What Does A Real Estate Agent Do?
It’s tempting to skip agent fees by jumping into the market alone. However, most people don’t realize everything agents do to help ensure smooth sailing to closing. Core real estate agent responsibilities include:
- Search home listings to find properties that meet your criteria.
- Use their in-depth geological and localized market knowledge to help you.
- Write and addend offers on your behalf using their legal and contractual knowledge.
- Serve as an intermediary between seller, lender, title company, and other parties.
- Advocate for you and your interests during negotiations on your way to closing.
- Use their understanding of construction red flags, safety concerns, or hidden maintenance costs to help you foresee problems. Your agent should be the first person to tell you that a home is likely going to need a new roof in a year.
- Provide resources and contacts when you ask about inspectors, lenders, lawyers, and other real estate professionals you’ll need along the journey.
Let’s break down what this looks like on the path to buying a home!
Help You Find Homes & Asses Value
Your real estate agent will ideally know the market you’re shopping in like the back of their hand. They will use “comp” properties to establish how much a home should go for. They also understand pricing for your geographical area in general. This experience also positions them to use the best methods and tactics for negotiations based on current market realities.
Can’t I Browse Home Listings & Find My Home Myself?
Absolutely! Websites like Movoto and MLS feeds open up easy property viewing for all! Realtors aren’t there to be gatekeepers. However, the truth is that most people don’t have the time to check listings every single day to avoid missing new properties or price reductions.
Additionally, agents do often have early access to “coming soon” listings. This can help you get in position to schedule a viewing or make an offer when a home that checks your boxes is about to hit the market. This is common when a partner agent is listing a home.
While early access can sometimes help you see a property before anyone else, the truth is that most of the value agents bring to the table comes after a home viewing. Their knowledge and expertise are used to:
- Craft a custom offer on a property.
- Advise you on inspections.
- Warn you of potential issues with financing or appraisal. Remember that a home that’s priced above its appraisal value creates something called an appraisal gap that could hinder your ability to get a bank loan.
- Negotiate on your behalf with the seller and their agent.
- Ensure everything is coming together for closing with your POF letter, escrow, and more while observing that legal timelines are upheld.
- Help you to avoid breaching your end of an offer contract.
- Help to make sure you understand what’s written in closing disclosures.
Geographical Knowledge
When you ask a potential agent questions, be sure to find out how many years they’ve been working with the local market. Experienced agents understand local neighborhoods better than the mayor.
- They know about the top school districts, the safest neighborhoods, the easiest neighborhoods for commuting, and more.
- Based on your preferences, they can also steer you toward up-and-coming neighborhoods vs. neighborhoods in decline.
- If you want to avoid neighborhoods with HOA fees, they can narrow down the search to avoid wasting time on properties located within private communities.
Our tips on how to find the best agent.
Legal & Contractual Knowledge
Trying to write an offer on your own is likely to either get your offer rejected or inadvertently give the seller a leg up. As contract pros, real estate agents can:
- Craft a solid offer.
- Include the correct contingencies and requests for concessions based on a home’s condition or the amount of time it’s been on the market.
- Submit addendums as information comes in following inspections and appraisals.
- See that all inspections and appraisals are happening within specified legal timelines.
Intermediary & Liaising Duties
Agents speak the language of the market. That’s why you’ll be relieved to have one working for you when you need to correspond with your lender, escrow company, title company, and other professionals needed to complete the transaction.
They can even use the right channels to get the “inside scoop” on a property. For example, they can speak with the listing agent to find out why a home has a history of pending sales.
Real estate agents can also help you read the mood of the seller. Their experience allows them to measure the temperament and flexibility of the seller based on communication with the seller’s agent handling the listing.
Advocate For Your Wants & Needs
Buying a home is emotional by nature. There’s temptation to fall so head-over-heels in love with a property that you don’t see the potential flaws. Agents will highlight everything that can go wrong. They won’t be shy about pointing out flaws in homes you view if those flaws don’t align with your buying goals.
Agents also lay the stakes out for you. They’ll let you know if they see red flags as far as valuation or likelihood of being approved for financing. In addition to being property experts, they also know quite a bit about loan types and requirements after going through the closing process countless times with many different types of buyers.
Construction & Building Code Awareness
Agents in your market understand zoning regulations in your city for single-family housing, multifamily housing, accessory dwelling units (ADUs), and more. If you’re dealing with an old or atypical property, they’ll let you know when extra inspections are recommended. This could include:
- Specialty inspections for older or historic hopes.
- Sewer scopes for older homes.
- Radon testing in homes with basements.
- Water testing in homes with wells.
Experienced real estate agents also have built-in “detectors.” They know about the quick cosmetic updates that are telltale signs that something is being covered up. That “something” could be a costly problem that you’d inherit if you bought the home. Some health or safety concerns in homes could hinder or delay financing.
Resources & Contacts
Finally, real estate agents know the best of the best when it comes to contacts within the industry. Based on the satisfaction or disappointment they’ve seen with their other clients, they can recommend local inspectors who conduct inspections that can give you a strong standing in negotiations. If necessary, they can also usually recommend lenders or financing paths. If you’re selling, your real estate agent can use their network to spread awareness of your listing.
