Real Estate Brokers Can Help You Throughout The Process Of Your 1031 Exchange
A real estate broker is a person who acts as a mediator between a buyer and seller of real estate. In most cases, a real estate broker will help a person sell his or her property for the highest possible price; however they can also act as a buyer’s agent, which entails their helping a buyer to purchase real estate at the lowest possible price. The difference between acting in the buyer’s or seller's best interests lies in whether or not the broker and the buyer have a written agreement, because without such an agreement, the broker will still be working primarily to secure the highest price for the seller of a piece of real estate.
As a general rule in the United States, real estate brokers have to have a license to be able to charge for their services. In some states however, lawyers are allowed to act as agents in a real estate transaction without being licensed as a broker or a real estate agent. In most states, after working for two years, a real estate broker is eligible to take additional tests to become a real estate broker employer.
In most cases, a real estate broker offers a full range of services that are paid for via commissions when real estate transactions are completed. Traditionally the services would be for the sellers of a property, as the broker tries to get the best possible price for their client. However, as mentioned earlier, it is also possible for the real estate broker to work as a buyer's agent, but in these circumstances, there needs to be a written agreement between the buyer and the broker. In these cases, it is necessary for the broker to disclose his interest for the buyer in any transaction where a conflict of interest may be suggested. More recently, many states have put a ban on dual agency situations where a broker may represent both buyer and seller.
The services offered by a real estate broker include: analysis of current market conditions, marketing services for clients selling their properties, facilitation of buying and selling transactions, document preparation for those individuals selling their own property (FSBO), home selling kits, property management, and sometimes auction services. Expected services from real estate brokers differ slightly from state to state and any person engaging the services of a real estate broker should check with his or her local office for a full range of services available.
Real estate brokers can also help in the facilitation of 1031 property exchanges because of their ability to broker both sale and purchases of real estate. While their services can be useful in this area, it is advisable to check whether or not your broker has Qualified Intermediary status and experience in dealing with 1031 property exchanges and sometimes 1031 reverse exchanges.
