Learning the role of a real estate agent
You might be familiar with the more typical real estate agent duties, but some responsibilities might surprise you. And if you think being a real estate agent and being a “capital R” Realtor are the same thing, you’ll soon learn that they’re different. Read on to get the full scoop on the role of a real estate agent.
What is a real estate agent?
At the most basic level, real estate agents are licensed pros who connect buyers and sellers. Agents really shine with their knowledge of the local market, their negotiation know-how and their understanding of the legal stuff that comes with buying a home.
Not only is a good real estate agent super skilled at getting the deal done—they also help keep the process smooth and easy for everyone involved. If you’d rather buy a home without a real estate agent, you’d have to shoulder the house hunting, negotiations and paperwork all on your own.
Agents really shine with their knowledge of the local market, their negotiation know-how and their understanding of the legal stuff that comes with buying a home.
Types of real estate agents
Real estate agents wear different hats, depending on their role in the transaction:
- Buyer's agents work with whoever is looking to buy a home. This is the licensed pro who keeps your best interests in mind in every situation, whether it’s finding the exact home you’re looking for or getting the seller to drop the price. They find the properties that fit your needs and budget, advise you on how to make a winning offer and even recommend other pros you might need during the process, like a good real estate attorney.
- Listing agents (aka seller's agents) work with—you guessed it—the seller. Their main job is to help the seller make the most profit from the sale. They help market the home (which includes arranging photo shoots and video tours), handle open houses and work with the seller to price the home appropriately for that specific market.
- Dual agents wear both hats, acting as the buyer’s and the seller’s agent in a single transaction. Also called dual representation, this is when your agent could show you a home, help you make your best offer, then turn around and work with the seller so they get their best offer. Perplexed? You’re not alone. Dual agency is a tough balancing act, and as you can imagine, it can lead to conflicts of interest and is actually illegal in some states.
Real estate agent vs. Realtor
People frequently use the term “real estate agent” interchangeably with “Realtor” (yes that capital “R” is intentional). However, this is technically incorrect, since there are important distinctions between the two titles. Let’s clear things up a bit.
Main differences
The biggest difference between a Realtor and a real estate agent is a Realtor’s membership in the National Association of Realtors (NAR). This means they’ve done their homework and completed specific courses. Being a Realtor isn't just a title—it shows they follow NAR’s strict code of ethics and are committed to doing things the right way. It's a trademarked term, too, so not every real estate agent can call themselves a Realtor—unless they're part of the NAR.
Importance of NAR membership
Not only is a NAR membership a sign of a serious agent—it also gives your Realtor access to resources and tools that regular agents might not have, like deep market intel and extra training. This means that they may be better primed to help you navigate the whole process and get the best deal.
What do real estate agents do?
The responsibilities of a real estate agent can be divvied up into three categories:
Provide guidance
Real estate agents are super helpful whether you're buying or selling a home. Agents can help you navigate the market and set the right price. They handle everything from answering your questions and setting up appointments to managing listings and taking care of all the necessary paperwork and marketing materials. They're your go-to resource who makes sure everyone knows what's going on and that things run smoothly.
Speaking of paperwork, the home buying process requires a lot of it. Your agent will help you stay on top of every document, from your offer letter to your deed, title and purchase agreement (not to mention the full laundry list of closing documents). They’ll let you know what form you need to sign and when, which means you’ll have one less thing to worry about during your home buying adventure.
A real estate agent’s experience also comes in handy during the inspection process—that moment of truth when you find out if your dream home is a money pit in disguise. They’ll probably join you for the inspection so they can answer your questions, use their trained eye to spot areas where a more specialized inspection makes sense (squirrel nest in the attic, anyone?) and help you understand the inspection report once it comes in.
Find properties and schedule showings
When it comes to finding the perfect home, agents are superstars. They know all about local markets, property values, schools and neighborhood vibes. Unlike the rest of us, agents have access to a fancy database called the MLS where they can find homes that match your budget and preferences. They’ll schedule the showings and coordinate with homeowners to set up times that work for everyone.
During a showing, your agent will walk you through the property, point out key features and gather feedback to learn more about what you’re looking for so they can zero in on your dream home. Even better? They know the most important questions to ask to make sure a property is up to snuff before you make a commitment.
Negotiate the best deal
Your agent is responsible for all things offer-related when you’re buying a house, which puts negotiation high on the list of real estate agent duties. This includes presenting your initial offer to the seller’s agent, responding to the seller’s counter offer and negotiating repairs, closing credits or a price drop to compensate for any inspection red flags.
If the competition is fierce and you find yourself in a bidding war, an agent can advise you on strategic ways to sharpen your offer, from increasing your earnest money deposit to waiving contingencies.
Your agent will know how to walk the diplomatic line between getting you the best price and maintaining positive relationships with both sides of the transaction (real estate is a small business, after all). It’s a delicate dance, and a skilled real estate agent can do it blindfolded.
How to find the right real estate agent
Finding the perfect real estate agent is a bit like finding a new confidant. You need an ally who’s not only knowledgeable and experienced but also someone you really connect with. Look for an agent who takes the time to understand your needs, communicates in a way that makes sense to you and has a track record of helping people with similar goals in similar areas.
You can start your search by asking your friends and family for recommendations and reading some reviews. Once you have three names to consider, chat with each of them to learn about how they would work with you, their experience in your desired neighborhood and why they think they’re the best fit for your situation.