If you’re thinking of buying or selling a home, there’s a very good chance you will seek out the services of a real estate brokerage. A real estate brokerage employs real estate brokers who facilitate the sale of homes between buyers and sellers. A real estate brokerage is usually a very busy place, often with many brokers working there, all looking for buyers who need a home, sellers who need buyers, and of course, the commission they will receive from performing their role in the sale.
A real estate brokerage almost always requires that its brokers be licensed by the state the real estate brokerage is located in. (In some places, however, lawyers can act as real estate brokers without being licensed.) The brokers from a real estate brokerage will usually offer their clients the following services:
- Organization and preparation of all related paperwork.
- Showing the sellers’ home to prospective buyers. Also known as “exposure.”
- Showing buyers different homes.
- Providing a CMA, Comparative Market Analysis, that shows both the seller and the buyer how much a home is worth as compared to comparable properties.
- Appraising the value of a home (if the broker is also a licensed appraiser).
- Auctioning and exchanging property.
- Leasing a property, in exchange for a percentage of the lease price.
- Consulting on an hourly basis, for either the buyer or the seller.
Real estate brokerages, through their brokers, offer these services and others like them to prospective home buyers and home sellers. Once the deal has been made, all the paperwork has been signed, and the money has finally passed hands, the real estate brokerage will get its commission, usually some percentage of the final agreed upon price of the home.
Before you jump into the world of real estate, be sure to consult with your financial advisor or a real estate brokerage professional you trust. Buying or selling a home is a big deal, and you need all the advice you can get before doing so.