Real estate agents help people buy, sell, and rent properties every day. Whether someone is purchasing their first home or selling an investment property, these professionals guide clients through one of the largest financial decisions they’ll ever make. But what exactly do real estate agents do, and how can buyers or sellers find the right one? This guide breaks down the role of real estate agents, the benefits they offer, how to choose the best fit, and what to expect when it comes to fees and commissions.

What Does a Real Estate Agent Do?

Real estate agents act as intermediaries between buyers and sellers. They handle dozens of tasks that make property transactions smoother and less stressful for everyone involved.

For sellers, real estate agents list properties on the Multiple Listing Service (MLS), market homes through online platforms and open houses, and negotiate offers. They also help set competitive prices based on local market data and recent sales.

For buyers, real estate agents search for properties that match specific criteria. They schedule showings, provide insights about neighborhoods, and submit offers on behalf of their clients. A skilled real estate agent knows the local inventory inside and out, they can often identify homes before they officially hit the market.

Real estate agents also manage paperwork. Purchase agreements, disclosure forms, and inspection reports all require attention to detail. Agents ensure these documents are completed correctly and submitted on time. Missing a deadline can delay closing or even kill a deal.

Also, real estate agents coordinate with other professionals. They connect clients with mortgage lenders, home inspectors, appraisers, and title companies. This network helps transactions move forward without unnecessary delays.

In short, real estate agents wear many hats. They’re marketers, negotiators, project managers, and advisors rolled into one.

Benefits of Working With a Real Estate Agent

Why hire a real estate agent instead of going solo? The benefits are significant, especially for first-time buyers or sellers unfamiliar with local markets.

Market Expertise

Real estate agents understand local pricing trends. They know which neighborhoods are appreciating, which streets have the best school districts, and which areas might have hidden issues. This knowledge helps buyers avoid overpaying and helps sellers price their homes correctly.

Negotiation Skills

Buying or selling property involves negotiation. Real estate agents advocate for their clients during price discussions, repair requests, and contingency removals. An experienced agent can save clients thousands of dollars, or prevent them from losing a deal over a minor sticking point.

Access to Resources

Real estate agents have access to tools most consumers don’t. MLS access provides comprehensive property data, while professional networks offer connections to reliable contractors, lenders, and inspectors. These resources give clients an advantage.

Time Savings

Searching for homes, scheduling tours, reviewing contracts, these tasks eat up hours. Real estate agents handle the legwork so clients can focus on their jobs, families, and other priorities.

Reduced Stress

Property transactions involve a lot of moving parts. Real estate agents keep everything organized and on track. They anticipate problems before they arise and solve issues quickly when they do appear.

How to Find and Choose a Real Estate Agent

Finding a real estate agent isn’t hard. Finding the right real estate agent takes more effort. Here’s how to approach the search.

Start With Referrals

Ask friends, family members, or coworkers for recommendations. Personal referrals often lead to the best results because they come from people who’ve worked with an agent firsthand.

Check Online Reviews

Websites like Zillow, Realtor.com, and Google display agent reviews and ratings. Look for patterns in the feedback. Consistent praise for communication or negotiation skills is a good sign. Repeated complaints about responsiveness are a red flag.

Interview Multiple Agents

Don’t commit to the first real estate agent who responds. Interview at least two or three candidates. Compare their experience, marketing strategies, and communication styles.

Verify Credentials

All real estate agents must be licensed in their state. Some also hold additional certifications, such as Accredited Buyer’s Representative (ABR) or Certified Residential Specialist (CRS). These credentials indicate specialized training.

Questions to Ask Before Hiring an Agent

Asking the right questions helps separate average agents from exceptional ones. Consider these:

• How long have you worked as a real estate agent?
• How many transactions did you close last year?
• What’s your experience in this specific neighborhood or price range?
• How will you communicate with me, and how often?
• Can you provide references from recent clients?
• What’s your marketing plan for my home? (For sellers)
• How quickly can you start showing me properties? (For buyers)

The answers reveal how an agent operates. A real estate agent who provides clear, confident responses likely has the experience and systems to deliver results.

Real Estate Agent Fees and Commissions

Real estate agent fees typically come in the form of commissions. These commissions are usually a percentage of the sale price.

Historically, total commissions ranged from 5% to 6% of the home’s sale price. The seller typically paid this amount, which was then split between the listing agent and the buyer’s agent. But, significant changes occurred in 2024 following a major legal settlement involving the National Association of Realtors.

As of August 2024, buyer’s agent commissions are no longer automatically offered through the MLS. Buyers may now negotiate directly with their agents about compensation. This shift means some buyers might pay their agent’s commission out of pocket, while others may still see sellers offer compensation as an incentive.

For sellers, listing agent commissions remain negotiable. Some real estate agents charge flat fees instead of percentages. Discount brokerages offer lower rates but may provide fewer services.

What Do Commissions Cover?

Commissions pay for an agent’s time, expertise, and expenses. Real estate agents cover marketing costs, MLS fees, professional photography, and other business expenses from their commission. They also split a portion with their brokerage.

Are Commissions Worth It?

For most people, yes. Studies show that homes sold with real estate agents typically fetch higher prices than for-sale-by-owner properties. The expertise and exposure agents provide often more than offset their fees.

That said, every situation is different. Sellers with extensive real estate experience or buyers in straightforward transactions may find success without full-service representation.