A real estate agent is a licensed professional who helps people buy, sell, or rent properties. These agents serve as intermediaries between buyers and sellers, guiding clients through one of life’s biggest financial decisions. Whether someone wants to purchase their first home or sell an investment property, a real estate agent provides expertise that can save time, money, and stress.
Real estate agents handle everything from listing homes to negotiating contracts. They understand local markets, pricing trends, and legal requirements. This article explains what real estate agents do, how they earn money, and why working with one often makes sense.
Key Takeaways
- A real estate agent is a licensed professional who helps clients buy, sell, or rent properties while guiding them through complex transactions.
- Real estate agents handle market analysis, pricing, marketing, negotiations, and paperwork to save clients time and stress.
- Agents typically earn 5-6% commission split between buyer’s and seller’s agents, though recent 2024 legal changes may affect how commissions are negotiated.
- Agent-assisted home sales often result in higher prices—NAR data shows agent-listed homes sold for $405,000 median vs. $310,000 for FSBO in 2023.
- When choosing a real estate agent, interview at least three candidates, check their local experience, read reviews, and trust your instincts.
Key Responsibilities of a Real Estate Agent
A real estate agent wears many hats throughout a transaction. Their primary job is to represent clients’ interests, but the daily tasks vary depending on whether they work with buyers or sellers.
Working With Sellers
When representing sellers, a real estate agent starts by analyzing the local market. They research comparable properties (called “comps”) to determine a competitive listing price. Pricing too high means the home sits unsold. Pricing too low leaves money on the table.
The agent then creates marketing materials. This includes professional photography, virtual tours, and listing descriptions. They post the property on Multiple Listing Services (MLS) and popular websites like Zillow and Realtor.com. Many agents also host open houses and private showings.
Once offers come in, the real estate agent reviews each one with the seller. They explain contingencies, financing terms, and closing timelines. A skilled agent negotiates to get the best price and terms for their client.
Working With Buyers
Buyer’s agents help clients find suitable properties. They ask about budgets, preferred neighborhoods, and must-have features. Then they schedule showings and provide insights about each home’s condition, value, and potential issues.
During the offer process, a real estate agent drafts purchase agreements and advises on bid strategies. In competitive markets, they might suggest escalation clauses or waiving certain contingencies. After acceptance, they coordinate inspections, appraisals, and communicate with lenders.
Real estate agents also handle paperwork, a lot of it. Purchase contracts, disclosure forms, and closing documents all require attention to detail. Missing a deadline or signature can delay or kill a deal.
Types of Real Estate Agents
Not all real estate agents are the same. Different titles and specializations exist within the industry.
Listing Agents vs. Buyer’s Agents
A listing agent (also called a seller’s agent) represents property owners who want to sell. Their loyalty lies with the seller, and they work to secure the highest possible price.
A buyer’s agent represents people looking to purchase. They advocate for lower prices and favorable terms on behalf of their clients.
Some agents practice dual agency, representing both parties in a single transaction. This is legal in many states but controversial. Critics argue it creates conflicts of interest since one agent cannot fully advocate for two opposing sides.
Real Estate Agent vs. Realtor vs. Broker
These terms get used interchangeably, but they mean different things:
- Real estate agent: A licensed professional authorized to help with property transactions
- Realtor: A real estate agent who belongs to the National Association of Realtors (NAR) and follows its code of ethics
- Broker: An agent with additional education and licensing who can work independently or manage other agents
All Realtors are real estate agents, but not all agents are Realtors. Brokers have more training and legal authority than standard agents.
How Real Estate Agents Get Paid
Real estate agents typically work on commission rather than salary. They don’t get paid until a deal closes.
Commission Structure
Traditionally, the seller pays a total commission of 5-6% of the home’s sale price. This amount gets split between the listing agent and buyer’s agent, usually 50/50. So on a $400,000 home with a 6% commission, each side receives $12,000.
But agents don’t pocket the full amount. They share a portion with their brokerage, sometimes 50% or more, especially for newer agents. After brokerage splits, taxes, and business expenses, take-home pay drops significantly.
Recent Changes
A 2024 legal settlement involving the National Association of Realtors changed how commissions work. Buyer’s agents can no longer advertise their compensation on MLS listings. Buyers may now negotiate their agent’s fee separately, and some might pay their agent directly.
These changes are still settling across the industry. Some experts predict commissions will decrease over time, while others believe the traditional model will largely persist.
Benefits of Working With a Real Estate Agent
Some people wonder if they need a real estate agent at all. Can’t they just buy or sell on their own? They can, but most shouldn’t.
Market Knowledge
A good real estate agent knows the local market inside and out. They understand which neighborhoods are appreciating, which schools buyers care about, and how long homes typically stay listed. This knowledge helps sellers price correctly and helps buyers avoid overpaying.
Negotiation Skills
Buying or selling a home involves back-and-forth negotiations. Real estate agents negotiate daily, it’s their job. They know when to push, when to compromise, and how to keep deals from falling apart over minor disputes.
Studies suggest homes sold by agents fetch higher prices than For Sale By Owner (FSBO) properties. According to NAR data, FSBO homes sold for a median of $310,000 in 2023, while agent-assisted homes sold for $405,000.
Time and Stress Savings
Real estate transactions involve dozens of steps, deadlines, and documents. A real estate agent manages these details so clients don’t have to. They coordinate with lenders, inspectors, title companies, and attorneys. For busy professionals or first-time buyers, this guidance proves invaluable.
How to Choose the Right Real Estate Agent
Not every real estate agent delivers the same results. Finding the right fit requires some research.
Check Experience and Track Record
Look for agents with experience in the specific area and property type. Someone who specializes in downtown condos might not be the best choice for rural acreage. Ask potential agents about their recent transactions, average days on market, and list-to-sale price ratios.
Read Reviews and Ask for References
Online reviews on Google, Zillow, and Yelp offer insights into client experiences. But also ask agents for references from past clients. A quick phone call can reveal how responsive and helpful they truly are.
Interview Multiple Candidates
Most experts recommend interviewing at least three real estate agents before choosing one. Ask about their communication style, availability, and marketing approach. Pay attention to whether they listen to your needs or push their own agenda.
Trust Your Gut
Real estate transactions take weeks or months. Clients will spend significant time with their agent. If something feels off during the initial meeting, that feeling probably won’t improve. Choose someone who inspires confidence and communicates clearly.
