Outline of types of representation available in Colorado, including Transaction Brokerage" (PDF). Dora.state.co.us. Retrieved 2014-02-10.

  7. ^ Evans, Blanche (2 July 2003). "Florida Implements Default Transactikn Brokerage Statute". realtytimes.com/. Realty Times. Retrieved 2 February 2014.

  8. ^ a b The 2007 Florida Statutes. Chapter 475 Real Estate Brokers — Part I; Real Estate Brokers, Sales Associates, and Schools (ss. 475.001-475.5018), Section 475.278 Authorized brokerage relationships; presumption of transaction brokerage; required disclosures (1) Brokerage Relationships: (a) Authorized brokerage relationships. — A real estate licensee in this state may enter into a brokerage relationship as either a transaction broker or as a single agent with potential buyers and sellers. A real estate licensee may not operate as a disclosed or non-disclosed dual agent ... (b)Presumption of transaction brokerage. — It shall be presumed that all licensees are operating as transaction brokers unless a single agent or no brokerage relationship is established, in writing, with a customer."

  9. ^ "Real Estate Broker's License: Examination and Licensing Application Requirements". New Mexico Administrative Code. State of New Mexico Commission of Public Records. 21 January 2021.

  10. ^ "Real Estate Laws Website". BC Real Estate Laws - Pat 1 Trading Services.

  11. ^ a b c Quigley, John M. (2000). "A Decent Home: Housing Policy in Perspective". Brookings-Wharton Papers on Urban Affairs. 2000 (1): 53–88. CiteSeerX 10.1.1.369.6806. doi:10.1353/urb.2000.0011. ISSN 1533-4449. S2CID 154714417.

  12. ^ "Getting a Brokerage Commission Paid | New York Law Journal".

  13. ^ Daniel Gross (20 February 2005). "Why a Real Estate Agent May Skip the Extra Mile". The New York Times. Archived from the original on 29 May 2015.

  14. ^ B. Douglas Bernheim; Jonathan Meer (13 January 2012). "Do Real Estate Brokers Add Value When Listing Services Are Unbundled?". The National Bureau of Economic Research. Working Paper Series. doi:10.3386/w13796. Retrieved 3 September 2016.

  15. ^ "CFPB consumer laws and regulations RESPA" (PDF). Consumer Financial Protection Bureau. Retrieved 13 October 2021.

  16. ^ Buch, Clarissa (20 April 2023). "What Is a Realtor? A Member of the National Association of Realtors". Realtor.com. National Association of Realtors. Retrieved 17 June 2023.

  17. ^ "Understanding the Difference Between a Realtor and a Real Estate Agent". The CE Shop. Retrieved 19 June 2023.

  18. ^ Colestock, Stephanie (August 13, 2021). "Realtor vs. real estate agent: What's the difference?". Fox Business. Retrieved 20 June 2023.

  19. ^ a b "Using the REALTOR® Trademark in Advertisements - CREA". 12 November 2020.

  20. ^ "Continuing Education Requirements". Ca.gov. California Department of Real Estate. Retrieved 26 June 2023.

  21. ^ "Professional Recognition of our Programs". Real Estate Division at Sauder, UBC. January 8, 2019.

  22. ^ "Real Estate Institute of Canada (REIC)". Thomson Reuters Canada Limited. Retrieved 8 January 2019.

  23. ^ "Lobbying Spending Database: National Assn of Realtors : 2007". Retrieved 2008-10-25.




[edit]


  • Media related to Real estate agents at Wikimedia Commons

































How to Negotiate Offers on Your San Diego Home

When you're looking to sell your house quickly in San Diego, knowing how to negotiate offers is pivotal. The city's real estate market can be competitive, and having a strategy in place will ensure you get the best deal possible.

Understand Your Market

Before diving into negotiations, it’s critical to understand the current market conditions in San Diego. Are you in a buyer's market or a seller's market? This knowledge will help you set realistic expectations for your home's sale price and give you more leverage during negotiations.

Work with Professionals

Real estate agents and brokers are invaluable when negotiating offers on your home. These professionals are licensed by the state of California and have extensive experience managing sales agreements and documentation. They can provide insights that you may not have considered, making sure that all aspects of the transaction are handled smoothly.

Set Clear Objectives

Determine what your priorities are before entering into negotiations. Is it more important for you to sell quickly, or do you want to maximize your profit? By setting clear objectives, you’ll be better equipped to make decisions when multiple offers come in.

Assess Each Offer Thoroughly

Not all offers are created equal. Look beyond just the offer price; consider other factors such as contingencies, financing terms, and closing timelines. A higher offer might have more contingencies that could delay or even derail the sale process.

Counteroffer Strategically

If an initial offer doesn’t meet your expectations but has potential, don't hesitate to counteroffer. This is where having an experienced real estate agent comes in handy; they can guide you through crafting a counteroffer that keeps both parties interested without scaring off the buyer.

Keep Communication Open

Effective communication is key during negotiation. Make sure you're responsive and transparent with potential buyers to build trust and facilitate smoother transactions. Misunderstandings can lead to deals falling through at the last minute.

To put it shot, successfully negotiating offers on your San Diego home requires preparation, professional advice from licensed real estate agents or brokers, and strategic decision-making based on clear objectives. By considering all aspects of each offer and maintaining open lines of communication with prospective buyers, you'll be well-positioned for a successful sale.

What is real estate agent

A real estate agent is a person who acts as an intermediary between sellers and buyers of real estate, earning a commission for their services. An agent typically works under the supervision of a licensed broker to represent clients in negotiating sales agreements and managing the necessary documentation for closing real estate transactions. They are licensed by the state to ensure they can legally perform these duties. While brokers may operate independently, agents generally must be affiliated with a broker. The agent's primary role is to facilitate the buying or selling process, ensuring all legal requirements are met and assisting in achieving favorable terms for their clients.














Lawn signs advertising houses for sale

Real estate agents and real estate brokers are people who represents sellers or buyers of real estate or real property. While a broker may work independently, an agent usually works under a licensed broker to represent clients.[1] Brokers and agents are licensed by the state to negotiate sales agreements and manage the documentation required for closing real estate transactions. Buyers and sellers are generally advised to consult a licensed real estate professional for a written definition of an individual state's laws of agency.



Categories of representation


[edit]

A real estate broker typically receives a real estate commission for successfully completing a sale. Across the U.S, this commission can generally range between 5-6% of the property's sale price for a full-service broker but this percentage varies by state and even region.[2]


Real estate licensing and education


[edit]

In most jurisdictions in the United States, a person must have a license to perform licensed activities, and these activities are defined within the statutes of each state. The main feature of the requirement for having a license to perform those activities is the work done "for compensation". Hence, hypothetically, if a person wants to help a friend out in either selling or buying a property, and no compensation of any kind is expected in return, then a license is not needed to perform all the work. However, since most people would expect to be compensated for their efforts and skills, a license would be required by law before a person may receive remuneration for services rendered as a real estate broker or agent. Unlicensed activity is illegal and the state real estate commission has the authority to fine people who are acting as real estate licensees, but buyers and sellers acting as principals in the sale or purchase of real estate are usually not required to be licensed. It is important to note that in some states, lawyers handle real estate sales for compensation without being licensed as brokers or agents. However, even lawyers can only perform real estate activities that are incidental to their original work as a lawyer. It cannot be the case that a lawyer can become a seller's selling agent if that is all the service that is being requested by the client. Lawyers would still need to be licensed as a broker if they wish to perform licensed activities. Nevertheless, lawyers do get a break in the minimum education requirements (for example, 90 hours in Illinois).[3]

Some other states have recently eliminated the salesperson's license, instead, all licensees in those states automatically earn their broker's license.

The term "agent" is not to be confused with salesperson or broker. An agent is simply a licensee that has entered into an agency relationship with a client. A broker can also be an agent for a client. It is commonly the firm that has the actual legal relationship with the client through one of their sales staff, be they salespersons or brokers.

In all states, the real estate licensee must disclose to prospective buyers and sellers the nature of their relationship [4]


Specific representation laws


[edit]

Some U.S. state real estate commissions – notably Florida's[5] after 1992 (and extended in 2003) and Colorado's[6] after 1994 (with changes in 2003) created the option of having no agency or fiduciary relationship between brokers and sellers or buyers.

As noted by the South Broward Board of Realtors, Inc. in a letter to State of Florida legislative committees:




"The Transaction Broker crafts a transaction by bringing a willing buyer and a willing seller together and provides the legal documentation of the details of the legal agreement between the same. The Transaction Broker is not a fiduciary of any party, but must abide by the law as well as professional and ethical standards." (such as NAR Code of Ethics).


The result was that, in 2003, Florida created a system where the default brokerage relationship had "all licensees ... operating as transaction brokers, unless a single agent or no brokerage relationship is established, in writing, with the customer"[7][8] and the statute required written disclosure of the transaction brokerage relationship to the buyer or seller customer only through July 1, 2008.

In the case of both Florida[8] and Colorado,[6] dual agency and sub-agency (where both listing and selling agents represent the seller) no longer exist.

Other brokers and agents may focus on representing buyers or tenants in a real estate transaction. However, licensing as a broker or salesperson authorizes the licensee to legally represent parties on either side of a transaction and providing the necessary documentation for the legal transfer of real property. This business decision is for the licensee to decide. They are fines for people acting as real estate agents when not licensed by the state.

In the United Kingdom, an estate agent is a person or business entity whose business is to market real estate on behalf of clients. There are significant differences between the actions, powers, obligations, and liabilities of brokers and estate agents in each country, as different countries take markedly different approaches to the marketing and selling of real property.


The difference between salespersons and brokers


[edit]

Before the Multiple Listing Service (MLS) was introduced in 1967, when brokers (and their licensees) only represented sellers by providing a service to provide legal documentation on the transfer real property, the term "real estate salesperson" may have been more appropriate than it is today, given the various ways that brokers and licensees now help buyers through the legal process of transferring real property. Legally, however, the term "salesperson" is still used in many states to describe a real estate licensee.[citation needed]


Real estate broker (or, in some states, qualifying broker)


[edit]

After gaining some years of experience in real estate sales, a salesperson may decide to become licensed as a real estate broker (or Principal/qualifying broker) in order to own, manage, or operate their own brokerage. In addition, some states allow college graduates to apply for a broker's license without years of experience. College graduates fall into this category once they have completed the state-required courses as well. California allows licensed attorneys to become brokers upon passing the broker exam without having to take the requisite courses required of an agent. Commonly more coursework and a broker's state exam on real estate law must be passed. Upon obtaining a broker's license, a real estate agent may continue to work for another broker in a similar capacity as before (often referred to as a broker associate or associate broker) or take charge of their own brokerage and hire other salespersons (or broker), licensees. Becoming a branch office manager may or may not require a broker's license. Some states allow licensed attorneys to become real estate brokers without taking any exam. In some states, there are no "salespeople" as all licensees are brokers.[9]


Types of services that a broker can provide


[edit]

Real Estate Services are also called trading services [10]


Real estate brokers and sellers


[edit]


Flat-fee real estate agents


[edit]

Flat-fee real estate agents charge a seller of a property a flat fee, $500 for example,[11] as opposed to a traditional or full-service real estate agent who charges a percentage of the sale price. In exchange, the seller's property will appear in the multiple listing service (MLS), but the seller will represent him or herself when showing the property and negotiating a sales price.[11] The result is the seller pays less commission overall (roughly half) when the property sells.[11] This is because a seller will pay a percentage of the sales price to a buyer's agent but not have to pay a percentage to a seller's agent (because there isn't one; the seller is representing himself).


Brokerage commissions


[edit]

In consideration of the brokerage successfully finding a buyer for the property, a broker anticipates receiving a commission for the services the brokerage has provided. Usually, the payment of a commission to the brokerage is contingent upon finding a buyer for the real estate, the successful negotiation of a purchase contract between the buyer and seller, or the settlement of the transaction and the exchange of money between buyer and seller. Under common law, a real estate broker is eligible to receive their commission, regardless of whether the sale actually takes place, once they secure a buyer who is ready, willing, and able to purchase the dwelling.[12]

Economist Steven D. Levitt famously argued in his 2005 book Freakonomics that real estate brokers have an inherent conflict of interest with the sellers they represent because their commission gives them more motivation to sell quickly than to sell at a higher price. Levitt supported his argument with a study finding brokers tend to put their own houses on the market for longer and receive higher prices for them compared to when working for their clients. He concluded that broker commissions will reduce in future.[13] A 2008 study by other economists found that when comparing brokerage without listing services, brokerage significantly reduced the average sale price.[14]


RESPA


[edit]

Real estate brokers who work with lenders can not receive any compensation from the lender for referring a residential client to a specific lender. To do so would be a violation of a United States federal law known as the Real Estate Settlement Procedures Act (RESPA). RESPA ensures that buyers and sellers are given adequate notice of the Real Estate settlement process.[15]


Realtor


[edit]

In the United States, the term realtor is trademarked by the National Association of Realtors, which uses it to refer to its active members, who may be real estate agents or brokers.[16][17][18] In Canada, the trademark is used by members of the Canadian Real Estate Association.[19] Both organizations advise against the use of realtor as a generic synonym for real estate agent.[19]


Continuing education


[edit]

States issue licenses for an annual or multi-year period and require real estate agents and brokers to complete continuing education prior to renewing their licenses. For example, California licensees must complete 45 hours of continuing education every 4 years in topics such as agency, trust fund handling, consumer protection, fair housing, ethics, and risk management.[20]


Organizations


[edit]

Several notable groups exist to promote the real estate industry and to assist professionals.


  • The National Association of Realtors (NAR)

    • The Realtor Political Action Committee (RPAC) is the lobbying arm of the NAR.



  • The National Association of Real Estate Brokers (NAREB)

  • The Real Estate Institute of Canada (REIC)[21][22]

  • The Real Estate Roundtable[23]

  • Building Owners and Managers Association focusing on commercial property


See also


[edit]




  • Buyer brokerage

  • Closing (real estate)

  • Estate (land)

  • Exclusive buyer agent

  • Flat-fee MLS

  • Home inspection

  • Index of real estate articles

  • Investment rating for real estate

  • Listing contract

  • Mortgage broker

  • Property manager

  • Real estate contract

  • Real estate development

  • Real estate investing

  • Real estate settlement company

  • Strata management



References


[edit]




  1. ^

    "Real Estate Professionals Explained: Agent, Broker, REALTOR". Real Estate News and Advice | Realtor.com. 2014-03-10. Retrieved 2018-12-27.

  2. ^ "How Much Is Real Estate Agent Commission?". Bankrate. Retrieved 2018-12-20.

  3. ^ "FAQs". www.illinoisrealtors.org. Illinois Realtors. Retrieved August 16, 2018.

  4. ^ "Realtor Code of Ethics - Disclosure" (PDF). Real Estate Association Standards of Business Practice.

  5. ^ "Statutes & Constitution :View Statutes : Online Sunshine". Leg.state.fl.us. Retrieved 2014-02-10.

  6. ^ a b "Outline of types of representation available in Colorado, including Transaction Brokerage" (PDF). Dora.state.co.us. Retrieved 2014-02-10.

  7. ^ Evans, Blanche (2 July 2003). "Florida Implements Default Transactikn Brokerage Statute". realtytimes.com/. Realty Times. Retrieved 2 February 2014.

  8. ^ a b The 2007 Florida Statutes. Chapter 475 Real Estate Brokers — Part I; Real Estate Brokers, Sales Associates, and Schools (ss. 475.001-475.5018), Section 475.278 Authorized brokerage relationships; presumption of transaction brokerage; required disclosures (1) Brokerage Relationships: (a) Authorized brokerage relationships. — A real estate licensee in this state may enter into a brokerage relationship as either a transaction broker or as a single agent with potential buyers and sellers. A real estate licensee may not operate as a disclosed or non-disclosed dual agent ... (b)Presumption of transaction brokerage. — It shall be presumed that all licensees are operating as transaction brokers unless a single agent or no brokerage relationship is established, in writing, with a customer."

  9. ^ "Real Estate Broker's License: Examination and Licensing Application Requirements". New Mexico Administrative Code. State of New Mexico Commission of Public Records. 21 January 2021.

  10. ^ "Real Estate Laws Website". BC Real Estate Laws - Pat 1 Trading Services.

  11. ^ a b c Quigley, John M. (2000). "A Decent Home: Housing Policy in Perspective". Brookings-Wharton Papers on Urban Affairs. 2000 (1): 53–88. CiteSeerX 10.1.1.369.6806. doi:10.1353/urb.2000.0011. ISSN 1533-4449. S2CID 154714417.

  12. ^ "Getting a Brokerage Commission Paid | New York Law Journal".

  13. ^ Daniel Gross (20 February 2005). "Why a Real Estate Agent May Skip the Extra Mile". The New York Times. Archived from the original on 29 May 2015.

  14. ^ B. Douglas Bernheim; Jonathan Meer (13 January 2012). "Do Real Estate Brokers Add Value When Listing Services Are Unbundled?". The National Bureau of Economic Research. Working Paper Series. doi:10.3386/w13796. Retrieved 3 September 2016.

  15. ^ "CFPB consumer laws and regulations RESPA" (PDF). Consumer Financial Protection Bureau. Retrieved 13 October 2021.

  16. ^ Buch, Clarissa (20 April 2023). "What Is a Realtor? A Member of the National Association of Realtors". Realtor.com. National Association of Realtors. Retrieved 17 June 2023.

  17. ^ "Understanding the Difference Between a Realtor and a Real Estate Agent". The CE Shop. Retrieved 19 June 2023.

  18. ^ Colestock, Stephanie (August 13, 2021). "Realtor vs. real estate agent: What's the difference?". Fox Business. Retrieved 20 June 2023.

  19. ^ a b "Using the REALTOR® Trademark in Advertisements - CREA". 12 November 2020.

  20. ^ "Continuing Education Requirements". Ca.gov. California Department of Real Estate. Retrieved 26 June 2023.

  21. ^ "Professional Recognition of our Programs". Real Estate Division at Sauder, UBC. January 8, 2019.

  22. ^ "Real Estate Institute of Canada (REIC)". Thomson Reuters Canada Limited. Retrieved 8 January 2019.

  23. ^ "Lobbying Spending Database: National Assn of Realtors : 2007". Retrieved 2008-10-25.




[edit]


  • Media related to Real estate agents at Wikimedia Commons

































Insider Tips from Successful Real Estate Agents in San Diego

Understanding Local Market Dynamics

San Diego's real estate market is unique, and understanding its dynamics can be a game-changer. Successful agents emphasize the importance of staying updated on local trends such as neighborhood growth, school ratings, and upcoming developments. Knowing which areas are hot can help you price your property competitively and attract serious buyers quickly.

Staging Your Home for Success

One critical tip from seasoned agents is to stage your home effectively. A well-staged home creates an emotional connection with potential buyers. Focus on decluttering, neutralizing decor, and ensuring each room has a clear purpose. It's amazing how small changes like fresh paint or new lighting fixtures can make a big difference in buyer perception.

The Power of Professional Photography

In today's visually driven market, high-quality photos are non-negotiable. Many successful agents invest in professional photography to showcase homes in the best light possible. Blurry or poorly lit images can turn off potential buyers before they even step foot inside your property. Good photos highlight your home's strengths and create an inviting first impression.

Pricing it Right

Get the pricing right from the start to sell fast. Overpricing can lead to your home sitting on the market too long while underpricing could mean leaving money on the table. Experienced agents use comparative market analysis (CMA) tools to determine an optimal price range based on recent sales in your area, helping you strike a balance between attracting offers quickly and maximizing returns.

Leverage Social Media and Online Listings

Social media platforms like Instagram and Facebook have become essential tools for reaching potential buyers. Listing services like Zillow or Redfin also offer great exposure but don't underestimate localized groups and forums where people actively search for properties within specific neighborhoods of San Diego.

Open Houses: To Host or Not?

While open houses were once considered a staple in real estate marketing, their effectiveness has been debated among experts lately—especially post-pandemic times when virtual tours gained popularity. However, if done correctly with proper safety measures in place open houses still serve as excellent opportunities for multiple showings within short periods which often lead to quicker sales decisions by prospective buyers visiting physically rather than just viewing online listings alone

As a round up

Selling fast means combining these strategies effectively under expertise guidance; remember every decision counts towards closing deal successfully without unnecessary delays!

What is real estate agent

A real estate agent is a person who acts as an intermediary between sellers and buyers of real estate, earning a commission for their services. An agent typically works under the supervision of a licensed broker to represent clients in negotiating sales agreements and managing the necessary documentation for closing real estate transactions. They are licensed by the state to ensure they can legally perform these duties. While brokers may operate independently, agents generally must be affiliated with a broker. The agent's primary role is to facilitate the buying or selling process, ensuring all legal requirements are met and assisting in achieving favorable terms for their clients.














Lawn signs advertising houses for sale

Real estate agents and real estate brokers are people who represents sellers or buyers of real estate or real property. While a broker may work independently, an agent usually works under a licensed broker to represent clients.[1] Brokers and agents are licensed by the state to negotiate sales agreements and manage the documentation required for closing real estate transactions. Buyers and sellers are generally advised to consult a licensed real estate professional for a written definition of an individual state's laws of agency.



