Real Estate Service - A Competitive Market

There are many instances in which agents work side-by-side with brokers without being an agency. These relationships are called real estate affiliates or partnerships. The most common of these types of arrangements are between independent brokers and real estate agents. However, sometimes an agent may be represented by a brokerage firm and a real estate agency like The Shaver Group. In either situation, it is the agent's responsibility to disclose his or her relationship to any party that makes a contract with them.

A non-agency affiliation is a kind of limited agency relationship in which the broker and the real estate professional both don't represent the purchaser or the seller, but operate as fiduciary agents. In this case, the brokerage firm represents the owner of the home or other property and the real estate professional such as from The Shaver Group works solely on behalf of the owner. In such a situation, the brokerage firm retains a portion of the commission fees it receives from the sale. Such a fee structure has advantages for the broker as well as the customer. In addition to avoiding the potentially high costs of attorney fees, the discount brokers and full-service real estate brokerage firms can avoid the necessity of holding seller public information interviews, which can be costly.

Full-service brokers generally work with multiple buyers and sellers and can be called upon to represent any one individual or group of individuals. These brokers are also authorized to act on behalf of their client in negotiations with sellers. Brokers do not have to hold sellers' personal information in their files. This makes them a great choice for sellers, who often need representation in the closing stages.

Some states require brokers to be registered with the department of insurance. Other states, such as Texas, do not regulate brokers at all. Many people wonder why states that don't require licenses do not enforce the same regulations on real estate agents in other states. The answer is simple: brokers have more risk, which means they carry a greater liability.

In contrast, real estate salespeople who are licensed by the states are regulated by their states' real estate commissions. The states approve licenses based on whether the salesperson is qualified, trained, experienced and bonded. They also review licensing renewal reports and perform an ethics examination every two years. In many states, a salesperson may be required to pass an ethics examination after holding a license for two years. Brokerage firms are careful to keep their license renewals to less than 2 years because failing to do so can result in the cancellation of a license.

Real Estate Service is a competitive business. Brokers and salespeople compete against each other for new business. Many companies spend millions of dollars a year advertising and promoting their business. The success of a brokerage firm depends on attracting buyers and sellers from a local area. The services of estate agents depend on being able to market local sellers and buyers.

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