What Do Real Estate Agents Do?

Real estate agents play an essential role in home buying and selling. According to a 2023 National Association of REALTORS^® report, 89% of buyers went through a real estate agent or broker to purchase their home. It’s important to understand the role of an agent or REALTOR^® when purchasing or selling a home and their legal obligations. So, what exactly does a real estate agent do?

What Is A Real Estate Agent?

Real estate agents are licensed professionals who organize real estate transactions between buyers and sellers. They walk their clients through the entire home buying or selling process, providing valuable knowledge and information every step of the way. Agents who represent sellers are also called listing agents. Buyer’s agents are exactly what they sound like – they’re real estate agents who represent home buyers.

Real estate agents can be both listing agents and buyer’s agents. But it’s usually not for the same real estate transaction to avoid dual agency. Dual agency occurs when a real estate professional takes on the role of buyer’s agent and seller’s agent in the same real estate transaction. Dual agency is illegal in some states and is typically avoided for its potential to bring about a conflict of interest.

REALTOR^® Vs. Real Estate Agent

You may also hear real estate agents referred to as REALTORS^®. Real estate agents and REALTORS^® perform the same essential functions, but REALTORS^® are agents or real estate brokers who are members of the National Association of REALTORS^® (NAR). Essentially, every REALTOR^® is a real estate agent, but not every real estate agent is a REALTOR^®.

Real Estate Broker Vs. Real Estate Agent

Real estate brokers are more experienced than real estate agents. Agents and REALTORS^® have to take and pass an additional state test before they can become a broker.

A broker can work as an independent agent or hire other agents to work under them.

A broker will also handle more technical aspects of real estate transactions and be the point of contact for a real estate agent that might need help.

What Does A Real Estate Agent Do?

Real estate agents and brokerage companies act in the best interest of their clients, either as the listing agent or buyer’s agent. Both act as the liaison between the parties, including during offers and counteroffers. They’re available to answer any questions that may arise during the process. Real estate agents on both sides also:

• Walk their clients through any necessary paperwork
• Communicate with their clients and other associated parties
• Provide information on the home inspection process
• Continue to support their clients through the closing process

What A Real Estate Agent Does For A Seller

Homeowners looking to sell their homes turn to listing agents. A listing agent provides clients with an unbiased valuation of their home and helps set a listing price. These real estate agents are in tune with the market and can recommend home upgrades to help lead to a successful home sale.

Help Market Your Home

Listing agents handle the marketing of a home listing, including listing the home on the local multiple listing service (MLS) database. Other marketing strategies involve networking with other real estate agents, creating advertisements and setting up open houses.

Find Qualified Home Buyers

It’s vital for listing agents to vet potential buyers, too. Not everyone is a serious buyer. Listing agents often check on a potential buyer’s finances before arranging a showing or accepting an offer. Listing agents know what questions to ask to determine whether a prospective home buyer can afford to buy a home or not.

Negotiate And Facilitate The Home Selling Process

Listing agents negotiate various aspects of a home sale on behalf of their clients. They may negotiate the price of the home or smaller expenses like closing costs, home warranties and any fees. The agent must manage legal actions that occur while selling a home. Their job includes preparing, submitting and filing documents, like contracts and purchase agreements.

What A Real Estate Agent Does For A Buyer

Buyer’s agents search for local properties that match their client’s requirements and price range by searching online and scouting houses in person. They also set up showings and keep clients informed on the local area and housing market.

Recommend Contractors For Inspections

Real estate agents may work with your lender or the seller’s agent to help schedule home appraisals and inspections. They usually have relationships with reputable professionals in the industry who provide those services.

Review Contracts And Agreements

The home buying process involves a lot of paperwork. It’s a real estate agent’s job to guide you through all contracts, agreements and other necessary documents when you’re buying a home. They’ll also submit paperwork on your behalf.

Negotiate And Facilitate The Home Buying Process

It’s important for real estate agents to make sure clients are preapproved for a mortgage. Being preapproved shows agents and homeowners that you’re serious about buying a house.

