A real estate agent can help you navigate the many decisions, deadlines and negotiations involved in buying or selling a home.
For buyers, that can mean finding properties, evaluating comparable sales, scheduling showings, preparing offers and coordinating the transaction through closing. For sellers, an agent may help price and market the property, manage showings, evaluate offers and negotiate terms.
Agents don’t replace your lender, home inspector, attorney, appraiser or other specialists. Their primary role is to represent you in the real estate transaction and help coordinate the process.
Key Takeaways
- Buyer’s agents help with home searches, offers, negotiations and transaction deadlines.
- Listing agents help sellers price, market and negotiate the sale of a home.
- Agents coordinate with other professionals, but they don’t replace lenders, inspectors, attorneys or appraisers.
What Does a Real Estate Agent Do?
A real estate agent is a state-licensed professional who helps clients buy, sell or sometimes rent real estate.
Exactly what an agent does depends on whom they represent and the terms of the representation agreement.
A buyer’s agent may help:
- Search for homes that meet the buyer’s criteria
- Schedule and attend property showings
- Research recent comparable sales
- Discuss local market conditions
- Prepare and submit offers
- Negotiate price and contract terms
- Track contingencies and transaction deadlines
- Coordinate communication with the seller’s agent
- Work with the lender, title company and other transaction professionals
A listing agent may help:
- Estimate a potential listing price using comparable sales and market conditions
- Prepare the home for sale
- Market the property
- Enter the listing into the applicable MLS
- Coordinate showings
- Present and help evaluate offers
- Negotiate with buyers and their agents
- Track contract deadlines
- Coordinate the sale through closing
What Does a Buyer’s Agent Do?
A buyer’s agent represents a homebuyer during the purchase process under the applicable agency relationship.
The work often begins before you find a specific property.
Help You Define Your Home Search
An agent can help turn a broad wish list into practical search criteria based on factors such as:
- Location
- Price range
- Property type
- Bedrooms and bathrooms
- Lot size
- Home features
- Commute or transportation preferences
You can easily search homes for sale on Movoto yourself, so agents are no longer gatekeepers to basic listing information.
Their value can come from helping you interpret what you’re seeing, arrange showings, compare properties and manage the transaction once you identify a home you want to pursue.
Help You Evaluate a Home’s Price
An agent can research recent comparable sales, commonly called comps, and discuss how a property’s asking price compares with similar homes.
Relevant differences can include:
- Location
- Square footage
- Condition
- Lot size
- Renovations
- Property type
- Timing of the sale
That doesn’t mean an agent can determine a home’s exact value. A formal appraisal is a separate valuation performed by a qualified appraiser, typically when required by the lender.
Schedule and Attend Showings
Your agent can coordinate private showings with listing agents or sellers and help you keep track of the properties you’ve considered.
During a showing, an experienced agent may point out characteristics worth investigating further, but they are not a substitute for a professional home inspector.
If you notice potential structural, electrical, plumbing, roofing or safety concerns, the appropriate specialist should evaluate them.
Help You Prepare an Offer
Once you decide to pursue a home, your agent can help prepare and submit the purchase offer using the appropriate forms and procedures for your market.
Offer terms can include more than price.
You may also need to consider:
- Earnest money
- Closing date
- Financing contingency
- Inspection contingency
- Appraisal contingency
- Seller concessions
- Personal property included in the sale
- Buyer-agent compensation where applicable
Your agent can explain the transaction implications of different options and help structure the offer, but legal questions should be directed to a qualified attorney where appropriate.
Our guide to making an offer on a house explains the process in more detail.
Negotiate With the Seller
A buyer’s agent can negotiate with the seller or seller’s representative on your behalf.
Negotiations may involve:
- Purchase price
- Counteroffers
- Closing timing
- Inspection findings
- Repairs or credits
- Seller concessions
- Appraisal issues
The agent can recommend a strategy, but you decide which terms you’re willing to accept.
What Does a Listing Agent Do?
A listing agent represents a homeowner who is selling property.
The job typically begins before the home appears online.
Help Determine a Listing Strategy
A listing agent can prepare a comparative market analysis using recent sales, current competition and characteristics of the property.
That information can help the seller decide on an asking price.
The agent may also recommend repairs, cleaning, staging or other preparation before the property enters the market.
Market the Property
Depending on the brokerage and listing agreement, marketing services may include:
- MLS listing
- Professional photography
- Property descriptions
- Online advertising
- Open houses
- Showing coordination
- Signs or printed materials
The exact services aren’t universal, so sellers should ask what is included before signing a listing agreement.
