What Is a Realtor? A Real Estate Agent With Extra Credentials: MABA Massachusetts RealEstate HomeBuyers

 A Realtor is a licensed real estate agent who belongs to the National Association of Realtors®, the largest trade group in the country. Every real estate agent is not a Realtor, but most are. If you’re unsure, you can ask your agent if they’re a licensed Realtor.

What is a Realtor?

 Realtors are held to a higher ethical standard than real estate agents and must adhere to a Code of Ethics. Membership as a Realtor in the NAR also comes with access to market data and transaction management services, as well as other benefits. In this sense, when a homebuyer hires a real estate agent who is also a Realtor, they have added assurance that they will receive fair and exceptional service from beginning to end.

Realtor vs. broker: what’s the difference?

 Some Realtors are brokers, while some are real estate agents. Unfortunately, people use the term interchangeably, but there are some differences between real estate agents and brokers. Brokers are usually managers. They run an agency and have agents working under them as salespeople. They might own a real estate brokerage or manage a franchise operation. They must take additional courses and pay additional fees to maintain their state-issued broker license. An agent, on the other hand, is a salesperson selling on behalf of the broker.

Real estate agent qualifications

 Real estate agents are also state licensed and must pass a written test before legally acting as a real estate agent. Each state has its own licensing laws and standards. Some states like Illinois have eliminated the real estate salesperson license and mandate all agents take additional course work and pass another test to become brokers. They are broker associates still selling under a managing broker.

How much money do Realtors make?

There is a stereotype of the typical Realtor that must be dispelled: the stereotypical agent works a few hours a day and makes millions of dollars a year. Reality TV shows perpetuate this myth. On television, buyers find the perfect house after visiting just three homes and write an offer that is accepted immediately. The next thing you know, they’re moving in!

 Nothing could be further from the truth. The typical buyer searches with a Realtor for about twelve weeks and looks at about ten properties before selecting a home. Agent then wait about thirty days on average for the deal to close and receive their commission. If the buyer decides to sign another lease or not to buy that agent is not compensated. The same is true of listings. If the listing does not sell, the agent is not paid.

 Selling real estate is a commission-only business. That means an agent can work with a buyer for months without ever making a commission because deals fall though and not every listing sells. It’s a business run on trust and faith. Also, many people see the commission check at the closing table and have no idea how that money is split. They think their agent walks away with all of it that’s just not true.

 Remember, agents work for brokers. The commission check is made payable to the brokerage which then cuts a check to the listing agent and the selling agent. Both agents also must pay a percentage of their earnings to their broker. Generally, agents also are responsible for paying their own federal and state income taxes, social security tax, and health insurance.

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First Time Home Buying in Massachusetts

MABA Buyer Agents help first time home buyers reduce the stress and frustration normally associated with buying a home or condo – especially for first time home buyers.

As a first time homebuyer in Massachusetts, you can turn to our non-profit organization to help you understand and navigate the complexities of the entire Massachusetts real estate transaction, from mortgage pre-approval until you are handed the keys to your new home or condominium. Each of our member buyer's brokers and agents works only for their buyer-clients and never for the seller of the home or condo that their buyers want to buy.

MABA Buyer Agents will take the time to learn about you and your real estate goals, help you understand your options, including first time home buyer programs, properties and/or condominium associations, estimate real property values and put together a negotiating strategy to help you increase the odds of getting your offer accepted in our competitive Massachusetts real estate market. After advocating to get your offer accepted, your MABA buyer's agent will be there for you at your home inspection and help you protect your deposit through the inspection, purchase & sale and financing contingency periods.

You can buy your first home or condo with confidence knowing that your MABA buyer agent is committed to saving you time and money and helping you make your best home buying decision.