What Does a Real Estate Agent Do?
A real estate agent is a licensed professional who represents buyers or sellers in property transactions, handling everything from listing a home and marketing it to potential buyers, to negotiating offers, coordinating inspections, and managing the paperwork required to close the sale. Agents earn commission—typically 2.5% to 3% of the sale price—paid at closing, and must hold an active state license and work under a licensed broker.
What are the main responsibilities of a buyer's agent?
A buyer's agent represents the purchaser in a real estate transaction and owes fiduciary duty to that buyer alone. They search for properties matching the buyer's criteria, arrange showings, provide comparable sales data (comps) to help assess fair market value, and submit offers on the buyer's behalf.
What does a listing agent do for a home seller?
A listing agent represents the seller and is responsible for pricing the home, preparing it for market, and attracting qualified buyers. They perform a comparative market analysis (CMA) using recent sales of similar properties within a half-mile to one-mile radius to recommend a list price.
How does a real estate agent get paid?
Real estate agents work on commission, earning a percentage of the home's sale price only when a transaction closes. The standard total commission ranges from 5% to 6%, historically split evenly between the listing agent's brokerage and the buyer's agent's brokerage.
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What is the difference between a real estate agent and a Realtor?
All Realtors are real estate agents, but not all agents are Realtors. A real estate agent is anyone who has passed their state licensing exam and holds an active salesperson or broker license.
When do you actually need a real estate agent versus going solo?
You legally do not need an agent to buy or sell property—For Sale By Owner (FSBO) transactions are permitted in all 50 states. However, agents provide value when market knowledge, negotiation skill, or transaction complexity justify the cost.
How is a real estate agent different from a real estate broker?
A real estate broker holds a higher-level license than an agent and can operate independently, own a brokerage, and supervise other agents. Agents must work under a broker's license—they cannot accept commission directly from clients.
FAQ
Do real estate agents charge upfront fees?
Most agents work purely on commission with no upfront cost to sellers or buyers, earning payment only at closing. Some brokerages charge administrative fees ($300 to $500) or require buyers to sign agreements specifying compensation if the seller does not pay the buyer's agent, a practice that became more common after August 2024 rule changes.
Can I negotiate a real estate agent's commission rate?
Yes, commission rates are fully negotiable and not set by law. Sellers can negotiate the listing commission down from the traditional 5% to 6%, and buyers can negotiate their agent's fee in the buyer representation agreement.
What license does a real estate agent need?
Every state requires agents to complete pre-licensing education (typically 60 to 180 hours depending on the state), pass a state exam, undergo a background check, and maintain active licensure through continuing education. License requirements and reciprocity agreements vary by state; check your state real estate commission website for specifics.
How long does it take to become a real estate agent?
Most people complete pre-licensing courses, pass the exam, and receive their license within two to five months. Accelerated programs offer licensing in as little as four to six weeks, while part-time students may take six months.
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First time home buyer steps from budget to closing
Before viewing homes, review income, debt, savings, credit, and the full monthly cost of ownership. A mortgage payment is only one component; property taxes, homeowners insurance, mortgage insurance, HOA dues, utilities, maintenance, and repairs may also apply. A debt to income ratio calculator provides a planning estimate, but a lender’s underwriting rules determine how debts and income are treated for a loan application.
Mortgage preapproval can help define a conditional financing range, but it is not final approval or a requirement to spend the full amount. Compare loan estimates from lenders, including the interest rate, annual percentage rate, points, lender fees, cash to close, and projected payment. An offer may involve earnest money, inspection terms, financing conditions, appraisal issues, and title review. Escrow and title insurance serve different purposes and should be reviewed separately.
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