Present and Help Evaluate Offers
A listing agent generally presents offers received on the property and helps the seller evaluate the terms.
The highest purchase price isn’t necessarily the only relevant consideration.
Offers can differ in financing, contingencies, closing dates, concessions and other terms that affect the likelihood or economics of closing.
The seller ultimately decides which offer, if any, to accept.
Negotiate on the Seller’s Behalf
A listing agent can negotiate price and other contract terms with prospective buyers and their representatives.
That can include preparing counteroffers and working through issues that arise during inspections, appraisal or financing.
What Does an Agent Do After an Offer Is Accepted?
An accepted offer begins another phase of the transaction.
Depending on the transaction and their role, an agent may help coordinate:
- Earnest-money deadlines
- Property inspections
- Repair negotiations
- Appraisal scheduling
- Financing deadlines
- Title or escrow work
- Final walkthroughs
- Closing arrangements
The agent often serves as one of the main communication points among the parties.
For example, a buyer’s agent might communicate with the listing agent about an appraisal issue while separately checking with the buyer and lender about available options.
An agent should help keep the process organized, but responsibility for specialized work remains with the appropriate professional.
Does a Real Estate Agent Help With the Home Inspection?
An agent may recommend inspectors, help schedule the inspection, attend it where customary and discuss how inspection findings could affect the transaction.
The inspection itself should be performed by a qualified home inspector or other appropriate specialist.
A real estate agent should not be expected to diagnose structural problems, estimate the remaining life of a roof or determine whether an electrical or plumbing system is safe.
If an inspection uncovers an issue, your agent can help you understand the contractual options available and communicate any repair or credit request to the other party.
What Does an Agent Do During the Appraisal?
When a mortgage lender requires an appraisal, the appraiser independently develops an opinion of the property’s value.
A real estate agent does not control that determination.
An agent may provide relevant property or comparable-sale information and can help the client understand the transaction options if the appraisal creates a problem.
For example, when an appraisal comes in below the contract price, the parties may potentially renegotiate, the buyer may contribute additional cash or the transaction may proceed under another option allowed by the contract and financing.
Does a Real Estate Agent Help With Financing?
An agent can coordinate with your mortgage lender and keep track of financing-related deadlines, but the agent does not approve your mortgage.
Your lender determines matters such as:
- Loan eligibility
- Interest rate and pricing
- Required documentation
- Underwriting approval
- Appraisal requirements
- Cash needed to close
An agent may recommend lenders or other professionals based on past experience, but buyers can compare providers and choose a lender that fits their needs.
Does a Real Estate Agent Give Legal Advice?
Real estate agents routinely work with contracts and transaction forms, but that does not automatically make them attorneys.
An agent can explain the real estate process and help prepare forms within the scope permitted by state law and their license.
Questions requiring legal interpretation or advice should be directed to a qualified attorney.
The precise boundary varies because real estate licensing and transaction practices are governed largely by state law.
What Does a Real Estate Agent Know About the Local Area?
Local experience can help an agent understand recent sales, inventory, property types, zoning considerations and other market characteristics.
An agent can also point buyers toward objective sources for information about schools, transportation, public services, crime statistics and other neighborhood characteristics.
Agents are subject to federal fair housing requirements and should not steer buyers toward or away from areas based on protected characteristics.
Instead of relying on subjective descriptions such as the “best” or “safest” neighborhood, define what matters to you and review relevant objective information.
Can a Real Estate Agent Recommend Other Professionals?
Yes. Agents often work with mortgage lenders, inspectors, title professionals, attorneys, insurance agents and contractors throughout their careers.
They may be able to provide names of professionals who serve the local market.
You can still research and compare your own options.
If a relevant affiliated business or financial relationship exists, applicable disclosure requirements may apply.
What Is a Buyer Representation Agreement?
A buyer representation agreement establishes the relationship between a buyer and the real estate brokerage representing them.
Under current National Association of REALTORS® MLS policy, an MLS participant working with a buyer generally must enter into a written agreement before touring a home, unless inconsistent with applicable state or federal law.
The agreement must clearly address compensation and disclose that broker fees and commissions are negotiable.
Depending on the agreement, it may also address:
- Services provided
- Length of representation
- Exclusivity
- Geographic or property limitations
- How the relationship can be terminated
Read the agreement before signing and ask questions about anything you don’t understand.
Our guide to real estate agent commission explains the current compensation system in more detail.
How Does a Real Estate Agent Get Paid?
Real estate brokerage compensation is negotiable and is not set by law.
A seller typically negotiates compensation with the listing brokerage.