Categories of representation


[edit]

A real estate broker typically receives a real estate commission for successfully completing a sale. Across the U.S, this commission can generally range between 5-6% of the property's sale price for a full-service broker but this percentage varies by state and even region.[2]


Real estate licensing and education


[edit]

In most jurisdictions in the United States, a person must have a license to perform licensed activities, and these activities are defined within the statutes of each state. The main feature of the requirement for having a license to perform those activities is the work done "for compensation". Hence, hypothetically, if a person wants to help a friend out in either selling or buying a property, and no compensation of any kind is expected in return, then a license is not needed to perform all the work. However, since most people would expect to be compensated for their efforts and skills, a license would be required by law before a person may receive remuneration for services rendered as a real estate broker or agent. Unlicensed activity is illegal and the state real estate commission has the authority to fine people who are acting as real estate licensees, but buyers and sellers acting as principals in the sale or purchase of real estate are usually not required to be licensed. It is important to note that in some states, lawyers handle real estate sales for compensation without being licensed as brokers or agents. However, even lawyers can only perform real estate activities that are incidental to their original work as a lawyer. It cannot be the case that a lawyer can become a seller's selling agent if that is all the service that is being requested by the client. Lawyers would still need to be licensed as a broker if they wish to perform licensed activities. Nevertheless, lawyers do get a break in the minimum education requirements (for example, 90 hours in Illinois).[3]

Some other states have recently eliminated the salesperson's license, instead, all licensees in those states automatically earn their broker's license.

The term "agent" is not to be confused with salesperson or broker. An agent is simply a licensee that has entered into an agency relationship with a client. A broker can also be an agent for a client. It is commonly the firm that has the actual legal relationship with the client through one of their sales staff, be they salespersons or brokers.

In all states, the real estate licensee must disclose to prospective buyers and sellers the nature of their relationship [4]


Specific representation laws


[edit]

Some U.S. state real estate commissions – notably Florida's[5] after 1992 (and extended in 2003) and Colorado's[6] after 1994 (with changes in 2003) created the option of having no agency or fiduciary relationship between brokers and sellers or buyers.

As noted by the South Broward Board of Realtors, Inc. in a letter to State of Florida legislative committees:




"The Transaction Broker crafts a transaction by bringing a willing buyer and a willing seller together and provides the legal documentation of the details of the legal agreement between the same. The Transaction Broker is not a fiduciary of any party, but must abide by the law as well as professional and ethical standards." (such as NAR Code of Ethics).


The result was that, in 2003, Florida created a system where the default brokerage relationship had "all licensees ... operating as transaction brokers, unless a single agent or no brokerage relationship is established, in writing, with the customer"[7][8] and the statute required written disclosure of the transaction brokerage relationship to the buyer or seller customer only through July 1, 2008.

In the case of both Florida[8] and Colorado,[6] dual agency and sub-agency (where both listing and selling agents represent the seller) no longer exist.

Other brokers and agents may focus on representing buyers or tenants in a real estate transaction. However, licensing as a broker or salesperson authorizes the licensee to legally represent parties on either side of a transaction and providing the necessary documentation for the legal transfer of real property. This business decision is for the licensee to decide. They are fines for people acting as real estate agents when not licensed by the state.

In the United Kingdom, an estate agent is a person or business entity whose business is to market real estate on behalf of clients. There are significant differences between the actions, powers, obligations, and liabilities of brokers and estate agents in each country, as different countries take markedly different approaches to the marketing and selling of real property.


The difference between salespersons and brokers


[edit]

Before the Multiple Listing Service (MLS) was introduced in 1967, when brokers (and their licensees) only represented sellers by providing a service to provide legal documentation on the transfer real property, the term "real estate salesperson" may have been more appropriate than it is today, given the various ways that brokers and licensees now help buyers through the legal process of transferring real property. Legally, however, the term "salesperson" is still used in many states to describe a real estate licensee.[citation needed]


Real estate broker (or, in some states, qualifying broker)


[edit]

After gaining some years of experience in real estate sales, a salesperson may decide to become licensed as a real estate broker (or Principal/qualifying broker) in order to own, manage, or operate their own brokerage. In addition, some states allow college graduates to apply for a broker's license without years of experience. College graduates fall into this category once they have completed the state-required courses as well. California allows licensed attorneys to become brokers upon passing the broker exam without having to take the requisite courses required of an agent. Commonly more coursework and a broker's state exam on real estate law must be passed. Upon obtaining a broker's license, a real estate agent may continue to work for another broker in a similar capacity as before (often referred to as a broker associate or associate broker) or take charge of their own brokerage and hire other salespersons (or broker), licensees. Becoming a branch office manager may or may not require a broker's license. Some states allow licensed attorneys to become real estate brokers without taking any exam. In some states, there are no "salespeople" as all licensees are brokers.[9]


Types of services that a broker can provide


[edit]

Real Estate Services are also called trading services [10]


Real estate brokers and sellers


[edit]


Flat-fee real estate agents


[edit]

Flat-fee real estate agents charge a seller of a property a flat fee, $500 for example,[11] as opposed to a traditional or full-service real estate agent who charges a percentage of the sale price. In exchange, the seller's property will appear in the multiple listing service (MLS), but the seller will represent him or herself when showing the property and negotiating a sales price.[11] The result is the seller pays less commission overall (roughly half) when the property sells.[11] This is because a seller will pay a percentage of the sales price to a buyer's agent but not have to pay a percentage to a seller's agent (because there isn't one; the seller is representing himself).


Brokerage commissions


[edit]

In consideration of the brokerage successfully finding a buyer for the property, a broker anticipates receiving a commission for the services the brokerage has provided. Usually, the payment of a commission to the brokerage is contingent upon finding a buyer for the real estate, the successful negotiation of a purchase contract between the buyer and seller, or the settlement of the transaction and the exchange of money between buyer and seller. Under common law, a real estate broker is eligible to receive their commission, regardless of whether the sale actually takes place, once they secure a buyer who is ready, willing, and able to purchase the dwelling.[12]

Economist Steven D. Levitt famously argued in his 2005 book Freakonomics that real estate brokers have an inherent conflict of interest with the sellers they represent because their commission gives them more motivation to sell quickly than to sell at a higher price. Levitt supported his argument with a study finding brokers tend to put their own houses on the market for longer and receive higher prices for them compared to when working for their clients. He concluded that broker commissions will reduce in future.[13] A 2008 study by other economists found that when comparing brokerage without listing services, brokerage significantly reduced the average sale price.[14]


RESPA


[edit]

Real estate brokers who work with lenders can not receive any compensation from the lender for referring a residential client to a specific lender. To do so would be a violation of a United States federal law known as the Real Estate Settlement Procedures Act (RESPA). RESPA ensures that buyers and sellers are given adequate notice of the Real Estate settlement process.[15]


Realtor


[edit]

In the United States, the term realtor is trademarked by the National Association of Realtors, which uses it to refer to its active members, who may be real estate agents or brokers.[16][17][18] In Canada, the trademark is used by members of the Canadian Real Estate Association.[19] Both organizations advise against the use of realtor as a generic synonym for real estate agent.[19]


Continuing education


[edit]

States issue licenses for an annual or multi-year period and require real estate agents and brokers to complete continuing education prior to renewing their licenses. For example, California licensees must complete 45 hours of continuing education every 4 years in topics such as agency, trust fund handling, consumer protection, fair housing, ethics, and risk management.[20]


Organizations


[edit]

Several notable groups exist to promote the real estate industry and to assist professionals.


  • The National Association of Realtors (NAR)

    • The Realtor Political Action Committee (RPAC) is the lobbying arm of the NAR.



  • The National Association of Real Estate Brokers (NAREB)

  • The Real Estate Institute of Canada (REIC)[21][22]

  • The Real Estate Roundtable[23]

  • Building Owners and Managers Association focusing on commercial property


See also


[edit]




  • Buyer brokerage

  • Closing (real estate)

  • Estate (land)

  • Exclusive buyer agent

  • Flat-fee MLS

  • Home inspection

  • Index of real estate articles

  • Investment rating for real estate

  • Listing contract

  • Mortgage broker

  • Property manager

  • Real estate contract

  • Real estate development

  • Real estate investing

  • Real estate settlement company

  • Strata management



References


[edit]




  1. ^

    "Real Estate Professionals Explained: Agent, Broker, REALTOR". Real Estate News and Advice | Realtor.com. 2014-03-10. Retrieved 2018-12-27.

  2. ^ "How Much Is Real Estate Agent Commission?". Bankrate. Retrieved 2018-12-20.

  3. ^ "FAQs". www.illinoisrealtors.org. Illinois Realtors. Retrieved August 16, 2018.

  4. ^ "Realtor Code of Ethics - Disclosure" (PDF). Real Estate Association Standards of Business Practice.

  5. ^ "Statutes & Constitution :View Statutes : Online Sunshine". Leg.state.fl.us. Retrieved 2014-02-10.

  6. ^ a b "Outline of types of representation available in Colorado, including Transaction Brokerage" (PDF). Dora.state.co.us. Retrieved 2014-02-10.

  7. ^ Evans, Blanche (2 July 2003). "Florida Implements Default Transactikn Brokerage Statute". realtytimes.com/. Realty Times. Retrieved 2 February 2014.

  8. ^ a b The 2007 Florida Statutes. Chapter 475 Real Estate Brokers — Part I; Real Estate Brokers, Sales Associates, and Schools (ss. 475.001-475.5018), Section 475.278 Authorized brokerage relationships; presumption of transaction brokerage; required disclosures (1) Brokerage Relationships: (a) Authorized brokerage relationships. — A real estate licensee in this state may enter into a brokerage relationship as either a transaction broker or as a single agent with potential buyers and sellers. A real estate licensee may not operate as a disclosed or non-disclosed dual agent ... (b)Presumption of transaction brokerage. — It shall be presumed that all licensees are operating as transaction brokers unless a single agent or no brokerage relationship is established, in writing, with a customer."

  9. ^ "Real Estate Broker's License: Examination and Licensing Application Requirements". New Mexico Administrative Code. State of New Mexico Commission of Public Records. 21 January 2021.

  10. ^ "Real Estate Laws Website". BC Real Estate Laws - Pat 1 Trading Services.

  11. ^ a b c Quigley, John M. (2000). "A Decent Home: Housing Policy in Perspective". Brookings-Wharton Papers on Urban Affairs. 2000 (1): 53–88. CiteSeerX 10.1.1.369.6806. doi:10.1353/urb.2000.0011. ISSN 1533-4449. S2CID 154714417.

  12. ^ "Getting a Brokerage Commission Paid | New York Law Journal".

  13. ^ Daniel Gross (20 February 2005). "Why a Real Estate Agent May Skip the Extra Mile". The New York Times. Archived from the original on 29 May 2015.

  14. ^ B. Douglas Bernheim; Jonathan Meer (13 January 2012). "Do Real Estate Brokers Add Value When Listing Services Are Unbundled?". The National Bureau of Economic Research. Working Paper Series. doi:10.3386/w13796. Retrieved 3 September 2016.

  15. ^ "CFPB consumer laws and regulations RESPA" (PDF). Consumer Financial Protection Bureau. Retrieved 13 October 2021.

  16. ^ Buch, Clarissa (20 April 2023). "What Is a Realtor? A Member of the National Association of Realtors". Realtor.com. National Association of Realtors. Retrieved 17 June 2023.

  17. ^ "Understanding the Difference Between a Realtor and a Real Estate Agent". The CE Shop. Retrieved 19 June 2023.

  18. ^ Colestock, Stephanie (August 13, 2021). "Realtor vs. real estate agent: What's the difference?". Fox Business. Retrieved 20 June 2023.

  19. ^ a b "Using the REALTOR® Trademark in Advertisements - CREA". 12 November 2020.

  20. ^ "Continuing Education Requirements". Ca.gov. California Department of Real Estate. Retrieved 26 June 2023.

  21. ^ "Professional Recognition of our Programs". Real Estate Division at Sauder, UBC. January 8, 2019.

  22. ^ "Real Estate Institute of Canada (REIC)". Thomson Reuters Canada Limited. Retrieved 8 January 2019.

  23. ^ "Lobbying Spending Database: National Assn of Realtors : 2007". Retrieved 2008-10-25.




[edit]


  • Media related to Real estate agents at Wikimedia Commons

































Common Pitfalls During the Closing Process and How to Avoid Them

Title Issues and How to Navigate Them

One common pitfall during the closing process is title issues. These can range from undisclosed liens to errors in public records. Such problems can delay your sale or even cost you a buyer. To avoid these setbacks, it's crucial to perform a thorough title search early on. Engaging a reputable title company can ensure that all potential issues are identified and resolved before they become deal-breakers.

Financing Falls Through Last Minute

Another frequent issue arises when buyers' financing falls through at the last minute. This scenario can be both frustrating and costly, as it may force you back to square one with finding a new buyer. To mitigate this risk, insist on pre-approved buyers only. Moreover, keep an open line of communication with the buyer's lender throughout the process to stay updated on any changes in their financial status.

Inspection Surprises

Inspections can often uncover unexpected problems that scare off potential buyers or result in renegotiations that lower your selling price. To circumvent this, consider investing in a pre-inspection before listing your home for sale. Identifying and addressing issues beforehand not only strengthens your negotiating position but also speeds up the closing process by reducing contingencies.

Documentation Delays

Delays in documentation are another stumbling block that sellers frequently encounter. Missing signatures, incomplete forms, or discrepancies in documents can halt proceedings indefinitely. Working closely with experienced real estate agents or brokers who are well-versed in handling paperwork efficiently will minimize such delays. Make sure all parties involved have access to necessary documents well ahead of deadlines.

Buyer’s Remorse and Cold Feet

Buyer's remorse or cold feet is not uncommon and can cause significant disruptions during closing. This emotional hesitation often stems from feeling rushed into making decisions without adequate information or time for contemplation. The best way to counteract this is through transparent communication and setting realistic expectations from the beginning. Ensure that buyers fully understand what they're committing to so there are no surprises down the road.

In effect this means paying attention to these common pitfalls will streamline your closing process significantly when aiming to “Sell My House Fast San Diego.” By tackling these issues head-on with proactive measures, you're more likely to enjoy a smooth transaction that's free of unnecessary complications.

What is real estate agent

A real estate agent is a person who acts as an intermediary between sellers and buyers of real estate, earning a commission for their services. An agent typically works under the supervision of a licensed broker to represent clients in negotiating sales agreements and managing the necessary documentation for closing real estate transactions. They are licensed by the state to ensure they can legally perform these duties. While brokers may operate independently, agents generally must be affiliated with a broker. The agent's primary role is to facilitate the buying or selling process, ensuring all legal requirements are met and assisting in achieving favorable terms for their clients.














Lawn signs advertising houses for sale

Real estate agents and real estate brokers are people who represents sellers or buyers of real estate or real property. While a broker may work independently, an agent usually works under a licensed broker to represent clients.[1] Brokers and agents are licensed by the state to negotiate sales agreements and manage the documentation required for closing real estate transactions. Buyers and sellers are generally advised to consult a licensed real estate professional for a written definition of an individual state's laws of agency.



Categories of representation


[edit]

A real estate broker typically receives a real estate commission for successfully completing a sale. Across the U.S, this commission can generally range between 5-6% of the property's sale price for a full-service broker but this percentage varies by state and even region.[2]


Real estate licensing and education


[edit]

In most jurisdictions in the United States, a person must have a license to perform licensed activities, and these activities are defined within the statutes of each state. The main feature of the requirement for having a license to perform those activities is the work done "for compensation". Hence, hypothetically, if a person wants to help a friend out in either selling or buying a property, and no compensation of any kind is expected in return, then a license is not needed to perform all the work. However, since most people would expect to be compensated for their efforts and skills, a license would be required by law before a person may receive remuneration for services rendered as a real estate broker or agent. Unlicensed activity is illegal and the state real estate commission has the authority to fine people who are acting as real estate licensees, but buyers and sellers acting as principals in the sale or purchase of real estate are usually not required to be licensed. It is important to note that in some states, lawyers handle real estate sales for compensation without being licensed as brokers or agents. However, even lawyers can only perform real estate activities that are incidental to their original work as a lawyer. It cannot be the case that a lawyer can become a seller's selling agent if that is all the service that is being requested by the client. Lawyers would still need to be licensed as a broker if they wish to perform licensed activities. Nevertheless, lawyers do get a break in the minimum education requirements (for example, 90 hours in Illinois).[3]

Some other states have recently eliminated the salesperson's license, instead, all licensees in those states automatically earn their broker's license.

The term "agent" is not to be confused with salesperson or broker. An agent is simply a licensee that has entered into an agency relationship with a client. A broker can also be an agent for a client. It is commonly the firm that has the actual legal relationship with the client through one of their sales staff, be they salespersons or brokers.

In all states, the real estate licensee must disclose to prospective buyers and sellers the nature of their relationship [4]


Specific representation laws


[edit]

Some U.S. state real estate commissions – notably Florida's[5] after 1992 (and extended in 2003) and Colorado's[6] after 1994 (with changes in 2003) created the option of having no agency or fiduciary relationship between brokers and sellers or buyers.

As noted by the South Broward Board of Realtors, Inc. in a letter to State of Florida legislative committees:




"The Transaction Broker crafts a transaction by bringing a willing buyer and a willing seller together and provides the legal documentation of the details of the legal agreement between the same. The Transaction Broker is not a fiduciary of any party, but must abide by the law as well as professional and ethical standards." (such as NAR Code of Ethics).


The result was that, in 2003, Florida created a system where the default brokerage relationship had "all licensees ... operating as transaction brokers, unless a single agent or no brokerage relationship is established, in writing, with the customer"[7][8] and the statute required written disclosure of the transaction brokerage relationship to the buyer or seller customer only through July 1, 2008.

In the case of both Florida[8] and Colorado,[6] dual agency and sub-agency (where both listing and selling agents represent the seller) no longer exist.

Other brokers and agents may focus on representing buyers or tenants in a real estate transaction. However, licensing as a broker or salesperson authorizes the licensee to legally represent parties on either side of a transaction and providing the necessary documentation for the legal transfer of real property. This business decision is for the licensee to decide. They are fines for people acting as real estate agents when not licensed by the state.

In the United Kingdom, an estate agent is a person or business entity whose business is to market real estate on behalf of clients. There are significant differences between the actions, powers, obligations, and liabilities of brokers and estate agents in each country, as different countries take markedly different approaches to the marketing and selling of real property.


The difference between salespersons and brokers


[edit]

Before the Multiple Listing Service (MLS) was introduced in 1967, when brokers (and their licensees) only represented sellers by providing a service to provide legal documentation on the transfer real property, the term "real estate salesperson" may have been more appropriate than it is today, given the various ways that brokers and licensees now help buyers through the legal process of transferring real property. Legally, however, the term "salesperson" is still used in many states to describe a real estate licensee.[citation needed]


Real estate broker (or, in some states, qualifying broker)


[edit]

After gaining some years of experience in real estate sales, a salesperson may decide to become licensed as a real estate broker (or Principal/qualifying broker) in order to own, manage, or operate their own brokerage. In addition, some states allow college graduates to apply for a broker's license without years of experience. College graduates fall into this category once they have completed the state-required courses as well. California allows licensed attorneys to become brokers upon passing the broker exam without having to take the requisite courses required of an agent. Commonly more coursework and a broker's state exam on real estate law must be passed. Upon obtaining a broker's license, a real estate agent may continue to work for another broker in a similar capacity as before (often referred to as a broker associate or associate broker) or take charge of their own brokerage and hire other salespersons (or broker), licensees. Becoming a branch office manager may or may not require a broker's license. Some states allow licensed attorneys to become real estate brokers without taking any exam. In some states, there are no "salespeople" as all licensees are brokers.[9]


Types of services that a broker can provide


[edit]

Real Estate Services are also called trading services [10]


Real estate brokers and sellers


[edit]


Flat-fee real estate agents


[edit]

Flat-fee real estate agents charge a seller of a property a flat fee, $500 for example,[11] as opposed to a traditional or full-service real estate agent who charges a percentage of the sale price. In exchange, the seller's property will appear in the multiple listing service (MLS), but the seller will represent him or herself when showing the property and negotiating a sales price.[11] The result is the seller pays less commission overall (roughly half) when the property sells.[11] This is because a seller will pay a percentage of the sales price to a buyer's agent but not have to pay a percentage to a seller's agent (because there isn't one; the seller is representing himself).


