Real estate agents: Who they are and what they do

A real estate agent is a professional who helps represent you during a real estate transaction. Whether you’re a buyer or a seller, a real estate agent can help organize and assist with the logistics of a home sale, and they are often paid on commission.

According to the National Association of REALTORS^® (NAR), 91% of sellers and 88% of buyers used a real estate agent during the homebuying process. While it’s not required to use an agent to buy or sell a home, first-time homebuyers may find one valuable.

You may think that a real estate agent and a REALTOR® are different words for the same thing, but there are some key differences.

• Real estate agents can work independently, and any agent with a license would still be qualified to assist you during your home search or sale. Agents are not required to become REALTORS^®.
• REALTORS^® are members of the National Association of REALTORS® who pay membership dues and are held to the organization’s standards of practice and code of ethics.

Real estate agents are specialists in the homebuying and selling process, so they can help make the process smoother for you as an interested buyer or seller. Real estate agent services typically include:

Finding suitable homes: Real estate agents will likely have knowledge about your local markets and neighborhoods that may be valuable during the home search process. They can also help schedule tours of interested properties for buyers.

Offering financial guidance: Real estate agents can advise on home value and listing prices and give buyers and sellers guidance on offers and counteroffers.

Handling administrative tasks: Agents can help complete paperwork and coordinate parts of the process, such as appraisals or home inspections.

Real estate agents can help guide you through each step of the home search. With their knowledge of local markets and experience evaluating properties, they know which questions to ask and what details to look for. Their support can make it easier to identify homes that fit your needs and help you feel more confident as you move forward in the process.

• Guidance through the process: Agents can help you understand each step of buying or selling a home, making the experience feel more manageable.
• Local market expertise: They stay informed on neighborhood trends and property values, which can help you make informed decisions.
• Access to professional networks: Agents can connect you with trusted lenders, inspectors, appraisers, and other professionals you may need along the way.
• Support with negotiations and paperwork: They help you navigate offers, contracts, and required documentation so you can move forward with confidence.

Real estate agents typically specialize in either buying or selling homes. Understanding the difference between a buyer’s agent and a seller’s agent can help you choose the right real estate professional for your needs. Whether you’re purchasing a home or preparing to sell, working with an agent who represents your interests can make the process more efficient and informed.

Real estate agents can earn specialized credentials that indicate additional training or expertise, which may be valuable when selecting an agent. As you research, ask real estate agents about their credentials or check online databases to verify. A few of the key real estate agent credentials include:

• Accredited Buyer’s Representative (ABR): This designation shows the agent has received training on how to represent homebuyers during transactions.
• Certified Residential Specialist (CRS): This designation shows additional training in the buying or selling of residential real estate.
• Graduate of the REALTOR® Institute (GRI): This designation marks in-depth training in legal and regulatory issues, technology, professional standards, and the sales process.
• Seniors Real Estate Specialist (SRES): This designation signifies a professional trained in working with buyers and sellers aged 50 and older.
• Seller Representative Specialist (SRS): This designation is awarded to real estate professionals who demonstrate the knowledge and skills essential for seller advocacy.

Real estate agents are typically paid a commission, which is a percentage of the home’s final sale price. Nationally, commissions typically range from 5% to 6%, though the exact amount can vary by market and negotiation.

Traditionally, the seller paid the commissions for both their own agent and the buyer’s agent. However, beginning August 17, 2024, new NAR practice rules changed how commissions are handled. Under these rules, buyers must sign a written representation agreement with their agent before touring homes, and buyer/agent compensation can no longer be advertised on the MLS (Multiple Listing Service). This gives buyers and sellers more flexibility to negotiate how much the buyer’s agent is paid and who covers that cost.

Having an expert by your side throughout the homebuying or selling process can help provide a greater sense of security. A real estate agent can guide you through each step, answer questions, and help you navigate this important financial milestone with confidence.

That said, it’s not necessary to use a real estate agent if you are confident in your local real estate knowledge. If you are comfortable handling the process, including completing the necessary paperwork and negotiating your price, you may buy or sell your home without a real estate agent. If not, hiring a professional could lead to a better experience for you.

Looking for extra tips while starting your home search? Check out these recommendations for first-time homebuyers.