What Does a Real Estate Agent Do?

Buying or selling a piece of property can be an exciting but also stressful experience, as it marks a transition. Whether you are buying or selling, the path always seems to have a couple of loops that make the entire experience stressful. There’s paperwork to handle, appraisals to go through, inspections and negotiations, and a lot more.

Approximately 6% of the properties on the market are listed as FSBO (For Sale by Owner). These people go through the entire selling ordeal on their own, without enlisting help. The rest prefer to collaborate with a real estate agent to avoid bureaucracy.

Real estate agents act as guides, helpers, and experts in a domain where you may have limited knowledge.

Many find themselves asking the question, “Should I use a real estate agent?” In this article, you can find out more about what a real estate agent can do for you. This way, you can determine if you should hire one or not.

Who Are Real Estate Agents?

Real estate agents are licensed professionals who can help someone sell, buy, or offer property for rent. They’re virtually the “middleman” between sellers and buyers, guiding them through the process until they give out the last signature.

To practice this profession, real estate agents have to go through state-approved coursework and then pass their licensing exam. They have to pass the exam for the state where they plan on practicing. The licensing requirements can vary from one state to another, but most will have to go through constant education and renew their license.

More often than not, people confuse real estate agents with brokers and Realtors®, but these are also two completely different things. For example, brokers went through additional education and passed a different licensing exam. This puts them one step above agents, letting them run their own brokerage and manage a team. Every broker can do the job of an agent, but not every agent is a broker.

On the other hand, realtors® are those who are part of the National Association of Realtors (NAR). They can be agents or brokers, but these people commit to following the NAR Code of Ethics. This set of professional standards is stricter than the average broker or agent has to follow, setting them apart.

Likewise, not every agent or broker is a Realtor®, although every Realtor® is either a broker or at least an agent. The role of a real estate agent is to advocate for their clients and help them through the selling or buying process, but their work depends on their membership or title.

What Do Real Estate Agents Do?

The duties of a real estate agent change depending on who they are representing. They take on a broad range of responsibilities based on the stage of the sale, acting in their client’s best interests. Here’s what you can expect:

For Buyers

Is your mind going around the question, “What does a real estate agent do for a buyer?” Well, to put it simply, agents are there to make sure you buy your dream house within your budget or timeline.

Here’s the gist of their role:

• Understanding the Client Needs: A real estate agent takes the time required to understand your budget, neighborhood goals, timelines, preferences, priorities, and more.
• Property Searches: Agents will tap into the listing services (e.g., the MLS) to browse through available options, highlighting the most promising ones.
• Scheduling Showings: Once they’ve narrowed down the list, they’ll coordinate a home showing spree that matches the buyer’s schedule. This allows them to point out the best features of the properties.
• Providing Market Insights: Agents will help buyers compare prices and trends, gaining more insight into the market. This helps you get a better understanding of the home and get a good price.
• Making Offers: Once the right property shows up, the real estate agent makes a bid for the property. They set the offer price, and contingencies, and make sure every document is legal and customized to the market.
• Negotiating Terms: Offers never end with a fixed amount, and the real estate agent now has to negotiate. They could push for lower prices, adjust timeliness, or request property modifications to make the property worth it.
• Coordinating Inspections and Appraisals: Once their offer has been accepted, the agents arrange an appraisal and home inspection. This helps ensure the buyers get the quality they believe they paid for.
• Managing Paperwork: Paperwork is perhaps the most confusing part of home buying, with many documents being time sensitive. The agent’s role is to review these documents and make sure everything is accurate.
• Supporting Through Closing: Real estate agents will monitor potential milestones and support you through all stages and issues. This ensures you get stress-free closing.

In the end, real estate agents are there to handle the logistics of buying a house while making sure you get the ideal property. Their goal is for you to keep stress at a minimum and pave the way toward a successful close.

For Sellers

Now that you know how buyers can benefit, you may also ask yourself: “What does a real estate agent do for a seller?” Well, to put it simply, they help you get the best payment for a house you may have for sale.