Brokerage commissions


[edit]

In consideration of the brokerage successfully finding a buyer for the property, a broker anticipates receiving a commission for the services the brokerage has provided. Usually, the payment of a commission to the brokerage is contingent upon finding a buyer for the real estate, the successful negotiation of a purchase contract between the buyer and seller, or the settlement of the transaction and the exchange of money between buyer and seller. Under common law, a real estate broker is eligible to receive their commission, regardless of whether the sale actually takes place, once they secure a buyer who is ready, willing, and able to purchase the dwelling.[12]

Economist Steven D. Levitt famously argued in his 2005 book Freakonomics that real estate brokers have an inherent conflict of interest with the sellers they represent because their commission gives them more motivation to sell quickly than to sell at a higher price. Levitt supported his argument with a study finding brokers tend to put their own houses on the market for longer and receive higher prices for them compared to when working for their clients. He concluded that broker commissions will reduce in future.[13] A 2008 study by other economists found that when comparing brokerage without listing services, brokerage significantly reduced the average sale price.[14]


RESPA


[edit]

Real estate brokers who work with lenders can not receive any compensation from the lender for referring a residential client to a specific lender. To do so would be a violation of a United States federal law known as the Real Estate Settlement Procedures Act (RESPA). RESPA ensures that buyers and sellers are given adequate notice of the Real Estate settlement process.[15]


Realtor


[edit]

In the United States, the term realtor is trademarked by the National Association of Realtors, which uses it to refer to its active members, who may be real estate agents or brokers.[16][17][18] In Canada, the trademark is used by members of the Canadian Real Estate Association.[19] Both organizations advise against the use of realtor as a generic synonym for real estate agent.[19]


Continuing education


[edit]

States issue licenses for an annual or multi-year period and require real estate agents and brokers to complete continuing education prior to renewing their licenses. For example, California licensees must complete 45 hours of continuing education every 4 years in topics such as agency, trust fund handling, consumer protection, fair housing, ethics, and risk management.[20]


Organizations


[edit]

Several notable groups exist to promote the real estate industry and to assist professionals.


  • The National Association of Realtors (NAR)

    • The Realtor Political Action Committee (RPAC) is the lobbying arm of the NAR.



  • The National Association of Real Estate Brokers (NAREB)

  • The Real Estate Institute of Canada (REIC)[21][22]

  • The Real Estate Roundtable[23]

  • Building Owners and Managers Association focusing on commercial property


See also


[edit]




  • Buyer brokerage

  • Closing (real estate)

  • Estate (land)

  • Exclusive buyer agent

  • Flat-fee MLS

  • Home inspection

  • Index of real estate articles

  • Investment rating for real estate

  • Listing contract

  • Mortgage broker

  • Property manager

  • Real estate contract

  • Real estate development

  • Real estate investing

  • Real estate settlement company

  • Strata management



References


[edit]




  1. ^

    "Real Estate Professionals Explained: Agent, Broker, REALTOR". Real Estate News and Advice | Realtor.com. 2014-03-10. Retrieved 2018-12-27.

  2. ^ "How Much Is Real Estate Agent Commission?". Bankrate. Retrieved 2018-12-20.

  3. ^ "FAQs". www.illinoisrealtors.org. Illinois Realtors. Retrieved August 16, 2018.

  4. ^ "Realtor Code of Ethics - Disclosure" (PDF). Real Estate Association Standards of Business Practice.

  5. ^ "Statutes & Constitution :View Statutes : Online Sunshine". Leg.state.fl.us. Retrieved 2014-02-10.

  6. ^ a b "Outline of types of representation available in Colorado, including Transaction Brokerage" (PDF). Dora.state.co.us. Retrieved 2014-02-10.

  7. ^ Evans, Blanche (2 July 2003). "Florida Implements Default Transactikn Brokerage Statute". realtytimes.com/. Realty Times. Retrieved 2 February 2014.

  8. ^ a b The 2007 Florida Statutes. Chapter 475 Real Estate Brokers — Part I; Real Estate Brokers, Sales Associates, and Schools (ss. 475.001-475.5018), Section 475.278 Authorized brokerage relationships; presumption of transaction brokerage; required disclosures (1) Brokerage Relationships: (a) Authorized brokerage relationships. — A real estate licensee in this state may enter into a brokerage relationship as either a transaction broker or as a single agent with potential buyers and sellers. A real estate licensee may not operate as a disclosed or non-disclosed dual agent ... (b)Presumption of transaction brokerage. — It shall be presumed that all licensees are operating as transaction brokers unless a single agent or no brokerage relationship is established, in writing, with a customer."

  9. ^ "Real Estate Broker's License: Examination and Licensing Application Requirements". New Mexico Administrative Code. State of New Mexico Commission of Public Records. 21 January 2021.

  10. ^ "Real Estate Laws Website". BC Real Estate Laws - Pat 1 Trading Services.

  11. ^ a b c Quigley, John M. (2000). "A Decent Home: Housing Policy in Perspective". Brookings-Wharton Papers on Urban Affairs. 2000 (1): 53–88. CiteSeerX 10.1.1.369.6806. doi:10.1353/urb.2000.0011. ISSN 1533-4449. S2CID 154714417.

  12. ^ "Getting a Brokerage Commission Paid | New York Law Journal".

  13. ^ Daniel Gross (20 February 2005). "Why a Real Estate Agent May Skip the Extra Mile". The New York Times. Archived from the original on 29 May 2015.

  14. ^ B. Douglas Bernheim; Jonathan Meer (13 January 2012). "Do Real Estate Brokers Add Value When Listing Services Are Unbundled?". The National Bureau of Economic Research. Working Paper Series. doi:10.3386/w13796. Retrieved 3 September 2016.

  15. ^ "CFPB consumer laws and regulations RESPA" (PDF). Consumer Financial Protection Bureau. Retrieved 13 October 2021.

  16. ^ Buch, Clarissa (20 April 2023). "What Is a Realtor? A Member of the National Association of Realtors". Realtor.com. National Association of Realtors. Retrieved 17 June 2023.

  17. ^ "Understanding the Difference Between a Realtor and a Real Estate Agent". The CE Shop. Retrieved 19 June 2023.

  18. ^ Colestock, Stephanie (August 13, 2021). "Realtor vs. real estate agent: What's the difference?". Fox Business. Retrieved 20 June 2023.

  19. ^ a b "Using the REALTOR® Trademark in Advertisements - CREA". 12 November 2020.

  20. ^ "Continuing Education Requirements". Ca.gov. California Department of Real Estate. Retrieved 26 June 2023.

  21. ^ "Professional Recognition of our Programs". Real Estate Division at Sauder, UBC. January 8, 2019.

  22. ^ "Real Estate Institute of Canada (REIC)". Thomson Reuters Canada Limited. Retrieved 8 January 2019.

  23. ^ "Lobbying Spending Database: National Assn of Realtors : 2007". Retrieved 2008-10-25.




[edit]


  • Media related to Real estate agents at Wikimedia Commons

































Marketing Strategies That Help Sell Homes Quickly in San Diego

Leveraging Local Expertise

One of the most effective strategies to sell a house fast in San Diego is leveraging local expertise. Real estate agents and brokers who have an intimate understanding of the San Diego market can provide invaluable insights into pricing, staging, and marketing techniques that resonate with local buyers. Their knowledge of neighborhood trends and property values helps them to position homes more attractively. Moreover, these professionals are licensed by the state to handle all negotiations and necessary documentation, making the process smoother for both sellers and buyers.

Staging to Impress

Staging your home can make a significant difference in how quickly it sells. A well-staged home allows potential buyers to visualize themselves living there, making it easier for them to commit. In San Diego's competitive market, professional staging can highlight your property's best features while minimizing any flaws. Simple touches like decluttering spaces, adding fresh flowers, or repainting walls in neutral tones can go a long way in creating an inviting atmosphere.

High-Quality Photography

In today's fast-paced real estate market, first impressions are often made online through photos. High-quality photography is essential for capturing interest from potential buyers. Professional photos should showcase your home's strengths and create an emotional connection with viewers. In a tech-savvy city like San Diego, drone shots or 3D virtual tours can also set your listing apart from others.

Utilizing Social Media Platforms

Social media has become an indispensable tool for real estate marketing. Platforms like Instagram, Facebook, and even LinkedIn offer various ways to reach potential buyers directly. Posting eye-catching images of your home along with engaging descriptions can generate buzz quickly. Additionally boosting posts through paid advertising targets specific demographics who might be interested in purchasing property in San Diego.

Open Houses

Hosting open houses remains one of the oldest but still highly effective methods for selling homes quickly. They give prospective buyers an opportunity to explore the property firsthand without scheduling formal showings . In a vibrant city like San Diego where foot traffic can be high especially during weekends ,open houses attract serious buyers as well as casual browsers who might spread word about your property .

Pricing Strategy

Setting the right price is crucial when aiming to sell fast .Overpricing may deter potential offers while underpricing could undervalue your asset .A comparative market analysis conducted by experienced brokers will help determine optimal pricing based on similar homes recently sold within same vicinity .This approach ensures you attract multiple offers potentially inciting bidding wars which ultimately benefits seller .

As a round up ,the key lies not just using one strategy but rather combining several tactics tailored specifically towards unique aspects of San Diego’s dynamic real estate climate.This multi-pronged approach ensures maximum visibility thereby increasing chances closing deal swiftly efficiently

What is real estate agent

A real estate agent is a person who acts as an intermediary between sellers and buyers of real estate, earning a commission for their services. An agent typically works under the supervision of a licensed broker to represent clients in negotiating sales agreements and managing the necessary documentation for closing real estate transactions. They are licensed by the state to ensure they can legally perform these duties. While brokers may operate independently, agents generally must be affiliated with a broker. The agent's primary role is to facilitate the buying or selling process, ensuring all legal requirements are met and assisting in achieving favorable terms for their clients.














Lawn signs advertising houses for sale

Real estate agents and real estate brokers are people who represents sellers or buyers of real estate or real property. While a broker may work independently, an agent usually works under a licensed broker to represent clients.[1] Brokers and agents are licensed by the state to negotiate sales agreements and manage the documentation required for closing real estate transactions. Buyers and sellers are generally advised to consult a licensed real estate professional for a written definition of an individual state's laws of agency.



Categories of representation


[edit]

A real estate broker typically receives a real estate commission for successfully completing a sale. Across the U.S, this commission can generally range between 5-6% of the property's sale price for a full-service broker but this percentage varies by state and even region.[2]


Real estate licensing and education


[edit]

In most jurisdictions in the United States, a person must have a license to perform licensed activities, and these activities are defined within the statutes of each state. The main feature of the requirement for having a license to perform those activities is the work done "for compensation". Hence, hypothetically, if a person wants to help a friend out in either selling or buying a property, and no compensation of any kind is expected in return, then a license is not needed to perform all the work. However, since most people would expect to be compensated for their efforts and skills, a license would be required by law before a person may receive remuneration for services rendered as a real estate broker or agent. Unlicensed activity is illegal and the state real estate commission has the authority to fine people who are acting as real estate licensees, but buyers and sellers acting as principals in the sale or purchase of real estate are usually not required to be licensed. It is important to note that in some states, lawyers handle real estate sales for compensation without being licensed as brokers or agents. However, even lawyers can only perform real estate activities that are incidental to their original work as a lawyer. It cannot be the case that a lawyer can become a seller's selling agent if that is all the service that is being requested by the client. Lawyers would still need to be licensed as a broker if they wish to perform licensed activities. Nevertheless, lawyers do get a break in the minimum education requirements (for example, 90 hours in Illinois).[3]

Some other states have recently eliminated the salesperson's license, instead, all licensees in those states automatically earn their broker's license.

The term "agent" is not to be confused with salesperson or broker. An agent is simply a licensee that has entered into an agency relationship with a client. A broker can also be an agent for a client. It is commonly the firm that has the actual legal relationship with the client through one of their sales staff, be they salespersons or brokers.

In all states, the real estate licensee must disclose to prospective buyers and sellers the nature of their relationship [4]


Specific representation laws


[edit]

Some U.S. state real estate commissions – notably Florida's[5] after 1992 (and extended in 2003) and Colorado's[6] after 1994 (with changes in 2003) created the option of having no agency or fiduciary relationship between brokers and sellers or buyers.

As noted by the South Broward Board of Realtors, Inc. in a letter to State of Florida legislative committees:




"The Transaction Broker crafts a transaction by bringing a willing buyer and a willing seller together and provides the legal documentation of the details of the legal agreement between the same. The Transaction Broker is not a fiduciary of any party, but must abide by the law as well as professional and ethical standards." (such as NAR Code of Ethics).


The result was that, in 2003, Florida created a system where the default brokerage relationship had "all licensees ... operating as transaction brokers, unless a single agent or no brokerage relationship is established, in writing, with the customer"[7][8] and the statute required written disclosure of the transaction brokerage relationship to the buyer or seller customer only through July 1, 2008.

In the case of both Florida[8] and Colorado,[6] dual agency and sub-agency (where both listing and selling agents represent the seller) no longer exist.

Other brokers and agents may focus on representing buyers or tenants in a real estate transaction. However, licensing as a broker or salesperson authorizes the licensee to legally represent parties on either side of a transaction and providing the necessary documentation for the legal transfer of real property. This business decision is for the licensee to decide. They are fines for people acting as real estate agents when not licensed by the state.

In the United Kingdom, an estate agent is a person or business entity whose business is to market real estate on behalf of clients. There are significant differences between the actions, powers, obligations, and liabilities of brokers and estate agents in each country, as different countries take markedly different approaches to the marketing and selling of real property.


The difference between salespersons and brokers


[edit]

Before the Multiple Listing Service (MLS) was introduced in 1967, when brokers (and their licensees) only represented sellers by providing a service to provide legal documentation on the transfer real property, the term "real estate salesperson" may have been more appropriate than it is today, given the various ways that brokers and licensees now help buyers through the legal process of transferring real property. Legally, however, the term "salesperson" is still used in many states to describe a real estate licensee.[citation needed]


Real estate broker (or, in some states, qualifying broker)


[edit]

After gaining some years of experience in real estate sales, a salesperson may decide to become licensed as a real estate broker (or Principal/qualifying broker) in order to own, manage, or operate their own brokerage. In addition, some states allow college graduates to apply for a broker's license without years of experience. College graduates fall into this category once they have completed the state-required courses as well. California allows licensed attorneys to become brokers upon passing the broker exam without having to take the requisite courses required of an agent. Commonly more coursework and a broker's state exam on real estate law must be passed. Upon obtaining a broker's license, a real estate agent may continue to work for another broker in a similar capacity as before (often referred to as a broker associate or associate broker) or take charge of their own brokerage and hire other salespersons (or broker), licensees. Becoming a branch office manager may or may not require a broker's license. Some states allow licensed attorneys to become real estate brokers without taking any exam. In some states, there are no "salespeople" as all licensees are brokers.[9]


Types of services that a broker can provide


[edit]

Real Estate Services are also called trading services [10]


Real estate brokers and sellers


[edit]


Flat-fee real estate agents


[edit]

Flat-fee real estate agents charge a seller of a property a flat fee, $500 for example,[11] as opposed to a traditional or full-service real estate agent who charges a percentage of the sale price. In exchange, the seller's property will appear in the multiple listing service (MLS), but the seller will represent him or herself when showing the property and negotiating a sales price.[11] The result is the seller pays less commission overall (roughly half) when the property sells.[11] This is because a seller will pay a percentage of the sales price to a buyer's agent but not have to pay a percentage to a seller's agent (because there isn't one; the seller is representing himself).


Brokerage commissions


[edit]

In consideration of the brokerage successfully finding a buyer for the property, a broker anticipates receiving a commission for the services the brokerage has provided. Usually, the payment of a commission to the brokerage is contingent upon finding a buyer for the real estate, the successful negotiation of a purchase contract between the buyer and seller, or the settlement of the transaction and the exchange of money between buyer and seller. Under common law, a real estate broker is eligible to receive their commission, regardless of whether the sale actually takes place, once they secure a buyer who is ready, willing, and able to purchase the dwelling.[12]

Economist Steven D. Levitt famously argued in his 2005 book Freakonomics that real estate brokers have an inherent conflict of interest with the sellers they represent because their commission gives them more motivation to sell quickly than to sell at a higher price. Levitt supported his argument with a study finding brokers tend to put their own houses on the market for longer and receive higher prices for them compared to when working for their clients. He concluded that broker commissions will reduce in future.[13] A 2008 study by other economists found that when comparing brokerage without listing services, brokerage significantly reduced the average sale price.[14]


RESPA


[edit]

Real estate brokers who work with lenders can not receive any compensation from the lender for referring a residential client to a specific lender. To do so would be a violation of a United States federal law known as the Real Estate Settlement Procedures Act (RESPA). RESPA ensures that buyers and sellers are given adequate notice of the Real Estate settlement process.[15]


Realtor


[edit]

In the United States, the term realtor is trademarked by the National Association of Realtors, which uses it to refer to its active members, who may be real estate agents or brokers.[16][17][18] In Canada, the trademark is used by members of the Canadian Real Estate Association.[19] Both organizations advise against the use of realtor as a generic synonym for real estate agent.[19]


Continuing education


[edit]

States issue licenses for an annual or multi-year period and require real estate agents and brokers to complete continuing education prior to renewing their licenses. For example, California licensees must complete 45 hours of continuing education every 4 years in topics such as agency, trust fund handling, consumer protection, fair housing, ethics, and risk management.[20]


Organizations


[edit]

Several notable groups exist to promote the real estate industry and to assist professionals.


  • The National Association of Realtors (NAR)

    • The Realtor Political Action Committee (RPAC) is the lobbying arm of the NAR.



  • The National Association of Real Estate Brokers (NAREB)

  • The Real Estate Institute of Canada (REIC)[21][22]

  • The Real Estate Roundtable[23]

  • Building Owners and Managers Association focusing on commercial property


See also


[edit]




  • Buyer brokerage

  • Closing (real estate)

  • Estate (land)

  • Exclusive buyer agent

  • Flat-fee MLS

  • Home inspection

  • Index of real estate articles

  • Investment rating for real estate

  • Listing contract

  • Mortgage broker

  • Property manager

  • Real estate contract

  • Real estate development

  • Real estate investing

  • Real estate settlement company

  • Strata management



References


[edit]




  1. ^

    "Real Estate Professionals Explained: Agent, Broker, REALTOR". Real Estate News and Advice | Realtor.com. 2014-03-10. Retrieved 2018-12-27.

  2. ^ "How Much Is Real Estate Agent Commission?". Bankrate. Retrieved 2018-12-20.

  3. ^ "FAQs". www.illinoisrealtors.org. Illinois Realtors. Retrieved August 16, 2018.

  4. ^ "Realtor Code of Ethics - Disclosure" (PDF). Real Estate Association Standards of Business Practice.

  5. ^ "Statutes & Constitution :View Statutes : Online Sunshine". Leg.state.fl.us. Retrieved 2014-02-10.

  6. ^ a b "Outline of types of representation available in Colorado, including Transaction Brokerage" (PDF). Dora.state.co.us. Retrieved 2014-02-10.

  7. ^ Evans, Blanche (2 July 2003). "Florida Implements Default Transactikn Brokerage Statute". realtytimes.com/. Realty Times. Retrieved 2 February 2014.

  8. ^ a b The 2007 Florida Statutes. Chapter 475 Real Estate Brokers — Part I; Real Estate Brokers, Sales Associates, and Schools (ss. 475.001-475.5018), Section 475.278 Authorized brokerage relationships; presumption of transaction brokerage; required disclosures (1) Brokerage Relationships: (a) Authorized brokerage relationships. — A real estate licensee in this state may enter into a brokerage relationship as either a transaction broker or as a single agent with potential buyers and sellers. A real estate licensee may not operate as a disclosed or non-disclosed dual agent ... (b)Presumption of transaction brokerage. — It shall be presumed that all licensees are operating as transaction brokers unless a single agent or no brokerage relationship is established, in writing, with a customer."

  9. ^ "Real Estate Broker's License: Examination and Licensing Application Requirements". New Mexico Administrative Code. State of New Mexico Commission of Public Records. 21 January 2021.

  10. ^ "Real Estate Laws Website". BC Real Estate Laws - Pat 1 Trading Services.

  11. ^ a b c Quigley, John M. (2000). "A Decent Home: Housing Policy in Perspective". Brookings-Wharton Papers on Urban Affairs. 2000 (1): 53–88. CiteSeerX 10.1.1.369.6806. doi:10.1353/urb.2000.0011. ISSN 1533-4449. S2CID 154714417.

  12. ^ "Getting a Brokerage Commission Paid | New York Law Journal".

  13. ^ Daniel Gross (20 February 2005). "Why a Real Estate Agent May Skip the Extra Mile". The New York Times. Archived from the original on 29 May 2015.

  14. ^ B. Douglas Bernheim; Jonathan Meer (13 January 2012). "Do Real Estate Brokers Add Value When Listing Services Are Unbundled?". The National Bureau of Economic Research. Working Paper Series. doi:10.3386/w13796. Retrieved 3 September 2016.

  15. ^ "CFPB consumer laws and regulations RESPA" (PDF). Consumer Financial Protection Bureau. Retrieved 13 October 2021.

  16. ^ Buch, Clarissa (20 April 2023). "What Is a Realtor? A Member of the National Association of Realtors". Realtor.com. National Association of Realtors. Retrieved 17 June 2023.

  17. ^ "Understanding the Difference Between a Realtor and a Real Estate Agent". The CE Shop. Retrieved 19 June 2023.

  18. ^ Colestock, Stephanie (August 13, 2021). "Realtor vs. real estate agent: What's the difference?". Fox Business. Retrieved 20 June 2023.

  19. ^ a b "Using the REALTOR® Trademark in Advertisements - CREA". 12 November 2020.

  20. ^ "Continuing Education Requirements". Ca.gov. California Department of Real Estate. Retrieved 26 June 2023.

  21. ^ "Professional Recognition of our Programs". Real Estate Division at Sauder, UBC. January 8, 2019.

  22. ^ "Real Estate Institute of Canada (REIC)". Thomson Reuters Canada Limited. Retrieved 8 January 2019.

