Real estate agents play a critical role in buying and selling property. They handle negotiations, paperwork, and market research so clients don’t have to. Whether someone is purchasing their first home or selling an investment property, a skilled real estate agent can save time, reduce stress, and often secure better deals. This guide covers what real estate agents do, the benefits they offer, how to choose the right one, and how they differ from realtors and brokers.
Key Takeaways
- Real estate agents handle negotiations, paperwork, and market research to save clients time and reduce stress during property transactions.
- A skilled real estate agent provides access to MLS listings, professional networks, and off-market opportunities that buyers and sellers can’t find on their own.
- When choosing a real estate agent, verify their license, check online reviews, and evaluate their communication style before signing any agreement.
- Real estate agents differ from realtors (NAR members bound by a code of ethics) and brokers (who have additional training and can manage agencies).
- Working with a real estate agent reduces risk by ensuring legal compliance, proper documentation, and protection from costly contract errors.
What Does a Real Estate Agent Do?
A real estate agent acts as a middleman between buyers and sellers. Their job includes listing properties, scheduling showings, and guiding clients through the transaction process.
Representing Buyers
When working with buyers, real estate agents help identify properties that match specific needs and budgets. They schedule home tours, provide neighborhood insights, and submit offers on behalf of their clients. A good agent knows local market conditions and can advise whether a listing is priced fairly.
Representing Sellers
For sellers, real estate agents handle pricing strategy, marketing, and staging advice. They list the property on the Multiple Listing Service (MLS), coordinate open houses, and screen potential buyers. Agents also negotiate offers and counteroffers to get the best possible price.
Handling Paperwork and Legal Requirements
Real estate transactions involve stacks of documents, purchase agreements, disclosures, inspection reports, and closing paperwork. Real estate agents ensure everything is completed correctly and submitted on time. This reduces the risk of costly errors or legal issues down the road.
Providing Market Expertise
Real estate agents track local trends, including average sale prices, days on market, and inventory levels. They use this data to help clients make informed decisions. Without this expertise, buyers might overpay, and sellers might leave money on the table.
Benefits of Working With a Real Estate Agent
Hiring a real estate agent offers several advantages that make the buying or selling process smoother and more successful.
Access to Listings and Networks
Real estate agents have access to the MLS, which contains listings not always visible to the public. They also maintain networks of other agents, lenders, inspectors, and contractors. These connections can speed up the process and open doors to off-market opportunities.
Negotiation Skills
Negotiating a home purchase isn’t like haggling at a yard sale. Real estate agents know how to structure offers, handle counteroffers, and navigate inspection-related negotiations. Their experience often results in better terms for their clients.
Time Savings
Searching for homes, scheduling tours, and managing paperwork takes hours, sometimes weeks. A real estate agent handles these tasks, freeing clients to focus on their daily lives. For sellers, agents manage showings and marketing, reducing the burden significantly.
Objective Guidance
Buying or selling property is emotional. People get attached to homes or anxious about making the wrong choice. Real estate agents provide objective advice based on data and experience. They help clients avoid impulsive decisions that could lead to regret.
Risk Reduction
Missed deadlines, incomplete disclosures, and contract errors can derail a transaction, or worse, lead to lawsuits. Real estate agents know the rules and ensure compliance at every step. Their oversight protects clients from preventable mistakes.
How to Choose the Right Real Estate Agent
Not all real estate agents are the same. Finding the right one requires a bit of research and clear communication.
Check Credentials and Experience
Start by verifying the agent’s license through the state real estate commission. Look for agents with experience in the local market and a track record of successful transactions. Ask how long they’ve been in the business and how many deals they close per year.
Read Reviews and Ask for References
Online reviews on sites like Zillow, Google, and Yelp provide insight into an agent’s reputation. Ask potential agents for references from recent clients. Speaking directly with past customers reveals how the agent communicates, handles problems, and delivers results.
Evaluate Communication Style
A great real estate agent responds promptly and explains things clearly. During initial conversations, pay attention to how quickly they return calls or emails. If communication feels sluggish or confusing early on, it’s unlikely to improve during a stressful transaction.
Discuss Fees and Contracts
Real estate agents typically earn a commission, usually 5% to 6% of the sale price, split between buyer’s and seller’s agents. Ask about the fee structure upfront and review the listing or buyer’s agreement carefully before signing. Understanding costs avoids surprises later.
Trust Your Gut
Chemistry matters. If something feels off during the interview process, keep looking. The right real estate agent should feel like a trusted advisor, not a pushy salesperson.
Real Estate Agent vs. Realtor vs. Broker
These three terms are often used interchangeably, but they mean different things.
Real Estate Agent
A real estate agent is a licensed professional who helps people buy, sell, or rent properties. They must pass a state exam and complete continuing education to maintain their license. All realtors and brokers are real estate agents, but not all agents are realtors or brokers.
Realtor
A realtor is a real estate agent who belongs to the National Association of Realtors (NAR). Members agree to follow a strict code of ethics that goes beyond state licensing requirements. The term “Realtor” is a trademarked designation, not just a job title.
Broker
A broker has additional training and licensing beyond a standard real estate agent. Brokers can work independently or manage their own agencies with agents working under them. In many states, a broker must supervise real estate agents to ensure legal compliance.
Which One Should You Hire?
For most buyers and sellers, the distinction matters less than the individual agent’s skills and experience. But, working with a realtor offers an extra layer of accountability through NAR’s ethics requirements. If hiring a broker, clients may benefit from their deeper knowledge, though brokers often focus on management rather than direct client work.
