Real estate agents play a critical role in buying and selling property. They guide clients through transactions, handle negotiations, and manage paperwork. A skilled agent can save buyers and sellers thousands of dollars while reducing stress. But, not all agents offer the same level of expertise. Choosing the right real estate agent requires research, clear expectations, and the right questions. This guide explains what real estate agents do, the different types available, and how to select one that fits specific needs.
Key Takeaways
- Real estate agents guide clients through property transactions, handling negotiations, paperwork, and communication with lenders and title companies.
- Different types of agents serve different needs—listing agents focus on sellers, buyer’s agents represent purchasers, and brokers offer advanced expertise.
- Start your agent search with personal referrals and online reviews to identify professionals with strong communication and negotiation skills.
- Interview at least three real estate agents before hiring, comparing their market knowledge, experience, and strategies.
- Ask direct questions about experience, communication preferences, and commission rates to ensure the agent fits your specific needs.
- Verify credentials through state licensing boards and look for certifications like ABR or CRS for added expertise.
What Does a Real Estate Agent Do?
Real estate agents serve as intermediaries between buyers and sellers. They hold licenses that allow them to represent clients in property transactions. Their responsibilities vary depending on which side of the deal they represent.
Buyer Representation
Agents working with buyers search for properties that match client criteria. They schedule showings, provide market analysis, and advise on fair offer prices. During negotiations, they advocate for the buyer’s interests. They also coordinate inspections, appraisals, and closing procedures.
Seller Representation
Real estate agents representing sellers focus on marketing properties effectively. They set listing prices based on comparable sales data. They photograph homes, write listing descriptions, and host open houses. When offers arrive, they present them to sellers and negotiate terms.
Transaction Management
Both buyer and seller agents handle significant paperwork. Purchase agreements, disclosures, and closing documents require careful attention. Real estate agents ensure deadlines are met and contingencies are addressed. They communicate with lenders, title companies, and other parties involved in the transaction.
Most real estate agents earn commissions based on sale prices. The typical commission ranges from 5% to 6% of the home’s sale price, split between buyer and seller agents. This structure motivates agents to close deals at favorable prices for their clients.
Types of Real Estate Agents
Different types of real estate agents serve different purposes. Understanding these distinctions helps clients choose the right professional for their situation.
Listing Agents
Listing agents work exclusively with sellers. They specialize in marketing properties, staging homes, and attracting buyers. Strong listing agents understand local market trends and price homes competitively. They often have networks of potential buyers and other agents.
Buyer’s Agents
Buyer’s agents represent people looking to purchase property. They focus on finding homes that meet specific requirements. Good buyer’s agents know neighborhoods well and can identify potential issues with properties. They also excel at negotiating purchase prices and contract terms.
Dual Agents
Some real estate agents represent both buyer and seller in the same transaction. This arrangement, called dual agency, is legal in many states but comes with limitations. Dual agents cannot advocate strongly for either party. Clients should understand this trade-off before agreeing to dual representation.
Real Estate Brokers
Brokers hold additional licenses beyond standard agent credentials. They can work independently or manage other agents. Some brokers focus on specific property types, such as commercial real estate or luxury homes. Their extra training often translates to deeper market knowledge.
How to Find and Choose the Right Agent
Finding qualified real estate agents requires effort, but the process pays off. Several strategies help narrow the search.
Start with Referrals
Friends, family, and colleagues often recommend agents they’ve worked with. Personal referrals provide honest feedback about an agent’s communication style and effectiveness. Ask about specific experiences, what went well and what could have been better.
Research Online Reviews
Websites like Zillow, Realtor.com, and Google display client reviews for real estate agents. Look for patterns in feedback. Consistent praise for responsiveness or negotiation skills indicates strengths. Repeated complaints about communication problems signal potential issues.
Check Credentials and Experience
Verify that agents hold active licenses through state licensing boards. Look for additional certifications, such as Accredited Buyer’s Representative (ABR) or Certified Residential Specialist (CRS). Experience matters too, agents who’ve closed many transactions in specific neighborhoods often have valuable insights.
Interview Multiple Candidates
Meet with at least three real estate agents before deciding. Compare their market knowledge, communication styles, and strategies. The right agent should understand client goals and explain their approach clearly. Trust your instincts about personality fit, you’ll spend significant time with this person.
Questions to Ask Before Hiring an Agent
Asking direct questions reveals whether a real estate agent fits your needs. These questions help assess competence and compatibility.
Experience Questions
- How long have you worked as a real estate agent?
- How many transactions did you close last year?
- Do you specialize in certain property types or neighborhoods?
Experienced agents bring problem-solving skills from past deals. But, newer agents sometimes offer more attentive service and competitive commission rates.
Process Questions
- How will you communicate updates, phone, text, or email?
- How quickly do you typically respond to messages?
- What’s your strategy for finding homes (or marketing my property)?
Clear communication prevents frustration during stressful transactions. Real estate agents should explain their process upfront.
Business Questions
- Do you work full-time or part-time as an agent?
- Will I work directly with you or with a team member?
- What are your commission rates and terms?
Full-time agents generally offer more availability. Teams can provide coverage but may reduce personal attention. Commission rates are often negotiable, especially in competitive markets.
Reference Questions
- Can you provide references from recent clients?
- Have you worked with situations similar to mine?
Speaking with past clients offers insights no interview can match. Good real estate agents willingly share references.
