6 Types of Real Estate Agents & How to Explain Them to Prospects

Buying or selling a home is exciting because it means new beginnings. However, it is also confusing because there are a lot of terms that are unique to the real estate industry. You can help prospective clients navigate the real estate world by explaining the six different types of real estate agents and their role in the home buying and selling process. Here’s a list that will help make sure you don’t miss any of them.

Real Estate Broker

Real Estate Broker

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Real estate brokers have the licensing and experience necessary to manage and own a real estate company. Therefore, they can hire real estate agents. It is harder to become a broker than an agent because of all the licensure requirements. Real estate brokers are ultimately responsible for their real estate agents and must step in if there are any problems. All real estate agents must work for a broker if they do not have a broker license in addition to their real estate license.

Real Estate Agent

Real Estate Agent

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Real estate agents work for a real estate broker. They are responsible for interfacing with clients by showing homes, facilitating negotiations, and making sure all legal documentation is filled out for real estate exchanges. Both buyers and sellers can hire real estate agents to take care of their needs. Real estate agents are the middlemen. They are there to make sure all real estate sales happen smoothly and legally.

Buyer’s Agent

Buyer's Agent

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Buyer’s agents work on behalf of the buyer. They are necessary because they have access to the keys that allow people to enter houses that are for sale. Without a buyer’s agent, buyers have to contact the seller’s agent in order to see a home. This is why having a buyer’s agent is so beneficial.

Seller’s Agent

Seller's Agent

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Seller’s agents works on behalf of the seller. They are the ones that take care of the listing information and give buyer’s agents information about viewings. Seller’s agents are also there to negotiate prices on behalf of the seller. Without buyer’s and seller’s agents, negotiations could become uncivil or not legal.

Dual Agent

Dual Agent

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Dual agents represent both the buyer and the agent. Occasionally this happens when either the buyer or the seller does not have a real estate agent. However, it is not permitted in all states. Dual agents are responsible for making sure the real estate change is legal and fair, without biasing one side or the other.

Transaction Agent

Transaction Agent

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When a dual agent is not allowed because of state laws, a transaction agent steps in as a type of mediator between the buyer and seller. Transaction agents do not have any affiliations with the buyer or seller, so they can ensure the real estate exchange happens fairly.

Helping your prospective clients understand the role of these different types of real estate agents will help you better prepare them to buy or sell their home. Make sure you let prospective clients know your role and the other agents that they may encounter along the way. Not only will this better prepare them for the experience, it will help you gain their trust.

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