What Does a Real Estate Agent Do? The Benefits of Hiring an Agent
You’ve decided you’re ready to buy or sell a home for the first time (congratulations, that’s a big step!). But you may wonder, do I even need a real estate agent? What does a real estate agent do? After all, if I’m buying, there are dozens of websites with home listings and steps to navigate the transaction process. And if I’m selling, perhaps I can handle it myself and save on Realtor fees.
These may be true, but the process is far more complicated than it may initially appear. According to the National Association of Realtors, about 90% of all homebuyers and sellers found and sold their homes through a real estate agent — for good reason. Real estate agents are essential advocates throughout the process.
Buyer’s agents help you find the perfect home, act as a liaison for the parties you’ll interact with, and be by your side throughout the transaction process. Without that added support, you could have many complications, including missing out on your dream home, becoming bogged down by paperwork, or costing yourself a lot of money.
Listing agents will be in your corner as a homeowner who wants to sell your house. These agents help you attract interested buyers, push the best aspects of your house out in the open, and close the deal. The best real estate listing agents will go above and beyond to simplify the entire home-selling experience for you.
We’ve talked with several veteran real estate professionals and learned the ins and outs of the role agents play for buyers and sellers, giving you an invaluable guide on what a real estate agent is and how they can streamline your homebuying experience.
What is a real estate agent?
Real estate agents are licensed professionals who assist buyers (or sellers) with buying or selling a property. For buyers, they are who you’ll count on most to help you find the perfect home, negotiate the offer, and walk you through every step of the experience. For the sellers, they help decide the list pricing, add your property to the Multiple Listing Services (MLS) database, and market the house to potential buyers.
Where things can get confusing is how many different types of agents exist. Is a broker the same as an agent? Are all agents Realtors®? Here’s what you need to know.
The general ‘real estate agent’
When you hear the term “real estate agent,” that refers to what we mentioned above — a licensed professional involved in the transaction process. That means the real estate agent can represent a buyer, seller, or, in some cases, both simultaneously (that’s called dual agency, and it’s illegal in eight states).
The requirements to become a licensed agent vary by state. Typically you must meet an age requirement, obtain some pre-license education, and pass a real estate exam that includes federal- and state-specific questions. For example, Texas has some of the most stringent requirements, asking for at least 180 hours of coursework before taking the exam. Vermont, on the other hand, requires just 40 hours.
The real estate broker
A real estate broker is an agent who has taken additional coursework and passed a separate broker exam. After receiving a broker license, these agents can work independently and even start their own brokerage firm instead of working under someone else.
Like real estate agents, the requirements to become a broker vary by state. Typically, you must have a few years of experience as a licensed agent in that state, complete more educational hours, and pass another exam. The term “associate broker,” refers to a broker who works under another broker or brokerage firm.
The Realtor®
If you’ve heard the term “Realtor” and assumed it applied broadly to real estate agents, you’re not alone. However, a Realtor is a licensed real estate agent who is also a member of the National Association of Realtors (NAR). Agents who hold this trademarked title must abide by the organization’s Code of Ethics, first adopted in 1913.
It might seem like a label that doesn’t mean much; however, the Code of Ethics is a well-respected rulebook for agents. It’s a 17-article governing set of rules that lays out Realtor duties for their clients, the public, and other real estate professionals. Of the estimated 2 million active real estate agents in the U.S., there are over 1.5 million Realtors.
Agent certifications
There are also separate designations and certifications that allow agents to work with specific buyers (or sellers), or work toward a particular real estate need — similar to how doctors and lawyers have different classifications.
Many designations are affiliated with the NAR, and an agent must complete coursework and sometimes an exam to earn such a classification. Some standard designations helpful for buyer agents are:
Accredited Buyer’s Representative (ABR) – Agents focusing on buyers. They have an in-depth knowledge of the home buying experience.
Certified Residential Specialist (CRS) – Agents trained and knowledgeable in residential sales and how to get the most out of a home purchase.
Seniors Real Estate Specialists (SRES) – Agents specialized in how to best serve the needs of buyers and sellers over 50 years old.
National Association of Exclusive Buyer Agents (NAEBA) – This organization isn’t affiliated with the NAR and is an entirely different professional association. Members work exclusively with buyers to ensure the transaction process is fair and ethical for them. You may work with an NAEBA agent if you’re worried about conflicts of interest or want an agent more focused on buyer-specific needs.
