Real estate agents and mortgage brokers share similar job attributes. As licensed real estate professionals, both help their clients in obtaining residential or commercial properties. But their specific tasks are very different.
A real estate agent helps buyers and sellers find or sell physical property, and a mortgage broker helps buyers find financing to purchase a property.
Real Estate Agent
Because the real estate industry can be extremely competitive, if you want to become a real estate agent, an outgoing personality, a desire to be helpful, maturity and dependability are essential qualities.
A residential real estate agent should also be able to present a home and sell the features it provides attractively. A creative eye for design and detail can be a strong asset in this profession.
Depending on whether an agent is acting on behalf of a buyer or a seller, the following responsibilities are typical:
- Show properties and houses
- Find properties and homes for sale or buyers
- He negotiates in the middle and acts as a link between buyer and seller
- Follow the local real estate market
- Provide funding guidance (in some cases)
Qualifications to become a real estate agent may include a background in sales or marketing and at least a high school diploma.
Every real estate agent must have a license. Depending on the state and agency, additional education in finance and housing laws may be required.
The job often requires long hours and many days of showing homes or commercial properties to prospective buyers without a sale, so patience is also a must.
If you like events to move quickly and need a paycheck every week, the job of a commission-based real estate agent may not be for you.
Mortgage brokers act on behalf of clients to find them the best interest rate and terms for a mortgage, whether on a private residence or a commercial property.
Researching 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 lenders, but a good broker will look out for the best interests of his clients.
Mortgage brokers have to accommodate their clients’ schedules, and a friendly, outgoing personality can go a long way with clients.
Being a mortgage broker often requires long hours and many days of searching for a lender willing to work with the prospective borrower, so patience is just as crucial in this field.
This quality will also serve brokers well when they have to accept multiple rejections from lenders when trying to put together a loan.
Mortgage brokers can earn a salary and additional compensation in the form of a commission based on a predetermined percentage of secured mortgages.