The Different Types of Real Estate Agents Explained

In the United States, two million real estate agents are actively using their licenses. However, they don't all perform the same tasks. There are many different types of real estate agents, and you might not know which one you want to be yet. 

If that's the case, continue reading for a breakdown of the different services each real estate agent offers their clients:

Types of Real Estate Agents

All real estate agents need a state license to sell properties legally. In earning a license, they should be a member of the National Association of Realtors. This association requires agents to follow a code of ethics that ensures that they put the client's interests and goals above their own. 

Once a realtor signs a contract, they'll be able to answer any questions or concerns their client may have about the buying or selling process. The biggest perk of being a realtor is that you'll be able to give clients tours of homes they might not have been able to see otherwise. 

Brokers

You'll likely never work with customers as a broker—unless you're an associate broker. The reason for this is because a broker owns a real estate firm, which means they spend most of their time making sure the business is running smoothly. Associate brokers have their broker license but remain working as agents for a firm.

Their license is different from the one real estate agents need. It requires you to have a higher education level and an in-depth understanding of how the field functions. 

Designated Agent

Designated agents are seller's and buyer's agents. They make their money based on commission, which fluctuates based on the time of year and how well the market is doing. It depends on the situation, but the client may need to hire both types of designated agents when they move.

Seller's Agents

When investors want to put your house on the market, that's when they'll hire a seller's agent. This agent inspects the home, does some research about the property values in the area, and comes up with an asking price. 

From there, they'll advertise the home and lead tours for potential buyers. As soon as investors start placing bids on your home, the seller's agent will work with the investor to decide which one to accept. 

Buyer's Agents

If you want to be someone who knows all about the places their clients want to move to, become a buyer's agent. You'll put together a comprehensive list of all the qualities the client is looking for in a house and find places that reach their expectations and fit their budget.

Additionally, buyer's agents will do most of the dirty work that comes with purchasing a house. Once your client has shown interest in a home, you will contact the seller's agent. 

There are other aspects to the buying process that a buyer's agent should assist you with, including the house inspection and the contingencies that might come with it. The buyer's agent also writes up the purchase offer once the client is prepared to bid. If the seller accepts the client's bid, the buyer's agent will also write up the sales agreement. 

Dual Agents

Dual agency can be dicey, as one agent represents both the buyer and the seller. While it would be correct to assume that this could make the buying and selling process smoother because fewer people are involved, some repercussions come with being a dual agent. 

They have confidential information regarding the buyer and the seller. The dual agent knows how far below the asking price the seller is willing to accept and how much the buyer can afford to spend on the house. You have to be careful about fairly negotiating with both parties. 

Furthermore, eight of the United States have a ban on dual agency. Before you decide if this is the right choice for you, check that it is legal in your state. 

Becoming a Real Estate Agent

Hopefully, now that you know all about these types of real estate agents, you'll be able to narrow your career path down even further. Next, you should learn all about how to market yourself as an agent. Once you get people talking about your successes, you're likely to gain clients in no time.