Differences Between a Real Estate Agent, REALTOR® and Broker
Buying or selling a home can be a stressful experience for people. It can sometimes be overwhelming. There are so many decisions to be made, so many conditions to be met and so many issues that can arise during the home listing or buying process, the negotiation stage and the details to be sorted out in closing.
Most people buy or sell a home only a few times in their lives. It may be a starter home where financing is stretched to the maximum, a move-up home as the family grows or a downscaling event where the nest is now empty and less room is needed. Whatever the situation, the home selling and buying process can be challenging, and most people rely on help from a professional real estate salesperson.
Finding the right salesperson can be just as overwhelming as the process, and the right real estate agent can make the experience of buying and selling a home far less stressful. Each state has different licensing regulations for different types of real estate salespersons, and finding the right real estate agent in PA starts with understanding the difference between the terms broker, real estate agent and REALTOR®.
It’s fair to say that most homebuyers and sellers are aware of these terms, but when asked “What’s the difference between a real estate agent and a REALTOR® “What’s the difference between a real estate broker and a real estate agent?” they’d be hard pressed to answer accurately. On a local scale where the customer is personally affected, asking “What’s the difference between a real estate agent vs. a REALTOR® in PA?” could be very confusing.
These might all sound like a play on words, but there actually is a big difference in the definitions and the roles of a broker, an agent and a REALTOR®. Understanding who each real estate professional is and what they do will set you at ease when choosing the best professional to represent your homebuying or homeselling needs. Let’s look further into the question.
What’s the Difference Between a Broker, a REALTOR® and a Real Estate Sales Agent?
The proper answer can actually confuse some real estate salespeople. It’s correct to say that “every real estate broker is a real estate agent, but not every agent is a broker” and “every REALTOR® is a real estate agent, but not every real estate agent is a REALTOR®”. It’s also correct to say “most brokers are a REALTOR® but not every REALTOR® is a broker.” This needs to be clearly explained.
Real Estate Agent
What is a real estate agent? An agent is the entry level to the real estate sales business. A real estate agent in PA is officially known as a salesperson and is licensed by the state to perform all the legal functions of a real estate professional in representing a buyer or seller of residential or commercial property.
In order to obtain a salesperson license, the holder must meet and pass the minimum qualifications set out by the state so they are properly equipped to serve their client’s best interests. The standards include:
- A minimum of 18 years of age
- Undergo a specified number of hours in an approved course
- Successfully pass a state examination on real estate laws and transactions
All real estate agents or salespersons must work under the supervision of a licensed real estate broker who is higher qualified and more experienced in real estate law, finances and management of real estate transactions and salespersons.
Real estate salesperson licenses must be renewed frequently, and the license holder must take ongoing education to ensure they are current with evolving real estate law and market conditions.
Real Estate Broker
A real estate broker is essentially a real estate salesperson or agent who has more experience than a basic agent and has qualified higher in real estate education and coursework. Brokers are licensed to run their own real estate agency and to employ salespersons to list, sell and assist buyers in real estate transactions.
Generally, real estate brokers in Pennsylvania act as managers (broker of record) and/or owners (broker-owner) of real estate agencies, rather than simply filling the role of a real estate salesperson. Their higher responsibilities include:
- A minimum of three years continual, full-time experience as a salesperson
- Hold a valid real estate salesperson license
- Complete 240 hours of coursework at a state-approved college or university
- Successfully pass the state real estate broker examination
The state-approved real estate broker education program includes courses on:
- Real estate finance
- Real estate investment
- Real estate construction
- Real estate sales
- Residential property assessment
- Commercial property assessment
- Valuation of income-producing property
- Residential and nonresidential property management
- Salesperson supervision and management
- Real estate agency management
While most real estate brokers manage or own a real estate agency, they sometimes act as lone brokers who serve a niche, specialized market such as commercial or luxury property to demanding or sophisticated buyers. With a real estate broker license comes the expectation by both the customer and the regulatory body that brokers are more knowledgeable and experienced in their profession than agents.
Brokers in agencies are the managers who a salesperson or a REALTOR® report to and bear the responsibility for their actions. A real estate broker also handles the earnest money deposit and establishes the escrow account. Clearly, a broker assumes a greater responsibility than a salesperson or REALTOR® and as part of supervision duties, a broker will step in to handle and problems with a home purchase or sale.
