A real estate agent helps people buy, sell, and rent properties. These licensed professionals guide clients through property transactions, handle paperwork, and negotiate deals on their behalf. Whether someone wants to purchase their first home or sell a commercial building, a real estate agent provides expertise that simplifies the process.
In the United States, over 1.5 million real estate agents work across residential and commercial markets. They serve as the bridge between buyers and sellers, ensuring both parties reach fair agreements. This article explains what real estate agents do, how they earn money, and why working with one can make property transactions smoother.
Key Takeaways
- A real estate agent is a licensed professional who helps people buy, sell, and rent properties while handling negotiations, paperwork, and market analysis.
- Real estate agents typically earn 5% to 6% commission on the sale price, paid at closing and split between buyer’s and seller’s agents.
- Different types of agents serve different needs—listing agents represent sellers, buyer’s agents represent purchasers, and brokers handle more complex transactions.
- Working with a real estate agent provides access to the MLS database, local market expertise, and skilled negotiation that can save you time and money.
- When choosing a real estate agent, verify their license, read reviews, interview at least three candidates, and evaluate their communication style.
What Real Estate Agents Do
Real estate agents perform several tasks that keep property transactions moving forward. Their primary job involves connecting buyers with sellers and helping both sides reach a deal.
Market Analysis and Property Valuation
A real estate agent researches local market conditions to price properties accurately. They compare recent sales data, assess neighborhood trends, and evaluate property features. This analysis helps sellers set competitive prices and helps buyers make informed offers.
Property Marketing and Showings
For sellers, real estate agents create listing descriptions, take professional photos, and advertise properties on multiple platforms. They schedule and conduct showings, answer questions from potential buyers, and gather feedback after each visit.
Buyers benefit when their real estate agent identifies suitable properties, arranges viewings, and points out both strengths and potential issues with each home.
Negotiation and Paperwork
Real estate agents negotiate prices, contingencies, and closing terms on behalf of their clients. They draft offers, counteroffers, and contracts. A skilled real estate agent understands local regulations and ensures all documents meet legal requirements.
They also coordinate with lenders, inspectors, appraisers, and title companies to keep transactions on schedule.
Types of Real Estate Agents
Not all real estate agents work in the same capacity. Understanding the different types helps clients find the right professional for their needs.
Listing Agents (Seller’s Agents)
A listing agent represents property sellers. They market the home, host open houses, and work to secure the highest possible sale price. Listing agents owe their loyalty to sellers and advocate for their interests throughout the transaction.
Buyer’s Agents
A buyer’s agent represents people looking to purchase property. They search for homes that match client criteria, schedule showings, and submit offers. Buyer’s agents negotiate on behalf of purchasers and aim to secure favorable terms.
Dual Agents
Some states allow dual agency, where one real estate agent represents both the buyer and seller in the same transaction. This arrangement requires careful disclosure and limits how much advocacy either party receives.
Real Estate Brokers
Real estate brokers hold additional licenses beyond standard agent credentials. They can operate independently or manage other agents. Brokers often handle more complex transactions and carry greater legal responsibility.
How Real Estate Agents Get Paid
Real estate agents typically work on commission rather than salary. This payment structure aligns their interests with successful closings.
Commission Structure
Most real estate agent commissions range from 5% to 6% of the property’s sale price. The seller usually pays this fee, which gets split between the listing agent and buyer’s agent. Each agent then shares their portion with their brokerage.
For example, on a $400,000 home sale with a 6% commission, the total fee equals $24,000. If split evenly, each side receives $12,000 before brokerage splits.
When Payment Occurs
Real estate agents receive payment at closing. If a deal falls through, agents typically earn nothing for their time and effort. This structure motivates agents to close transactions successfully.
Alternative Fee Models
Some real estate agents offer flat-fee services or discounted commission rates. These arrangements vary by market and agent, so clients should discuss payment terms upfront.
Benefits of Working With a Real Estate Agent
Hiring a real estate agent provides advantages that can save time, money, and stress.
Local Market Knowledge
Real estate agents know their markets intimately. They understand which neighborhoods appreciate fastest, where new developments are planned, and what features local buyers value. This knowledge helps clients make smarter decisions.
Access to Listings and Networks
Agents access the Multiple Listing Service (MLS), a database containing properties for sale. They often hear about listings before they hit public websites. Real estate agents also maintain networks of other professionals, inspectors, contractors, and lenders, who can assist during transactions.
Skilled Negotiation
Experienced real estate agents negotiate dozens of deals each year. They know which concessions to request, how to handle multiple offer situations, and when to push back on unreasonable demands. Their expertise often results in better terms than clients could achieve alone.
Reduced Risk
Real estate transactions involve significant legal and financial risks. Agents help clients avoid common pitfalls like missing disclosure deadlines, waiving important contingencies, or overpaying for properties with hidden issues.
How to Choose the Right Real Estate Agent
Selecting the right real estate agent requires research and careful evaluation.
Check Credentials and Experience
Verify that potential agents hold valid state licenses. Ask how long they’ve worked in real estate and how many transactions they complete annually. Agents with local experience understand area-specific challenges and opportunities.
Read Reviews and Request References
Online reviews reveal patterns in client satisfaction. Ask agents for references from recent clients and contact them. Questions about communication style, responsiveness, and problem-solving skills provide useful insights.
Interview Multiple Candidates
Meet with at least three real estate agents before choosing one. Ask about their marketing strategies, availability, and approach to negotiations. Pay attention to how well they listen and whether they understand your goals.
Evaluate Communication Style
A good real estate agent communicates clearly and responds promptly. During initial conversations, notice how quickly they return calls and how thoroughly they answer questions. Poor communication during the interview stage usually continues throughout the transaction.
