Real Estate Agents and Realtors: What’s the Difference and do I Need One?
If you are considering becoming a real estate investor, enlisting the help of a real estate agent can usually facilitate the process. With years of experience, great databases of buyers and sellers, and a solid knowledge of the local area, real estate professionals can prove to be great allies in the real estate investment game.
Both real estate agents and Realtors have to be licensed in the state where they work. The licensing process involves passing a background check, completing 40-50 hours of real estate courses at a state accredited facility, paying application fees, passing a written test on real estate trading laws, and fulfilling several post-licensing required courses within a year of receiving their real estate agent license.
Once a real estate agent gets their license, they get hired on by a broker or Realtor to oversee and facilitate transactions. Real estate agents are not authorized to work independently and must be represented by a broker or Realtor. In order to become a Realtor, brokers must take more courses, pass another test, and agree to follow a strict code of ethics set up by the National Association of Realtors (NAR). The code of ethics requires that Realtors pledge to put the interests of the buyers and sellers before their own, not exaggerate or conceal facts, not collect commissions that buyers and sellers are not aware of or do not consent to, and generally be honest in their business dealings. The code of ethics set up by the NAR is strictly enforced and is a good indication to buyers and sellers that they will be treated fairly.
As an investor, it’s not essential that you use a real estate agent or Realtor at all. If you do decide to get help from a real estate professional, do your homework. Look for agents and Realtors with experience and good track records. Ask locals for recommendations of real estate professionals they know and have worked with. A good professional in your arsenal can really help your investment business take off.