  23. ^ "Lobbying Spending Database: National Assn of Realtors : 2007". Retrieved 2008-10-25.




[edit]


  • Media related to Real estate agents at Wikimedia Commons

































What Documents Do You Need to Sell a House Fast?

When you're aiming to sell your house fast in San Diego, having the right documents ready can significantly streamline the process. Real estate agents and brokers play a crucial role in managing these documents. While agents typically operate under licensed brokers, both are equipped to handle sales agreements and closing documentation.

Property Deed

The property deed is essential as it proves your ownership of the house. Without it, you won't be able to transfer ownership to a new buyer. Ensure that this document is accurate and up-to-date.

Title Report

A title report provides information about any liens or claims on your property. Buyers will want assurance that they are purchasing a house free of legal issues. Getting this report early can help resolve any problems before they become deal-breakers.

Disclosure Documents

Sellers must disclose any known issues with the property by law. This includes things like past flooding, foundation problems, or pest infestations. Failing to provide these disclosures can lead to legal trouble down the line.

Sales Agreement

This is where a real estate agent or broker comes in handy; they have experience drafting legally sound sales agreements tailored for San Diego's market conditions. The agreement outlines terms such as price, contingencies, and closing dates.

Proof of Repairs

If you've made significant repairs or upgrades to your home, you'll need documentation proving this work was done professionally and meets local building codes. This not only reassures buyers but could also increase your asking price.

As a round up, having these key documents prepared ahead of time not only speeds up the sales process but also helps avoid potential pitfalls that could derail a quick sale in San Diego's competitive market.

What is real estate agent

A real estate agent is a person who acts as an intermediary between sellers and buyers of real estate, earning a commission for their services. An agent typically works under the supervision of a licensed broker to represent clients in negotiating sales agreements and managing the necessary documentation for closing real estate transactions. They are licensed by the state to ensure they can legally perform these duties. While brokers may operate independently, agents generally must be affiliated with a broker. The agent's primary role is to facilitate the buying or selling process, ensuring all legal requirements are met and assisting in achieving favorable terms for their clients.














Lawn signs advertising houses for sale

Real estate agents and real estate brokers are people who represents sellers or buyers of real estate or real property. While a broker may work independently, an agent usually works under a licensed broker to represent clients.[1] Brokers and agents are licensed by the state to negotiate sales agreements and manage the documentation required for closing real estate transactions. Buyers and sellers are generally advised to consult a licensed real estate professional for a written definition of an individual state's laws of agency.



Categories of representation


[edit]

A real estate broker typically receives a real estate commission for successfully completing a sale. Across the U.S, this commission can generally range between 5-6% of the property's sale price for a full-service broker but this percentage varies by state and even region.[2]


Real estate licensing and education


[edit]

In most jurisdictions in the United States, a person must have a license to perform licensed activities, and these activities are defined within the statutes of each state. The main feature of the requirement for having a license to perform those activities is the work done "for compensation". Hence, hypothetically, if a person wants to help a friend out in either selling or buying a property, and no compensation of any kind is expected in return, then a license is not needed to perform all the work. However, since most people would expect to be compensated for their efforts and skills, a license would be required by law before a person may receive remuneration for services rendered as a real estate broker or agent. Unlicensed activity is illegal and the state real estate commission has the authority to fine people who are acting as real estate licensees, but buyers and sellers acting as principals in the sale or purchase of real estate are usually not required to be licensed. It is important to note that in some states, lawyers handle real estate sales for compensation without being licensed as brokers or agents. However, even lawyers can only perform real estate activities that are incidental to their original work as a lawyer. It cannot be the case that a lawyer can become a seller's selling agent if that is all the service that is being requested by the client. Lawyers would still need to be licensed as a broker if they wish to perform licensed activities. Nevertheless, lawyers do get a break in the minimum education requirements (for example, 90 hours in Illinois).[3]

Some other states have recently eliminated the salesperson's license, instead, all licensees in those states automatically earn their broker's license.

The term "agent" is not to be confused with salesperson or broker. An agent is simply a licensee that has entered into an agency relationship with a client. A broker can also be an agent for a client. It is commonly the firm that has the actual legal relationship with the client through one of their sales staff, be they salespersons or brokers.

In all states, the real estate licensee must disclose to prospective buyers and sellers the nature of their relationship [4]


Specific representation laws


[edit]

Some U.S. state real estate commissions – notably Florida's[5] after 1992 (and extended in 2003) and Colorado's[6] after 1994 (with changes in 2003) created the option of having no agency or fiduciary relationship between brokers and sellers or buyers.

As noted by the South Broward Board of Realtors, Inc. in a letter to State of Florida legislative committees:




"The Transaction Broker crafts a transaction by bringing a willing buyer and a willing seller together and provides the legal documentation of the details of the legal agreement between the same. The Transaction Broker is not a fiduciary of any party, but must abide by the law as well as professional and ethical standards." (such as NAR Code of Ethics).


The result was that, in 2003, Florida created a system where the default brokerage relationship had "all licensees ... operating as transaction brokers, unless a single agent or no brokerage relationship is established, in writing, with the customer"[7][8] and the statute required written disclosure of the transaction brokerage relationship to the buyer or seller customer only through July 1, 2008.

In the case of both Florida[8] and Colorado,[6] dual agency and sub-agency (where both listing and selling agents represent the seller) no longer exist.

Other brokers and agents may focus on representing buyers or tenants in a real estate transaction. However, licensing as a broker or salesperson authorizes the licensee to legally represent parties on either side of a transaction and providing the necessary documentation for the legal transfer of real property. This business decision is for the licensee to decide. They are fines for people acting as real estate agents when not licensed by the state.

In the United Kingdom, an estate agent is a person or business entity whose business is to market real estate on behalf of clients. There are significant differences between the actions, powers, obligations, and liabilities of brokers and estate agents in each country, as different countries take markedly different approaches to the marketing and selling of real property.


The difference between salespersons and brokers


[edit]

Before the Multiple Listing Service (MLS) was introduced in 1967, when brokers (and their licensees) only represented sellers by providing a service to provide legal documentation on the transfer real property, the term "real estate salesperson" may have been more appropriate than it is today, given the various ways that brokers and licensees now help buyers through the legal process of transferring real property. Legally, however, the term "salesperson" is still used in many states to describe a real estate licensee.[citation needed]


Real estate broker (or, in some states, qualifying broker)


[edit]

After gaining some years of experience in real estate sales, a salesperson may decide to become licensed as a real estate broker (or Principal/qualifying broker) in order to own, manage, or operate their own brokerage. In addition, some states allow college graduates to apply for a broker's license without years of experience. College graduates fall into this category once they have completed the state-required courses as well. California allows licensed attorneys to become brokers upon passing the broker exam without having to take the requisite courses required of an agent. Commonly more coursework and a broker's state exam on real estate law must be passed. Upon obtaining a broker's license, a real estate agent may continue to work for another broker in a similar capacity as before (often referred to as a broker associate or associate broker) or take charge of their own brokerage and hire other salespersons (or broker), licensees. Becoming a branch office manager may or may not require a broker's license. Some states allow licensed attorneys to become real estate brokers without taking any exam. In some states, there are no "salespeople" as all licensees are brokers.[9]


Types of services that a broker can provide


[edit]

Real Estate Services are also called trading services [10]


Real estate brokers and sellers


[edit]


Flat-fee real estate agents


[edit]

Flat-fee real estate agents charge a seller of a property a flat fee, $500 for example,[11] as opposed to a traditional or full-service real estate agent who charges a percentage of the sale price. In exchange, the seller's property will appear in the multiple listing service (MLS), but the seller will represent him or herself when showing the property and negotiating a sales price.[11] The result is the seller pays less commission overall (roughly half) when the property sells.[11] This is because a seller will pay a percentage of the sales price to a buyer's agent but not have to pay a percentage to a seller's agent (because there isn't one; the seller is representing himself).


Brokerage commissions


[edit]

In consideration of the brokerage successfully finding a buyer for the property, a broker anticipates receiving a commission for the services the brokerage has provided. Usually, the payment of a commission to the brokerage is contingent upon finding a buyer for the real estate, the successful negotiation of a purchase contract between the buyer and seller, or the settlement of the transaction and the exchange of money between buyer and seller. Under common law, a real estate broker is eligible to receive their commission, regardless of whether the sale actually takes place, once they secure a buyer who is ready, willing, and able to purchase the dwelling.[12]

Economist Steven D. Levitt famously argued in his 2005 book Freakonomics that real estate brokers have an inherent conflict of interest with the sellers they represent because their commission gives them more motivation to sell quickly than to sell at a higher price. Levitt supported his argument with a study finding brokers tend to put their own houses on the market for longer and receive higher prices for them compared to when working for their clients. He concluded that broker commissions will reduce in future.[13] A 2008 study by other economists found that when comparing brokerage without listing services, brokerage significantly reduced the average sale price.[14]


RESPA


[edit]

Real estate brokers who work with lenders can not receive any compensation from the lender for referring a residential client to a specific lender. To do so would be a violation of a United States federal law known as the Real Estate Settlement Procedures Act (RESPA). RESPA ensures that buyers and sellers are given adequate notice of the Real Estate settlement process.[15]


Realtor


[edit]

In the United States, the term realtor is trademarked by the National Association of Realtors, which uses it to refer to its active members, who may be real estate agents or brokers.[16][17][18] In Canada, the trademark is used by members of the Canadian Real Estate Association.[19] Both organizations advise against the use of realtor as a generic synonym for real estate agent.[19]


Continuing education


[edit]

States issue licenses for an annual or multi-year period and require real estate agents and brokers to complete continuing education prior to renewing their licenses. For example, California licensees must complete 45 hours of continuing education every 4 years in topics such as agency, trust fund handling, consumer protection, fair housing, ethics, and risk management.[20]


Organizations


[edit]

Several notable groups exist to promote the real estate industry and to assist professionals.


  • The National Association of Realtors (NAR)

    • The Realtor Political Action Committee (RPAC) is the lobbying arm of the NAR.



  • The National Association of Real Estate Brokers (NAREB)

  • The Real Estate Institute of Canada (REIC)[21][22]

  • The Real Estate Roundtable[23]

  • Building Owners and Managers Association focusing on commercial property


See also


[edit]




  • Buyer brokerage

  • Closing (real estate)

  • Estate (land)

  • Exclusive buyer agent

  • Flat-fee MLS

  • Home inspection

  • Index of real estate articles

  • Investment rating for real estate

  • Listing contract

  • Mortgage broker

  • Property manager

  • Real estate contract

  • Real estate development

  • Real estate investing

  • Real estate settlement company

  • Strata management



References


[edit]




  1. ^

    "Real Estate Professionals Explained: Agent, Broker, REALTOR". Real Estate News and Advice | Realtor.com. 2014-03-10. Retrieved 2018-12-27.

  2. ^ "How Much Is Real Estate Agent Commission?". Bankrate. Retrieved 2018-12-20.

  3. ^ "FAQs". www.illinoisrealtors.org. Illinois Realtors. Retrieved August 16, 2018.

  4. ^ "Realtor Code of Ethics - Disclosure" (PDF). Real Estate Association Standards of Business Practice.

  5. ^ "Statutes & Constitution :View Statutes : Online Sunshine". Leg.state.fl.us. Retrieved 2014-02-10.

  6. ^ a b "Outline of types of representation available in Colorado, including Transaction Brokerage" (PDF). Dora.state.co.us. Retrieved 2014-02-10.

  7. ^ Evans, Blanche (2 July 2003). "Florida Implements Default Transactikn Brokerage Statute". realtytimes.com/. Realty Times. Retrieved 2 February 2014.

  8. ^ a b The 2007 Florida Statutes. Chapter 475 Real Estate Brokers — Part I; Real Estate Brokers, Sales Associates, and Schools (ss. 475.001-475.5018), Section 475.278 Authorized brokerage relationships; presumption of transaction brokerage; required disclosures (1) Brokerage Relationships: (a) Authorized brokerage relationships. — A real estate licensee in this state may enter into a brokerage relationship as either a transaction broker or as a single agent with potential buyers and sellers. A real estate licensee may not operate as a disclosed or non-disclosed dual agent ... (b)Presumption of transaction brokerage. — It shall be presumed that all licensees are operating as transaction brokers unless a single agent or no brokerage relationship is established, in writing, with a customer."

  9. ^ "Real Estate Broker's License: Examination and Licensing Application Requirements". New Mexico Administrative Code. State of New Mexico Commission of Public Records. 21 January 2021.

  10. ^ "Real Estate Laws Website". BC Real Estate Laws - Pat 1 Trading Services.

  11. ^ a b c Quigley, John M. (2000). "A Decent Home: Housing Policy in Perspective". Brookings-Wharton Papers on Urban Affairs. 2000 (1): 53–88. CiteSeerX 10.1.1.369.6806. doi:10.1353/urb.2000.0011. ISSN 1533-4449. S2CID 154714417.

  12. ^ "Getting a Brokerage Commission Paid | New York Law Journal".

  13. ^ Daniel Gross (20 February 2005). "Why a Real Estate Agent May Skip the Extra Mile". The New York Times. Archived from the original on 29 May 2015.

  14. ^ B. Douglas Bernheim; Jonathan Meer (13 January 2012). "Do Real Estate Brokers Add Value When Listing Services Are Unbundled?". The National Bureau of Economic Research. Working Paper Series. doi:10.3386/w13796. Retrieved 3 September 2016.

  15. ^ "CFPB consumer laws and regulations RESPA" (PDF). Consumer Financial Protection Bureau. Retrieved 13 October 2021.

  16. ^ Buch, Clarissa (20 April 2023). "What Is a Realtor? A Member of the National Association of Realtors". Realtor.com. National Association of Realtors. Retrieved 17 June 2023.

  17. ^ "Understanding the Difference Between a Realtor and a Real Estate Agent". The CE Shop. Retrieved 19 June 2023.

  18. ^ Colestock, Stephanie (August 13, 2021). "Realtor vs. real estate agent: What's the difference?". Fox Business. Retrieved 20 June 2023.

  19. ^ a b "Using the REALTOR® Trademark in Advertisements - CREA". 12 November 2020.

  20. ^ "Continuing Education Requirements". Ca.gov. California Department of Real Estate. Retrieved 26 June 2023.

  21. ^ "Professional Recognition of our Programs". Real Estate Division at Sauder, UBC. January 8, 2019.

  22. ^ "Real Estate Institute of Canada (REIC)". Thomson Reuters Canada Limited. Retrieved 8 January 2019.

  23. ^ "Lobbying Spending Database: National Assn of Realtors : 2007". Retrieved 2008-10-25.




[edit]


  • Media related to Real estate agents at Wikimedia Commons

































Financing Options for Buyers: Impact on Quick Sales

Traditional Financing

When considering how to sell a house fast in San Diego, traditional financing methods like conventional loans play a significant role. Buyers often opt for these standard mortgage loans due to their relatively lower interest rates and longer repayment terms. However, the approval process can be tedious, requiring ample documentation and time-consuming credit checks. This can delay the sale, making it less ideal for sellers who need to close quickly.

Cash Offers

One of the quickest ways to expedite a home sale is by accepting cash offers. Cash buyers eliminate the need for mortgage approvals and appraisals, which significantly speeds up the closing process. For sellers looking to move their property swiftly, dealing with cash buyers can be highly beneficial. The absence of financing contingencies means fewer obstacles come up during negotiations.

FHA Loans

Federal Housing Administration (FHA) loans are another option available to buyers that impact how fast you can sell your house in San Diego. These loans are particularly attractive to first-time homebuyers because they require lower down payments and more lenient credit requirements. However, FHA loans have stricter property condition requirements that might necessitate repairs before closing, potentially delaying the sale.

VA Loans

Veterans Affairs (VA) loans offer favorable terms for eligible veterans and active-duty service members. These no-down-payment mortgages are backed by the government and generally come with lower interest rates. While advantageous for buyers, VA loan processes include rigorous property inspections and assessments that could slow down the transaction timeline.

Sellers Financing

Seller financing is an unconventional but effective strategy where sellers finance the purchase directly for buyers. This method bypasses traditional lenders entirely, enabling faster transactions since there’s no lengthy loan approval process involved. However, this option requires thorough vetting of buyers’ financial stability to mitigate risks associated with defaulting on payments.

As a round up

In effect this means choosing the right financing option greatly influences how quickly you can sell your house in San Diego. Traditional methods may offer security but at a slower pace; whereas alternatives like cash offers or seller financing can drastically speed things up while introducing different sets of considerations.

What is real estate agent

A real estate agent is a person who acts as an intermediary between sellers and buyers of real estate, earning a commission for their services. An agent typically works under the supervision of a licensed broker to represent clients in negotiating sales agreements and managing the necessary documentation for closing real estate transactions. They are licensed by the state to ensure they can legally perform these duties. While brokers may operate independently, agents generally must be affiliated with a broker. The agent's primary role is to facilitate the buying or selling process, ensuring all legal requirements are met and assisting in achieving favorable terms for their clients.














Lawn signs advertising houses for sale

Real estate agents and real estate brokers are people who represents sellers or buyers of real estate or real property. While a broker may work independently, an agent usually works under a licensed broker to represent clients.[1] Brokers and agents are licensed by the state to negotiate sales agreements and manage the documentation required for closing real estate transactions. Buyers and sellers are generally advised to consult a licensed real estate professional for a written definition of an individual state's laws of agency.



Categories of representation


[edit]

A real estate broker typically receives a real estate commission for successfully completing a sale. Across the U.S, this commission can generally range between 5-6% of the property's sale price for a full-service broker but this percentage varies by state and even region.[2]


Real estate licensing and education


[edit]

In most jurisdictions in the United States, a person must have a license to perform licensed activities, and these activities are defined within the statutes of each state. The main feature of the requirement for having a license to perform those activities is the work done "for compensation". Hence, hypothetically, if a person wants to help a friend out in either selling or buying a property, and no compensation of any kind is expected in return, then a license is not needed to perform all the work. However, since most people would expect to be compensated for their efforts and skills, a license would be required by law before a person may receive remuneration for services rendered as a real estate broker or agent. Unlicensed activity is illegal and the state real estate commission has the authority to fine people who are acting as real estate licensees, but buyers and sellers acting as principals in the sale or purchase of real estate are usually not required to be licensed. It is important to note that in some states, lawyers handle real estate sales for compensation without being licensed as brokers or agents. However, even lawyers can only perform real estate activities that are incidental to their original work as a lawyer. It cannot be the case that a lawyer can become a seller's selling agent if that is all the service that is being requested by the client. Lawyers would still need to be licensed as a broker if they wish to perform licensed activities. Nevertheless, lawyers do get a break in the minimum education requirements (for example, 90 hours in Illinois).[3]

Some other states have recently eliminated the salesperson's license, instead, all licensees in those states automatically earn their broker's license.

The term "agent" is not to be confused with salesperson or broker. An agent is simply a licensee that has entered into an agency relationship with a client. A broker can also be an agent for a client. It is commonly the firm that has the actual legal relationship with the client through one of their sales staff, be they salespersons or brokers.

In all states, the real estate licensee must disclose to prospective buyers and sellers the nature of their relationship [4]


Specific representation laws


[edit]

Some U.S. state real estate commissions – notably Florida's[5] after 1992 (and extended in 2003) and Colorado's[6] after 1994 (with changes in 2003) created the option of having no agency or fiduciary relationship between brokers and sellers or buyers.

As noted by the South Broward Board of Realtors, Inc. in a letter to State of Florida legislative committees:




"The Transaction Broker crafts a transaction by bringing a willing buyer and a willing seller together and provides the legal documentation of the details of the legal agreement between the same. The Transaction Broker is not a fiduciary of any party, but must abide by the law as well as professional and ethical standards." (such as NAR Code of Ethics).


The result was that, in 2003, Florida created a system where the default brokerage relationship had "all licensees ... operating as transaction brokers, unless a single agent or no brokerage relationship is established, in writing, with the customer"[7][8] and the statute required written disclosure of the transaction brokerage relationship to the buyer or seller customer only through July 1, 2008.

In the case of both Florida[8] and Colorado,[6] dual agency and sub-agency (where both listing and selling agents represent the seller) no longer exist.

Other brokers and agents may focus on representing buyers or tenants in a real estate transaction. However, licensing as a broker or salesperson authorizes the licensee to legally represent parties on either side of a transaction and providing the necessary documentation for the legal transfer of real property. This business decision is for the licensee to decide. They are fines for people acting as real estate agents when not licensed by the state.

In the United Kingdom, an estate agent is a person or business entity whose business is to market real estate on behalf of clients. There are significant differences between the actions, powers, obligations, and liabilities of brokers and estate agents in each country, as different countries take markedly different approaches to the marketing and selling of real property.


