Sometimes brokers and agents are considered similar however they are different
In Kenya when you hear the name broker its always met with a sneer and negativity. Kenyan real estate brokers are known for their conniving and tendency to con their way through deals.
Although a broker is technically an agent not affiliated to any agency they almost have the same job. Brokers and agents have similar characteristics as well as huge differences.
Similarities:
Both parties often represent the seller. In Kenya, buyers and sellers have the same agent unlike countries such as the US where a buyer will have an agent as well as the seller.
Each of them also act as listing agents. They share images on social media of the property and communicate with the buyers.
If you are planning a site visit, your broker or agent is the one to handle that.
Differences:
A broker will charge you 500-1000 bob for the site visit while agents will only charge you if they provide transport.
A seller or an agent can hire a broker to work on their behalf, sometimes, they are cheaper.
A broker doesn’t necessarily work for the seller but rather has a deal for a price. An agent works to get the seller buyers or get a buyer a house.
5 Types of Real Estate Agents
There are several types of real estate agents—each with unique responsibilities and specializations. These include listing agents who sell homes, buyer’s agents who help people purchase real estate, and dual agents who act as the listing agent and buyer’s agent. Additionally, a listing agent may become a transaction agent when writing an offer for an unrepresented buyer. Agents may also join the National Association of Realtors to earn the Realtor designation.
The five major types of real estate agents are:
Listing Agent
A listing agent is an agent who represents a homeowner in the sale of their home. Listing agents, therefore, have a duty to represent their seller’s best interests and get them the best possible contract terms.
In cases where the buyer does not have their own agent, a listing agent can become a dual agent.
Buyer’s Agent
In contrast to a listing agent, a buyer’s agent represents homebuyers in their search for and purchase of a home. For that reason, buyer’s agents are invested in their client’s interest throughout the entire buying process; they must put the buyer’s priorities ahead of the seller’s.
As part of this responsibility, a buyer’s agent helps purchasers negotiate the best possible price for real estate and assists them through due diligence and closing.
Dual Agent
A dual agent is one who represents both the buyer and the seller in a real estate transaction. Dual agency can also arise when the listing agent and the buyer’s agent work for the same real estate broker; this is because it is the broker who defines the agent relationship to the client.
Transaction Agent
When a buyer is not represented by their own exclusive agent, the listing agent may have to write an offer for them. In states where dual agency is not legal, a listing agent can elect to become a transaction agent. Under these circumstances, the agent doesn’t represent the buyer or the seller and, instead, acts as an impartial facilitator throughout the transaction.
Responsibilities of Real Estate Agents & Brokers
The main difference between real estate agents and brokers is that only a broker is not affiliated to any agency. Common responsibilities of real estate agents and associate brokers include:
- Representing buyers and sellers
- Marketing homes for sale
- Negotiating prices and managing transactions
- Prospecting buyer and seller leads
- Holding open houses and showing homes
- Renting residential and commercial units