To the untrained, a real estate broker may seem like a sort of modern wizard. Moving real estate can seem a little bit like moving mountains. In a sense, that is exactly what is going on because because it is impossible for someone without the proper knowledge to do it well. You need not remain mystified forever, especially if you are interested in getting into a property investment. In order to learn the magic, you first must learn what it is that the magicians are doing.
Basically, a real estate broker is a person or agency who has the legal and financial knowledge to help clients while they are trying to sell or buy a home. The property sale is, in a way, organized directly by them. This is the person or agency, of what the real estate agency employs. Brokering does require a select type of license and uses a higher level of agent, not a salesperson. Thus, all brokers can be agents, but not all agents can be brokers.
As a service for the person who is selling the home, the broker will have the property placed in the local estate listing, as well as provide the necessary paperwork to get the process started. They will also perform sales and marketing activities, including holding an open house and advertising the intended sale of the property. Buyers will also be screened to make sure they have the money to follow through with the purchase. This saves the seller from being subjected to "curious" people who have no real intention to buy, and are basically there spending the seller's time. A listing agreement will be signed by the seller purchasing these services from a brokerage.
Once upon a time, brokers only represented sellers, but these days many agencies represent buyers as well, some to the exclusion of representing sellers at all. This is a good thing for those who are interested in a real estate investment, as they will find themselves in the "buyer" seat pretty often. Any buyer who wishes to enlist the services of a brokerage should make sure there is a signed contract between themselves and the agency for the estate sale. Otherwise, the broker may actually be working for the seller. A real estate broker who is actually working for the buyer will find properties that fit the buyer's financial profile and take him around to look at properties.
The real estate broker may orchestrate closing for either side, as well as possibly being the negotiator for the property sale. It's also possible that they may set the client up with other important professionals like lawyers and loan officers. A broker's payment can be defined as a commission based on the amount realized out of the sale of the property.
Regardless of what your real estate broker is working for, it is good to understand the process for yourself, if even on a very basic level. At the very least, you need to know how to make sure the broker is working for you if you want the benefit of her negotiation skills during the estate sale. Otherwise, those skills may actually be used against you. Take a little time to find out what services you are going to receive and where the broker's loyalties lie. This is even more important if you are thinking of real estate investment. Time spent educating yourself can save you a great deal of money in the end.