In today's world, the omnipresence of real estate companies is indisputable. They are visible on every street corner and in the broadcast and print media. By virtue of the fact that the sale or purchase of residential and commercial property, whether for personal or investment purposes, ranks as one of the most intricate and momentous events in consumers' lives, the services offered by real estate agencies are indispensable. The average real estate company helps Americans with 1) the purchase and sale of homes, industrial property, farmland and office buildings, 2) land development, 3) property management, 4) research and appraisal, 5) mortgage banking, 6) real estate counseling and 7) urban planning, among other transactions. Due to the inherent complexity and significance of such objectives and projects, individuals and businesses typically solicit the services of real estate agents and brokers to ensure that their financial decisions are judicious and well-informed.
A real estate agent is generally an independent sales employee who offers his or her services to a licensed broker on a contractual basis. In exchange, the real estate broker pays the former a percentage of the commission obtained through the realtor's sale of the property. Real estate brokers are, in essence, independent entrepreneurs engaged in the sale of real property owned by others. They provide services such as 1) managing or renting properties for a fee; 2) setting up meetings between sellers and purchasers, whereby contractual terms are set and consented to and buyers take possession of the property; 3) carrying out title searches, 4) obtaining favorable financing from a mortgage lender for the home-seeker; 5) advertising properties; 6) conducting a thorough residential appraisal and 7) performing marketing analysis.
Because of their in-depth knowledge of the local and/or national real estate market, real estate agents and brokers are equipped to provide numerous, diverse and often sophisticated services. They are able to identify the neighborhoods that best match their clients' budgets, expectations and needs. They possess the skills and training to navigate through tax laws, local zoning laws and regulations, as well as the knowledge of where to seek out financing. Real estate brokers and agents often assume the role of intermediary in price negotiations between sellers and purchasers. While in some cases, mortgage lenders or lawyers play a pivotal role in administering the closing, in other cases, it is the agents and brokers who do so. A real estate agent may also refer a seller to companies specializing in professional real estate auctions. Clients who would like to view floor plans or the exterior and interior of a particular home may obtain a virtual tour of the property in question at the real estate agency. Finally, both real estate brokers and agents see to it that all conditions provided for in the contract, such as repairs and inspections, are satisfied prior to the closing date.
Most real estate agents and brokers specialize in the sale of residential property. Residential real estate services include the following:
· Leasing
· Property management
· Buying or selling new homes, townhomes, second homes, luxury homes, condos, or other forms of real estate
· Advice on relocation
· Site selection
· Search of nationwide foreclosure listings
· Appraisal services
· Residential mortgage processing (i.e. document preparation)
· Title services (i.e. Verification of legal owner, a complete statutory residential search)
· Post-closing services (i.e. recording of pertinent documents)
· Residential closing or settlement services (i.e. escrow services)
A small number of real estate brokers and agents are engaged in the sale of industrial, agricultural, commercial or non-residential types of real estate. They are usually employed by specialized or large commercial real estate companies and typically provide the following services:
· Property management (i.e. building maintenance, accounting, on-site management, lease administration, 24-hour emergency staffing)
· Brokerage (i.e. owner representation, tenant representation, consulting, expert witness, leasing & sales)
· Market research and analysis
· Real estate marketing
· Asset management
· Lease or sale negotiation
· Construction management
· Due diligence
· Negotiation of transactions
· Vendor management
· Receiverships
· Financial analysis and reporting
· Land and building acquisition/disposition
· Site selection and assessment
· Tenant installation services
· Property tax protest
· Relocations
· Feasibility studies
· Appraisal and valuation (i.e. partial interest valuation, business valuation)
· Planning and zoning