A real estate agent is a licensed professional who helps people buy, sell, or rent properties. These agents act as intermediaries between buyers and sellers, guiding clients through every step of the transaction process. Whether someone wants to purchase their first home or sell a commercial building, a real estate agent provides the expertise needed to close the deal successfully.
Real estate agents understand local markets, property values, and legal requirements. They handle paperwork, schedule showings, and negotiate on behalf of their clients. This article explains what real estate agents do, how they earn money, and why working with one can make property transactions smoother and more profitable.
Key Takeaways
- A real estate agent is a licensed professional who helps clients buy, sell, or rent properties by guiding them through every step of the transaction.
- Real estate agents perform market research, property valuations, marketing, showings, and handle negotiations and paperwork on behalf of their clients.
- Different types of real estate agents exist, including buyer’s agents, seller’s agents (listing agents), dual agents, and brokers with additional licensing.
- Real estate agents typically earn 5% to 6% commission on the sale price, which is split between the buyer’s and seller’s agents and their brokerages.
- Working with a real estate agent provides expert market knowledge, access to MLS listings, skilled negotiation, and legal protection during transactions.
- Choose the right real estate agent by verifying credentials, reading reviews, interviewing multiple candidates, and ensuring their communication style matches your preferences.
What Real Estate Agents Do
Real estate agents perform many tasks to help clients complete property transactions. Their primary job involves connecting buyers with sellers and ensuring both parties reach a fair agreement.
Market Research and Property Valuation
A real estate agent analyzes local market trends to determine accurate property prices. They compare similar homes that recently sold in the area and assess current demand. This research helps sellers set competitive asking prices and helps buyers avoid overpaying.
Property Marketing and Showings
When representing sellers, real estate agents create marketing strategies to attract potential buyers. They list properties on multiple platforms, take professional photos, and write compelling descriptions. Agents also schedule and conduct property showings, answering questions from interested parties.
Negotiation and Paperwork
Real estate agents negotiate offers and counteroffers between buyers and sellers. They advocate for their client’s interests while working toward a mutually acceptable deal. Once both parties agree, the agent handles contracts, disclosures, and other legal documents required to complete the sale.
Types of Real Estate Agents
Not all real estate agents serve the same role. Different types specialize in specific aspects of property transactions.
Buyer’s Agents
A buyer’s agent represents people looking to purchase property. They search for listings that match the buyer’s criteria, schedule viewings, and submit offers. The buyer’s agent works exclusively in the buyer’s interest throughout the transaction.
Seller’s Agents (Listing Agents)
Seller’s agents, also called listing agents, represent property owners who want to sell. They price the home, market it to potential buyers, and negotiate on the seller’s behalf. A real estate agent working as a listing agent aims to get the highest possible price for their client.
Dual Agents
In some states, a real estate agent can represent both the buyer and seller in the same transaction. This arrangement requires full disclosure and consent from both parties. Dual agency can streamline communication, but it limits the agent’s ability to advocate strongly for either side.
Real Estate Brokers
Brokers hold additional licenses beyond standard agent credentials. They can work independently, run their own firms, and supervise other agents. Many real estate agents eventually pursue broker licenses to expand their careers.
How Real Estate Agents Get Paid
Real estate agents typically earn money through commissions rather than salaries. This payment structure ties their income directly to completed transactions.
Commission Structure
The standard real estate commission ranges from 5% to 6% of the property’s sale price. This fee is usually paid by the seller and split between the buyer’s agent and the seller’s agent. For example, on a $400,000 home sale with a 6% commission, the total fee would be $24,000, typically divided between both agents and their brokerages.
Brokerage Splits
Real estate agents work under licensed brokers who provide support, training, and legal oversight. In exchange, agents share a portion of their commission with the brokerage. New agents might keep only 50% of their earnings, while experienced agents often negotiate splits of 70% to 90%.
Alternative Payment Models
Some real estate agents offer flat-fee or discount services. These options can reduce costs for clients but may include fewer services. Buyers and sellers should understand exactly what they receive before choosing a non-traditional payment arrangement.
Benefits of Working With a Real Estate Agent
Hiring a real estate agent offers several advantages that can save time, money, and stress during property transactions.
Expert Market Knowledge
Real estate agents know their local markets inside and out. They understand which neighborhoods are appreciating, where schools rank highest, and what features buyers prioritize. This knowledge helps clients make informed decisions quickly.
Access to Listings and Networks
Agents have access to Multiple Listing Services (MLS), databases containing properties not always visible to the public. They also maintain networks of other agents, lenders, inspectors, and contractors. A well-connected real estate agent can find opportunities and resources that clients couldn’t access alone.
Skilled Negotiation
Negotiating property prices requires experience and emotional distance. Real estate agents understand common tactics, know when to push back, and recognize fair terms. Their involvement often results in better deals for their clients.
Legal Protection
Property transactions involve significant legal and financial risks. A real estate agent ensures all required disclosures are made and contracts are properly executed. This attention to detail protects clients from potential lawsuits or financial losses.
How to Choose the Right Real Estate Agent
Finding the right real estate agent requires research and careful consideration. The wrong choice can lead to frustration, lost money, or missed opportunities.
Check Credentials and Experience
Verify that any real estate agent holds a valid license in the relevant state. Look for agents with several years of experience and a track record of successful transactions similar to the client’s needs. Specialized certifications can indicate additional expertise in areas like luxury homes or investment properties.
Read Reviews and Ask for References
Online reviews provide insight into an agent’s communication style, reliability, and results. Clients should also request references from past buyers or sellers. Speaking directly with former clients reveals details that reviews might miss.
Interview Multiple Agents
Meeting with two or three real estate agents allows for comparison. Ask about their marketing strategies, availability, and knowledge of specific neighborhoods. Pay attention to how well they listen and whether they answer questions clearly.
Evaluate Communication Style
A real estate agent should match the client’s preferred communication frequency and method. Some people want daily updates via text, while others prefer weekly phone calls. Clarifying expectations upfront prevents misunderstandings later.
