What a Real Estate Agent Does
Let me explain directly: a real estate agent is a licensed professional who handles property transactions, connecting buyers and sellers while representing them in negotiations. You should know that agents specialize in either commercial or residential real estate, and their role depends on whether they work for the buyer or the seller. If you're selling, your listing agent advises on pricing and preparing the property, offering tips for improvements to get better offers or faster sales. They market it through listings, networks, and ads.
On the buyer's side, the agent searches for properties that fit your budget and preferences, using past sales data to help you make realistic bids. Agents act as intermediaries, passing offers and counteroffers, negotiating for you. Once a deal is accepted, they guide you through paperwork, inspections, moving details, and closing. Make sure you understand who the agent represents—buyer, seller, or both—as it affects their actions. Dual agency is illegal in states like Alaska, Colorado, Florida, Kansas, Maryland, Texas, Vermont, and Wyoming to prevent conflicts.
Real Estate Agent Compensation
Here's how it works: agents typically get paid via commission, a percentage of the property's sale price, so their earnings rise with higher sales and more deals. But things are changing—some brokerages offer lower commissions for expensive properties or flat fees for the whole transaction, which can be cheaper than standard rates. Others provide à la carte services, where you pay only for specifics like listing on a multiple listing service or open house help. Remember, the more the house sells for, the more the agent earns, but these evolving models give you options.
Real Estate Agent vs. Real Estate Broker
Understand the difference: a real estate agent has a basic license after courses and an exam, qualifying them to assist in buying or selling property. A broker, however, has advanced training, a specialized license, and often requires recent experience as an agent. Brokers manage technical parts of deals, like contracts, earnest money, and escrow. They can own firms or franchises and hire agents, who then split commissions with them. In most states, agents can't work independently—they need a broker. Exceptions exist in places like Colorado and New Mexico, where all professionals are licensed as brokers.
Real Estate Agent vs. Realtor
Let me clarify this for you: not every agent is a realtor. A realtor is a real estate professional—agent, broker, or related—who belongs to the National Association of Realtors (NAR) and follows its code of ethics, which demands duties to clients, the public, and peers. They must also join state or local associations. All realtors start as agents or brokers, but membership adds expertise and ethical standards. There are about 3 million active licensees in the U.S., 1.58 million NAR members, and 369,000 brokerage firms.
Frequently Asked Questions
You might wonder what a real estate agent does daily—they handle appraisals, negotiations, admin work, client meetings, and research on markets, values, laws, and strategies. To become one, you typically need to be of age, a resident, complete pre-license education, pass an exam, activate your license, and join a brokerage—requirements vary by state.
Salaries? Median for agents was $54,300 and for brokers $63,060 in 2023, per the Bureau of Labor Statistics, but it fluctuates with commissions, experience, location, and market conditions—many work part-time. A real estate professional is anyone in the industry, like agents or managers. Success requires communication, networking, tech skills, market knowledge, goal-setting, marketing plans, client connections, and resilience.
The Bottom Line
In summary, a real estate agent, authorized by a state board, represents you in property deals, usually under a broker. You need skills in communication, market trends, real estate law, organization, and integrity to succeed. Many factors affect earnings and success in this field.
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