Unit 1.1: Real Estate Business and People
Real Estate Business and People
To start out, we are going to begin with, some basic stuff. The real estate business is huge. From Wall Street to your local neighborhood, real estate is everywhere. Owning land or property is a representation of wealth. Before money even existed owning land was pretty much it. Some people may only think of real estate when it comes to buying and selling homes, but it's much, much, much, more than that. There are many different people involved in the world of real estate, and we’re going to cover a few of the important ones you may see on the test.
Real Estate Agent
A real estate agent is a professional who has passed the required real estate classes and licensing exams in the state where he/she intends to work. This is the starting point for most real estate professionals like yourself. You may also see this on the test as a salesperson, or a licensee.
A real estate broker is a person who acts as an intermediary between sellers and buyers of real estate/real property. A broker can work independently or employ other agents. The biggest difference between a broker and a real estate agent is a broker can work on his own, while an agent must work under a licensed broker. Getting a broker's license is separate from a standard license. You may also see this on the test as a licensor.
A Realtor is a real estate agent who is a member of the National Association of Realtors. Realtors have a specific association, code of ethics, and rules. If you are a real estate agent, you are not automatically a Realtor. The terms Realtor and real estate agent although commonly used interchangeably, are actually two different titles.
Although brokers and agents usually have some understanding of the valuation process, usually they bring in an appraiser to do the job. Appraisers must have detailed knowledge of the methods of valuation and many states require a specific license or certification to perform those duties.
A home inspector can assess the condition of a property's roof, foundation, heating, and cooling systems, plumbing, electrical work, water, and sewage, etc. A home inspection is an examination of the condition of a real estate property. This usually takes place in connection with the property's sale.
The owner of a property (such as land, houses, or apartments) that is leased or rented to another.
A person who occupies land or property rented from a landlord.
A property manager is someone hired to maintain and manage property. A property manager makes a landlords life a lot easier in simple terms. They can handle day to day tasks like handling new tenants, collecting rent, or maintaining property.
We will stumble upon many more different types of people as we go on but these eight you should know right now.