A buyer may separately agree to compensation for their own brokerage through a written buyer agreement.
That doesn’t necessarily mean the buyer must pay the entire amount directly out of pocket. Depending on the transaction, a seller or listing brokerage may agree to pay some or all of the buyer-agent compensation.
The arrangement should be understood before entering into a representation agreement or purchase contract.
Real Estate Agent vs. REALTOR® vs. Broker
These terms aren’t interchangeable.
Real Estate Agent
A real estate agent is a person licensed under state law to perform real estate brokerage activities.
REALTOR®
A REALTOR® is a real estate professional who is a member of the National Association of REALTORS® and subscribes to its Code of Ethics.
Not every licensed real estate agent is a REALTOR®.
Real Estate Broker
A broker generally holds a higher-level real estate license and may be permitted under state law to operate a brokerage or supervise other licensees.
The exact licensing terminology and responsibilities vary by state.
Do You Need a Real Estate Agent to Buy a House?
There is no universal rule requiring every buyer to hire their own real estate agent.
Some consumers choose to purchase without separate representation.
But an unrepresented buyer takes responsibility for navigating property research, showings, offer preparation, negotiation and transaction deadlines without their own agent.
It’s also important to remember that the listing agent generally represents the seller unless a different relationship permitted by state law has been established.
If you’re working through the purchase process, Movoto’s homebuyer checklist lays out the major steps from financial preparation through closing.
Do You Need a Real Estate Agent to Sell a House?
Homeowners can sell without a traditional listing agent, commonly known as For Sale by Owner or FSBO.
A FSBO seller takes on work that a listing brokerage would otherwise perform, including pricing, marketing, showings, offers, negotiations and transaction coordination.
Sellers can also encounter full-service, discount, flat-fee and limited-service brokerage models.
The appropriate comparison is the cost of representation against the specific services provided.
How Do You Choose a Real Estate Agent?
Compare prospective agents based on factors such as:
- Experience in your target market
- Experience with your property or transaction type
- Communication style
- Availability
- Services provided
- Approach to negotiations
- Compensation
- Representation agreement terms
If you’re still searching, our guide to how to find a real estate agent covers where to look and how to compare candidates.
Our guide to what to look for in a real estate agent covers the selection process, and these questions to ask a real estate agent can help when you’re interviewing candidates.
Once you’re working together, these signs your agent is representing you well can help you evaluate the relationship.
Bottom Line
A real estate agent helps buyers and sellers navigate the transaction rather than simply helping them find a property or put one on the market.
For buyers, that can include property research, showings, offers, negotiations and coordination through closing. For sellers, it can include pricing, marketing, showing management, offer review and negotiations.
A strong agent should also know the limits of their role.
They can coordinate with lenders, inspectors, attorneys, appraisers and other professionals, but they don’t replace those specialists. Their value is in representing the client’s side of the real estate transaction, explaining options and helping keep the process moving.
FAQ
What does a real estate agent do for a buyer?
A buyer’s agent may help find homes, arrange showings, research comparable sales, prepare offers, negotiate terms and coordinate transaction deadlines through closing.
What does a real estate agent do for a seller?
A listing agent may help determine a listing strategy, market the property, coordinate showings, present offers, negotiate with buyers and manage the transaction through closing.
Does a real estate agent negotiate for you?
An agent representing you can negotiate real estate transaction terms on your behalf within the scope of the agency relationship. You remain responsible for deciding which terms you’re willing to accept.
Can a real estate agent give legal advice?
A real estate agent may work extensively with transaction forms and contracts, but an agent is not automatically an attorney. Legal questions should be directed to a qualified attorney.
Can a real estate agent spot problems with a house?
An experienced agent may notice conditions worth investigating, but they are not a substitute for a qualified home inspector or appropriate specialist.
How does a real estate agent get paid?
Broker compensation is negotiable. Sellers negotiate compensation with listing brokerages, while buyers may separately negotiate compensation with their own brokerage. Other parties may potentially contribute toward buyer-agent compensation depending on the transaction.
Do I need to sign an agreement with a buyer’s agent?
MLS participants subject to current NAR policy generally must have a written agreement with a buyer before touring a home, unless that requirement conflicts with applicable law. State requirements may also apply.
Is every real estate agent a REALTOR®?
No. REALTOR® identifies a real estate professional who is a member of the National Association of REALTORS® and subscribes to its Code of Ethics.
Do I need a real estate agent to buy a house?
Not universally. Buyers can potentially purchase without their own agent, but then take on more responsibility for navigating the search, offer, negotiation and transaction process themselves.
