Real estate agent

Real estate agent vs mortgage broker: what’s the difference?

Real estate agent vs mortgage broker: an overview

Real estate agents and mortgage brokers share similar professional characteristics. As licensed real estate professionals, both assist their clients in securing residential or commercial properties. But their specific missions are quite different. A real estate agent helps buyers and sellers find or sell physical property, and a mortgage broker helps buyers find the financing to buy a property.

Key points to remember

  • Real estate agents bring buyers and sellers together; mortgage brokers bring buyers and lenders together.
  • Depending on who they represent, real estate agents help their clients buy or sell a property, and mortgage brokers help their clients find financing for the property.
  • Mortgage brokers should study credit reports and loan contracts; real estate agents are less concerned with financial details (other than purchase prices).
  • Both jobs may require working nights and weekends; compensation for both careers is based on productivity.
  • Both jobs require obtaining the appropriate license from the state in order to practice and keep the license up to date through renewals, continuing education, and testing.

What are the differences between a real estate agent, broker and real estate agent?

Real estate agent

Because the real estate industry can be extremely competitive, if you want to become a real estate agent, an outgoing personality, the desire to be useful, maturity and reliability are essential qualities. A residential real estate agent should also be able to present a house and sell the features it offers in a pleasing manner. A creative eye for design and detail can be a big plus in this profession.

Depending on whether an agent is acting on behalf of a buyer or a seller, the following responsibilities are typical:

  • View properties and houses
  • Find properties and homes for sale or to buy
  • Negotiate between the two and act as a liaison between buyer and seller
  • Follow the local real estate market
  • Provide financing advice (in some cases)

Qualifications to become a real estate agent may include training in sales or marketing and a minimum of a high school diploma. Any real estate agent must have a license. Depending on the state and agency, additional training on finance and housing laws may be required.

The job often requires long hours and many days to show homes or commercial property to potential buyers without a sale, so patience is also a must. If you like things to happen quickly and need a paycheck every week, then working as a commission real estate agent might not be for you.

People with jobs or other obligations are often busy during the day and search for accommodation at night and on weekends. Therefore, real estate agents must be prepared to make themselves available on short notice whenever their clients need it.

Remuneration of real estate agents
Item Compensation range
Salary $ 24,000 – $ 106,000
Premium $ 999 – $ 31,000
Profit sharing $ 2,000 – $ 35,000
Commission $ 2,000 – $ 247,000
Total salary $ 25,000 – $ 141,000

Above are pay ranges in various categories, from PayScale.com as of May 2021, the most recent figures available. Figures reflect a range of averages for real estate agents in New York, NY Some agents may earn less, others who are very good (and perhaps very lucky) may earn more.

Some agencies may pay a nominal salary on a weekly, bi-weekly, or monthly basis, but most agents are paid a commission after a sale, based on a predetermined percentage of the sale price. Earnings as a real estate agent tend to increase with experience.

A real estate agent can travel from location to location in the course of a typical workday, while a mortgage broker may spend most of their workday at the computer or on the phone in an office. office.

Mortgage broker

Mortgage brokers act on behalf of clients to find them the best interest rate and the best terms for a mortgage, whether it is on a private residence or commercial property. Finding the latest interest rates and loan terms is an essential and ongoing part of a mortgage broker’s job to secure the best rates for a client. Some brokers may develop relationships with preferred lending institutions, but a good broker will look out for the best interests of their clients.

Considering the key element of the job of finding the best loan options for their clients, an in-depth knowledge of lending institutions, lending rates, and terms is a must. Knowledge of credit criteria and credit reports is important, as is a solid grasp of math, speaking and writing skills.

Mortgage brokers have to adapt to their clients’ schedules, and a friendly, outgoing personality can be very helpful with clients. Being a mortgage broker often requires long hours and days of searching for a lender who is willing to work with the potential borrower, so patience is just as essential in this area. This quality will also be very useful to brokers when they have to accept several refusals from lenders when they try to set up a loan.

Remuneration of mortgage brokers
Item Pay scale
Salary $ 36,000 – $ 138,000
Premium $ 493 – $ 35,000
Profit sharing $ 0 – $ 1,000
Commission $ 12,000 – $ 175,000
Total salary $ 31,000 – $ 145,000

PayScale.com’s pay ranges for 2021, the most recent information available, in various categories are cited above.

Many mortgage brokers have training in sales, marketing, or finance, especially in banking. If you want to become a mortgage broker, you will need a minimum of a high school diploma and to obtain your broker’s license. To do this, you need to pass the original AFE home mortgage loan test and a test on the rules and regulations of the state in which you plan to work.

Mortgage brokers can receive a salary as well as additional remuneration in the form of a commission based on a predetermined percentage of the secured mortgages. Figures reflect a range of averages for mortgage brokers in New York, NY Some brokers may earn less, while better and more experienced brokers may earn more.


Source link