REALTOR®
REALTOR® is a registered trademark. It’s a professional designation awarded to licensed real estate salespersons who apply for membership in the industry self-regulated organization known as the National Association of Realtors® (NAR).
A real estate salesperson who is allowed to use the title REALTOR® has been screened by NAR for their experience, education and professionalism in the real estate business. The qualifications include:
- Hold a valid real estate salesperson or broker license
- Be actively engaged in full-time, professional real estate sales
- Have no criminal record
- Have no current, recent or pending bankruptcy proceedings
- Have no record of unprofessional conduct or sanctions
- Pledge and adhere to the NAR Code of Ethics
The National Association of Realtors® states that their Code of Ethics is what separates a professional REALTOR® from nonmember real estate agents or salespersons. The Code of Ethics includes these 17 promises that REALTORS® must fulfill:
- Pledge to put the interests of buyers and sellers ahead of their own and to treat all parties honestly.
- Shall refrain from exaggerating, misrepresenting or concealing material facts, and is obligated to investigate and disclose when situations reasonably warrant.
- Shall cooperate with other brokers/agents when it is in the client’s best interest to do so.
- Have a duty to disclose if they represent family members who own or are about to buy real estate, or if they themselves are a principal in a real estate transaction, that they are licensed to sell real estate.
- Shall not provide professional services in a transaction where the agent has a present or contemplated interest without disclosing that interest.
- Shall not collect any commissions without the seller’s knowledge nor accept fees from a third party without the seller’s express consent.
- Shall refuse fees from more than one party without all parties’ informed consent.
- Shall not comingle client funds with their own.
- Shall attempt to ensure that all written documents are easy to understand and will give everybody a copy of what they sign.
- Shall not discriminate in any way for any reason on the basis of race, color, religion, sex, handicap, familial status or national origin.
- Expects agents to be competent, to conform to standards of practice and to refuse to provide services for which they are unqualified.
- Must engage in truthful advertising practices.
- Shall not practice law unless they are a lawyer.
- Shall cooperate if charges are brought against them and present all evidence requested.
- Agree not to badmouth competition and agree not to file unfounded ethics complaints.
- Shall not solicit another REALTOR’s® client nor interfere in a contractual relationship.
- Shall submit to arbitration to settle matters and not seek legal remedies in the judicial system.
The NAR Code of Ethics is strictly enforced by local real estate boards and certified salespersons who hold a REALTOR® membership and take their responsibilities very seriously. The standards are much more rigorous, restrictive and confining than those who hold the basic state salesperson or real estate agent license.
As of August 2016, there were 1,223,423 members of NAR who hold a REALTOR® designation. This is out of approximately 2.5 million licensed real estate sales agents across America, or making up nearly half of the professional salespersons and brokers/holders of a voluntary and improved professional standard.
In addition to screening and certifying licensed real estate agents and brokers, NAR provides a facility for professional development, research and exchange of information across its membership as well as to the public and all levels of government — federal, state and local. At its core, NAR acts “for the purpose of preserving the free enterprise system and the right to own real property.”
Advantages and Disadvantages of Using a Broker, Agent or REALTOR®
Beyond a doubt, the biggest advantage any buyer or seller of real estate can have is peace of mind. Peace of mind that the transaction is being handled by someone with experience. Someone who helps with pruchases of sales every month. Experience matters. After all, a home is usually the biggest investment for the average American, and having someone who will help you make a solid investment when purchasing, or having someone who will help you get the most dollars out of the sale of your home … is key.
There are other advantages like access to the Multiple Listing System, or MLS. But the truth is there are many services out there that will give a consumer the ability to place their home for sale in the MLS, without providing you the most valuable acpect of all: true guidance, from a professional who does this day in & day out… who knows what to expect… and can walk you through the entire process, explaining every step, giving you insight into the various situations that may arise, so you can make educated decisions that will help make this a smooth successful transaction.
Let’s look at the many components that a REALTOR® brings to the able, advanges and disadvantages.
