There are several types of real-estate brokers. Each has subtle differences in their roles.
Designated principal/designated brokers: Every real estate office has an appointed principal/designated brokerage. This person supervises all licensed agents and ensures compliance with national and state real estate laws. This person also reviews all real estate contracts.
It is a similar safeguard to the way stockbrokers work in a licensed company to trade stocks.
Baxter says that a principal broker often has to resolve transaction disputes with other brokerages. Baxter says that if agents have a problem with another agent, it's common for the broker to contact the cooperating agent's brokerage to resolve the issue and reach a solution.
Principal brokers are paid on commission, taking a percentage of the commissions of sales agents they supervise. However, many principal brokers also receive an annual base salary. Their earnings can vary from month to month depending on how many transactions are completed by agents at the firm.
Managing Broker: This person is responsible for the day to day operations of the office. They are usually hands-on in hiring agents, training new agents and managing administrative staff. Note: There are some principal/designated brokers who also act as managing brokers.
Associate broker: This real estate professional--sometimes called a broker associate, broker-salesperson, or affiliate broker--has a broker's license but is working under a managing broker. This person is usually not responsible for supervising agents.
What are the pros and cons to working with a broker in real estate?
Principal brokers generally don't interact directly with clients. However, managing and associate broker do. Working with a licensed broker is a better option than working with an agent. A lot of real estate brokers are very familiar with the law.
There are some disadvantages to working with a broker instead of an agent. A managing broker might have to supervise other agents, which could mean they don't have the time or energy to spend with you. Real estate brokers may spend more time in the office than they would like, which can lead to them being less knowledgeable about the local housing market. Real estate brokers are more likely to accept higher commissions because they have more experience than many other agents. It is worth considering what you are getting in return. If a broker can help sell your house for more, it may be worth it top Charlottesville realtors.
How to find a great real estate broker
Real estate brokers are not all created equal. When interviewing potential brokers, be sure to ask the same questions as prospective agents.
What time have you been involved in real estate for?
How long have your lived in this region?
What's your schedule?
Are you planning any vacations?