The difference between salespersons and brokers


[edit]

Before the Multiple Listing Service (MLS) was introduced in 1967, when brokers (and their licensees) only represented sellers by providing a service to provide legal documentation on the transfer real property, the term "real estate salesperson" may have been more appropriate than it is today, given the various ways that brokers and licensees now help buyers through the legal process of transferring real property. Legally, however, the term "salesperson" is still used in many states to describe a real estate licensee.[citation needed]


Real estate broker (or, in some states, qualifying broker)


[edit]

After gaining some years of experience in real estate sales, a salesperson may decide to become licensed as a real estate broker (or Principal/qualifying broker) in order to own, manage, or operate their own brokerage. In addition, some states allow college graduates to apply for a broker's license without years of experience. College graduates fall into this category once they have completed the state-required courses as well. California allows licensed attorneys to become brokers upon passing the broker exam without having to take the requisite courses required of an agent. Commonly more coursework and a broker's state exam on real estate law must be passed. Upon obtaining a broker's license, a real estate agent may continue to work for another broker in a similar capacity as before (often referred to as a broker associate or associate broker) or take charge of their own brokerage and hire other salespersons (or broker), licensees. Becoming a branch office manager may or may not require a broker's license. Some states allow licensed attorneys to become real estate brokers without taking any exam. In some states, there are no "salespeople" as all licensees are brokers.[9]


Types of services that a broker can provide


[edit]

Real Estate Services are also called trading services [10]


Real estate brokers and sellers


[edit]


Flat-fee real estate agents


[edit]

Flat-fee real estate agents charge a seller of a property a flat fee, $500 for example,[11] as opposed to a traditional or full-service real estate agent who charges a percentage of the sale price. In exchange, the seller's property will appear in the multiple listing service (MLS), but the seller will represent him or herself when showing the property and negotiating a sales price.[11] The result is the seller pays less commission overall (roughly half) when the property sells.[11] This is because a seller will pay a percentage of the sales price to a buyer's agent but not have to pay a percentage to a seller's agent (because there isn't one; the seller is representing himself).


Brokerage commissions


[edit]

In consideration of the brokerage successfully finding a buyer for the property, a broker anticipates receiving a commission for the services the brokerage has provided. Usually, the payment of a commission to the brokerage is contingent upon finding a buyer for the real estate, the successful negotiation of a purchase contract between the buyer and seller, or the settlement of the transaction and the exchange of money between buyer and seller. Under common law, a real estate broker is eligible to receive their commission, regardless of whether the sale actually takes place, once they secure a buyer who is ready, willing, and able to purchase the dwelling.[12]

Economist Steven D. Levitt famously argued in his 2005 book Freakonomics that real estate brokers have an inherent conflict of interest with the sellers they represent because their commission gives them more motivation to sell quickly than to sell at a higher price. Levitt supported his argument with a study finding brokers tend to put their own houses on the market for longer and receive higher prices for them compared to when working for their clients. He concluded that broker commissions will reduce in future.[13] A 2008 study by other economists found that when comparing brokerage without listing services, brokerage significantly reduced the average sale price.[14]


RESPA


[edit]

Real estate brokers who work with lenders can not receive any compensation from the lender for referring a residential client to a specific lender. To do so would be a violation of a United States federal law known as the Real Estate Settlement Procedures Act (RESPA). RESPA ensures that buyers and sellers are given adequate notice of the Real Estate settlement process.[15]


Realtor


[edit]

In the United States, the term realtor is trademarked by the National Association of Realtors, which uses it to refer to its active members, who may be real estate agents or brokers.[16][17][18] In Canada, the trademark is used by members of the Canadian Real Estate Association.[19] Both organizations advise against the use of realtor as a generic synonym for real estate agent.[19]


Continuing education


[edit]

States issue licenses for an annual or multi-year period and require real estate agents and brokers to complete continuing education prior to renewing their licenses. For example, California licensees must complete 45 hours of continuing education every 4 years in topics such as agency, trust fund handling, consumer protection, fair housing, ethics, and risk management.[20]


Organizations


[edit]

Several notable groups exist to promote the real estate industry and to assist professionals.


  • The National Association of Realtors (NAR)

    • The Realtor Political Action Committee (RPAC) is the lobbying arm of the NAR.



  • The National Association of Real Estate Brokers (NAREB)

  • The Real Estate Institute of Canada (REIC)[21][22]

  • The Real Estate Roundtable[23]

  • Building Owners and Managers Association focusing on commercial property


See also


[edit]




  • Buyer brokerage

  • Closing (real estate)

  • Estate (land)

  • Exclusive buyer agent

  • Flat-fee MLS

  • Home inspection

  • Index of real estate articles

  • Investment rating for real estate

  • Listing contract

  • Mortgage broker

  • Property manager

  • Real estate contract

  • Real estate development

  • Real estate investing

  • Real estate settlement company

  • Strata management



References


[edit]




  1. ^

    "Real Estate Professionals Explained: Agent, Broker, REALTOR". Real Estate News and Advice | Realtor.com. 2014-03-10. Retrieved 2018-12-27.

  2. ^ "How Much Is Real Estate Agent Commission?". Bankrate. Retrieved 2018-12-20.

  3. ^ "FAQs". www.illinoisrealtors.org. Illinois Realtors. Retrieved August 16, 2018.

  4. ^ "Realtor Code of Ethics - Disclosure" (PDF). Real Estate Association Standards of Business Practice.

  5. ^ "Statutes & Constitution :View Statutes : Online Sunshine". Leg.state.fl.us. Retrieved 2014-02-10.

  6. ^ a b "Outline of types of representation available in Colorado, including Transaction Brokerage" (PDF). Dora.state.co.us. Retrieved 2014-02-10.

  7. ^ Evans, Blanche (2 July 2003). "Florida Implements Default Transactikn Brokerage Statute". realtytimes.com/. Realty Times. Retrieved 2 February 2014.

  8. ^ a b The 2007 Florida Statutes. Chapter 475 Real Estate Brokers — Part I; Real Estate Brokers, Sales Associates, and Schools (ss. 475.001-475.5018), Section 475.278 Authorized brokerage relationships; presumption of transaction brokerage; required disclosures (1) Brokerage Relationships: (a) Authorized brokerage relationships. — A real estate licensee in this state may enter into a brokerage relationship as either a transaction broker or as a single agent with potential buyers and sellers. A real estate licensee may not operate as a disclosed or non-disclosed dual agent ... (b)Presumption of transaction brokerage. — It shall be presumed that all licensees are operating as transaction brokers unless a single agent or no brokerage relationship is established, in writing, with a customer."

  9. ^ "Real Estate Broker's License: Examination and Licensing Application Requirements". New Mexico Administrative Code. State of New Mexico Commission of Public Records. 21 January 2021.

  10. ^ "Real Estate Laws Website". BC Real Estate Laws - Pat 1 Trading Services.

  11. ^ a b c Quigley, John M. (2000). "A Decent Home: Housing Policy in Perspective". Brookings-Wharton Papers on Urban Affairs. 2000 (1): 53–88. CiteSeerX 10.1.1.369.6806. doi:10.1353/urb.2000.0011. ISSN 1533-4449. S2CID 154714417.

  12. ^ "Getting a Brokerage Commission Paid | New York Law Journal".

  13. ^ Daniel Gross (20 February 2005). "Why a Real Estate Agent May Skip the Extra Mile". The New York Times. Archived from the original on 29 May 2015.

  14. ^ B. Douglas Bernheim; Jonathan Meer (13 January 2012). "Do Real Estate Brokers Add Value When Listing Services Are Unbundled?". The National Bureau of Economic Research. Working Paper Series. doi:10.3386/w13796. Retrieved 3 September 2016.

  15. ^ "CFPB consumer laws and regulations RESPA" (PDF). Consumer Financial Protection Bureau. Retrieved 13 October 2021.

  16. ^ Buch, Clarissa (20 April 2023). "What Is a Realtor? A Member of the National Association of Realtors". Realtor.com. National Association of Realtors. Retrieved 17 June 2023.

  17. ^ "Understanding the Difference Between a Realtor and a Real Estate Agent". The CE Shop. Retrieved 19 June 2023.

  18. ^ Colestock, Stephanie (August 13, 2021). "Realtor vs. real estate agent: What's the difference?". Fox Business. Retrieved 20 June 2023.

  19. ^ a b "Using the REALTOR® Trademark in Advertisements - CREA". 12 November 2020.

  20. ^ "Continuing Education Requirements". Ca.gov. California Department of Real Estate. Retrieved 26 June 2023.

  21. ^ "Professional Recognition of our Programs". Real Estate Division at Sauder, UBC. January 8, 2019.

  22. ^ "Real Estate Institute of Canada (REIC)". Thomson Reuters Canada Limited. Retrieved 8 January 2019.

  23. ^ "Lobbying Spending Database: National Assn of Realtors : 2007". Retrieved 2008-10-25.




[edit]


  • Media related to Real estate agents at Wikimedia Commons

































How Technology is Changing Real Estate Transactions

Virtual Tours and 3D Walkthroughs

The way properties are viewed has evolved drastically. Potential buyers no longer need to visit a house physically to get a good feel for it. With advancements in virtual tours and 3D walkthroughs, prospective homeowners can explore every nook and cranny of a property from the comfort of their own homes. This is exceptionally beneficial for those looking to sell my house fast San Diego, as it reduces the time spent on physical showings and attracts serious buyers quickly.

Online Listings and Digital Marketing

Gone are the days when listing your home meant putting an ad in the local newspaper or placing a sign on your front lawn. Nowadays, online listings have taken over. Websites like Zillow, Redfin, and Realtor.com have revolutionized how homes are marketed. High-quality photos, detailed descriptions, and even drone footage can make properties stand out in a crowded market. For those aiming to sell my house fast San Diego, digital marketing strategies including social media ads can be game-changers.

Blockchain Technology for Secure Transactions

Blockchain technology is starting to make its mark on real estate transactions by providing an extra layer of security. This decentralized ledger system ensures that all parties involved in the transaction have access to the same information simultaneously, making fraud nearly impossible. For anyone looking to sell my house fast San Diego securely, blockchain offers peace of mind that traditional methods may not provide.

E-Signatures and Paperless Transactions

Another significant change brought by technology is the ability to complete transactions without ever touching pen to paper. E-signature platforms like DocuSign simplify signing documents remotely. Buyers and sellers save time by not having to meet in person for every piece of paperwork required during closing stages. This convenience speeds up real estate processes considerably—ideal for those who want to sell my house fast San Diego.

AI-Powered Valuation Tools

Artificial Intelligence (AI) has introduced sophisticated valuation tools that estimate property values more accurately than traditional methods. These tools analyze various data points such as recent sales, neighborhood trends, and even economic indicators, providing sellers with an informed estimate that helps set competitive prices. If you're keen on selling my house fast San Diego at an optimal price point, AI-driven valuations offer significant benefits.

Mobile Apps for Instant Updates

Real estate apps have transformed how agents communicate with clients throughout the buying or selling process. Mobile applications enable instant updates regarding new listings, price changes, or scheduled viewings directly on your smartphone. As someone trying to sell my house fast San Diego would find these features incredibly useful because they streamline communication between all parties involved.

To put it shot

Technology has undeniably reshaped real estate transactions into more efficient procedures benefiting both buyers and sellers alike . From virtual tours eliminating unnecessary visits ,to AI helping you price your home just right —these technological strides make it simpler than ever if you’re eager about selling my house fast San Diego .

What is real estate agent

A real estate agent is a person who acts as an intermediary between sellers and buyers of real estate, earning a commission for their services. An agent typically works under the supervision of a licensed broker to represent clients in negotiating sales agreements and managing the necessary documentation for closing real estate transactions. They are licensed by the state to ensure they can legally perform these duties. While brokers may operate independently, agents generally must be affiliated with a broker. The agent's primary role is to facilitate the buying or selling process, ensuring all legal requirements are met and assisting in achieving favorable terms for their clients.














Lawn signs advertising houses for sale

Real estate agents and real estate brokers are people who represents sellers or buyers of real estate or real property. While a broker may work independently, an agent usually works under a licensed broker to represent clients.[1] Brokers and agents are licensed by the state to negotiate sales agreements and manage the documentation required for closing real estate transactions. Buyers and sellers are generally advised to consult a licensed real estate professional for a written definition of an individual state's laws of agency.



Categories of representation


[edit]

A real estate broker typically receives a real estate commission for successfully completing a sale. Across the U.S, this commission can generally range between 5-6% of the property's sale price for a full-service broker but this percentage varies by state and even region.[2]


Real estate licensing and education


[edit]

In most jurisdictions in the United States, a person must have a license to perform licensed activities, and these activities are defined within the statutes of each state. The main feature of the requirement for having a license to perform those activities is the work done "for compensation". Hence, hypothetically, if a person wants to help a friend out in either selling or buying a property, and no compensation of any kind is expected in return, then a license is not needed to perform all the work. However, since most people would expect to be compensated for their efforts and skills, a license would be required by law before a person may receive remuneration for services rendered as a real estate broker or agent. Unlicensed activity is illegal and the state real estate commission has the authority to fine people who are acting as real estate licensees, but buyers and sellers acting as principals in the sale or purchase of real estate are usually not required to be licensed. It is important to note that in some states, lawyers handle real estate sales for compensation without being licensed as brokers or agents. However, even lawyers can only perform real estate activities that are incidental to their original work as a lawyer. It cannot be the case that a lawyer can become a seller's selling agent if that is all the service that is being requested by the client. Lawyers would still need to be licensed as a broker if they wish to perform licensed activities. Nevertheless, lawyers do get a break in the minimum education requirements (for example, 90 hours in Illinois).[3]

Some other states have recently eliminated the salesperson's license, instead, all licensees in those states automatically earn their broker's license.

The term "agent" is not to be confused with salesperson or broker. An agent is simply a licensee that has entered into an agency relationship with a client. A broker can also be an agent for a client. It is commonly the firm that has the actual legal relationship with the client through one of their sales staff, be they salespersons or brokers.

In all states, the real estate licensee must disclose to prospective buyers and sellers the nature of their relationship [4]


Specific representation laws


[edit]

Some U.S. state real estate commissions – notably Florida's[5] after 1992 (and extended in 2003) and Colorado's[6] after 1994 (with changes in 2003) created the option of having no agency or fiduciary relationship between brokers and sellers or buyers.

As noted by the South Broward Board of Realtors, Inc. in a letter to State of Florida legislative committees:




"The Transaction Broker crafts a transaction by bringing a willing buyer and a willing seller together and provides the legal documentation of the details of the legal agreement between the same. The Transaction Broker is not a fiduciary of any party, but must abide by the law as well as professional and ethical standards." (such as NAR Code of Ethics).


The result was that, in 2003, Florida created a system where the default brokerage relationship had "all licensees ... operating as transaction brokers, unless a single agent or no brokerage relationship is established, in writing, with the customer"[7][8] and the statute required written disclosure of the transaction brokerage relationship to the buyer or seller customer only through July 1, 2008.

In the case of both Florida[8] and Colorado,[6] dual agency and sub-agency (where both listing and selling agents represent the seller) no longer exist.

Other brokers and agents may focus on representing buyers or tenants in a real estate transaction. However, licensing as a broker or salesperson authorizes the licensee to legally represent parties on either side of a transaction and providing the necessary documentation for the legal transfer of real property. This business decision is for the licensee to decide. They are fines for people acting as real estate agents when not licensed by the state.

In the United Kingdom, an estate agent is a person or business entity whose business is to market real estate on behalf of clients. There are significant differences between the actions, powers, obligations, and liabilities of brokers and estate agents in each country, as different countries take markedly different approaches to the marketing and selling of real property.


The difference between salespersons and brokers


[edit]

Before the Multiple Listing Service (MLS) was introduced in 1967, when brokers (and their licensees) only represented sellers by providing a service to provide legal documentation on the transfer real property, the term "real estate salesperson" may have been more appropriate than it is today, given the various ways that brokers and licensees now help buyers through the legal process of transferring real property. Legally, however, the term "salesperson" is still used in many states to describe a real estate licensee.[citation needed]


Real estate broker (or, in some states, qualifying broker)


[edit]

After gaining some years of experience in real estate sales, a salesperson may decide to become licensed as a real estate broker (or Principal/qualifying broker) in order to own, manage, or operate their own brokerage. In addition, some states allow college graduates to apply for a broker's license without years of experience. College graduates fall into this category once they have completed the state-required courses as well. California allows licensed attorneys to become brokers upon passing the broker exam without having to take the requisite courses required of an agent. Commonly more coursework and a broker's state exam on real estate law must be passed. Upon obtaining a broker's license, a real estate agent may continue to work for another broker in a similar capacity as before (often referred to as a broker associate or associate broker) or take charge of their own brokerage and hire other salespersons (or broker), licensees. Becoming a branch office manager may or may not require a broker's license. Some states allow licensed attorneys to become real estate brokers without taking any exam. In some states, there are no "salespeople" as all licensees are brokers.[9]


Types of services that a broker can provide


[edit]

Real Estate Services are also called trading services [10]


Real estate brokers and sellers


[edit]


Flat-fee real estate agents


[edit]

Flat-fee real estate agents charge a seller of a property a flat fee, $500 for example,[11] as opposed to a traditional or full-service real estate agent who charges a percentage of the sale price. In exchange, the seller's property will appear in the multiple listing service (MLS), but the seller will represent him or herself when showing the property and negotiating a sales price.[11] The result is the seller pays less commission overall (roughly half) when the property sells.[11] This is because a seller will pay a percentage of the sales price to a buyer's agent but not have to pay a percentage to a seller's agent (because there isn't one; the seller is representing himself).


Brokerage commissions


[edit]

In consideration of the brokerage successfully finding a buyer for the property, a broker anticipates receiving a commission for the services the brokerage has provided. Usually, the payment of a commission to the brokerage is contingent upon finding a buyer for the real estate, the successful negotiation of a purchase contract between the buyer and seller, or the settlement of the transaction and the exchange of money between buyer and seller. Under common law, a real estate broker is eligible to receive their commission, regardless of whether the sale actually takes place, once they secure a buyer who is ready, willing, and able to purchase the dwelling.[12]

Economist Steven D. Levitt famously argued in his 2005 book Freakonomics that real estate brokers have an inherent conflict of interest with the sellers they represent because their commission gives them more motivation to sell quickly than to sell at a higher price. Levitt supported his argument with a study finding brokers tend to put their own houses on the market for longer and receive higher prices for them compared to when working for their clients. He concluded that broker commissions will reduce in future.[13] A 2008 study by other economists found that when comparing brokerage without listing services, brokerage significantly reduced the average sale price.[14]


RESPA


[edit]

Real estate brokers who work with lenders can not receive any compensation from the lender for referring a residential client to a specific lender. To do so would be a violation of a United States federal law known as the Real Estate Settlement Procedures Act (RESPA). RESPA ensures that buyers and sellers are given adequate notice of the Real Estate settlement process.[15]


Realtor


[edit]

In the United States, the term realtor is trademarked by the National Association of Realtors, which uses it to refer to its active members, who may be real estate agents or brokers.[16][17][18] In Canada, the trademark is used by members of the Canadian Real Estate Association.[19] Both organizations advise against the use of realtor as a generic synonym for real estate agent.[19]


Continuing education


[edit]

States issue licenses for an annual or multi-year period and require real estate agents and brokers to complete continuing education prior to renewing their licenses. For example, California licensees must complete 45 hours of continuing education every 4 years in topics such as agency, trust fund handling, consumer protection, fair housing, ethics, and risk management.[20]


Organizations


[edit]

Several notable groups exist to promote the real estate industry and to assist professionals.


  • The National Association of Realtors (NAR)

    • The Realtor Political Action Committee (RPAC) is the lobbying arm of the NAR.



  • The National Association of Real Estate Brokers (NAREB)

  • The Real Estate Institute of Canada (REIC)[21][22]

  • The Real Estate Roundtable[23]

  • Building Owners and Managers Association focusing on commercial property


See also


[edit]




  • Buyer brokerage

  • Closing (real estate)

  • Estate (land)

  • Exclusive buyer agent

  • Flat-fee MLS

  • Home inspection

  • Index of real estate articles

  • Investment rating for real estate

  • Listing contract

  • Mortgage broker

  • Property manager

  • Real estate contract

  • Real estate development

  • Real estate investing

  • Real estate settlement company

  • Strata management



References


[edit]




  1. ^

    "Real Estate Professionals Explained: Agent, Broker, REALTOR". Real Estate News and Advice | Realtor.com. 2014-03-10. Retrieved 2018-12-27.

  2. ^ "How Much Is Real Estate Agent Commission?". Bankrate. Retrieved 2018-12-20.

  3. ^ "FAQs". www.illinoisrealtors.org. Illinois Realtors. Retrieved August 16, 2018.

  4. ^ "Realtor Code of Ethics - Disclosure" (PDF). Real Estate Association Standards of Business Practice.

  5. ^ "Statutes & Constitution :View Statutes : Online Sunshine". Leg.state.fl.us. Retrieved 2014-02-10.

  6. ^ a b "Outline of types of representation available in Colorado, including Transaction Brokerage" (PDF). Dora.state.co.us. Retrieved 2014-02-10.

  7. ^ Evans, Blanche (2 July 2003). "Florida Implements Default Transactikn Brokerage Statute". realtytimes.com/. Realty Times. Retrieved 2 February 2014.

  8. ^ a b The 2007 Florida Statutes. Chapter 475 Real Estate Brokers — Part I; Real Estate Brokers, Sales Associates, and Schools (ss. 475.001-475.5018), Section 475.278 Authorized brokerage relationships; presumption of transaction brokerage; required disclosures (1) Brokerage Relationships: (a) Authorized brokerage relationships. — A real estate licensee in this state may enter into a brokerage relationship as either a transaction broker or as a single agent with potential buyers and sellers. A real estate licensee may not operate as a disclosed or non-disclosed dual agent ... (b)Presumption of transaction brokerage. — It shall be presumed that all licensees are operating as transaction brokers unless a single agent or no brokerage relationship is established, in writing, with a customer."

