Difference Between a Realtor and
a Real Estate Agent Revealed
If you are a business owner in Ontario and think the timing is right to go about investigating the process of selling a business you might consider the services of a real estate agent. There is some confusion to the terminology process used, so in Ontario a salesperson or broker are usually the proper terms. Real estate professionals are a great resource but do ensure that you work with one that works primarily in business brokerage (i.e. the purchase and sale of companies).
This article will go over the types of businesses that "real estate agents" might sell. Very small, simple organizations A real estate professional that does not exclusively sell businesses may, from time to time, come across listings of smaller ones such as convenience stores, small coffee shops or laundromats and so on.Companies listed at this level are usually small family-run operations and are typically retail based enterprises.
Selling a Business With a Real
Estate Agent
Business brokerageA "business broker" is a real estate professional that is focused almost 100% in the sale of businesses. There are very few business brokers operating in the marketplace, relative to Realtors, and these professionals usually sell businesses like wholesalers, distribution businesses, manufacturing, service based businesses, and so on.The types of clients they usually engage with usually require a level of experience that comes from working in the industry as well as some financial or accounting exposure.
There is some overlap between the work that sellers of real estate and sellers of businesses can do.They all work under a brokerage To make things even somewhat more confusing, both of these professionals work under the same brokerage rules and are licensed the exact same way - the Real Estate & Business Brokers Act, 2002.
How to Acquire Better Real Estate Investments
So, it is very possible to call up a "Coldwell Banker" business broker and not realize that one salesperson may focus on residential or commercial real estate while another may focus their career in selling businesses. The best thing to do is ask though if you are unsure.There are also some professionals who operate in Ontario without the proper licensing and refer to themselves as professionals or "brokers".
The best thing to do is to request their signed and valid RECO membership card (which all registrants are required to carry on them) and if there is doubt as to their credentials, best then to move along to someone more reputable. Contact a reputable brokerage and ask to be directed to a professional that can assist you in selling your business.
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