THE MLS
The MLS is an interagency arrangement that gives approved members the right to advertise listings cooperatively and to represent buyers and sellers of real estate properties on the integrated, computerized listing system. The MLS accounts for the vast majority of real estate listings across the nation, and most MLS boards are very restrictive as to who is allowed to advertise on and access the MLS system.
Just because a salesperson holds a valid real estate sales license, regardless of their jurisdiction, does not mean they automatically have the right to list on or sell from the MLS. Most MLS boards require an agency to have a broker with a REALTOR® designation, and many will not allow an agent to participate on the MLS as well if they are not designated REALTORs®. Therefore, it’s vital that if you intend on selling or buying a home or other property through the MLS, you should ensure your licensed representative is able to obtain access to the Multiple Listing System.
There are other advantages and disadvantages of using a broker, a sales agent or a REALTOR®. Let’s look at them closer.
Real Estate Agent
Although an agent or real estate salesperson may not have the experience of a broker or the additional training or certification of a designated REALTOR®, you may find that an agent may have more time to devote to your listing or buying needs. Many agents are new to the business or may not devote full time to the industry, but that doesn’t mean they don’t have a tremendous amount of local knowledge such as areas, zoning conditions or even the history of a particular piece of property.
Real estate agents do not carry the responsibility that a broker does. However, they have the backing of their broker when it comes to dealing with contract specifics. All licensed real estate salespersons in Pennsylvania must be employed by a licensed broker who is also mandated to supervise each and every transaction that comes through their agency.
And while a person with a basic real estate license may not have sufficient knowledge of contract law, how to properly price a property or how to successfully negotiate a fair price and terms of a real estate deal, as well as properly wording subject clauses or structuring closing dates, they will have access to a Broker at all times to get answers to any issues that may arise that they may nt have encountered themselves yet.
Real Estate Broker
Clearly, the vast majority of real estate brokers have much more experience in the business than most agents or designated REALTORs® do. They have more invested in their careers and have a much higher standard of care required in their professional performance.
Most Brokers are managers, yet some are in sales. The brokers who manage as usually called “Broker of Record” or “Managing Broker” or alike.. while a broker who is still in sales in usually called an “associate broker”. Associate Brokers are Brokers who met all the requirements from the State to become brokers, but wish to remain in sales, and have their lincense under another Broker (a managing broker).
Having a broker represent your purchase or sale may be advantageous when dealing with a complicated property or a complex transaction. It would be wise to discuss the project with a broker if you suspect there may be difficulties that a REALTOR® or agent may not be able to handle.
Broker/Appraiser used to be one license. Now they are two licenses. Brokers may not appraise. They can give their “opinion” of price, same as any agent, but it holds no legal value.
Additionally, most real estate brokers will have a full schedule managing their agency and supervising their staff and may not be able to give you the time necessary to market or purchase your home. Brokers typically assign buyers or sellers to one of their licensed agents or REALTORs®… and step in to give their agents and clients advice when a sticky situation arises.
REALTOR®
A REALTOR® designation is not to be taken lightly. These folks have proven their ability to serve their customers professionally, whether it be listing their home or selling it.
REALTORs® are committed to the real estate industry and are held to a higher standard of accountability than their nondesignated counterparts. The designation is insurance that the salesperson has knowledge of real estate contract law and their finger on the pulse of local market conditions.
Be assured that a professional REALTOR® will act to the highest standards when representing you while buying or selling a home. They have earned the designation, maintain it with pride and adhere to the Code of Ethics.
CENTURY 21 Core Partners is a full-service real estate provider and employs professional brokers, agents and REALTORs®. Contact CENTURY 21 Core Partners in Pennsylvania and discuss which representative option is best for listing or purchasing your home.
Recent Company Testimonials
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“Thanks Christian for all the help, and for always answer ours phone calls and email at moment, days and nights. You being bilingual was a plus. We already completed 3 deals with Christian since we meet him. Keep the good work.”
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“I enjoyed working with Dwayne; he never made me feel uncomfortable. He was friendly, helpful and always respectful. I would recommend him to anyone who expressed the need of a real estate professional. If I had the need in the future, I would not hesitate to call him. Thanks, Dwayne!”
