What Is a Real Estate Agent?

What Does a Real Estate Agent Do?

Real estate agents guide you through every step of the transaction when you are buying or selling a home. Most agents specialize in working with buyers or sellers.

Be aware: Some agents serve as dual agents, representing both the buyer and the seller in the same transaction. It's allowed in most states but not in others because of the inherent conflict of interest. With a dual agent, you won't have someone who's advocating just for you, so make sure you're comfortable not having an exclusive agent if you go this route.

The duties real estate agents perform may be different depending on which side they represent. Here's how these agents help you buy or sell a property.

What Does a Buyer's Agent Do?

• Find the right homes: A buyer's agent works with you to understand your preferences and budget. Then, they use their local market knowledge to find and view homes that meet your needs. This can save you hours searching online and weekends of driving around.
• Help you make a strong offer: Once you find your ideal home, your agent helps you draft an offer based on local market value and recent sales. A good one knows how to make your bid stand out without overpaying.
• Negotiate on your behalf: A buyer's agent should represent your interests during sales contract negotiations. Their job is to help you secure the best price and terms, including contingencies and closing costs.
• Manage the transaction: Your real estate agent should help you stay on top of the required paperwork and deadlines to keep the transaction on track. They can also recommend reputable home inspectors and other professionals who can help you address any issues the inspection finds.

Learn more: How to Choose a Home Inspector

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What Does a Seller's Agent Do?

A seller's agent, also called a listing agent, represents you through the home sale. Here's what they do:

• Establish the best price: A listing agent typically reviews recently sold comparable properties, or "comps," to estimate your home's current value. A good agent also factors in current pricing trends to set a competitive price to facilitate a sale.
• Market your home: One of the first things a seller's agent does is list your property in the multiple listing service (MLS). The MLS is a database of property listings that real estate professionals use to share inventory. Buyers can search MLS listings on various real estate portals. Listing agents also market your home on social media, real estate portals and through their own agent network to attract attention to your home.
• Prepare your home for viewing: A good agent knows what attracts buyers and what turns them away, so they can draw on their experience to identify ways to improve your home's appeal.
• Negotiate with the buyer's agent: Your agent can help you alleviate stress by handling the back-and-forth on offers and counteroffers on your behalf. Your agent should keep you updated and make sure the terms work for you. Ultimately, you have the final say on what you'll accept.

Real Estate Agent vs. Broker vs. Realtor

If you're buying or selling a home, you might work with different types of professionals, including real estate agents, real estate brokers and Realtors. All three can help you with a transaction, but each title has different credentials and duties, so it's useful to know the difference.

• Real estate agent: A real estate agent is a licensed professional who helps clients buy, sell or lease a home. They usually work under a licensed broker.
• Real estate broker: A broker is a licensed real estate professional who has completed additional education and passed a broker's exam. Brokers can work independently, supervise agents or run their own brokerage.
• Realtor: A Realtor is a real estate agent or broker who is a member of the National Association of Realtors (NAR) and agrees to follow its ethical standards. Only members can use the Realtor title.

How Do Real Estate Agents Get Paid?

Real estate agents typically earn a commission when a home sells, but some brokerages charge a flat fee regardless of the home's price.

Before August 2024, sellers typically paid a commission of 5% to 6% of the sale price, and the MLS would display how the commission was split between the seller and the buyer's agent. On the surface, it appeared as though the buyer's commission was free to the buyer, even though the cost was usually factored into the home's price.

In 2024, an NAR court settlement changed the rules. Buyers must now sign a contract with their agent before they even start looking at houses. The contract states exactly how much the agent will be paid for their services. Now, many sellers pay only the listing agent's share—usually 2.5% to 3%. However, buyers can still ask the seller to help pay their agent's fee as part of the final deal.

Do You Need a Real Estate Agent?

You're not required to hire an agent to buy or sell a home, but according to Zillow research, 84% of buyers and 93% of sellers used one.

Despite the recent commission and buyer agreement changes, most people still use an agent. Here's what to consider if you're thinking about going without one.

Buying a Home Without an Agent

Some buyers opt to buy a home without an agent, often to avoid paying a commission under the new rules. You may prefer this path if you're confident you can handle the search yourself.

Be aware that buying without representation comes with risks and could put you at a disadvantage. You'll likely be negotiating against a seller's agent who does this for a living, which could affect your outcomes. You're also responsible for drafting a contract with the right contingencies and handling a lot of paperwork on a tight deadline. In a competitive market, your bid is less likely to stand out without a professional's assistance.

Selling a Home Without an Agent

You may consider selling your home without an agent to avoid having to pay a commission to a listing agent. Selling your home without an agent, known as For Sale By Owner, or FSBO, is a legitimate option, especially if you already have a buyer lined up.

Many FSBO sellers still end up paying the buyer's agent commission as a seller concession to attract buyers. Overall savings on commission may not be that much, either. According to 2025 NAR data, homes sold through an agent went for a median price of $425,000, while FSBO homes sold for $360,000. Some of that gap is because many FSBO homes, mobile homes, rural properties and other sales are between people who already know each other. But it's still a real difference, with the lower price offsetting any commission savings.

How to Choose a Real Estate Agent

Choosing an experienced real estate agent can help make the home transaction process go more smoothly. Follow these five steps to find the best agent:

1. Search for reputable agents. Ask people you trust about agents they've had a good experience with. Your lender may even be able to refer you to a reliable agent they work with. You can also search online platforms like Zillow and Homes.com. Filter agents by area and compare their experience and client ratings.
2. Look for local expertise. In larger cities, an agent with experience in your preferred neighborhood can be a valuable resource. For buyers, an agent may know about homes that aren't on the market yet. For sellers, an agent may be working with buyers who are looking for a similar home in the neighborhood.
3. Meet with at least three agents. According to Zillow, 59% of sellers contact only one agent before hiring them. Interview a few agents to find one who best understands your goals and has the experience to meet them.
4. Prepare questions for prospective real estate agents. Ask questions that give you a sense of what it's like to work with them. If you're buying, for example, ask how often the agent is available to tour properties and how they prefer to communicate. If you're listing your home, ask how the agent plans to market it and what they'll do if it isn't selling at the list price.
5. Verify their license. Before you decide, take a minute to check your state's real estate commission website to confirm the agent's license status and see if there are any complaints.

The Bottom Line

If you're planning to buy or sell a home soon, working with a licensed real estate agent can take a lot of stress off your plate. A good agent with extensive local market experience can give you a real advantage and can negotiate a deal on your behalf.

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