  9. ^ "Real Estate Broker's License: Examination and Licensing Application Requirements". New Mexico Administrative Code. State of New Mexico Commission of Public Records. 21 January 2021.

  10. ^ "Real Estate Laws Website". BC Real Estate Laws - Pat 1 Trading Services.

  11. ^ a b c Quigley, John M. (2000). "A Decent Home: Housing Policy in Perspective". Brookings-Wharton Papers on Urban Affairs. 2000 (1): 53–88. CiteSeerX 10.1.1.369.6806. doi:10.1353/urb.2000.0011. ISSN 1533-4449. S2CID 154714417.

  12. ^ "Getting a Brokerage Commission Paid | New York Law Journal".

  13. ^ Daniel Gross (20 February 2005). "Why a Real Estate Agent May Skip the Extra Mile". The New York Times. Archived from the original on 29 May 2015.

  14. ^ B. Douglas Bernheim; Jonathan Meer (13 January 2012). "Do Real Estate Brokers Add Value When Listing Services Are Unbundled?". The National Bureau of Economic Research. Working Paper Series. doi:10.3386/w13796. Retrieved 3 September 2016.

  15. ^ "CFPB consumer laws and regulations RESPA" (PDF). Consumer Financial Protection Bureau. Retrieved 13 October 2021.

  16. ^ Buch, Clarissa (20 April 2023). "What Is a Realtor? A Member of the National Association of Realtors". Realtor.com. National Association of Realtors. Retrieved 17 June 2023.

  17. ^ "Understanding the Difference Between a Realtor and a Real Estate Agent". The CE Shop. Retrieved 19 June 2023.

  18. ^ Colestock, Stephanie (August 13, 2021). "Realtor vs. real estate agent: What's the difference?". Fox Business. Retrieved 20 June 2023.

  19. ^ a b "Using the REALTOR® Trademark in Advertisements - CREA". 12 November 2020.

  20. ^ "Continuing Education Requirements". Ca.gov. California Department of Real Estate. Retrieved 26 June 2023.

  21. ^ "Professional Recognition of our Programs". Real Estate Division at Sauder, UBC. January 8, 2019.

  22. ^ "Real Estate Institute of Canada (REIC)". Thomson Reuters Canada Limited. Retrieved 8 January 2019.

  23. ^ "Lobbying Spending Database: National Assn of Realtors : 2007". Retrieved 2008-10-25.




[edit]


  • Media related to Real estate agents at Wikimedia Commons

































Open Houses vs. Private Showings: What’s More Effective?

When selling a house fast in San Diego, one key decision sellers face is whether to hold open houses or schedule private showings. Each approach has its own set of advantages and drawbacks that can influence the speed and success of the sale.

Open Houses: A Broad Approach

Open houses offer a way to attract multiple potential buyers at once. They create an environment where visitors can freely explore the property without feeling pressured. This setting often encourages casual lookers who might not have scheduled a private showing but could become interested after viewing the home in person.

Private Showings: Personalized Attention

On the other hand, private showings provide a tailored experience for serious buyers. These appointments allow agents to personalize their pitch based on what they know about the buyer's preferences, potentially making it easier to close a deal quickly. The focused attention can help highlight specific features of your house that match what the buyer is looking for.

Time and Effort Considerations

Open houses require significant preparation. Cleaning, staging, and marketing efforts are heightened since you're aiming to impress multiple people simultaneously. However, this effort may pay off by attracting more foot traffic in less time compared to scheduling several individual showings.

Private showings also demand preparation but often involve less stress since you’re dealing with one party at a time. You get direct feedback from potential buyers during these visits, allowing you to make adjustments if necessary before future viewings.

Safety Concerns

Safety is another important factor when deciding between open houses and private showings. Open houses invite strangers into your home en masse, which could pose security risks both for your personal belongings and for maintaining COVID-19 protocols if those are still in effect.

With private showings, safety measures can be better controlled as fewer individuals enter your home at any given time. Agents usually vet serious buyers beforehand, adding an extra layer of security.

Buyer Types

Different types of buyers prefer different methods of viewing homes. Casual browsers are more likely to attend open houses while serious buyers generally opt for private showings where they get dedicated attention from their real estate agent or broker.

In San Diego’s competitive market, understanding your target audience can greatly impact which method will be more effective for selling your home quickly.

To put it shot, both open houses and private showings have their merits depending on various factors such as target audience, safety considerations, and how much effort you're willing to invest in preparation. Consulting with experienced real estate agents or brokers can provide valuable insights tailored specifically for selling your house fast in San Diego.

What is real estate agent

A real estate agent is a person who acts as an intermediary between sellers and buyers of real estate, earning a commission for their services. An agent typically works under the supervision of a licensed broker to represent clients in negotiating sales agreements and managing the necessary documentation for closing real estate transactions. They are licensed by the state to ensure they can legally perform these duties. While brokers may operate independently, agents generally must be affiliated with a broker. The agent's primary role is to facilitate the buying or selling process, ensuring all legal requirements are met and assisting in achieving favorable terms for their clients.














Lawn signs advertising houses for sale

Real estate agents and real estate brokers are people who represents sellers or buyers of real estate or real property. While a broker may work independently, an agent usually works under a licensed broker to represent clients.[1] Brokers and agents are licensed by the state to negotiate sales agreements and manage the documentation required for closing real estate transactions. Buyers and sellers are generally advised to consult a licensed real estate professional for a written definition of an individual state's laws of agency.



Categories of representation


[edit]

A real estate broker typically receives a real estate commission for successfully completing a sale. Across the U.S, this commission can generally range between 5-6% of the property's sale price for a full-service broker but this percentage varies by state and even region.[2]


Real estate licensing and education


[edit]

In most jurisdictions in the United States, a person must have a license to perform licensed activities, and these activities are defined within the statutes of each state. The main feature of the requirement for having a license to perform those activities is the work done "for compensation". Hence, hypothetically, if a person wants to help a friend out in either selling or buying a property, and no compensation of any kind is expected in return, then a license is not needed to perform all the work. However, since most people would expect to be compensated for their efforts and skills, a license would be required by law before a person may receive remuneration for services rendered as a real estate broker or agent. Unlicensed activity is illegal and the state real estate commission has the authority to fine people who are acting as real estate licensees, but buyers and sellers acting as principals in the sale or purchase of real estate are usually not required to be licensed. It is important to note that in some states, lawyers handle real estate sales for compensation without being licensed as brokers or agents. However, even lawyers can only perform real estate activities that are incidental to their original work as a lawyer. It cannot be the case that a lawyer can become a seller's selling agent if that is all the service that is being requested by the client. Lawyers would still need to be licensed as a broker if they wish to perform licensed activities. Nevertheless, lawyers do get a break in the minimum education requirements (for example, 90 hours in Illinois).[3]

Some other states have recently eliminated the salesperson's license, instead, all licensees in those states automatically earn their broker's license.

The term "agent" is not to be confused with salesperson or broker. An agent is simply a licensee that has entered into an agency relationship with a client. A broker can also be an agent for a client. It is commonly the firm that has the actual legal relationship with the client through one of their sales staff, be they salespersons or brokers.

In all states, the real estate licensee must disclose to prospective buyers and sellers the nature of their relationship [4]


Specific representation laws


[edit]

Some U.S. state real estate commissions – notably Florida's[5] after 1992 (and extended in 2003) and Colorado's[6] after 1994 (with changes in 2003) created the option of having no agency or fiduciary relationship between brokers and sellers or buyers.

As noted by the South Broward Board of Realtors, Inc. in a letter to State of Florida legislative committees:




"The Transaction Broker crafts a transaction by bringing a willing buyer and a willing seller together and provides the legal documentation of the details of the legal agreement between the same. The Transaction Broker is not a fiduciary of any party, but must abide by the law as well as professional and ethical standards." (such as NAR Code of Ethics).


The result was that, in 2003, Florida created a system where the default brokerage relationship had "all licensees ... operating as transaction brokers, unless a single agent or no brokerage relationship is established, in writing, with the customer"[7][8] and the statute required written disclosure of the transaction brokerage relationship to the buyer or seller customer only through July 1, 2008.

In the case of both Florida[8] and Colorado,[6] dual agency and sub-agency (where both listing and selling agents represent the seller) no longer exist.

Other brokers and agents may focus on representing buyers or tenants in a real estate transaction. However, licensing as a broker or salesperson authorizes the licensee to legally represent parties on either side of a transaction and providing the necessary documentation for the legal transfer of real property. This business decision is for the licensee to decide. They are fines for people acting as real estate agents when not licensed by the state.

In the United Kingdom, an estate agent is a person or business entity whose business is to market real estate on behalf of clients. There are significant differences between the actions, powers, obligations, and liabilities of brokers and estate agents in each country, as different countries take markedly different approaches to the marketing and selling of real property.


The difference between salespersons and brokers


[edit]

Before the Multiple Listing Service (MLS) was introduced in 1967, when brokers (and their licensees) only represented sellers by providing a service to provide legal documentation on the transfer real property, the term "real estate salesperson" may have been more appropriate than it is today, given the various ways that brokers and licensees now help buyers through the legal process of transferring real property. Legally, however, the term "salesperson" is still used in many states to describe a real estate licensee.[citation needed]


Real estate broker (or, in some states, qualifying broker)


[edit]

After gaining some years of experience in real estate sales, a salesperson may decide to become licensed as a real estate broker (or Principal/qualifying broker) in order to own, manage, or operate their own brokerage. In addition, some states allow college graduates to apply for a broker's license without years of experience. College graduates fall into this category once they have completed the state-required courses as well. California allows licensed attorneys to become brokers upon passing the broker exam without having to take the requisite courses required of an agent. Commonly more coursework and a broker's state exam on real estate law must be passed. Upon obtaining a broker's license, a real estate agent may continue to work for another broker in a similar capacity as before (often referred to as a broker associate or associate broker) or take charge of their own brokerage and hire other salespersons (or broker), licensees. Becoming a branch office manager may or may not require a broker's license. Some states allow licensed attorneys to become real estate brokers without taking any exam. In some states, there are no "salespeople" as all licensees are brokers.[9]


Types of services that a broker can provide


[edit]

Real Estate Services are also called trading services [10]


Real estate brokers and sellers


[edit]


Flat-fee real estate agents


[edit]

Flat-fee real estate agents charge a seller of a property a flat fee, $500 for example,[11] as opposed to a traditional or full-service real estate agent who charges a percentage of the sale price. In exchange, the seller's property will appear in the multiple listing service (MLS), but the seller will represent him or herself when showing the property and negotiating a sales price.[11] The result is the seller pays less commission overall (roughly half) when the property sells.[11] This is because a seller will pay a percentage of the sales price to a buyer's agent but not have to pay a percentage to a seller's agent (because there isn't one; the seller is representing himself).


Brokerage commissions


[edit]

In consideration of the brokerage successfully finding a buyer for the property, a broker anticipates receiving a commission for the services the brokerage has provided. Usually, the payment of a commission to the brokerage is contingent upon finding a buyer for the real estate, the successful negotiation of a purchase contract between the buyer and seller, or the settlement of the transaction and the exchange of money between buyer and seller. Under common law, a real estate broker is eligible to receive their commission, regardless of whether the sale actually takes place, once they secure a buyer who is ready, willing, and able to purchase the dwelling.[12]

Economist Steven D. Levitt famously argued in his 2005 book Freakonomics that real estate brokers have an inherent conflict of interest with the sellers they represent because their commission gives them more motivation to sell quickly than to sell at a higher price. Levitt supported his argument with a study finding brokers tend to put their own houses on the market for longer and receive higher prices for them compared to when working for their clients. He concluded that broker commissions will reduce in future.[13] A 2008 study by other economists found that when comparing brokerage without listing services, brokerage significantly reduced the average sale price.[14]


RESPA


[edit]

Real estate brokers who work with lenders can not receive any compensation from the lender for referring a residential client to a specific lender. To do so would be a violation of a United States federal law known as the Real Estate Settlement Procedures Act (RESPA). RESPA ensures that buyers and sellers are given adequate notice of the Real Estate settlement process.[15]


Realtor


[edit]

In the United States, the term realtor is trademarked by the National Association of Realtors, which uses it to refer to its active members, who may be real estate agents or brokers.[16][17][18] In Canada, the trademark is used by members of the Canadian Real Estate Association.[19] Both organizations advise against the use of realtor as a generic synonym for real estate agent.[19]


Continuing education


[edit]

States issue licenses for an annual or multi-year period and require real estate agents and brokers to complete continuing education prior to renewing their licenses. For example, California licensees must complete 45 hours of continuing education every 4 years in topics such as agency, trust fund handling, consumer protection, fair housing, ethics, and risk management.[20]


Organizations


[edit]

Several notable groups exist to promote the real estate industry and to assist professionals.


  • The National Association of Realtors (NAR)

    • The Realtor Political Action Committee (RPAC) is the lobbying arm of the NAR.



  • The National Association of Real Estate Brokers (NAREB)

  • The Real Estate Institute of Canada (REIC)[21][22]

  • The Real Estate Roundtable[23]

  • Building Owners and Managers Association focusing on commercial property


See also


[edit]




  • Buyer brokerage

  • Closing (real estate)

  • Estate (land)

  • Exclusive buyer agent

  • Flat-fee MLS

  • Home inspection

  • Index of real estate articles

  • Investment rating for real estate

  • Listing contract

  • Mortgage broker

  • Property manager

  • Real estate contract

  • Real estate development

  • Real estate investing

  • Real estate settlement company

  • Strata management



References


[edit]




  1. ^

    "Real Estate Professionals Explained: Agent, Broker, REALTOR". Real Estate News and Advice | Realtor.com. 2014-03-10. Retrieved 2018-12-27.

  2. ^ "How Much Is Real Estate Agent Commission?". Bankrate. Retrieved 2018-12-20.

  3. ^ "FAQs". www.illinoisrealtors.org. Illinois Realtors. Retrieved August 16, 2018.

  4. ^ "Realtor Code of Ethics - Disclosure" (PDF). Real Estate Association Standards of Business Practice.

  5. ^ "Statutes & Constitution :View Statutes : Online Sunshine". Leg.state.fl.us. Retrieved 2014-02-10.

  6. ^ a b "Outline of types of representation available in Colorado, including Transaction Brokerage" (PDF). Dora.state.co.us. Retrieved 2014-02-10.

  7. ^ Evans, Blanche (2 July 2003). "Florida Implements Default Transactikn Brokerage Statute". realtytimes.com/. Realty Times. Retrieved 2 February 2014.

  8. ^ a b The 2007 Florida Statutes. Chapter 475 Real Estate Brokers — Part I; Real Estate Brokers, Sales Associates, and Schools (ss. 475.001-475.5018), Section 475.278 Authorized brokerage relationships; presumption of transaction brokerage; required disclosures (1) Brokerage Relationships: (a) Authorized brokerage relationships. — A real estate licensee in this state may enter into a brokerage relationship as either a transaction broker or as a single agent with potential buyers and sellers. A real estate licensee may not operate as a disclosed or non-disclosed dual agent ... (b)Presumption of transaction brokerage. — It shall be presumed that all licensees are operating as transaction brokers unless a single agent or no brokerage relationship is established, in writing, with a customer."

  9. ^ "Real Estate Broker's License: Examination and Licensing Application Requirements". New Mexico Administrative Code. State of New Mexico Commission of Public Records. 21 January 2021.

  10. ^ "Real Estate Laws Website". BC Real Estate Laws - Pat 1 Trading Services.

  11. ^ a b c Quigley, John M. (2000). "A Decent Home: Housing Policy in Perspective". Brookings-Wharton Papers on Urban Affairs. 2000 (1): 53–88. CiteSeerX 10.1.1.369.6806. doi:10.1353/urb.2000.0011. ISSN 1533-4449. S2CID 154714417.

  12. ^ "Getting a Brokerage Commission Paid | New York Law Journal".

  13. ^ Daniel Gross (20 February 2005). "Why a Real Estate Agent May Skip the Extra Mile". The New York Times. Archived from the original on 29 May 2015.

  14. ^ B. Douglas Bernheim; Jonathan Meer (13 January 2012). "Do Real Estate Brokers Add Value When Listing Services Are Unbundled?". The National Bureau of Economic Research. Working Paper Series. doi:10.3386/w13796. Retrieved 3 September 2016.

  15. ^ "CFPB consumer laws and regulations RESPA" (PDF). Consumer Financial Protection Bureau. Retrieved 13 October 2021.

  16. ^ Buch, Clarissa (20 April 2023). "What Is a Realtor? A Member of the National Association of Realtors". Realtor.com. National Association of Realtors. Retrieved 17 June 2023.

  17. ^ "Understanding the Difference Between a Realtor and a Real Estate Agent". The CE Shop. Retrieved 19 June 2023.

  18. ^ Colestock, Stephanie (August 13, 2021). "Realtor vs. real estate agent: What's the difference?". Fox Business. Retrieved 20 June 2023.

  19. ^ a b "Using the REALTOR® Trademark in Advertisements - CREA". 12 November 2020.

  20. ^ "Continuing Education Requirements". Ca.gov. California Department of Real Estate. Retrieved 26 June 2023.

  21. ^ "Professional Recognition of our Programs". Real Estate Division at Sauder, UBC. January 8, 2019.

  22. ^ "Real Estate Institute of Canada (REIC)". Thomson Reuters Canada Limited. Retrieved 8 January 2019.

  23. ^ "Lobbying Spending Database: National Assn of Realtors : 2007". Retrieved 2008-10-25.




[edit]


  • Media related to Real estate agents at Wikimedia Commons

































The Role of Online Listings and Virtual Tours

Impact on Buyer Engagement

Online listings and virtual tours have revolutionized the way homes are sold, particularly in competitive markets like San Diego. Potential buyers can now explore multiple properties without leaving their home, saving both time and effort. This increased accessibility means that sellers can reach a broader audience quickly. Real estate agents and brokers leverage these tools to showcase homes more effectively, utilizing high-quality images and walkthrough videos to highlight key features of a property.

Efficiency in the Selling Process

For homeowners looking to sell their house fast in San Diego, online listings and virtual tours offer significant advantages. By providing comprehensive information upfront, they reduce the need for numerous physical showings, which can be time-consuming for both parties involved. Real estate professionals can manage inquiries more efficiently by directing potential buyers to online resources first. This streamlined approach helps identify serious buyers early on, thereby speeding up the overall selling process.

Enhanced Market Reach

The use of online platforms allows for unprecedented market reach, transcending geographical limitations that once restricted real estate transactions. Prospective buyers from different states or even countries can view homes as if they were there in person. Brokers and agents licensed by the state utilize these tools not only to meet legal requirements but also to enhance client satisfaction by offering a seamless experience.

As a round up ,the role of online listings and virtual tours cannot be overstated when it comes to selling your house fast in San Diego. They not only increase buyer engagement but also streamline the entire process while expanding market reach considerably . In effect this means that sellers have better opportunities than ever before to connect with interested buyers quickly , maximizing their chances of closing deals swiftly .

What is real estate agent

A real estate agent is a person who acts as an intermediary between sellers and buyers of real estate, earning a commission for their services. An agent typically works under the supervision of a licensed broker to represent clients in negotiating sales agreements and managing the necessary documentation for closing real estate transactions. They are licensed by the state to ensure they can legally perform these duties. While brokers may operate independently, agents generally must be affiliated with a broker. The agent's primary role is to facilitate the buying or selling process, ensuring all legal requirements are met and assisting in achieving favorable terms for their clients.














Lawn signs advertising houses for sale

Real estate agents and real estate brokers are people who represents sellers or buyers of real estate or real property. While a broker may work independently, an agent usually works under a licensed broker to represent clients.[1] Brokers and agents are licensed by the state to negotiate sales agreements and manage the documentation required for closing real estate transactions. Buyers and sellers are generally advised to consult a licensed real estate professional for a written definition of an individual state's laws of agency.



Categories of representation


[edit]

A real estate broker typically receives a real estate commission for successfully completing a sale. Across the U.S, this commission can generally range between 5-6% of the property's sale price for a full-service broker but this percentage varies by state and even region.[2]


Real estate licensing and education


[edit]

In most jurisdictions in the United States, a person must have a license to perform licensed activities, and these activities are defined within the statutes of each state. The main feature of the requirement for having a license to perform those activities is the work done "for compensation". Hence, hypothetically, if a person wants to help a friend out in either selling or buying a property, and no compensation of any kind is expected in return, then a license is not needed to perform all the work. However, since most people would expect to be compensated for their efforts and skills, a license would be required by law before a person may receive remuneration for services rendered as a real estate broker or agent. Unlicensed activity is illegal and the state real estate commission has the authority to fine people who are acting as real estate licensees, but buyers and sellers acting as principals in the sale or purchase of real estate are usually not required to be licensed. It is important to note that in some states, lawyers handle real estate sales for compensation without being licensed as brokers or agents. However, even lawyers can only perform real estate activities that are incidental to their original work as a lawyer. It cannot be the case that a lawyer can become a seller's selling agent if that is all the service that is being requested by the client. Lawyers would still need to be licensed as a broker if they wish to perform licensed activities. Nevertheless, lawyers do get a break in the minimum education requirements (for example, 90 hours in Illinois).[3]

Some other states have recently eliminated the salesperson's license, instead, all licensees in those states automatically earn their broker's license.

