Real estate consumers are generally confident in their understanding of what a buyer’s agent or seller’s agent does on their behalf, but many people are confused about what a transaction broker is. So, let’s talk about what a transaction broker does, and when and using one can benefit your personal real estate transaction.
The basic definition of a transaction brokerage is a third-party that offers real estate services to buyers and sellers. This differs from a traditional real estate agent because the transaction broker is legally neutral. He or she can assist both the buyer and the seller in a transaction, acting as a mediator between both parties to the deal.
A Transaction Broker’s services can include:
- Helping the buyer prepare an offer
- Helping the seller to determine a competitive list price
- Facilitating buyer – seller communication
- Writing the contract to buy and sell
- Coordinating the transaction from accepted offer to closing
- Assisting with closing
Transaction brokers are bound by the same legal and ethical standards of conduct as agents representing an individual buyer and seller, but rather than individual representation, the transaction broker is an assistant to the transaction, coordinating details rather than negotiating between the buyer and seller.
A transaction broker is typically paid a flat fee rather than a percentage of the home sale.
This difference in fee structure can save you thousands of dollars in real estate commissions so for many people it is worth exploring as an alternative.
If you are looking for a transaction broker or a flat fee brokerage to help you buy or sell real estate in Denver or Seattle, contact us.