Once you’ve found a house you’re interested in, your real estate agent will help make offers and negotiate on your behalf throughout the buying process. From first contact to closing, your real estate agent is your connection to all parties involved when buying a house.

What Role Do Agents Play At Closing?

Throughout the closing process, real estate agents continually communicate between their clients and the other parties. They may suggest a final walkthrough of the home when nearing the closing date. The walkthrough allows you to check for any damage that may have occurred since the initial contract.

Agents Review Closing Documents

Real estate agents look over every document, ensuring accuracy and that all terms and conditions have been met before the home deed is transferred. Mistakes can happen. It’s an agent’s job to find and correct them before everything is finalized.

Agents Represent You At Closing

Agents represent you at any meetings or contract signings. Depending on the state, several parties can be involved in the closing process, including real estate attorneys, a title or escrow agent, a mortgage lender, sellers, buyers and real estate agents. Agents represent their client’s best interests until the sale is final, and they work to maintain a relationship after closing.

Do You Need A Real Estate Agent?

If you’re buying or selling a house on your own, all real estate agent duties become your responsibility. If you sell your home without a REALTOR^®, you’ll be in charge of listing your home, marketing it, setting up showings and open houses, providing necessary paperwork, negotiating pricing and working with the other party’s real estate agent.

If you’re buying a house without a REALTOR^®, your hands will be full, too. You’ll submit bids, negotiate pricing, line up inspections and handle all the legal tasks associated with buying a home. It’s a lot to oversee, especially if you don’t have experience with or knowledge of real estate transactions. Whether you’re a buyer or seller, you can represent yourself, but it’s a considerable time and energy commitment.

FAQs: What Real Estate Agents Do

Still not sure what a real estate agent does? Take a look at these frequently asked questions.

How do I become a real estate agent?

You need a real estate license to become a real estate agent. License requirements vary by state. Prospective agents will need to research the state where they want to work and make sure they meet all the requirements.

Securing your license means passing a test, which includes sections on general real estate industry knowledge and state-specific guidelines. From there, many recently licensed agents will work for an individual broker or brokerage company while they gain experience.

What skills does a successful real estate agent need?

While buyer’s agents and seller’s agents provide different services to clients, their skill sets are similar. All real estate agents should be:

• Familiar with their local housing market, including pricing
• Knowledgeable of local and state real estate laws
• Understanding of their clients’ needs
• Effective communicators
• Problem-solvers
• Self-motivated
• Highly organized

What does an average day as a real estate agent look like?

Though it can depend on the specific type of real estate work they do, real estate agents often juggle several tasks on any given day. Their normal duties include:

• Researching the local real estate market
• Networking with other real estate professionals
• Attending closings
• Maintaining and growing their client base

Nurturing and developing a real estate client base typically requires communicating via multiple methods, such as emails, calls, texts and social media posts. Depending on where they work and how much work they have, real estate agents may outsource some of their tasks, like filing paperwork, to an administrative assistant.

How do real estate agents make money?

Real estate agents are usually compensated through commissions. A commission, also known as a REALTOR^® fee, is a percentage of a property’s purchase price. Agent commissions are usually 6% of a home’s sales price. The buyer’s agent and seller’s agent often split the commission between them evenly.

Are real estate agents worth it?

Whether a real estate agent will benefit depends on your situation. If you’re inexperienced, a real estate agent can make the process much easier and take some responsibilities off your plate. But if your agent ignores you or has a heavy client load, choosing to complete the transaction on your own may prove to be speedier.

The Bottom Line

Whether you’re a buyer or seller, a good real estate agent has the insight to help you navigate the world of real estate transactions – from the start of the sale to the closing table. Your agent can also help you assemble your legal documents, search for homes or prospective buyers and communicate with other parties involved in the sale.

If you’re a buyer getting ready to start the house hunt, start the mortgage approval process online today with Rocket Mortgage^®.