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“Susan was/is excellent. She works very hard and always gets the job done. Her approach is a breath of fresh air because she does not employ an over the top sales pitch and presentation loaded with false promises and unrealistic expectations. Instead she gives you honest answers and well thought out market research to achieve the best result possible. I will only contact her in the future when buying and selling properties.”
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“I can't say enough good things about Leroy Moore. We didn't know exactly the path we wanted to go, land to build or a home purchase. We ran him hard and he always had a smile and ready for the request.What should have been a simple purchase became complicated and multi-facitated and Leroy Moore went above and beyond. We are beyond satisfied and grateful.”
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“Que us un ser humano excelente ecantodo que eya aiga.sido mi representante muchas gracias por sus servicios”
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“My family and me thank Leroy Moore for been more than a Realtor his been a friend in all of the process love all of the treatment that he provide my family and me thank you from the bottom of our heart and God bless”
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“Mr. Moore, from the moment we first spoke with him, displayed a high level of competence and knowledge with respect to his business as well as the task with which he was presented. From the time he was contracted to the closing of the sale he actualized these characteristic in multiple ways, indeed, often in manner beyond my initial expectations. It was our pleasure to work with him!”
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“Trust was a huge factor. Carman was awesome, and made us feel like informed friends of the area and business. Buying a home, especially for the first time, can be scary. Carman was there every step of the way. She walked us through every detail, and we made it!”
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“Muchas gracias Christian por tu ayuda para compar mi casa. Dios te bendiga.”
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“We had to have many conversations during this sale, we never had an issues communicating with Stacey is very attentive. If we needed an answer to a question or something like that it didn't matter where Stacey was we always got a timely response. Because of the issues to get the house to close, we are not sure we would of been able to work with just any agent. Stacey kept us calm and is a great leader.”
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“More than professional.”
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“I couldn’t have asked for a better guy to work with. He listened to what I was looking for and answered questions I had along the way. Scott was a solid advocate for me throughout the process and it made my first home purchase less stressful knowing I had him to answer the inevitable questions that arose. I have and will continue to recommend Scott to others I know who are looking for a home.”
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“I couldn’t had have a better broker! Will continue doing business with him in the future! Leroy Moore ur the best! Thank you for ur help and patience..”
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“My family and friends had used Christian's services before for the purchase of their homes and always recommended him to my wife and me, they told us that Christian was always trying and looking the best for them. Now in the purchase of our home, we saw the way Christian was always working to get us the best loan for us and get help with down payment & closing cost from the seller and the State. He was always trying to find us the perfect house to call home. We would recommend Christian to our family and my friends without hesitation. Freddy A. Castillo y Michel Almonte De Castillo, York PA Mi familia y amigos habían usado los servicios de Christian antes para la compra de sus casas y siempre lo recomendaron a mi esposa y a mí, nos dijeron que Christian siempre estaba intentando y buscando lo mejor para ellos. Ahora, en la compra de nuestra casa, vimos la forma en que Christian siempre estaba trabajando para obtener el mejor préstamo para nosotros y obtener ayuda con el pago inicial y el costo de cierre de parte del vendedor y del Estado. Siempre intentaba encontrarnos la casa perfecta para llamar hogar. Recomendaríamos a Christian con nuestra familia y amigos sin dudarlo. Freddy A. Castillo y Michel Almonte De Castillo, York PA”
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“Wow! Leroy Moore and his wife were such a blessing to have on our team while searching for a property. They were very friendly and professional. After our second round of viewing a few homes, Leroy included an additional home that we were previously not going to see. Who knew that was the property that we now own! Thank you Leroy and Century 21 for an amazing home buying experience.”
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“John is simply AWESOME!!!! We could not have asked for a better guy to help us find a new home. John was always available to answer our questions and was very responsive to our needs. We would HIGHLY RECOMMEND John to anyone looking to buy/sell a home. I truly believe that you would be hard pressed to find anyone better.”
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“Was a very nice experience to meet with Larry and Jen, they are very professionals, the really help us a lot. Thank you”
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“Scott Wilburn was a great resource as a first time buyer with a timeline. His communication was prompt and his knowledge of subject matter was extensive. Ensured that I understood what was going on and handled any questions that I had. From start to finish this process went smoother then I could of ever imagined. Highly recommend Scott to anyone looking to buy or sell a home.”
