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What is a Real-Estate Broker?

What is real-estate brokerWe talk a lot about real-estate and what it means to buy it, sell it, mortgage it, and have it foreclosed. What we often don’t talk about are the brokers. And really, for that matter, we tend to miss the point about what a broker really is.

So, let’s address that question: what is a real-estate broker?

A broker is an intermediary. A go-to guy. An in-between guy. The broker’s job is to work between buyers and sellers of property. That means finding people who want to buy, and finding people who want to sell, and working between them to broker a deal.

What that typically works out to in practice is a broker with real-estate agents underneath him. The agents go out and attempt to sell houses for the highest possible price under the best possible circumstances. By best circumstances, we mean making sure that the house is clean and that it warrants the higher price.

This can work in the exact opposite direction as well. A broker working under agreement with a buyer will be working to make sure that the property bought is bought at the lowest possible price, while still maintaining the property’s quality.

Typically, either way, there’s a written agreement as to who a given broker is working for. But if that isn’t present in the dealings, the truth is that they’re free to work for whomever the wish in the relationship, even going so far as to represent both the buyer and the seller in a given transaction.

4 comments

  1. I have heard the term broker a lot of times already without fully understanding what he really does. This article somewhat enlightened me. Thanks for posting! :)

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