The term "agent" is not to be confused with salesperson or broker. An agent is simply a licensee that has entered into an agency relationship with a client. A broker can also be an agent for a client. It is commonly the firm that has the actual legal relationship with the client through one of their sales staff, be they salespersons or brokers.

In all states, the real estate licensee must disclose to prospective buyers and sellers the nature of their relationship [4]


Specific representation laws


[edit]

Some U.S. state real estate commissions – notably Florida's[5] after 1992 (and extended in 2003) and Colorado's[6] after 1994 (with changes in 2003) created the option of having no agency or fiduciary relationship between brokers and sellers or buyers.

As noted by the South Broward Board of Realtors, Inc. in a letter to State of Florida legislative committees:




"The Transaction Broker crafts a transaction by bringing a willing buyer and a willing seller together and provides the legal documentation of the details of the legal agreement between the same. The Transaction Broker is not a fiduciary of any party, but must abide by the law as well as professional and ethical standards." (such as NAR Code of Ethics).


The result was that, in 2003, Florida created a system where the default brokerage relationship had "all licensees ... operating as transaction brokers, unless a single agent or no brokerage relationship is established, in writing, with the customer"[7][8] and the statute required written disclosure of the transaction brokerage relationship to the buyer or seller customer only through July 1, 2008.

In the case of both Florida[8] and Colorado,[6] dual agency and sub-agency (where both listing and selling agents represent the seller) no longer exist.

Other brokers and agents may focus on representing buyers or tenants in a real estate transaction. However, licensing as a broker or salesperson authorizes the licensee to legally represent parties on either side of a transaction and providing the necessary documentation for the legal transfer of real property. This business decision is for the licensee to decide. They are fines for people acting as real estate agents when not licensed by the state.

In the United Kingdom, an estate agent is a person or business entity whose business is to market real estate on behalf of clients. There are significant differences between the actions, powers, obligations, and liabilities of brokers and estate agents in each country, as different countries take markedly different approaches to the marketing and selling of real property.


The difference between salespersons and brokers


[edit]

Before the Multiple Listing Service (MLS) was introduced in 1967, when brokers (and their licensees) only represented sellers by providing a service to provide legal documentation on the transfer real property, the term "real estate salesperson" may have been more appropriate than it is today, given the various ways that brokers and licensees now help buyers through the legal process of transferring real property. Legally, however, the term "salesperson" is still used in many states to describe a real estate licensee.[citation needed]


Real estate broker (or, in some states, qualifying broker)


[edit]

After gaining some years of experience in real estate sales, a salesperson may decide to become licensed as a real estate broker (or Principal/qualifying broker) in order to own, manage, or operate their own brokerage. In addition, some states allow college graduates to apply for a broker's license without years of experience. College graduates fall into this category once they have completed the state-required courses as well. California allows licensed attorneys to become brokers upon passing the broker exam without having to take the requisite courses required of an agent. Commonly more coursework and a broker's state exam on real estate law must be passed. Upon obtaining a broker's license, a real estate agent may continue to work for another broker in a similar capacity as before (often referred to as a broker associate or associate broker) or take charge of their own brokerage and hire other salespersons (or broker), licensees. Becoming a branch office manager may or may not require a broker's license. Some states allow licensed attorneys to become real estate brokers without taking any exam. In some states, there are no "salespeople" as all licensees are brokers.[9]


Types of services that a broker can provide


[edit]

Real Estate Services are also called trading services [10]


Real estate brokers and sellers


[edit]


Flat-fee real estate agents


[edit]

Flat-fee real estate agents charge a seller of a property a flat fee, $500 for example,[11] as opposed to a traditional or full-service real estate agent who charges a percentage of the sale price. In exchange, the seller's property will appear in the multiple listing service (MLS), but the seller will represent him or herself when showing the property and negotiating a sales price.[11] The result is the seller pays less commission overall (roughly half) when the property sells.[11] This is because a seller will pay a percentage of the sales price to a buyer's agent but not have to pay a percentage to a seller's agent (because there isn't one; the seller is representing himself).


Brokerage commissions


[edit]

In consideration of the brokerage successfully finding a buyer for the property, a broker anticipates receiving a commission for the services the brokerage has provided. Usually, the payment of a commission to the brokerage is contingent upon finding a buyer for the real estate, the successful negotiation of a purchase contract between the buyer and seller, or the settlement of the transaction and the exchange of money between buyer and seller. Under common law, a real estate broker is eligible to receive their commission, regardless of whether the sale actually takes place, once they secure a buyer who is ready, willing, and able to purchase the dwelling.[12]

Economist Steven D. Levitt famously argued in his 2005 book Freakonomics that real estate brokers have an inherent conflict of interest with the sellers they represent because their commission gives them more motivation to sell quickly than to sell at a higher price. Levitt supported his argument with a study finding brokers tend to put their own houses on the market for longer and receive higher prices for them compared to when working for their clients. He concluded that broker commissions will reduce in future.[13] A 2008 study by other economists found that when comparing brokerage without listing services, brokerage significantly reduced the average sale price.[14]


RESPA


[edit]

Real estate brokers who work with lenders can not receive any compensation from the lender for referring a residential client to a specific lender. To do so would be a violation of a United States federal law known as the Real Estate Settlement Procedures Act (RESPA). RESPA ensures that buyers and sellers are given adequate notice of the Real Estate settlement process.[15]


Realtor


[edit]

In the United States, the term realtor is trademarked by the National Association of Realtors, which uses it to refer to its active members, who may be real estate agents or brokers.[16][17][18] In Canada, the trademark is used by members of the Canadian Real Estate Association.[19] Both organizations advise against the use of realtor as a generic synonym for real estate agent.[19]


Continuing education


[edit]

States issue licenses for an annual or multi-year period and require real estate agents and brokers to complete continuing education prior to renewing their licenses. For example, California licensees must complete 45 hours of continuing education every 4 years in topics such as agency, trust fund handling, consumer protection, fair housing, ethics, and risk management.[20]


Organizations


[edit]

Several notable groups exist to promote the real estate industry and to assist professionals.


  • The National Association of Realtors (NAR)

    • The Realtor Political Action Committee (RPAC) is the lobbying arm of the NAR.



  • The National Association of Real Estate Brokers (NAREB)

  • The Real Estate Institute of Canada (REIC)[21][22]

  • The Real Estate Roundtable[23]

  • Building Owners and Managers Association focusing on commercial property


See also


[edit]




  • Buyer brokerage

  • Closing (real estate)

  • Estate (land)

  • Exclusive buyer agent

  • Flat-fee MLS

  • Home inspection

  • Index of real estate articles

  • Investment rating for real estate

  • Listing contract

  • Mortgage broker

  • Property manager

  • Real estate contract

  • Real estate development

  • Real estate investing

  • Real estate settlement company

  • Strata management



References


[edit]




  1. ^

    "Real Estate Professionals Explained: Agent, Broker, REALTOR". Real Estate News and Advice | Realtor.com. 2014-03-10. Retrieved 2018-12-27.

  2. ^ "How Much Is Real Estate Agent Commission?". Bankrate. Retrieved 2018-12-20.

  3. ^ "FAQs". www.illinoisrealtors.org. Illinois Realtors. Retrieved August 16, 2018.

  4. ^ "Realtor Code of Ethics - Disclosure" (PDF). Real Estate Association Standards of Business Practice.

  5. ^ "Statutes & Constitution :View Statutes : Online Sunshine". Leg.state.fl.us. Retrieved 2014-02-10.

  6. ^ a b "Outline of types of representation available in Colorado, including Transaction Brokerage" (PDF). Dora.state.co.us. Retrieved 2014-02-10.

  7. ^ Evans, Blanche (2 July 2003). "Florida Implements Default Transactikn Brokerage Statute". realtytimes.com/. Realty Times. Retrieved 2 February 2014.

  8. ^ a b The 2007 Florida Statutes. Chapter 475 Real Estate Brokers — Part I; Real Estate Brokers, Sales Associates, and Schools (ss. 475.001-475.5018), Section 475.278 Authorized brokerage relationships; presumption of transaction brokerage; required disclosures (1) Brokerage Relationships: (a) Authorized brokerage relationships. — A real estate licensee in this state may enter into a brokerage relationship as either a transaction broker or as a single agent with potential buyers and sellers. A real estate licensee may not operate as a disclosed or non-disclosed dual agent ... (b)Presumption of transaction brokerage. — It shall be presumed that all licensees are operating as transaction brokers unless a single agent or no brokerage relationship is established, in writing, with a customer."

  9. ^ "Real Estate Broker's License: Examination and Licensing Application Requirements". New Mexico Administrative Code. State of New Mexico Commission of Public Records. 21 January 2021.

  10. ^ "Real Estate Laws Website". BC Real Estate Laws - Pat 1 Trading Services.

  11. ^ a b c Quigley, John M. (2000). "A Decent Home: Housing Policy in Perspective". Brookings-Wharton Papers on Urban Affairs. 2000 (1): 53–88. CiteSeerX 10.1.1.369.6806. doi:10.1353/urb.2000.0011. ISSN 1533-4449. S2CID 154714417.

  12. ^ "Getting a Brokerage Commission Paid | New York Law Journal".

  13. ^ Daniel Gross (20 February 2005). "Why a Real Estate Agent May Skip the Extra Mile". The New York Times. Archived from the original on 29 May 2015.

  14. ^ B. Douglas Bernheim; Jonathan Meer (13 January 2012). "Do Real Estate Brokers Add Value When Listing Services Are Unbundled?". The National Bureau of Economic Research. Working Paper Series. doi:10.3386/w13796. Retrieved 3 September 2016.

  15. ^ "CFPB consumer laws and regulations RESPA" (PDF). Consumer Financial Protection Bureau. Retrieved 13 October 2021.

  16. ^ Buch, Clarissa (20 April 2023). "What Is a Realtor? A Member of the National Association of Realtors". Realtor.com. National Association of Realtors. Retrieved 17 June 2023.

  17. ^ "Understanding the Difference Between a Realtor and a Real Estate Agent". The CE Shop. Retrieved 19 June 2023.

  18. ^ Colestock, Stephanie (August 13, 2021). "Realtor vs. real estate agent: What's the difference?". Fox Business. Retrieved 20 June 2023.

  19. ^ a b "Using the REALTOR® Trademark in Advertisements - CREA". 12 November 2020.

  20. ^ "Continuing Education Requirements". Ca.gov. California Department of Real Estate. Retrieved 26 June 2023.

  21. ^ "Professional Recognition of our Programs". Real Estate Division at Sauder, UBC. January 8, 2019.

  22. ^ "Real Estate Institute of Canada (REIC)". Thomson Reuters Canada Limited. Retrieved 8 January 2019.

  23. ^ "Lobbying Spending Database: National Assn of Realtors : 2007". Retrieved 2008-10-25.




[edit]


  • Media related to Real estate agents at Wikimedia Commons

































Seasonal Factors that Influence Home Sales In Southern California

Winter Lull

Winter months often see a decline in home sales due to the colder weather and holiday season. People are less likely to move or search for homes when they are busy with family gatherings and end-of-year festivities. Additionally, shorter daylight hours make it challenging to schedule viewings, impacting the overall number of transactions.

Spring Surge

The arrival of spring marks an uptick in home sales in Southern California. The pleasant weather encourages more people to go house-hunting. Families prefer moving during this period so their children can start at new schools by fall. Real estate agents and brokers typically see a surge in listings and buyer interest during these months, making it a prime time for selling your house fast.

Summer Slowdown

As temperatures rise during the summer, the real estate market experiences another shift. While some families still aim to move before the next school year begins, vacations and outdoor activities can distract potential buyers from focusing on property searches. Moreover, extreme heat can also deter individuals from attending open houses or scheduling appointments.

Fall Revival

Fall brings another opportunity for those looking to sell quickly in San Diego and other parts of Southern California. The cooler temperatures make home shopping more appealing again, and there is often a renewed sense of urgency as people wish to settle into new homes before the holiday season arrives. Real estate agents find that both listing prices and buyer activity remain stable during this period.

Year-End Considerations

To put it short, understanding these seasonal trends can help sellers plan more effectively when putting their homes on the market. Engaging with knowledgeable real estate professionals who understand local market dynamics can be crucial for navigating these fluctuations successfully. In effect this means timing your sale around these seasonal factors could significantly impact how fast you sell your house in San Diego or anywhere else in Southern California.

What is real estate agent

A real estate agent is a person who acts as an intermediary between sellers and buyers of real estate, earning a commission for their services. An agent typically works under the supervision of a licensed broker to represent clients in negotiating sales agreements and managing the necessary documentation for closing real estate transactions. They are licensed by the state to ensure they can legally perform these duties. While brokers may operate independently, agents generally must be affiliated with a broker. The agent's primary role is to facilitate the buying or selling process, ensuring all legal requirements are met and assisting in achieving favorable terms for their clients.














Lawn signs advertising houses for sale

Real estate agents and real estate brokers are people who represents sellers or buyers of real estate or real property. While a broker may work independently, an agent usually works under a licensed broker to represent clients.[1] Brokers and agents are licensed by the state to negotiate sales agreements and manage the documentation required for closing real estate transactions. Buyers and sellers are generally advised to consult a licensed real estate professional for a written definition of an individual state's laws of agency.



Categories of representation


[edit]

A real estate broker typically receives a real estate commission for successfully completing a sale. Across the U.S, this commission can generally range between 5-6% of the property's sale price for a full-service broker but this percentage varies by state and even region.[2]


Real estate licensing and education


[edit]

In most jurisdictions in the United States, a person must have a license to perform licensed activities, and these activities are defined within the statutes of each state. The main feature of the requirement for having a license to perform those activities is the work done "for compensation". Hence, hypothetically, if a person wants to help a friend out in either selling or buying a property, and no compensation of any kind is expected in return, then a license is not needed to perform all the work. However, since most people would expect to be compensated for their efforts and skills, a license would be required by law before a person may receive remuneration for services rendered as a real estate broker or agent. Unlicensed activity is illegal and the state real estate commission has the authority to fine people who are acting as real estate licensees, but buyers and sellers acting as principals in the sale or purchase of real estate are usually not required to be licensed. It is important to note that in some states, lawyers handle real estate sales for compensation without being licensed as brokers or agents. However, even lawyers can only perform real estate activities that are incidental to their original work as a lawyer. It cannot be the case that a lawyer can become a seller's selling agent if that is all the service that is being requested by the client. Lawyers would still need to be licensed as a broker if they wish to perform licensed activities. Nevertheless, lawyers do get a break in the minimum education requirements (for example, 90 hours in Illinois).[3]

Some other states have recently eliminated the salesperson's license, instead, all licensees in those states automatically earn their broker's license.

The term "agent" is not to be confused with salesperson or broker. An agent is simply a licensee that has entered into an agency relationship with a client. A broker can also be an agent for a client. It is commonly the firm that has the actual legal relationship with the client through one of their sales staff, be they salespersons or brokers.

In all states, the real estate licensee must disclose to prospective buyers and sellers the nature of their relationship [4]


Specific representation laws


[edit]

Some U.S. state real estate commissions – notably Florida's[5] after 1992 (and extended in 2003) and Colorado's[6] after 1994 (with changes in 2003) created the option of having no agency or fiduciary relationship between brokers and sellers or buyers.

As noted by the South Broward Board of Realtors, Inc. in a letter to State of Florida legislative committees:




"The Transaction Broker crafts a transaction by bringing a willing buyer and a willing seller together and provides the legal documentation of the details of the legal agreement between the same. The Transaction Broker is not a fiduciary of any party, but must abide by the law as well as professional and ethical standards." (such as NAR Code of Ethics).


The result was that, in 2003, Florida created a system where the default brokerage relationship had "all licensees ... operating as transaction brokers, unless a single agent or no brokerage relationship is established, in writing, with the customer"[7][8] and the statute required written disclosure of the transaction brokerage relationship to the buyer or seller customer only through July 1, 2008.

In the case of both Florida[8] and Colorado,[6] dual agency and sub-agency (where both listing and selling agents represent the seller) no longer exist.

Other brokers and agents may focus on representing buyers or tenants in a real estate transaction. However, licensing as a broker or salesperson authorizes the licensee to legally represent parties on either side of a transaction and providing the necessary documentation for the legal transfer of real property. This business decision is for the licensee to decide. They are fines for people acting as real estate agents when not licensed by the state.

In the United Kingdom, an estate agent is a person or business entity whose business is to market real estate on behalf of clients. There are significant differences between the actions, powers, obligations, and liabilities of brokers and estate agents in each country, as different countries take markedly different approaches to the marketing and selling of real property.


The difference between salespersons and brokers


[edit]

Before the Multiple Listing Service (MLS) was introduced in 1967, when brokers (and their licensees) only represented sellers by providing a service to provide legal documentation on the transfer real property, the term "real estate salesperson" may have been more appropriate than it is today, given the various ways that brokers and licensees now help buyers through the legal process of transferring real property. Legally, however, the term "salesperson" is still used in many states to describe a real estate licensee.[citation needed]


Real estate broker (or, in some states, qualifying broker)


[edit]

After gaining some years of experience in real estate sales, a salesperson may decide to become licensed as a real estate broker (or Principal/qualifying broker) in order to own, manage, or operate their own brokerage. In addition, some states allow college graduates to apply for a broker's license without years of experience. College graduates fall into this category once they have completed the state-required courses as well. California allows licensed attorneys to become brokers upon passing the broker exam without having to take the requisite courses required of an agent. Commonly more coursework and a broker's state exam on real estate law must be passed. Upon obtaining a broker's license, a real estate agent may continue to work for another broker in a similar capacity as before (often referred to as a broker associate or associate broker) or take charge of their own brokerage and hire other salespersons (or broker), licensees. Becoming a branch office manager may or may not require a broker's license. Some states allow licensed attorneys to become real estate brokers without taking any exam. In some states, there are no "salespeople" as all licensees are brokers.[9]


Types of services that a broker can provide


[edit]

Real Estate Services are also called trading services [10]


Real estate brokers and sellers


[edit]


Flat-fee real estate agents


[edit]

Flat-fee real estate agents charge a seller of a property a flat fee, $500 for example,[11] as opposed to a traditional or full-service real estate agent who charges a percentage of the sale price. In exchange, the seller's property will appear in the multiple listing service (MLS), but the seller will represent him or herself when showing the property and negotiating a sales price.[11] The result is the seller pays less commission overall (roughly half) when the property sells.[11] This is because a seller will pay a percentage of the sales price to a buyer's agent but not have to pay a percentage to a seller's agent (because there isn't one; the seller is representing himself).


Brokerage commissions


[edit]

In consideration of the brokerage successfully finding a buyer for the property, a broker anticipates receiving a commission for the services the brokerage has provided. Usually, the payment of a commission to the brokerage is contingent upon finding a buyer for the real estate, the successful negotiation of a purchase contract between the buyer and seller, or the settlement of the transaction and the exchange of money between buyer and seller. Under common law, a real estate broker is eligible to receive their commission, regardless of whether the sale actually takes place, once they secure a buyer who is ready, willing, and able to purchase the dwelling.[12]

Economist Steven D. Levitt famously argued in his 2005 book Freakonomics that real estate brokers have an inherent conflict of interest with the sellers they represent because their commission gives them more motivation to sell quickly than to sell at a higher price. Levitt supported his argument with a study finding brokers tend to put their own houses on the market for longer and receive higher prices for them compared to when working for their clients. He concluded that broker commissions will reduce in future.[13] A 2008 study by other economists found that when comparing brokerage without listing services, brokerage significantly reduced the average sale price.[14]


RESPA


[edit]

Real estate brokers who work with lenders can not receive any compensation from the lender for referring a residential client to a specific lender. To do so would be a violation of a United States federal law known as the Real Estate Settlement Procedures Act (RESPA). RESPA ensures that buyers and sellers are given adequate notice of the Real Estate settlement process.[15]


Realtor


[edit]

In the United States, the term realtor is trademarked by the National Association of Realtors, which uses it to refer to its active members, who may be real estate agents or brokers.[16][17][18] In Canada, the trademark is used by members of the Canadian Real Estate Association.[19] Both organizations advise against the use of realtor as a generic synonym for real estate agent.[19]


Continuing education


[edit]

States issue licenses for an annual or multi-year period and require real estate agents and brokers to complete continuing education prior to renewing their licenses. For example, California licensees must complete 45 hours of continuing education every 4 years in topics such as agency, trust fund handling, consumer protection, fair housing, ethics, and risk management.[20]


Organizations


[edit]

Several notable groups exist to promote the real estate industry and to assist professionals.


  • The National Association of Realtors (NAR)

    • The Realtor Political Action Committee (RPAC) is the lobbying arm of the NAR.



