It is undeniable that a reliable real estate agent plays a crucial role in simplifying the process of selling or buying a house, reducing stress along the way. But what exactly does a real estate agent do?
Let’s delve into how a reputable real estate agent can assist you in effectively navigating the real estate market, as well as the measures you can take to ensure that you find the perfect match with your real estate agent.
What is a real Estate Agent
A real estate agent is a professional who is authorized and certified to facilitate property transactions. They play a crucial role in connecting potential buyers and sellers and also act as representatives in negotiation processes.
Real estate agents earn their income through a commission-based system, where a percentage of the property’s sale price is paid to them upon successfully closing deals. It is important to note that in most states, real estate agents are required to either work for or be associated with a real estate broker.
These brokers typically have more experience, have undergone additional training, and possess the necessary licenses in the field.
What a Real Estate Agent Does
Real estate agents typically have a focus on either commercial or residential properties. Their responsibilities vary depending on whether they represent the buyer or the seller. Listing agents, who represent sellers, provide guidance on pricing the property and getting it ready for sale.
They often offer suggestions on last-minute improvements to increase the value or attract quicker offers. Seller agents promote the property through listing services, their professional network, and advertisements.
Real estate agents representing the buyer are responsible for finding suitable properties within the buyer’s budget and preferences. To assist potential buyers in making a realistic offer, these agents analyze historical sales information of similar properties.
Afterward, the real estate agents serve as intermediaries for the main parties involved, transmitting offers, counteroffers, and any other inquiries back and forth. Essentially, they negotiate on behalf of their clients.
Once an offer is accepted, the agents from both sides have tasks ahead of them: assisting their clients with the necessary paperwork, communicating on their behalf, providing guidance on inspections and the moving process, and overall guiding the transaction until its completion.
When involved in a real estate deal, it is crucial to understand the role of a real estate agent and who they represent – the buyer, the seller, or both parties. This representation has a significant impact on the agent’s actions during the transaction.
The regulations set by state laws determine if an agent can represent both parties, which is referred to as “dual agency.” Agents are required to disclose their representation to ensure that buyers and sellers are aware of any potential conflicts of interest.
Licensing and requirements
In order to work as a real estate agent, it is generally necessary to obtain a license specific to the jurisdiction.
The specific requirements for licensure may differ from state to state, but generally involve the candidate being at least 18 years old, completing a certain number of hours of real estate education courses (as well as a pre-licensing course offered by an accredited real estate licensing school), and successfully passing a licensing examination, as stated by the BLS.
Real Estate Agent Compensation
In the past, real estate agents used to earn their income by receiving a percentage of the sale price of a property as commission. The higher the selling price, the greater the agent’s earnings.
However, the payment structure for real estate agents is undergoing a transformation due to the availability of online listings, which empower consumers to conduct much of their property search without relying on an agent’s assistance.
There are real estate brokerages that offer different pricing options for their services. For higher-priced properties, some brokerages charge a reduced commission rate. On the other hand, there are brokerages that provide a complete transaction service for a fixed fee, which often ends up being lower than a traditional commission.
Additionally, certain companies have a flexible pricing structure where sellers can choose to pay for specific aspects of the sale process, such as listing the property on a multiple listing service or receiving assistance with organizing an open house.
Types Of Real Estate Agents
Real estate agents may have additional duties depending on their specific job titles. To gain a better understanding of the tasks performed by real estate agents, it is helpful to explore the different roles they play and how they support individuals in buying and selling homes.
Real Estate Broker
A real estate agent who has successfully completed their brokerage exam is known as a real estate broker. These brokers have the ability to work independently or establish their own brokerage. In addition to their regular real estate agent responsibilities, brokers may also have additional administrative duties.
Listing Agent
A real estate agent, also known as a listing or selling agent, plays a crucial role in helping homeowners sell their property. Their responsibilities include arranging for a professional real estate photographer to capture high-quality images of the house, producing a virtual tour to showcase the listing, strategically arranging and decorating the home to enhance its appeal, and effectively promoting the property to attract interested buyers.
Buyer’s Agent
A real estate agent who specializes in helping buyers purchase homes is known as a buyer’s agent. Their main responsibilities include searching for suitable properties, arranging property viewings, and guiding clients in selecting a mortgage lender.
Before starting to work together, a buyer’s agent typically requests that you sign a buyer’s agency agreement. This agreement outlines the duration of your collaboration, the terms of the agreement, and the commission the agent will be entitled to.
Dual Agent
In a real estate transaction, a real estate agent who serves as a dual agent represents both the buyer and the seller. This practice is generally disapproved of because it can lead to a conflict of interest when the buyer and seller do not have separate representation. It is worth noting that in certain states, dual agency is considered to be illegal.
Real Estate Agent vs. Realtor
All individuals working in the real estate industry can either be a real estate broker or a real estate agent, but not all real estate agents hold the title of a broker. Now, let’s consider the role of realtors in this context.
A real estate agent is a professional who is a member of the National Association of Realtors (NAR), which is a trade association. Both agents and brokers can be real estate agents, as well as property managers, appraisers, and other professionals in the real estate industry.
Real estate agents are required to have extensive knowledge in their field and are expected to adhere to the NAR’s code of ethics, which outlines specific responsibilities towards clients, customers, the public, and other real estate agents.
Apart from being a member of the NAR, real estate agents also need to be affiliated with a state or local real estate association or board. Every individual working as a realtor can be classified as a real estate agent, broker, or engaged in a similar field.
However, it is important to note that not all agents or brokers are considered realtors. In the United States, there are approximately three million individuals with active real estate licenses, around 1.6 million members affiliated with the National Association of Realtors (NAR), and roughly 106,500 brokerage firms operating in the country.
What Does a Real Estate Agent Do?
A real estate agent is responsible for managing a wide range of tasks, including property evaluations, negotiations, and administrative responsibilities, all while maintaining client interactions.
Their work involves conducting research on market trends, property prices, zoning regulations, local amenities, and effective marketing techniques. Additionally, they stay updated on the most recent laws and regulations within the real estate industry.
How Do I Become a Real Estate Agent?
Becoming a real estate agent entails following a specific set of steps, which can vary depending on your location. The usual requirements include being of a certain age, being a legal resident in the area where you intend to work, completing the required pre-license education, successfully passing the real estate exam in your state, activating your license, and ultimately joining a real estate brokerage.
What Is a Real Estate Agent’s Salary?
Real estate agents and brokers earned a median annual salary of $49,980 and $62,190 respectively in 2022, as reported by the U.S. Bureau of Labor Statistics. However, the actual earnings of agents can differ greatly based on their experience and location.
These professionals primarily rely on commissions from property sales, which means their income can vary depending on the state of the real estate market and the number and value of transactions they complete. It is worth noting that many real estate agents work part-time, resulting in a wide range of experience, skills, and compensation.
What Is a Real Estate Professional?
A real estate agent is an individual employed in the real estate sector. They may hold various titles such as agent, broker, property manager, or any other role related to the field of real estate.
What Does it Take to Succeed as a Real Estate Agent?
In order to thrive as a real estate agent, it is crucial to possess effective communication abilities, networking skills, proficiency in technology, and a comprehensive understanding of the housing market.
Successful real estate agents should also excel at goal-setting, developing marketing strategies, nurturing relationships with previous clients, and remaining resilient when confronted with industry fluctuations and obstacles.
The Bottom Line
After understanding the role of a real estate agent, you have the necessary knowledge to make a well-informed decision about whether collaborating with one is the suitable option for you. Regardless of whether you are a buyer or a seller, a real estate agent will be available to provide assistance and guidance throughout your real estate experience.