What differentiates a Realtor from a Real Estate Agent?

The general public perceives that all Real Estate Agents are the same. That perception is wrong. This article aims to correct that notion by clearly distinguishing the similarities and differences between a Realtor and a Real Estate Agent. After reading this article, you should have a clearer picture of what is a Realtor and how they differ from an “ordinary” Real Estate Agent.  

Let’s start with the similarities.  

  • Both Real Estate Agents and Realtors help their clients buy or sell Real Estate Properties. They guide their clients navigate through the complicated transactions until a deal is closed. 
  • They both need licenses in order to conduct their business operations legally.  
  • They are private contractors and only earn money in the form of commissions if they can successfully close a deal.  
  • No deals closed means no money earned. It’s in the nature of their jobs. 

Now, the main difference between a Realtor and ordinary Real Estate Agents.  

  • Realtors are Real Estate Agents who belong to the National Association of Realtors. 

So, what makes a Realtor so special as compared to any other “ordinary” Real Estate Agent? 

Realtor is the title given to Real Estate Agents who choose to become members of the National Association of Realtors. Just like the title of Doctor given to individuals people who go on to practice the Medical profession for a living. The title of Attorney is given to individuals who wish to practice Law. 

Doctors, Attorneys or Lawyers, or Engineers abide by a code of ethics that guides them in the way they do their work. Failure to comply with their respective code of ethics means revocation of their licenses. Once their respective licenses are revoked, they can no longer practice their profession legally. 

It’s the same with Realtors. They must abide by the National Association of Realtors‘ strict code of ethics so as to remain a member of their prestigious organization. The group has been established for nearly 100 years. The code of conduct is updated regularly to meet the needs of our changing society. This is to ensure that Realtors continue to conduct business up to the highest standards. If a Client lodges a complaint about the way the Realtor conducted business, he could get punished for his actions and lose his title and privileges that go along with being a Realtor if found guilty of such charge.      

So, if you’re planning to make any Real Estate move, you could not go wrong if you plan to work with your local Realtor. You’ll have peace of mind knowing they are held responsible for their actions. You can bank on their experience as they have access to useful resources that “ordinary” Real Estate Agents don’t have. 

Allow me to ask you these questions now that you know your better option. Which would you prefer to help you the next time you make your move in the Real Estate game? A Realtor or an “ordinary” Real Estate Agent?  

I hope you make the right choice. 

How To Predict Real Estate Prices

The price of your real estate property depends on its value. The value of the property can be both subjective and objective at the same time. The subjectivity lies on the likes and dislikes of the buyer which can be based on his emotional requirements. The objectivity of attaching a price tag to your property depends on the market condition, comparison with other houses in your neighborhood, trends and forecast, mortgage interest, and house condition.  

Value can also be related in a moment in time. For instance, the buyer can gauge the value based on how much money he currently has, or what time of the year they go out and look at your house.  Here are some pointers that are true in determining the price: 

  • Prices fluctuate; it cannot be the same forever. They go up or down, depending on many factors;
  • Value is a dependent concept; it depends on what person wants to buy;
  • Agents and sellers can set the price but it’s the buyer that determines the value. You can change the price every day but in the end, you are not the person who can tell if the price is worth the value of the house. The buyer has the last say if the price is right.

So, how can you predict real estate prices?  The price is determined by how much the buyer is willing to pay in today’s market. He will set the price after comparing it to other houses in the same neighborhood. But the truth is he will not compare it to other houses if he doesn’t like it in the first place. The price of the comps that are sold the day the buyer shops is the most critical factor in determining what price is he willing to buy your property. 

It’s important that you know you are not the only one selling homes for sale in rancho santa fe. The number of buyers is limited and you want to give the best deal if your home is chosen.  Selling a house is like a race, you need to find the right buyer as soon as you can before someone else takes them. Once you find the right buyer who settled for the price that you want, that’s the time you can say that you win the race.   

Another way to predict the price is to know what’s going on in the market. For instance, if your competition drops their prices $10,000, then your house is marked overpriced. Pay attention to value movements in your marketplace since it also determines how much your house will cost. 

Do You Actually Need A Real Estate Agent?

For every advantage we hold, there’s always a disadvantage that goes with it. We cannot always get the best of both worlds. Something must be sacrificed or given up anywhere in between. In Real Estate transactions, you can always buy or sell properties without hiring the services of an agent. You’ll just have to be familiar with all the processes involved to make sure that everything you do is legal. You also understand all the risks involved if in case you do it yourself. So, do you actually need a Real Estate Agent? 

Yes if… 

You need the guidance of an expert 

If you think that you’ll need the guidance of an experienced Real Estate Agent, then go ahead. The fees you will have to pay if you’re a seller can go a long way as they can help you get the best deal for your property. You can also get to sell your property much faster as they may happen to know someone looking to buy a property exactly like yours. If you’re not sure about what you’re doing, hire an Agent.   

You want to have access to useful resources 

Hiring the services of a Real Estate Agent is tapping and leleveraging their professional network and resources they have access to. For you, this is what matters most for you’ll know that you can sell your house at a better price or buy a house for the best deal. Whatever your case, hiring an Agent for this purpose can serve you well. 

No, if… 

You need the money  

If you’re selling your house for financial reasons, not paying for the agents’ commissions can certainly go a long way in helping you survive one of the toughest moments of your life. One other valid reason for not hiring an agent can be that you are confident enough that you can do it without their help and get the most money since you’re not paying for agents’ commissions. 

You’re not sure he has your best interests 

If you don’t trust Real Estate Agents, you may be better off doing most of the transactions yourself and hiring a Real Estate Lawyer instead. The horror stories you’ve heard from friends, relatives or co-workers has traumatized you that you promised you won’t ever seek their help no matter what.  

The choice is always up to you. Weigh all your options and study them carefully one by one. After all, it is your responsibility to decide what you think is best for you. No one else can do it for you. One of the best things we can do about our fate is to trust our instincts and live or die by its results. For what is Life without risks, right?