Realtor Guide: Understanding the Role of a Real Estate Agent

A real estate agent, or real estate salesperson, is an experienced and licensed salesperson who facilitates the purchase and sale of real property for their clients. Residential real estate agents represent the property sellers and buyers trading private residences like homes or condos, while commercial real estate agents facilitate the sale of office spaces or other public properties.

Real estate agents may be responsible for negotiating the purchase price of a property, scheduling home inspections, conducting home viewing appointments, and finding real estate attorneys. They primarily work as an intermediary between buyers and sellers, earning a commission on their transactions which is typically a percentage of the building’s sale price.

There are no degree-related education requirements to become a real estate agent, but all real estate sales people must complete the necessary coursework to become licensed in their state. Requirements vary by state, but most will require you to complete a series of real estate courses and pass a licensing exam.

To work independently or start their own business, real estate agents must obtain additional certification to become real estate brokers, with the specific real estate education and licensing requirements also varying by state. Otherwise, real estate careers often begin within a larger real estate brokerage firm, with which they usually split a part of their commission.

Real estate agents facilitate the purchase and sale of real estate, representing different interests within the sale. Properties that do not use a real estate agent are often listed as “for sale by owner” (FSBO), but many property owners choose to work with a real estate agent to market their property and facilitate relationships with buyers. Here are a few examples of the kinds of real estate agents.

1. 1. Listing agent: Real estate professionals can work exclusively as listing agents, also referred to as seller’s agents, who are responsible for listing property on behalf of clients who are looking to sell a piece of property. Depending on the terms of the listing agreement, listing agents will assist with pricing, staging, and marketing a home or commercial space to potential buyers, as well as arranging open houses.
2. 2. Buyer’s agent: Agents can also work exclusively as buyer’s agents—also called selling agents—where they represent a client who is looking to buy property. Residential buyer’s agents represent current or aspiring home buyers who are looking for a residence in their price range that has everything they want. Commercial buyers agents do the same thing but for property meant for a business. They will also assist in offer negotiations, real estate inspections, or finding a real estate attorney.
3. 3. Dual agent: Some agents work as both the buyer and the seller of a property. The legality of this practice varies according to the different real estate laws of each state to avoid conflicts of interest. It is illegal to work as a dual agent in the states of Alaska, Colorado, Florida, Kansas, Maryland, Oklahoma, Texas, and Vermont. However, many states get around this predicament by having different agents within the same brokerage represent the buyer and the seller of the property respectively.
4. 4. Brokers: Agents who pass a broker’s licensing exam can become independent agents and either start their own brokerage firm or work as freelance brokers. There are also different types of real estate brokers. Principal brokers—or designated brokers—usually earn a salary and oversee all the agents’ activities. Managing brokers are involved in hiring, training, and managing the staff of a brokerage. The broker salesperson, also called the associate broker, works beneath the managing broker. They also have a broker’s license, but choose to work as part of a larger firm.

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