Posts Tagged 'realtors'

What is a REALTOR® and why should you use one?

Often times misunderstood, I would like to take a second and write about Realtors®, what it is they do and why you should use one.

A real estate agent is a Realtor when he or she is a member of the NATIONAL ASSOCIATION OF REALTORS® and subscribes to its strict Code of Ethics.  Realtors are real estate professionals that guide their clients through the process of buying and selling real estate.  They are not paid by the hour.  They are not paid every time they take a client out to view houses.  They are 1099 contractors who are paid a commission at settlement.  Commissions are typically 3% of the price of the transaction at settlement.  Once Realtors are paid their commission, they typically have to give a portion of this percent back to their respective broker such as Prudential, Keller Williams, Coldwell Banker, etc.  For newer agents, this can be as much as 50% of their commission.  Let’s not forget taxes as well.

Realtors can represent buyers, sellers and renters.  If you hire a Realtor, you need to make sure you ask him or her to go over the Consumer Notice with you.  This notice defines the relationship that Realtor will have with you and it is absolutely important that you understand this relationship when buying or selling a house.  The consumer notice also outlines what you can expect from your Realtor during the buying or selling process.  It would behoove you to get familiar with this document.

Here is a copy Consumer Notice

So why should you use a Realtor?  You should use one because if you are buying or selling a home, it is probably going to be one of the biggest financial decisions of your life.  Why wouldn’t you want to use an expert?


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