If you are considering buying or selling your home this year, chances are you are thinking about working with a real estate agent. A great real estate agent can make the homebuying or selling process easier, less stressful, and help you get the right deal. But what exactly does a real estate agent do?
In this article, we will outline what a real estate agent does and their responsibilities. Whether you are selling a house in Baltimore, MD, or buying a home in Charlotte, NC, here is what you can expect from your real estate agent throughout the process.
Key takeaways
- A real estate agent is a licensed professional who represents buyers or sellers in a home purchase or sale.
- A good real estate agent understands the local housing market, guides you through the buying or selling process, and advocates for your goals.
- They typically earn a commission, often a percentage of the home’s final sale price, though this amount is negotiable.
What does a real estate agent do?
A real estate agent is a licensed professional who assists clients in buying, selling, or renting properties. To become a real estate agent, individuals must complete state-required coursework and pass a licensing exam. Once licensed, agents typically work under a brokerage.
There are three common types of real estate agents:
- Buyer’s agents: Buyer’s agents represent potential homebuyers. They show properties, answer questions along the way, and help make an offer on a home.
- Seller’s agents: Sometimes called listing agents, a seller’s agent represents homeowners looking to sell. They market the property, attract buyers, and negotiate with potential buyers.
- Dual agents: Represent both the buyer and seller in the same transaction. This practice is restricted or prohibited in some states due to potential conflicts of interest, so check your local laws.
What services do real estate agents provide?
| Local market expertise |
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| Schedule showings and open houses |
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| Guidance on the mortgage process |
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| Handle negotiations |
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| Manage necessary paperwork |
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| Oversee the closing process |
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What do buyer’s agents do?
- Find homes to tour: Your agent should help you find homes that meet your requirements and budget. They’ll send you potential homes, listen to your wants, and suggest neighborhoods that meet your criteria and budget.
- Give advice about a home: Real estate agents have experience touring and examining homes, so they can give you trusted advice about a property. For example, they may see red flags in a home that you may not.
- Recommend lenders and more: Agents work with numerous lenders in the area, so they can recommend lenders that meet your needs. Buyer’s agents should also know about homebuyer assistance programs you may qualify for.
- Write an offer and submit it: Your agent can guide you through the process of making an offer and negotiating the best deal.
What do listing agents do?
- Help price your home: Your agent will help you determine the right price to list your home.
- Suggest minor updates and staging: Your agent knows what will help your home stand out.
- Market your home: Real estate agents are experts at marketing properties so they can help you sell your place.
- Analyze offers: If you have multiple offers on your home, your agent can help you choose the right offer and negotiate the best deal for your needs.
Real estate agent vs Realtor®
Your real estate agent may also be a Realtor®. A Realtor® is an agent or broker who belongs to the National Association of Realtors® (NAR). Realtors® must adhere to NAR’s Code of Ethics, which outlines professional standards for working with clients and other real estate professionals.
All Realtors® are real estate agents or brokers. However, not all real estate agents and brokers are Realtors®.
Real estate agent vs broker
A broker is a licensed agent who has earned additional certifications that allow them to manage a team of agents and open a brokerage company. Real estate agents must work under a brokerage.
FAQs about real estate agents
How do I find a real estate agent?
There are plenty of ways to find a trusted real estate agent. For example, you can look online at real estate agents in your area, speak to family and friends, or ask your lender.
Who pays the real estate agent fees?
Buyers and sellers negotiate who pays the real estate agent fees. Prior to the NAR settlement in 2024, sellers typically paid both buyer’s and seller’s agents. Redfin anticipates that sellers will continue to cover the buyer’s agent commission fee in many transactions, but increasingly, these fees will be negotiated as part of the offer.
When am I obligated to work with a real estate agent?
You’re generally not required by law to work with an agent to buy or sell a home. If you choose to work with an agent, you may need to sign an agreement that outlines services and compensation. Buyers may be asked to sign a buyer’s agency agreement, while sellers sign a listing agreement before putting a home on the market.
At Redfin, buyer agreements are flexible. Before the first tour, clients sign a simple fee agreement online that doesn’t require exclusive representation. A buyer’s agency agreement is only needed when submitting an offer and can be canceled if the offer isn’t accepted.
Other brokerages may have stricter terms and may charge buyers even if they don’t purchase a home. Always review cancellation terms before signing.
Do I need a real estate agent?
It’s possible to buy or sell a home without a real estate agent. Keep in mind a great agent can offer you invaluable insight about the local housing market, advise you along the way, and make the process less stressful.
What is a closing agent?
A closing agent is a real estate professional who manages the final steps of a real estate transaction. They ensure that all documents are properly executed and funds are distributed correctly.
What does a commercial real estate agent do?
A commercial real estate agent specializes in selling commercial real estate, like office buildings and shopping centers. They typically have the same responsibilities as residential real estate agents, but have additional experience in leasing commercial properties.