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“John really stuck in with us and did what ever was necessary to help.us get a deal done. Thanks so much John. John is a very upstanding person. He works.hard and is honest. He never gave up and was always had the answers we had.”
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“Dwayne was excellent. He knew what we were looking for and moved at our pace. At no point did we feel pressured or rushed. Great job Dwayne, thanks again!”
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“Stacey sold my parents their house. She came highly recommended. She was amazing with my house deal. She went over and above always to work out any issues. I'm so happy to have worked with Stacey. Stacey was always there for me and ran the extra mile to make sure everything not only got completed but on time. She was very attentive and made things as smooth as possible for me during the transaction. Stacey was perfect with her communication throughout the whole process of me purchasing my home. She was also very knowledgeable when I would ask a million questions because some things I did not understand or would become stressed about and she would always calm my fears and answer me quickly and concisely. I'm just so grateful that I had Stacey during the purchase of my home representing me and walking me through everything. She was very helpful, very attentive. She's very down-to-earth and very approachable and always made me feel very comfortable. I would highly recommend Stacey. She even made home baked cookies to bring to my Settlement. She is awesome!”
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“My wife and I have been looking for a house for quite some time. Leroy Moore and Century 21 agency was more than amazing. We can write a review for an hour on how happy we are with Leroy and his wife, but want this read so we will get to the point. Leroy is the most patient, kind and understanding person; he is a real state agent that we have ever encountered! He showed us a lot of homes and was always eager to accommodate our busy schedules. Ultimately Leroy helped us to find our perfect dream home! Leroy is very knowledgeable, full of great ideas, and an expert in her field!!! . If you looking for the absolutely perfect realtor leroy and his wife would be the great and smart choice ever!”
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“Leroy was very professional and helpful with the buying process. He was always present at meetings and walk-throughs. Would highly recommend.”
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“I was very nervous and going through a very difficult time in my life. Leroy and Tavi treated me like family and made everything as simple as possible! I didn't know that buying a house could be so easy!”
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“Scott Wilburn was extremely knowledgeable about the sale and purchase process including property values in the area, location information and most importantly, helping me find a home that included all of my requirements. He made himself available to discuss any questions that I had and made the process as easy as possible. I would recommend Scott and Century 21 Core Partners to anyone looking to sell or purchase a home!”
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“I would recommend Megan Bell to anyone. She was very responsive at all times of the day. She helped any way that she could. She was very nice and she was so accommodating. I had a great experience with her and if I still lived in the area I would use her again. You can’t go wrong with her service.”
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“Great service helped us a lot very patient.”
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“Leroy is a good man. Honest man”
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“Leroy Moore thank you for your help . We are more than happy with the outcome of our dream home. You over exceeded our expectations. In the future I would strongly recommend you to friends and family. We are so happy with our home and we thank you for thinking about every detail for explaining everything so we can understand it. Thank you Leroy Moore we will for ever be grateful.”
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“Eva Kelly was extreamly professional and willing to go the extra mile for my family. Eva responded to every question and or concern instantly. If I had to do it all over again Eva Kelly would be the first contact I would make. If you are in the market for a new home I would strongly recommend Eva Kelly and her team to help you through the experience of purchasing a new home or property.”
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“I adore the professionalize information from my agent. Their compassion to help me and their honest. if I would not make a good choice in homes, was critical! I ended up in a new home worth more then it's value and was able yo pay full cost!! Leroy also recommended a floor contractor that did a fabulous job!!. I am hoping before next year, Leroy will sell our other home :) All the above with AA+!! Leroy was always available for me within 24 hours of wanting to see another home. Leroy always new the counties, and locations. Love my home!! I will always work with Century 21, and recommend them whenever possible!”
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“My house was a difficult property to sell due to the location, but Eva Kelly did not give up. From the beginning she put up a huge yard sign, placed adds and had great up to date pictures of my house. The last agent used pictures from when I purchased the house! Eva got people to walk thru the house, she had Open House's and did whatever she needed to do to sell this house! I am very pleased and very satisfied with the sale of this house. Eva went out of her way for me. I was already down in Florida with my fiance' who just recently contracted the flesh eating bacteria and he was in the hospital for over 2 months. Eva was my voice for me. She kept me in the loop and made me not really have to make any choices..she was wonderful an was on top of everything. I did not feel like I was just another seller to her. (Other agents had gotten me mixed up with other homes) Would use her again and would highly recommend.”
