Definition of Realtor

What is the definition of the term "realtor"? What is meant by the term "realtor"?

A "realtor" is also known as a "real estate agent" or a "real estate broker". A "realtor" is a person that is representing a buyer or a seller in a real estate transaction.

The meaning of the term Realtor is explained in this article.  House for sale - Illustration.A "realtor" is almost always licensed by the area that they are operating in. This is done to ensure that realtors are operating within the bounds of the law and that they are maintaining a certain standard of ethical behavior.

In most cases, a "realtor" will work under a licensed broker such as "Century 21" or "Remax", just to name a few. These companies provide a powerful brand and other perks in exchange for a percentage of the realtor's commissions. Realtors can also operate independently, though most usually work through a larger company.

In most cases, a realtor will represent either a buyer or a seller in a transaction. It is not as simple as just making sure that the paperwork is filled out properly and collecting a commission - a realtor must also make sure that the buyer or seller's interests are being properly looked after. This might mean negotiating for a better price, making sure that the inspections are completed properly, making sure that lawyers have looked over the paperwork, making sure that there are no liens against the house, doing due diligence on the surrounding areas, etc.

In exchange for this work, a realtor's typical commission will be 5-6% of the sale price.

In some cases, a realtor might represent both the buyer and the seller in a transaction. This can be a thorny issue, however, as the realtor must represent the best interests of both the buyer and the seller in the transaction. In some jurisdictions, this type of transaction has been outlawed, and the buyer and seller must have separate representation.

In addition, there is a type of realtor that simply handles the paperwork in a transaction. These are called "transaction brokers", and they will simply facilitate the buying or selling of a property. These brokers don't provide a full service experience for their clients, as they generally represent seasoned investors or companies that just want to complete a transaction.


In recent years, discount realtors have become more popular.

Instead of asking for a percentage of the sale price, these realtors will work for a flat fee, or a greatly reduced percentage.


Here are some of the tasks that a full service realtor will complete for a potential buyer:

-Locate real estate based on wants of client
-Help buyer through the mortgage qualification process
-Travel with buyers to potential properties of interest
-Negotiate with seller's agent
-Navigate through signing of purchase contract
-Ensure there are no hidden issues with properties

Here are some of the tasks that a full service realtor will complete for a potential seller:

-Identify appropriate sale price for property
-List property on market
-Canvass local real estate agents to establish interest in property
-Negotiate with buyer's agent
-Show property to potential buyers
-Navigate through signing of sale contract


Most real estate agents are members of a real estate agent trade association that looks to protect the interests of the industry and lobby on behalf of their industry.

The path to becoming a real estate agent is usually not a long one, which can result in many tens of thousands of people becoming licensed real estate brokers in a country, especially in places where the real estate market is particularly hot.

The industry is very competitive, however, as there are only a limited number of properties going up for sale at any time. In many cases, real estate agents will have a team of people working underneath them. The industry certainly operates on a 80/20 split, with the top 20% of real estate brokers making 80% of the commissions.

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