Who's Who in the Real Estate Game: Common Terms Defined

There are several key people that play a major role when it comes to buying or selling a home, and it's important to understand the definition that goes along with their title. You may use such terms, but do you really know what most of them entail? Take a few moments to familiarize yourself with some of the most common roles found in the real estate market today.

Mortgage Broker:

Mortgage brokers act as a conduit that source loans to a home buyer. Working on behalf of a lender, they offer mortgage services and advice. Traditionally, loans were sought out only from financial institutions such as banks. However, since a growing and competitive market has evolved, so has the mortgage broker. A broker will locate alternative sources of a loan that a traditional bank can't offer. When less-than-perfect credit is involved, the mortgage broker can work closely with the borrower to seek out a lending institution that is willing to work with the buyer. Mortgage brokers and loan officers are two different entities- brokers work on behalf of several lending establishments and represent the buyer, whereas a loan officer works specifically for one lending establishment and only represent their employer, which is often a traditional bank.

Real Estate Broker versus Real Estate Agent:

Both a broker and an agent work on behalf of the seller or buyer to achieve the best financial outcome for both parties. Agents and brokers are required to undergo intensive course work and pass a state exam granting them a license to practice the sales of real estate. However, after several years of experience, an agent may decide to become a certified broker by undergoing further testing. Normally this occurs when an agent decides to either own, operate, or manage his or her own agency. Either way, both an agent and a broker are fully educated and can handle any aspect of real estate service.

Realtor is another everyday term that might not be fully understood. A Realtor is a real estate agent or a broker that is a member of The National Association of Realtors. While there is no difference in education, it can be argued that Realtors hold themselves to a higher set of standards than a basic agent or broker. Every Realtor is a broker or sales agent, but not every broker or sales agent is a Realtor.

Appraiser:

Appraisers are professionals hired by the seller to determine the best market value of the property prior to selling. Normally, a traditional sales agent or broker can handle this task and offer it as a part of their service; however, some sellers opt to hire a person whose specific field of expertise is the appraisal of property.

Home Inspector:

Home inspectors protect both the buyer and the seller. Inspections are carried out by professionals trained and have extensive knowledge of home structure. They examine the home in a non-invasive manner and act as a detective when it comes to sniffing out potential problems. Home inspectors focus on the basic aspects of the property such as the roof, electrical, plumbing, foundation, structure, and heating systems. Occasionally a home inspector can be confused with an appraiser. Appraisers determine the residence value while an inspector is focused on the condition and stability of the property.

Understanding just a few key terms is vital. Don't be afraid to ask questions if you're not familiar with basic aspects of real estate. Whether you're buying or selling a home, arming yourself with knowledge is essential in producing a positive and successful outcome.

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