What Does a Real Estate Agent Do?

Real Estate Agent Responsibilities

Throughout the process of selling and buying, real estate agents act as mediators between the buyer and seller. Agents have many responsibilities when assisting buyers and sellers of various types of real estate. These job duties can vary based on the type of property (commercial vs. residential) and their position within the brokerage (broker vs. agent).

For example, if a real estate agent does not have a broker license, you will typically have fewer managerial tasks than if you were a broker at a large brokerage firm.

Brand Development

Competition is fierce in the real estate industry. You need to develop your brand in real estate and be known as an expert in the specialization you enjoy. This will help you differentiate through effective marketing. Websites, postcards, television and radio spots, billboards, fliers, and blogs are all channels and can be utilized in effective real estate agent marketing plans.

Networking

Networking is a way to find out about available properties and how you can connect with those looking to buy houses, which can be done at conferences, trade shows, open houses, Facebook groups, local events, and more.

Networking can also consist of discussing new listings, getting updates on current listings, and discussing client’s needs.

The Multiple Listing Service (MLS) database is another way agents narrow down a search for a buyer or learn about the competition for sellers. This allows agents and brokers to quickly gather first-hand knowledge on properties available in the local market.

Lead Generation

Generating potential clients is an ongoing task for real estate agents. Early in your career, start with people you know, such as friends, family, business associates, and so on. Once you get a few sales under your belt, and build up a name for yourself, relationship development will be a major factor in how successful you are when it comes to generating leads for your clients.

There are very few things more valuable to a real estate agent than a thriving database of leads.

Travel

Travel is often one of the most overlooked aspects of being a real estate agent. Especially in rural areas, agents may need to travel back and forth from their offices and listings multiple times a day. It’s common for agents to have showings in a week so having reliable transportation is crucial. 

Showing Appointments

Showing appointments undoubtedly take up a lot of time in a real estate agent’s day-to-day life. Usually, when a house gets added to an MLS, real estate agents will use scheduling software to check availability and reserve time slots for their clients. Often clients ask to see multiple properties in a day so an agent’s schedule can fill up quickly. 

Open Houses

Real estate agents provide consultation services to their sellers to help them determine if an open house is a good fit for their listing. It’s common for agents to use open houses as a way to generate lots of leads and create a sense of urgency in buyers to act quickly.

Open houses are also a great way for agents to showcase improvements made by the sellers in cases where the property was listed and didn’t receive positive feedback after a few showings so they decide to make some updates and then invite those buyers back for another look all at once. 

Contracts

Real estate agents often have software such as PandaDoc, Juro, or others to handle contract management. There are lots of disclosures that need to be signed by clients during the different stages of a sale so knowing what needs to be done and when is important.

Another aspect that needs to be managed by agents is amendments. Often during negotiations, and inspections, amendments will be incorporated into various disclosures so paperwork can be added to a disclosure versus generating a brand new one.

Ultimately the agent is responsible for reviewing all contracts and materials for any mistakes to ensure accuracy.

Closing

During the closing process, communication is a crucial skill for an agent to have. You’ll often have to coordinate with another agent or broker, a loan officer (when buyers are financing), and even a closing account executive on behalf of the title company. Some states even require others present during the signing—such as lawyers and title or escrow agents. 

Another major part of closing is a final walkthrough. This usually involves the buyers and their real estate agent visiting the property before the closing date to ensure there has not been any damage to the property during negotiations and inspections.

Types of Real Estate Agents

There are a few different types of real estate agents based on your education, your role in the sale, what certifications and licenses you hold, and the types of property your firm buys and sells.

Broker

A real estate broker is a real estate agent who completed additional education and licensing requirements to earn the title of “Broker.” Brokers tend to have extra freedom and career opportunities including starting up a brokerage firm or being promoted to higher positions with more responsibilities within a brokerage firm.

Listing Agent

A listing agent is also known as a “seller's agent” because they represent the seller in a real estate transaction. Listing agents are responsible for finding buyers and making sure their clients get the best possible price for the property.  

Buyer's Agent

A buyer’s agent is a real estate agent who represents the buyer in the sale of a property. The buyer’s agent is responsible for helping the buyer navigate the process of purchasing a property and helps the buyer negotiate the price when submitting an offer.

