What is a real estate agent and what do they do?

As a first-time home buyer or seller, it’s common that you’ll work with a real estate agent. While you’re not required to hire a real estate agent, a great one often makes the buying or selling process a lot easier to navigate. So, what exactly is a real estate agent, and what does a real estate agent do? And how can you find one when you’re ready?

Licensed real estate agents represent a buyer or seller in a real estate transaction and might work with a brokerage or independently. We’ll outline what real estate agents do and how they can make your home buying or selling experience that much smoother.

What is a real estate agent?

Real estate agents are licensed professionals who organize and assist in real estate transactions. They are often paid on commission, but this varies. A real estate agent may work independently or on behalf of a brokerage or another agent.

Types of real estate agents

There are several types of real estate agents commonly involved in a real estate transaction. Three of the most common are the following:  

• Listing agent: A listing agent, also known as a seller’s agent, is a real estate agent who represents the seller in a real estate transaction.
• Buyer’s agent: A buyer’s agent is a real estate agent who represents the buyer in a real estate transaction.
• Dual agent: A dual agent is a real estate agent who works on behalf of both the home buyer and seller. Not all states allow dual agency, and in states where it is permitted, it typically requires written consent and limits the agent’s ability to advocate for either party.

Real estate agent vs. REALTOR^®

Although the terms “real estate agent” and “REALTOR” are often used interchangeably, there are differences that keep them from truly being synonymous.  A REALTOR^® is a licensed real estate professional — typically an agent or broker — who is a member of the National Association of REALTORS^® (NAR).

To become a member of the NAR, you’ll need to become a part of your local NAR association, pay national membership dues and a special assessment fee, and follow the REALTOR^® Code of Ethics.

What does a real estate agent do for buyers and sellers?

A real estate agent can be a valuable asset, whether you’re looking for the right home to purchase or in the process of selling your house. They can help the transaction run smoothly and efficiently from start to finish.

Let’s take a look at what a real estate agent actually does on a day-to-day basis.

Provide expert knowledge of specific neighborhoods

Real estate agents have a deep knowledge of the neighborhoods in an area, current property values, schools, and nearby amenities. If you’re selling, your real estate agent can provide you with tips to help market your home, suggest a listing price, or advise on valuable home upgrades.

If you’re buying, they’ll suggest neighborhoods that fit your budget and help you find the right property. Your agent can also use your preferences to find homes with access to public transportation, a pool, and a great school district – prioritizing what’s most important to you.

Offer financial guidance

Real estate agents can also help you price your home competitively or tell you if a property you want to make an offer on could be overpriced. They’re experienced in using comps, also called real estate comparables, which are recently sold properties in the area. Your real estate agent can use comps to help determine a home’s value and save you from either overspending or listing your property too high.

Find properties and schedule showings

Between work and daily life, it’s possible that you don’t have time to set up multiple showings or search for potential homes and properties all day. If you’re selling, your agent has access to a network of prospective buyers and experience hosting an open house. If you’re a buyer, your agent can narrow down listings that match your budget by searching the multiple listing service (MLS) and save you tons of time by finding homes with open houses to attend.

Help with the mortgage process and connect you to a lender

Whether you’re a buyer or seller, your real estate agent can help navigate the mortgage process, alongside a lender. If you’re selling your home, your real estate agent will work with buyer’s agents to ensure potential buyers have been preapproved for a mortgage.

As a buyer, getting preapproved for a loan is another important step, and having an agent by your side can be beneficial. Your real estate agent has likely worked closely with several mortgage lenders. They can help you find a lender that offers the right mortgage loan product for your needs.

Guide home sale negotiations

Whether you’re negotiating an offer or home inspection repairs, your real estate agent will try to get you the best deal possible. For example, if the home inspection reveals issues with the property, your agent can help you negotiate repairs or a lower purchase price.

Your agent might even suggest a different property for you if the homeowner is hiding a major long-term issue. The best real estate agents know how to negotiate a compromise that works for both parties before a sale is finalized.

Assist with paperwork and closing

Whether you’re selling or buying a home, you can anticipate completing a lot of paperwork. It’s expected that some of this may be unfamiliar, especially if you're a first-time home buyer. Your agent can help make sure that you complete your paperwork on time, that everything you fill out is correct, and that you address any outstanding issues as quickly as possible.

The closing process can be confusing for both buyers and sellers, but having a real estate agent to guide you can make it smooth and efficient. Your agent can also answer your questions following closing day, and they can be a great resource if you want to find a contractor or other home service provider.

How do you find a real estate agent?

There are plenty of ways to find a great, reliable real estate agent that has your best interests at heart. It’s important to speak with a few agents before signing a buyer’s agency agreement or listing agreement.

Let’s look at some tips to help you find a real estate agent:

Tip 1: Talk to friends and family

Do you know someone who has recently sold or closed on a home? Word-of-mouth advertising is one of the best ways to find a good real estate agent. More than 40% of buyers and sellers find agents via referral, so speaking with trusted friends or family can be a good start. It's worth choosing an agent who connects well with people whose opinions you trust, since you’ll be spending a lot of time with them.

Tip 2: Use Redfin

Using a real estate website, like Redfin, can help you find real estate agents who work in the specific area and zip code you’re looking to buy or sell in. You can see the agent’s rating, how many deals they’ve closed, and insights.

Tip 3: Conduct an online search

If you’re new to an area, searching online for a real estate agent is a great way to begin. Be sure to search for real estate agents in the zip code where you want to buy a home.

In big cities, it’s common for agents to specialize in certain neighborhoods or zip codes. Working with an agent who is familiar with your neighborhood can be an asset to understanding the area’s market and setting realistic expectations.

Tip 4: Ask your lender

If you’re a repeat buyer or looking to get a preapproval to determine your budget, a mortgage lender can be a great resource for finding an agent in your area. Many mortgage brokers in your area, like the experts at Rocket Mortgage^®, know reliable agents who might offer a smooth transaction.

The bottom line: A real estate agent guides transactions at every step

Great real estate agents help you through each step of the home buying or selling process – and advocate for your needs and goals. While you’re not required to work with one, a real estate agent’s expertise can make finding your dream home or selling your current home that much easier.

If you’ve found the right real estate agent for you and you’re ready to buy a home, you can start your mortgage application at Rocket Mortgage^®.

This article is for informational purposes only and is not intended to provide, and should not be relied on for, medical, legal, financial, or tax advice. You should consult with a qualified professional for advice specific to your situation. Consumers should independently verify that any services, products, or programs referenced meet their needs and comply with applicable requirements.