A real estate brokerage is a firm that employs licensed real estate agents and brokers to represent buyers and sellers in real estate transactions. The brokerage ensures compliance with legal and ethical standards, handles contracts, and facilitates the buying or selling process.

• Real Estate Agent: A licensed individual who can represent buyers or sellers in real estate transactions but must work under a broker.

• Real Estate Broker: A licensed professional who can work independently and may employ agents. Brokers have additional education and licensing requirements.

Brokerages typically earn money through commissions paid upon the successful sale or lease of a property. The commission is usually a percentage (often 5–6%) of the sale price and is split between the buyer’s and seller’s agents and their brokerages.

No, it’s not required, but using a real estate agent provides expertise, market knowledge, negotiation skills, and help navigating legal and contractual issues.

Traditionally, the seller pays the total commission, which is then split between the seller’s and buyer’s agents. However, this can vary depending on the agreement and market.

Yes, you can (and usually should) use a buyer’s agent to represent your interests. The listing agent represents the seller and has a fiduciary duty to them.

They:

• Market the property via MLS, websites, open houses, and advertising.

• Provide pricing guidance and staging tips.

• Handle negotiations and paperwork.

• Ensure legal compliance.

Agents perform a Comparative Market Analysis (CMA) to evaluate recent sales of similar properties in the area and help determine a competitive asking price.

It’s a contract between the seller and the brokerage granting the agent the right to market and sell the property for a set period.

• Meet age and education requirements (usually 18+ with a high school diploma).

• Complete a pre-licensing course.

• Pass your state’s real estate licensing exam.

• Work under a licensed broker.

• Gain experience as an agent (typically 1–3 years).

• Complete additional coursework.

• Pass the broker licensing exam.

• Apply for a broker license in your state.

Yes, once you’re a licensed broker, you can start your own brokerage firm, hire agents, and operate independently.

Dual agency occurs when one agent represents both the buyer and the seller in the same transaction. It is legal in many states but must be disclosed and agreed upon by both parties. Some states prohibit it due to potential conflicts of interest.

It refers to the legal obligation agents and brokers have to act in the best interest of their client, maintaining loyalty, confidentiality, disclosure, and accountability.

It’s a contract that outlines the duties and expectations between a buyer and their agent. It can specify exclusivity, commission terms, and the agent’s role.

• Interest rates

• Economic conditions

• Job growth or decline

• Local housing supply and demand

• Government policies and incentives

MLS (Multiple Listing Service) is a database used by real estate professionals to list, find, and share information on properties. It increases visibility and facilitates cooperation among agents.