Real estate agents play a critical role in buying and selling property. They handle negotiations, paperwork, and market analysis so clients don’t have to. Whether someone is purchasing their first home or selling an investment property, the right agent can save time, money, and stress.
But not all agents are the same. Some specialize in luxury homes. Others focus on commercial properties or first-time buyers. Choosing the wrong one can mean missed opportunities or a deal that falls through.
This guide covers what real estate agents actually do, the different types available, and how to pick one that fits specific needs. It also includes key questions to ask before signing any agreement.
Key Takeaways
- Real estate agents handle negotiations, paperwork, and market analysis, saving clients time, money, and stress during property transactions.
- Different types of agents serve different needs—buyer’s agents, listing agents, dual agents, and specialty agents each offer unique expertise.
- Working with a real estate agent provides access to MLS listings, professional networks, and local market knowledge that most buyers and sellers lack.
- Interview at least three agents before hiring, and verify their credentials through your state’s real estate commission website.
- Ask potential agents about their transaction volume, communication style, specialty, and strategy for handling competitive situations.
- Commission rates typically range from 5% to 6% of the sale price, split between buyer’s and seller’s agents.
What Does a Real Estate Agent Do?
Real estate agents act as intermediaries between buyers and sellers. They guide clients through transactions, handle negotiations, and manage the paperwork that comes with property deals.
For sellers, a real estate agent lists the property, markets it to potential buyers, and schedules showings. They also advise on pricing by analyzing comparable sales in the area. A well-priced home attracts more interest and often sells faster.
For buyers, real estate agents identify properties that match specific criteria. They schedule tours, research neighborhoods, and provide insight into local market conditions. When a buyer finds the right property, the agent submits offers and negotiates terms on their behalf.
Real estate agents also coordinate with other professionals involved in the transaction. This includes mortgage lenders, home inspectors, appraisers, and title companies. They keep the process moving and address issues before they become problems.
Most real estate agents work on commission. They earn a percentage of the sale price, typically 5% to 6%, split between the buyer’s and seller’s agents. This means they only get paid when a deal closes, which motivates them to work efficiently.
Types of Real Estate Agents
Not all real estate agents perform the same job. Their roles and responsibilities vary based on who they represent and what type of property they handle.
Buyer’s Agent
A buyer’s agent represents the person purchasing a property. They search for listings, arrange showings, and negotiate the purchase price. Their job is to protect the buyer’s interests throughout the transaction.
Listing Agent (Seller’s Agent)
A listing agent represents the property seller. They set the asking price, create marketing materials, and host open houses. During negotiations, they work to get the best possible price for their client.
Dual Agent
In some states, one real estate agent can represent both the buyer and seller in the same transaction. This is called dual agency. It can speed up the process, but it also creates potential conflicts of interest. Both parties should understand what they’re agreeing to before proceeding.
Real Estate Broker
Brokers have additional training and licensing beyond standard real estate agents. They can work independently or manage other agents. Some brokers still work directly with clients, while others focus on running their brokerage.
Specialty Agents
Some real estate agents focus on specific property types or client groups. Examples include commercial real estate agents, luxury home specialists, and agents who work primarily with investors or first-time buyers. Matching with a specialist can provide deeper expertise in a particular market segment.
Benefits of Working With a Real Estate Agent
Some buyers and sellers consider handling transactions themselves. While that’s possible, working with a real estate agent offers clear advantages.
Market Knowledge
Real estate agents understand local markets. They know which neighborhoods are appreciating, where new developments are planned, and what homes are actually selling for, not just listed prices. This knowledge helps clients make informed decisions.
Negotiation Skills
Negotiating a property deal involves more than price. Contingencies, closing costs, repair credits, and timelines all factor in. Experienced real estate agents know how to structure offers that protect their clients while remaining attractive to the other party.
Access to Listings
Real estate agents have access to Multiple Listing Services (MLS), which contain properties not always visible on public websites. They can also hear about upcoming listings before they hit the market, giving their clients an edge.
Time Savings
Searching for homes, scheduling showings, and reviewing contracts takes significant time. Real estate agents handle these tasks, freeing clients to focus on their lives while staying informed about progress.
Professional Network
Good real estate agents maintain relationships with inspectors, lenders, contractors, and attorneys. When clients need a recommendation, they can provide trusted contacts who’ve delivered quality work in the past.
Reduced Risk
Real estate transactions involve legal contracts and significant money. Mistakes can be expensive. Real estate agents help clients avoid common pitfalls and ensure paperwork is completed correctly.
How to Find and Choose the Right Agent
Finding a good real estate agent takes some effort. Here’s how to approach the search.
Ask for Referrals
Start by asking friends, family, or coworkers who’ve recently bought or sold property. Personal recommendations often reveal agents who deliver great results and are easy to work with.
Check Online Reviews
Websites like Zillow, Realtor.com, and Google display reviews from past clients. Look for patterns in feedback. One negative review might be an outlier, but several complaints about communication or availability should raise concerns.
Verify Credentials
All real estate agents must hold a valid license in their state. Verify this through the state’s real estate commission website. Also check for any disciplinary actions or complaints on file.
Interview Multiple Agents
Don’t hire the first agent encountered. Interview at least three candidates. Ask about their experience, approach, and availability. Pay attention to how well they listen and whether they understand specific goals.
Evaluate Local Expertise
An agent who knows the target neighborhood will have insights that outsiders lack. They’ll understand pricing trends, school districts, and what makes certain blocks more desirable than others. Ask candidates how many transactions they’ve completed in the area.
Consider Communication Style
Some clients prefer frequent updates. Others want to hear from their agent only when action is needed. Discuss communication preferences upfront to avoid frustration later.
Questions to Ask Before Hiring an Agent
Before committing to a real estate agent, clients should ask specific questions to assess fit and competence.
- How long have you been a licensed real estate agent?
Experience matters. Agents with more years in the business have likely encountered, and solved, more problems.
- How many transactions did you close last year?
This indicates how active an agent is. Someone who closed two deals might lack momentum, while someone who closed fifty might not give each client enough attention.
- What’s your specialty?
An agent who primarily sells condos may not be the best choice for a rural land purchase. Make sure their expertise aligns with the property type.
- How will you communicate with me?
Clarify how often they’ll provide updates and through what channels, text, email, phone calls. Set expectations early.
- Can you provide references from recent clients?
Talking to past clients offers honest insight into what working with this agent is really like.
- What’s your commission rate, and what does it include?
Understand exactly what services the commission covers. Some agents include professional photography and staging consultations. Others don’t.
- How do you handle multiple offers or bidding wars?
In competitive markets, this scenario is common. An experienced real estate agent will have a clear strategy for winning in these situations.