Commercial

A commercial real estate agent is someone who primarily sells, rents, or buys commercial real estate. Common types of commercial real estate include

• Retail spaces
• Office buildings
• Warehouses
• Industrial facilities
• Mixed-use buildings that may include a retail space and apartments or condos

They should have a good understanding of the local commercial market and be able to help sellers find commercial clients including performing market research and even property management. 

Residential

A residential real estate agent is someone who focuses on renting, selling, or buying properties meant for living in. Common types of residential real estate include

• Apartment complexes
• Condos
• Duplexes
• Houseboats
• Manufactured homes
• Single-family homes
• Townhomes

Residential real estate agents should know which types of properties are available in their market and can even help people figure out which type of property fits their needs best. 

Realtor

A realtor is a real estate agent who has become a member of the National Association of Realtors (NAR). For you to officially become a realtor, you must agree to abide by the NAR's Code of Ethics and pay your membership dues as well as keep up with your continuing education. 

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How Real Estate Agents Work With Sellers

Real estate agents work with sellers in various ways depending on the type of real estate agent they are and the type of property being sold or purchased. Below are some highlights of how agents can work with sellers.

• Meet with and understand the needs of sellers with new listings.
• Demonstrate your market knowledge, marketing abilities, and negotiation skills.
• Research the current local market activity and comparable properties to establish an asking price.
• List the property with relevant listing services.
• Take photos of the property—interior and exterior—to prepare a listing presentation and advertising collateral.
• Stage the home properly, so it looks perfect when you conduct open houses.

How Real Estate Agents Work With Buyers

Working with buyers as a real estate agent can be complex and time-consuming. Below are some highlights of how agents work with people in the market to buy real estate.

• Meet with, interview, understand, and qualify prospective buyers.
• Research the listing services for potential properties that fit the needs of your clients.
• Plan property showings for buyers, and set up appointments that fit their schedule.
• Show properties to buyers and communicate details of the property you learned during your research or while speaking with other experts (home inspectors, appraisers, and other real estate agents).
• Demonstrate negotiation skills, making offers of purchase on real estate.

How Much Do Real Estate Agents Make?

As in any career, compensation or salary can differ between positions or even for the same position—the same is true for real estate agents. According to the Bureau of Labor Statistics, the median salary for a real estate agent is $52,030.

Remember, a real estate agent’s income is not limited by an hourly wage or a corporate-dictated salary range. As a real estate salesperson, your income is primarily dictated by the time you invest, how hard you work, and ultimately how many houses you sell. You can grow your real estate business (at your own pace) by adding an assistant or getting the appropriate license that allows you to build and own a brokerage.

Real Estate Agent Salaries >>

How Do Real Estate Agents Get Paid?

Agents earn a commission which is a percentage of the property's sale price. However, you’ll have to give your broker a cut as well. A broker can make a commission from selling a home like an agent. But if you own the brokerage, you’ll get a portion of their agent's commission.

Developing Your Real Estate Skills

Continuing education isn’t just a requirement to maintain a real estate license. It’s also a way to develop skills that keep an agent at the top of their game and open doors to new real estate opportunities within their market.

Ongoing professional development and growth are crucial to the long-term success of real estate agents and brokers. Continuing education not only widens their scope of expertise, but it also improves their proficiency, knowledge, and marketability as a real estate professional.

Find your state, and get started with online real estate classes today

What Does a Real Estate Company Do?

A real estate company can either be a property management group or a brokerage. A property management company buys commercial properties and turns them into apartments or townhomes. This work is all internal, corporate, or onsite at the property, not always buying or selling a property.

On the other hand, an agent at a brokerage helps clients buy or sell a home while following the brokerage's

branding. In addition, the agent gains access to the brokerage’s resources, such as legal help and backend technical aspects of a sale.

Tips For Successfully Managing A Real Estate Business

There are several administrative tasks a real estate agent does at a well-run real estate business. An excellent real estate agent:

• Keeps up with local and regional market activity and industry news
• Researches active, pending, and sold listings and reviews the daily MLS hot sheet or activity report
• Completes, submits, and files real estate documents, agreements, and records with the proper state agencies
• Plans and coordinates appointments, open houses, showings, and meetings with clients and other real estate agents
• Develops real estate marketing plans for listings and creates fliers, newsletters, and other promotional collateral
• Responds to incoming emails and phone calls
• Update websites, social media profiles, and blogs
• Many successful real estate agents have an assistant or office manager to help with the day-to-day activities, allowing the salesperson or broker to focus on more direct revenue-generating activities.