Selling your home in Washington soon? You’ll likely want some professional help. But who should you hire? Real estate professionals go by various names, including real estate agent, designated broker, managing broker, broker or realtor®. Maybe you’re wondering what the real difference is between these terms and trying to find out which one will help you. There are so many people in the industry that even agents can confuse themselves, or add titles or certifications to help their name stand out. Whether they are real estate associates, consultants, salespersons, managing brokers, or realtors®, they are all licensed in the state of Washington to sell real estate. So what’s the real difference between a designated real estate broker vs broker and what should you know to pick the right one to work with?
There are a few nuances when it comes to real estate terminology. In the state of Washington, the terms real estate broker, associate, and real estate agent are all interchangeable. Designated or managing brokers have more responsibility. We’ll try to break it down for you so you understand the differences and know the similarities so that you pick the right team to meet your needs.
Tips for Picking The Right Designated Real Estate Broker Vs Broker
Here’s everything you need to know about picking a designated real estate broker vs broker when you need help selling your home.
Real Estate Agent or Broker Definition
Like we said above, in the state of Washington, a real estate agent is the same thing as a broker. A real estate agent can be defined as an industry professional who takes and successfully passes all required real estate courses and the licensing exam for their state. The most commonly used term, this is the starting point for everyone in Washington who wants to get their feet in the real estate industry.
An agent can represent both buyers and sellers involved in a real estate transaction and typically they will choose one to specialize in. Buyer’s agents will try to find a home that matches their client’s wish-list, while a seller’s agent will market a property and actively try to find the right buyer.
Some of the differences between a designated real estate broker vs broker lie within their responsibilities. Real estate brokers are responsible for being the middle-man and carrying offers and counter-offers between each party, as well as answering any questions they may have. They will work directly with clients and other agents for the entire transaction, including all the paperwork that is required. It’s their job to make sure their clients are aware of any requirements necessary for both buying and selling a property – inspections, appraisals, closing costs, important dates, etc,.
Real estate agents are typically paid on a commission basis. This means that they receive a certain percentage of the sale price of a property – the higher the sale price, the higher the commission.
Designated Real Estate Broker & Managing Broker Definitions
A designated broker, on the other hand, is someone who takes their real estate education a step further. They must have successfully passed the state real estate broker license exam, in addition to the general real estate license courses. The designated broker is legally responsible for all of the transactions the other agents and brokers in their firm make. Designated brokers often hire other brokers, called managing brokers, to carry out managing duties and other day-to-day activities.
Designated brokers can work as independent agents or have other brokers working for them. Sometimes agents pass the broker exam but still choose to work under another broker – these agents are typically called managing brokers. Associate brokers may share in the brokerage profits beyond just the standard broker commission.
Designated broker responsibilities are a little different than real estate broker. Every real estate office has a principal/designated broker. The designated broker oversees all of the agents at the firm and makes sure that agents are operating in compliance with both state and national real estate law. They are also reviewing all real estate contracts for those employed underneath them and hiring and training new agents on their team.
Though they often work directly with clients just like agents do, they often don’t have to report to anyone besides themselves to report to in order to start negotiations and prepare offers. Brokers working with buyers will look for properties that match their client’s criteria, conduct negotiations on the buyers behalf, prepare offers and solve any issues leading up to the closing date. When it comes to designated brokers who work with sellers, on the other hand, they help determine the market value of their clients’ properties, are completely involved with listing and showing properties, and handle each offer that comes in.
The responsibilities that are required of a designated broker include recruiting and interviewing new brokers and agents, growing the business and marketing for new clients, and helping brokers resolve issues. Managing brokers, on the other hand, are hired by the owner and designated broker, and have a mixed set of responsibilities. They help agents negotiate real estate transactions, they ensure that everyone in the firm is in compliance with state law, they uphold firm policies, and train and mentor agents.
Similarly to real estate agents, designated and managing brokers receive a commission once the transaction has been completed. The amount is listed in the contract between the real estate broker and their client. Another difference between a designated real estate broker vs broker is that agents who work underneath a broker typically also have to pay a part of their percentage to their principal or designated broker. The contract will lay out all of the terms of the contract agreement.
Benefits of Working With Both
Normally, principal brokers don’t work one on one with clients, while managing brokers and associate brokers do. The main benefit that comes with working with a licensed broker is that you’re getting a lot more experience. You’ll appreciate that kind of experience when the transactions get more complex, like buying a foreclosure or navigating through short sales. Designated or Managing Brokers have more formal education than real estate agents and they are typically very knowledgeable about real estate law.
Another benefit with directly working with designated real estate brokers is that they typically have a team of highly professional real estate agents who work beneath them. This means they have additional resources and team members who can help you find just the right home for you. They will all know the market, they know the ins and outs of the industry, and they have the skills necessary to sell your home for more money than you could on your own.
Key Takeaways
In a nutshell, real estate agents and designated brokers in Washington are licensed to help you buy and sell real estate transactions, and are paid commission for each of their sales, and work for brokerages. Designated Brokers are more experienced, more qualified, and can work independently or have other agents work under them. They have more training and are usually responsible for handling the technical parts of the transaction.
When it comes to deciding what is best for you, a designated real estate broker vs broker, you should really contact your local agency offices. They’ll have a whole team of trained professionals who are ready to help walk you through even the toughest transactions and get you the property you really want. At Harbor Realty in South Bend Washington, our office is made up of brokers who would love to sit down with you and hear your goals. Give us a call and we’ll help answer all of your real estate questions and get your house sold – whatever you need!