  • The National Association of Real Estate Brokers (NAREB)

  • The Real Estate Institute of Canada (REIC)[21][22]

  • The Real Estate Roundtable[23]

  • Building Owners and Managers Association focusing on commercial property


See also


[edit]




  • Buyer brokerage

  • Closing (real estate)

  • Estate (land)

  • Exclusive buyer agent

  • Flat-fee MLS

  • Home inspection

  • Index of real estate articles

  • Investment rating for real estate

  • Listing contract

  • Mortgage broker

  • Property manager

  • Real estate contract

  • Real estate development

  • Real estate investing

  • Real estate settlement company

  • Strata management



References


[edit]




  1. ^

    "Real Estate Professionals Explained: Agent, Broker, REALTOR". Real Estate News and Advice | Realtor.com. 2014-03-10. Retrieved 2018-12-27.

  2. ^ "How Much Is Real Estate Agent Commission?". Bankrate. Retrieved 2018-12-20.

  3. ^ "FAQs". www.illinoisrealtors.org. Illinois Realtors. Retrieved August 16, 2018.

  4. ^ "Realtor Code of Ethics - Disclosure" (PDF). Real Estate Association Standards of Business Practice.

  5. ^ "Statutes & Constitution :View Statutes : Online Sunshine". Leg.state.fl.us. Retrieved 2014-02-10.

  6. ^ a b "Outline of types of representation available in Colorado, including Transaction Brokerage" (PDF). Dora.state.co.us. Retrieved 2014-02-10.

  7. ^ Evans, Blanche (2 July 2003). "Florida Implements Default Transactikn Brokerage Statute". realtytimes.com/. Realty Times. Retrieved 2 February 2014.

  8. ^ a b The 2007 Florida Statutes. Chapter 475 Real Estate Brokers — Part I; Real Estate Brokers, Sales Associates, and Schools (ss. 475.001-475.5018), Section 475.278 Authorized brokerage relationships; presumption of transaction brokerage; required disclosures (1) Brokerage Relationships: (a) Authorized brokerage relationships. — A real estate licensee in this state may enter into a brokerage relationship as either a transaction broker or as a single agent with potential buyers and sellers. A real estate licensee may not operate as a disclosed or non-disclosed dual agent ... (b)Presumption of transaction brokerage. — It shall be presumed that all licensees are operating as transaction brokers unless a single agent or no brokerage relationship is established, in writing, with a customer."

  9. ^ "Real Estate Broker's License: Examination and Licensing Application Requirements". New Mexico Administrative Code. State of New Mexico Commission of Public Records. 21 January 2021.

  10. ^ "Real Estate Laws Website". BC Real Estate Laws - Pat 1 Trading Services.

  11. ^ a b c Quigley, John M. (2000). "A Decent Home: Housing Policy in Perspective". Brookings-Wharton Papers on Urban Affairs. 2000 (1): 53–88. CiteSeerX 10.1.1.369.6806. doi:10.1353/urb.2000.0011. ISSN 1533-4449. S2CID 154714417.

  12. ^ "Getting a Brokerage Commission Paid | New York Law Journal".

  13. ^ Daniel Gross (20 February 2005). "Why a Real Estate Agent May Skip the Extra Mile". The New York Times. Archived from the original on 29 May 2015.

  14. ^ B. Douglas Bernheim; Jonathan Meer (13 January 2012). "Do Real Estate Brokers Add Value When Listing Services Are Unbundled?". The National Bureau of Economic Research. Working Paper Series. doi:10.3386/w13796. Retrieved 3 September 2016.

  15. ^ "CFPB consumer laws and regulations RESPA" (PDF). Consumer Financial Protection Bureau. Retrieved 13 October 2021.

  16. ^ Buch, Clarissa (20 April 2023). "What Is a Realtor? A Member of the National Association of Realtors". Realtor.com. National Association of Realtors. Retrieved 17 June 2023.

  17. ^ "Understanding the Difference Between a Realtor and a Real Estate Agent". The CE Shop. Retrieved 19 June 2023.

  18. ^ Colestock, Stephanie (August 13, 2021). "Realtor vs. real estate agent: What's the difference?". Fox Business. Retrieved 20 June 2023.

  19. ^ a b "Using the REALTOR® Trademark in Advertisements - CREA". 12 November 2020.

  20. ^ "Continuing Education Requirements". Ca.gov. California Department of Real Estate. Retrieved 26 June 2023.

  21. ^ "Professional Recognition of our Programs". Real Estate Division at Sauder, UBC. January 8, 2019.

  22. ^ "Real Estate Institute of Canada (REIC)". Thomson Reuters Canada Limited. Retrieved 8 January 2019.

  23. ^ "Lobbying Spending Database: National Assn of Realtors : 2007". Retrieved 2008-10-25.




[edit]


  • Media related to Real estate agents at Wikimedia Commons

































The Role of Real Estate Agents and Brokers

When you want to sell your house fast in San Diego, understanding the roles of real estate agents and brokers is crucial. While both professionals are licensed to handle property transactions, they hold distinct functions. An agent typically operates under a broker's supervision, offering services that range from marketing your home to negotiating deals. On the other hand, a broker may work independently and has authority over agents.

Licensing and Legalities

Both brokers and agents must be licensed by the state of California to legally negotiate sales agreements. This licensing ensures they meet specific educational and ethical standards necessary for closing real estate transactions. Whether you're dealing with an agent or a broker, it's essential they are properly certified to avoid any legal complications down the line.

Speeding Up the Selling Process

To sell your house quickly in San Diego, leveraging the expertise of these professionals can be highly beneficial. They have access to multiple listing services (MLS) and possess extensive market knowledge that can expedite the selling process. A good agent or broker knows how to price your home competitively and attract potential buyers swiftly.

Documentation Management

Managing documentation is one of the more cumbersome aspects when selling a property. Both agents and brokers are well-versed in handling all required paperwork efficiently. From initial listing agreements to final closing documents, their role is indispensable in ensuring everything is correctly filed and submitted on time.

Consultations for Legal Clarity

Buyers and sellers are generally advised to consult with licensed real estate professionals for clarity on individual state's laws regarding agency relationships. This consultation provides written definitions that outline what you can expect from them as your representative, ensuring transparency throughout the transaction process.

As a round up, working with qualified real estate agents or brokers will not only speed up selling your house but also minimize risks associated with legalities and documentation errors. In effect this means you can focus more on moving forward while leaving complex tasks in capable hands.

What is real estate agent

A real estate agent is a person who acts as an intermediary between sellers and buyers of real estate, earning a commission for their services. An agent typically works under the supervision of a licensed broker to represent clients in negotiating sales agreements and managing the necessary documentation for closing real estate transactions. They are licensed by the state to ensure they can legally perform these duties. While brokers may operate independently, agents generally must be affiliated with a broker. The agent's primary role is to facilitate the buying or selling process, ensuring all legal requirements are met and assisting in achieving favorable terms for their clients.














Lawn signs advertising houses for sale

Real estate agents and real estate brokers are people who represents sellers or buyers of real estate or real property. While a broker may work independently, an agent usually works under a licensed broker to represent clients.[1] Brokers and agents are licensed by the state to negotiate sales agreements and manage the documentation required for closing real estate transactions. Buyers and sellers are generally advised to consult a licensed real estate professional for a written definition of an individual state's laws of agency.



Categories of representation


[edit]

A real estate broker typically receives a real estate commission for successfully completing a sale. Across the U.S, this commission can generally range between 5-6% of the property's sale price for a full-service broker but this percentage varies by state and even region.[2]


Real estate licensing and education


[edit]

In most jurisdictions in the United States, a person must have a license to perform licensed activities, and these activities are defined within the statutes of each state. The main feature of the requirement for having a license to perform those activities is the work done "for compensation". Hence, hypothetically, if a person wants to help a friend out in either selling or buying a property, and no compensation of any kind is expected in return, then a license is not needed to perform all the work. However, since most people would expect to be compensated for their efforts and skills, a license would be required by law before a person may receive remuneration for services rendered as a real estate broker or agent. Unlicensed activity is illegal and the state real estate commission has the authority to fine people who are acting as real estate licensees, but buyers and sellers acting as principals in the sale or purchase of real estate are usually not required to be licensed. It is important to note that in some states, lawyers handle real estate sales for compensation without being licensed as brokers or agents. However, even lawyers can only perform real estate activities that are incidental to their original work as a lawyer. It cannot be the case that a lawyer can become a seller's selling agent if that is all the service that is being requested by the client. Lawyers would still need to be licensed as a broker if they wish to perform licensed activities. Nevertheless, lawyers do get a break in the minimum education requirements (for example, 90 hours in Illinois).[3]

Some other states have recently eliminated the salesperson's license, instead, all licensees in those states automatically earn their broker's license.

The term "agent" is not to be confused with salesperson or broker. An agent is simply a licensee that has entered into an agency relationship with a client. A broker can also be an agent for a client. It is commonly the firm that has the actual legal relationship with the client through one of their sales staff, be they salespersons or brokers.

In all states, the real estate licensee must disclose to prospective buyers and sellers the nature of their relationship [4]


Specific representation laws


[edit]

Some U.S. state real estate commissions – notably Florida's[5] after 1992 (and extended in 2003) and Colorado's[6] after 1994 (with changes in 2003) created the option of having no agency or fiduciary relationship between brokers and sellers or buyers.

As noted by the South Broward Board of Realtors, Inc. in a letter to State of Florida legislative committees:




"The Transaction Broker crafts a transaction by bringing a willing buyer and a willing seller together and provides the legal documentation of the details of the legal agreement between the same. The Transaction Broker is not a fiduciary of any party, but must abide by the law as well as professional and ethical standards." (such as NAR Code of Ethics).


The result was that, in 2003, Florida created a system where the default brokerage relationship had "all licensees ... operating as transaction brokers, unless a single agent or no brokerage relationship is established, in writing, with the customer"[7][8] and the statute required written disclosure of the transaction brokerage relationship to the buyer or seller customer only through July 1, 2008.

In the case of both Florida[8] and Colorado,[6] dual agency and sub-agency (where both listing and selling agents represent the seller) no longer exist.

Other brokers and agents may focus on representing buyers or tenants in a real estate transaction. However, licensing as a broker or salesperson authorizes the licensee to legally represent parties on either side of a transaction and providing the necessary documentation for the legal transfer of real property. This business decision is for the licensee to decide. They are fines for people acting as real estate agents when not licensed by the state.

In the United Kingdom, an estate agent is a person or business entity whose business is to market real estate on behalf of clients. There are significant differences between the actions, powers, obligations, and liabilities of brokers and estate agents in each country, as different countries take markedly different approaches to the marketing and selling of real property.


The difference between salespersons and brokers


[edit]

Before the Multiple Listing Service (MLS) was introduced in 1967, when brokers (and their licensees) only represented sellers by providing a service to provide legal documentation on the transfer real property, the term "real estate salesperson" may have been more appropriate than it is today, given the various ways that brokers and licensees now help buyers through the legal process of transferring real property. Legally, however, the term "salesperson" is still used in many states to describe a real estate licensee.[citation needed]


Real estate broker (or, in some states, qualifying broker)


[edit]

After gaining some years of experience in real estate sales, a salesperson may decide to become licensed as a real estate broker (or Principal/qualifying broker) in order to own, manage, or operate their own brokerage. In addition, some states allow college graduates to apply for a broker's license without years of experience. College graduates fall into this category once they have completed the state-required courses as well. California allows licensed attorneys to become brokers upon passing the broker exam without having to take the requisite courses required of an agent. Commonly more coursework and a broker's state exam on real estate law must be passed. Upon obtaining a broker's license, a real estate agent may continue to work for another broker in a similar capacity as before (often referred to as a broker associate or associate broker) or take charge of their own brokerage and hire other salespersons (or broker), licensees. Becoming a branch office manager may or may not require a broker's license. Some states allow licensed attorneys to become real estate brokers without taking any exam. In some states, there are no "salespeople" as all licensees are brokers.[9]


Types of services that a broker can provide


[edit]

Real Estate Services are also called trading services [10]


Real estate brokers and sellers


[edit]


Flat-fee real estate agents


[edit]

Flat-fee real estate agents charge a seller of a property a flat fee, $500 for example,[11] as opposed to a traditional or full-service real estate agent who charges a percentage of the sale price. In exchange, the seller's property will appear in the multiple listing service (MLS), but the seller will represent him or herself when showing the property and negotiating a sales price.[11] The result is the seller pays less commission overall (roughly half) when the property sells.[11] This is because a seller will pay a percentage of the sales price to a buyer's agent but not have to pay a percentage to a seller's agent (because there isn't one; the seller is representing himself).


Brokerage commissions


[edit]

In consideration of the brokerage successfully finding a buyer for the property, a broker anticipates receiving a commission for the services the brokerage has provided. Usually, the payment of a commission to the brokerage is contingent upon finding a buyer for the real estate, the successful negotiation of a purchase contract between the buyer and seller, or the settlement of the transaction and the exchange of money between buyer and seller. Under common law, a real estate broker is eligible to receive their commission, regardless of whether the sale actually takes place, once they secure a buyer who is ready, willing, and able to purchase the dwelling.[12]

Economist Steven D. Levitt famously argued in his 2005 book Freakonomics that real estate brokers have an inherent conflict of interest with the sellers they represent because their commission gives them more motivation to sell quickly than to sell at a higher price. Levitt supported his argument with a study finding brokers tend to put their own houses on the market for longer and receive higher prices for them compared to when working for their clients. He concluded that broker commissions will reduce in future.[13] A 2008 study by other economists found that when comparing brokerage without listing services, brokerage significantly reduced the average sale price.[14]


RESPA


[edit]

Real estate brokers who work with lenders can not receive any compensation from the lender for referring a residential client to a specific lender. To do so would be a violation of a United States federal law known as the Real Estate Settlement Procedures Act (RESPA). RESPA ensures that buyers and sellers are given adequate notice of the Real Estate settlement process.[15]


Realtor


[edit]

In the United States, the term realtor is trademarked by the National Association of Realtors, which uses it to refer to its active members, who may be real estate agents or brokers.[16][17][18] In Canada, the trademark is used by members of the Canadian Real Estate Association.[19] Both organizations advise against the use of realtor as a generic synonym for real estate agent.[19]


Continuing education


[edit]

States issue licenses for an annual or multi-year period and require real estate agents and brokers to complete continuing education prior to renewing their licenses. For example, California licensees must complete 45 hours of continuing education every 4 years in topics such as agency, trust fund handling, consumer protection, fair housing, ethics, and risk management.[20]


Organizations


[edit]

Several notable groups exist to promote the real estate industry and to assist professionals.


  • The National Association of Realtors (NAR)

    • The Realtor Political Action Committee (RPAC) is the lobbying arm of the NAR.



  • The National Association of Real Estate Brokers (NAREB)

  • The Real Estate Institute of Canada (REIC)[21][22]

  • The Real Estate Roundtable[23]

  • Building Owners and Managers Association focusing on commercial property


See also


[edit]




  • Buyer brokerage

  • Closing (real estate)

  • Estate (land)

  • Exclusive buyer agent

  • Flat-fee MLS

  • Home inspection

  • Index of real estate articles

  • Investment rating for real estate

  • Listing contract

  • Mortgage broker

  • Property manager

  • Real estate contract

  • Real estate development

  • Real estate investing

  • Real estate settlement company

  • Strata management



References


[edit]




  1. ^

    "Real Estate Professionals Explained: Agent, Broker, REALTOR". Real Estate News and Advice | Realtor.com. 2014-03-10. Retrieved 2018-12-27.

  2. ^ "How Much Is Real Estate Agent Commission?". Bankrate. Retrieved 2018-12-20.

  3. ^ "FAQs". www.illinoisrealtors.org. Illinois Realtors. Retrieved August 16, 2018.

  4. ^ "Realtor Code of Ethics - Disclosure" (PDF). Real Estate Association Standards of Business Practice.

  5. ^ "Statutes & Constitution :View Statutes : Online Sunshine". Leg.state.fl.us. Retrieved 2014-02-10.

  6. ^ a b "Outline of types of representation available in Colorado, including Transaction Brokerage" (PDF). Dora.state.co.us. Retrieved 2014-02-10.

  7. ^ Evans, Blanche (2 July 2003). "Florida Implements Default Transactikn Brokerage Statute". realtytimes.com/. Realty Times. Retrieved 2 February 2014.

  8. ^ a b The 2007 Florida Statutes. Chapter 475 Real Estate Brokers — Part I; Real Estate Brokers, Sales Associates, and Schools (ss. 475.001-475.5018), Section 475.278 Authorized brokerage relationships; presumption of transaction brokerage; required disclosures (1) Brokerage Relationships: (a) Authorized brokerage relationships. — A real estate licensee in this state may enter into a brokerage relationship as either a transaction broker or as a single agent with potential buyers and sellers. A real estate licensee may not operate as a disclosed or non-disclosed dual agent ... (b)Presumption of transaction brokerage. — It shall be presumed that all licensees are operating as transaction brokers unless a single agent or no brokerage relationship is established, in writing, with a customer."

  9. ^ "Real Estate Broker's License: Examination and Licensing Application Requirements". New Mexico Administrative Code. State of New Mexico Commission of Public Records. 21 January 2021.

  10. ^ "Real Estate Laws Website". BC Real Estate Laws - Pat 1 Trading Services.

  11. ^ a b c Quigley, John M. (2000). "A Decent Home: Housing Policy in Perspective". Brookings-Wharton Papers on Urban Affairs. 2000 (1): 53–88. CiteSeerX 10.1.1.369.6806. doi:10.1353/urb.2000.0011. ISSN 1533-4449. S2CID 154714417.

  12. ^ "Getting a Brokerage Commission Paid | New York Law Journal".

  13. ^ Daniel Gross (20 February 2005). "Why a Real Estate Agent May Skip the Extra Mile". The New York Times. Archived from the original on 29 May 2015.

  14. ^ B. Douglas Bernheim; Jonathan Meer (13 January 2012). "Do Real Estate Brokers Add Value When Listing Services Are Unbundled?". The National Bureau of Economic Research. Working Paper Series. doi:10.3386/w13796. Retrieved 3 September 2016.

  15. ^ "CFPB consumer laws and regulations RESPA" (PDF). Consumer Financial Protection Bureau. Retrieved 13 October 2021.

  16. ^ Buch, Clarissa (20 April 2023). "What Is a Realtor? A Member of the National Association of Realtors". Realtor.com. National Association of Realtors. Retrieved 17 June 2023.

  17. ^ "Understanding the Difference Between a Realtor and a Real Estate Agent". The CE Shop. Retrieved 19 June 2023.

  18. ^ Colestock, Stephanie (August 13, 2021). "Realtor vs. real estate agent: What's the difference?". Fox Business. Retrieved 20 June 2023.

  19. ^ a b "Using the REALTOR® Trademark in Advertisements - CREA". 12 November 2020.

  20. ^ "Continuing Education Requirements". Ca.gov. California Department of Real Estate. Retrieved 26 June 2023.

  21. ^ "Professional Recognition of our Programs". Real Estate Division at Sauder, UBC. January 8, 2019.

  22. ^ "Real Estate Institute of Canada (REIC)". Thomson Reuters Canada Limited. Retrieved 8 January 2019.

  23. ^ "Lobbying Spending Database: National Assn of Realtors : 2007". Retrieved 2008-10-25.




[edit]


  • Media related to Real estate agents at Wikimedia Commons



































About San Diego








San Diego



Location within the United States

Show map of the United States








San Diego



San Diego (North America)

Show map of North America






























San Diego





















Nicknames:
"America's Finest City",[1] "Birthplace of California", "City in Motion"[2]

Motto:
Semper Vigilans (Latin for 'Ever Vigilant')


Location of San Diego in San Diego County, California










San Diego



Location within California

Show map of California










Coordinates:

32°42′54″N 117°09′45″W / 32.71500°N 117.16250°W / 32.71500; -117.16250
Country United StatesState CaliforniaCountySan DiegoEstablishedJuly 16, 1769; 255 years ago (1769-07-16)IncorporatedMarch 27, 1850[3]Named forSaint Didacus of AlcaláGovernment

• TypeStrong Mayor[4] • BodySan Diego City CouncilMayorTodd Gloria (D) • City AttorneyMara Elliott (D)[5]City Council[6]



List


State Assembly Members



List


State Senators



List


Area

• Total372.42 sq mi (964.56 km2) • Land325.88 sq mi (844.02 km2) • Water46.54 sq mi (120.54 km2) 12.68%Highest elevation

1,591 ft (485 m)Lowest elevation

0 ft (0 m)Population

• Total1,386,932 • Estimate

(2021)[9]

1,381,611 • Rank19th in North America

8th in the United States

2nd in California • Density4,255.96/sq mi (1,643.25/km2) • Urban

3,070,300 (US: 15th) • Urban density4,550.5/sq mi (1,756.9/km2) • Metro

3,276,208 (US: 18th)DemonymSan DieganGDP

• San Diego (MSA)$295.6 billion (2022)Time zoneUTC−08:00 (PST) • Summer (DST)UTC−07:00 (PDT)ZIP Codes[13]

92101–92124, 92126–92132, 92134–92140, 92142–92143, 92145, 92147, 92149–92150, 92152–92155, 92158–92161, 92163, 92165–92179, 92182, 92186–92187, 92191–92193, 92195–92199

Area codes619/858FIPS code06-66000GNIS feature IDs1661377, 2411782Websitewww.sandiego.gov