There are three types of Realtors
Posted February 21, 2021 in Special Features
Some of the questions I hear a lot is what a Realtor does, and who the Realtor works for, and how are they paid.
There are three types of Realtors:
The Seller’s Realtor
This is the Realtor hired by the seller or builder. Their job is to market the home and to facilitate the sale. There is a lot more to selling a home than just sticking a sign in the yard. It involves listing the home for sale, marketing, and arranging showings among other things. Once the home is on the market, the Realtor must facilitate the timelines that are part of the sale, as well as handle offers and appraisals. For sellers who are selling a home to purchase a new one, the Realtor must juggle the sale, and the purchase of the new home, and the timelines for both.
The Buyer’s Realtor
This Realtor’s job is to assist the buyer with getting the best home they can in their pre-approved price range. They work with the buyer’s lender to keep things moving, and to assist the lender with any information they need for the buyer’s loan. Their job involves home inspection, repairs, appraisal process, earnest money, transaction timelines, closing costs, and more. A buyer’s Realtor can also help negotiate with the builder.
The Dual Agent
A Dual Agent is someone who represents both the seller and the buyer on the same home, such as a builder’s Realtor. A builder’s Realtor sits in the model home and must facilitate the sale of the homes in that community for the builder, and to protect the interests of the builder. This Realtor writes up the contract for the buyer on the home the builder is selling, which is what makes them a dual agent. This arrangement is illegal in some states due to possible conflicts of interest. However, dual agency is legal in Washington and Oregon.
A seller’s Realtor agrees on a commission rate which is called Sellers Agency Commission (SAC). The seller’s Realtor will pay about half of that to the buyer’s Realtor which is called Buyer’s Agency Commission (BAC). Meanwhile, a buyer’s Realtor is free to the Buyer. A Realtor’s commission is their gross pay before taxes, broker splits, marketing costs, association fees, office fees, transaction fees, franchise fees, business insurances, and more.
How You Can Learn More About the Role of a Realtor:
Some agents host their own real estate educational classes for buyers and sellers. I feel very strongly that education should be the top priority and the first step in the process. Home buying and selling can be such an adventure! Be advised that some of these classes can come at a cost or if they are free, there may be a hidden catch. I am an agent who hosts free, nonpromotional classes that are direct, straightforward, honest—and fun! My Home Buyer Education Classes offer the steps to the home buying process, and the home loan programs available to help home buyers, in a easy to understand and laid back atmosphere. My Home Seller Education Classes offer information and explanations on the paperwork and disclosures involved in selling a home from a lender, a real estate broker, and a title officer.
Tracie DeMars 360-903-3504