Here are some of their duties:

• Strategically Pricing the Property: Real estate agents will conduct a Comparative Market Analysis (CMA) to evaluate similar properties. They use numerous tools, such as the REI Lense investment projection calculator, to come up with a suitable price. This way, they can choose a value that attracts sellers while maximizing returns.
• Preparing the Home for Sale: Agents have the role of preparing the house and making sure it looks good. Since 27% of homes sell faster when staged, they coordinate things such as minor repairs, room decluttering, arrangements, and other changes aimed at making the house look pretty.
• Creating a Marketing Plan: With the home set, their goal is now to create a targeted marketing strategy. They hire photographers, create compelling descriptions, and promote them across various platforms.
• Showing the Property: The real estate agent will coordinate all the house showings, including private tours and open houses. During this time, they gather feedback to improve the showing experience.
• Receiving and Reviewing Offers: Agents will go through the offers and choose not only the highest bid but also the most reliable. The real estate market is more competitive than ever, so they have to break down all the terms.
• Negotiating on the Seller’s Behalf: To make sure you get the best return, they negotiate on your behalf. They counter potential offers and push back on repair demands to keep deals from being derailed.
• Handling Legal and Disclosure Documents: Every sale comes with a bunch of paperwork that can be intimidating for the average seller. Agents will take care of things such as purchase agreements, property disclosures, titles, and more to ensure legality.
• Managing Transaction Timeline: Aside from taking care of every stage of the process, they’re also there to keep everything on schedule. They have a clear understanding of the deadlines, so they move forward without delays.

In simple terms, real estate agents have to sell the house for the best profit. They keep things hassle-free for homeowners and investors alike, keeping the flow smooth.

How Do Real Estate Agents Get Paid?

Most real estate agents don’t get paid via salary. Instead, they take a commission from the final sale price. So, how much do real estate agents make from the sale of a property? How much are you expected to pay them once the entire process is over?

Well, for the most part, the standard commission for most markets is around 5-6%. The commission is then split 50/50, with half of it going to the buyer’s agent and the other half going to the seller’s agent.

Still, you may be asking yourself: do buyers pay real estate agents, too? The answer to that is “no.” Or, well, at least not directly.

The seller is the one who pays the full commission on the sale proceeds, with the amount decided on the listing agreement. The buyer doesn’t have to pay the agent directly, but the money is taken out from the funds that they put down for the house.

The payment is only given if the agents successfully close the deal. If the transaction doesn’t go through, the agents won’t receive any payment. This gives agents the incentive to help clients close their transactions smoothly and successfully.

Granted, some agents could adopt different models, such as discount brokerages or flat fees. However, traditional discounts are the most common route. As a client, it’s best that you ask about the commission before you sign any contract.

Benefits of Working with an Agent

Real estate agents bring a series of benefits to the home sale or purchase process. For one, they offer professional expertise that you can count on. They know how to use tools such as REI Lense to understand pricing trends, help you find the perfect property for your needs, and overall prevent potential mishaps.

They’re also skilled negotiators and can establish good terms for you, from the beginning to the end. They know when to compromise and when to push, leading a project with integrity. These people are licensed coordinators and keep the entire procedure on track, ensuring nothing falls through the cracks.

At the same time, not every agent is the same. It’s best to look for someone who has:

• A proven track record.
• Good understanding of the market.
• Positive reviews.
• Strong communication skills.
• A positive style and personality.

A good real estate agent should make you feel comfortable throughout the buying or selling process, every step of the way.

Why It Matters to Work with a Real Estate Agent

Sure, you can try to sell or buy a house without soliciting the help of a real estate agent. However, if you work with an agent, you get a lot of perks that potentially save your finances and sanity.

For one, it saves you time, since you won’t be the one juggling showings and paperwork. It also offers you legal protection, because you won’t accidentally miss important documents. They know how to analyze market data and create a good pricing strategy, and they also have superior negotiation skills that keep them from folding under pressure.

Without one, you could end up overpricing your properties or missing opportunities that would have led to a quick sale. If you’re a buyer, you could also fail to spot certain concerns, overpaying for your “dream house.” Real estate agents are your advocates, so it’s good to have one in your corner.

The Bottom Line

A real estate agent can bring practical value to buyers and sellers alike. Such an expert can help them buy or sell a home without hidden issues, ensuring a smooth and profitable transaction. Consider using a real estate agent the next time you want to buy or sell a property!