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“We absolutely loved Leroy and Tavia. They are both super personal and we feel like they really cared about getting us into the right home. After we had found the home we loved, they made it easy and gave us great guidance on the negotiations and closing. What an awesome pair! We were connected with Leroy automatically on a listing website, but we are so glad we made that connection. Leroy made this process easy and gave us great peace of mind while going the extra mile to help us. He gave us the advice to write a letter to the seller to go with our offer which ended up being the thing that got us the house. You can tell that he and his wife love what they do, and love meeting new people. Basically, Leroy and Tavia are the best.”
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“Leroy and Octavia Moore were very professional and looked out for my best interested throughout the whole process. They kept in touch with me as things developed, advised me and double checked to make sure things were going in the right direction. I will use them again and would highly suggest them to my friends and relatives.”
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“Leroy Moore did an amazing job in all aspects of helping us buy a home! We highly recommend him to anyone looking to buy and/or sell a house. His personable, informative, and committed character was a blessing to our family.”
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“I am a hairstylist and John is one of my customers. I mentioned to him that my wife and I were interested in moving soon. He explained that he was a real estate agent and gave me his card. Later that day my wife and I called him and we never lost communication with him. He became almost like a friend. He felt our pain when offers fell, but he never got discouraged and kept us positive and moving on. He kept saying there is a home for you, and we will find it. It seemed like it took forever, but we found our forever home. John was ecstatic right along side of us. I will be referring him to other customers of mine that need an agent. John went above and beyond. Both my wife and I will miss working and talking to him daily. LOL”
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“Leroy is the Best of the Best ,He gets the job done.”
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“I would definitely recommend Jennifer Behr, she was very personable and knowledgeable of the area!!! She was great to work with, and I would work with her again!!! Frank Chalk”
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“Stacey is the best! Always had time to answer questions and meet with us when needed. She knew what we wanted and helped to get us to our end goal.”
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“Jennifer was a great listener to the unique circumstances of this purchase and the unique situation I had. While we look at several properties they didn’t quite fit or just wasn’t what we were looking for inside. When I went further out of the price range I was looking when I found a house I thought might be the one, she was the first one to make sure that the price wouldn’t be an issue. Turns out that was the house and everything fell together nicely like it was meant to be. She is a great realtor with a great personality and makes home buying way and fun. Thanks Jennifer!!!”
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“Eva was incredibly helpful throughout our entire homebuying experience. Her knowledge and efficiency really helped us to be able to trust her in knowing she will do whatever is best for us and our future home. I would recommend her to anyone.”
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“Edward was our agent in the past (he helped us sell 2 homes, which both homes sold within 5 days and now he has helped us purchase a home. He is an excellent agent.”
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“Mr. and Mrs. Moore excellent team to sell your home. Movers!”
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“Christian Maldonado was very trustworthy, helpful, knowledgeable and professional. I felt that he was always looking out for the best interest of all parties.He was always very courteous and prompt. I was extremely grateful for his help and would highly recommend him in the future.”
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“Leroy Moore is a very patient and knowledgeable agent. He was drug across the coals on the sale of my residence and it continued to the purchase of the one that I bought. Would recommend Leroy to all my friends and family.”
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“Great motivated guy”
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“Stacey was great! She did whatever it took to find and get us into a new home. Always available for questions and anything else we needed.”
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“We found our lot and house package due to timely information from Leroy. There was hardly a day that went by, that we did not receive information from Leroy. Any new listings, whether land or homes was emailed immediately. He was very helpful and very patient with us. We would highly recommend Leroy and his wife for any real estate needs.”
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“Leroy was given the acid test with the sale of my house. Had a lot of problems with the other agents buyer. He is a very talented and knowledgeable agent and would recommend him to all friends and family.”
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“We had a difficult case (certain area, certain school, certain price and wants) and Eva was always supportive and understanding in our search. She was always there to help answer questions at any time, day or night. Eva did a fantastic job! We will use her in the future and recommend her to all our friends!!”
