What Does a Real Estate Agent Do? The Benefits of Hiring an Agent

What will a buyer’s agent do for me?

You may wonder how a real estate agent can benefit your home-buying experience. Here’s how they’ll help during every step of the process:

Your agent will find the perfect house

Real estate agents are deeply embedded in their community and know about the local housing market. They follow real estate trends in the area and hold access to the MLS database, which is vital in finding specifics on newly available homes.

Most importantly, though, they understand each client’s specific needs and can leverage their network to find the perfect house, says Charli Lynn, a Boca Raton, Florida-based real estate agent with the Lynn Realty Group, who, alongside her husband, has over 35 years of experience.

Lynn says, that nowadays, many agents work together to help buyers and sellers. Your real estate agent may learn about a house becoming available and get you in to see it before others. Or your agent may receive details about the market in a specific neighborhood you wouldn’t be able to find on your own.

“[These] are things [a buyer] would never know by just searching and making the phone call themselves,” says Lynn.

Michael Rolewicz, another top Florida agent based in Jacksonville concurs. “We might be able to turn them on to something they can pounce on before it even hits the market,” he explains. “It all comes down to having relationships with those listing agents.”

Once you find a few homes you’re interested in, your agent will coordinate showings and act as a second set of eyes on the property. They’ll confirm you don’t miss anything, such as signs of damage or pest infestation, and ensure listing agents answer your questions. They will also work with the sellers to get all appropriate documentation, such as disclosures or inspection reports — things you might not have known existed.

Your agent will present a strong offer

You’ve found the perfect house, and now it’s time to move. Here’s where a trusted real estate agent can save you time and keep you from missing out on your dream home.

Before agents write an offer, they will research comparable sales in the area, otherwise known as “comps,” to verify the listing price is fair and to give you a better idea of a good offer. The best way to set yourself up for success in this stage is to ensure the agent has all relevant information from you and the listing agent. That includes your maximum offer price, anywhere you can be flexible, and if there’s any competition on the house.

Once you’re ready to make an offer, your agent will determine if it’s as strong as possible. They will instruct you on every necessary document so you don’t waste any time and they will set the timeline for the entire process. They may also recommend an escalation clause if there might be a bidding war.

If the sellers return with a counteroffer, the agent will be your best advocate, negotiating for a reasonable purchase price.

Your agent will walk you through the transaction

When the offer is accepted and a closing date is set, your agent becomes the first line of defense to get ahead of any potential complications. They help coordinate your home inspection and liaise with the listing agent for any problems in the report. They remain your strongest advocate, making sure the sellers fix any issues — or at least compensate you fairly for them.

While agents aren’t loan originators, they may introduce you to one and help you keep track of how your mortgage loan application is progressing. The financing process can be very confusing and often burdensome. Your real estate agent will be invaluable in answering your questions and ensuring you’re treated fairly. They will also educate you on your home insurance, which you’ll need to secure your loan and point you in the right direction to find the best policy.

Depending on your state or lender, you may also require a real estate attorney. Your agent will recommend a few in their network and confirm you understand their role. That includes walking you through the purchase and sale agreement and other legal issues that arise.

Finally, your agent will affirm that you are sticking to the timeline they set when creating your offer. Their priority during this stage is for all parties to meet their deadlines, so you can hit your closing date and move into your home as soon as possible.

Your agent will be next to you at the closing table

Within 24 hours of your closing, your agent arranges the final walkthrough of your new home. This is a final step to ensure the property is clean and that any repairs you and the seller agreed upon are completed. The agent will also check that no new damage to the property has popped up.

On the closing day, your agent will be there for moral support and to answer any questions. The attorney working the closing will most likely explain everything you’re signing, but if not, your agent should have the answers.

Your agent will always be your biggest advocate

We know we mentioned this already, but it’s worth saying again: Your real estate agent will be your biggest advocate throughout this process. If any surprises or issues appear, your agent will break down all your options and then go to bat for you to fix them. If you want to walk away, your agent will explain what that means for your earnest money and how best to do it. If you’re overwhelmed, your agent will answer your questions and help put your mind at ease.

What if I don’t have a buyer’s agent?

In short, you’ll have to do everything mentioned above by yourself. But here are some specifics.

You may miss out on the right home

There are plenty of websites showing home listings nowadays, but Lynn says they aren’t always accurate. Real estate agents have access to their own network of contacts and the MLS database, which has updated listings. That means an agent can tell you if a home is already under contract and save you valuable time in the home search. They can also find you homes you wouldn’t be able to find yourself and can get you in early to beat the competition.

You’ll have to do all the legwork

There is a lot of paperwork involved in a home transaction, but that’s not even the worst of it. Without a real estate agent, you’ll have to coordinate your showings, reach out to listing agents, write your own offers, find recommendations for inspectors and lenders, and negotiate on your own.

If you have a real estate background, that might not seem too difficult. But if you don’t, you might miss specific details or let items fall through the cracks.

You could lose money

If all your I’s aren’t dotted and T’s crossed, that might mean lost money down the road. Maybe you didn’t include an inspection contingency and must walk away after the home inspection. That could mean you lose your earnest money. Perhaps you fell behind on the timeline, and the seller had a “time of essence” clause in the contract. Again, you could lose your earnest money. Or maybe an issue with your loan application and financing falls through. Depending on your contract, that could mean the loss of your down payment.

What will a listing agent do for me?

Listing agents will be in your corner as a homeowner who wants to sell your house. These agents help you attract interested buyers, push the best aspects of your house out in the open, and close the deal. Throughout the process, the best real estate listing agents will go above and beyond to simplify the entire home-selling experience for you. Here are a few important things listing agents do for you as a home seller:

Your agent will set the right listing price

Landing on the right list price may be harder — and more critical — than you realize. You need to strike a price that’s high enough to bring in profit but not so high that your house turns off potential buyers and sits on the market. Real estate agents spend hours digging into the local market, learning about your home’s features, looking at historical data, and gathering insights to determine the perfect price point for your home.

An important way real estate agents pin down pricing is through a comparative market analysis (CMA). These are in-depth reports that agents compile after they analyze a home’s local market, age, features, size, and other factors. The final report often ends up being up to 50 pages and uses wide-ranging data to determine a house’s value.

Your agent will guide you on prepping the house for a sale

Preparing your house for a sale requires expertise and takes time. Not only do you need to identify any repairs or upgrades that are necessary for a sale, you also have to figure out which of those repair jobs are worth taking on. After all, if you focus on the wrong repair projects, it can end up costing you more time and money than it’s worth. This is another area where real estate agents shine.

Listing agents take time to research what upgrades will bring in the most ROI for a seller. They also have a rolodex of contacts that they call on to complete projects, so you spend less time tracking down and juggling vendors.

“We’ve got a preferred list of vendors, so we’re coordinating people to get quotes,” says Rolewicz. “We’re an introduction to other people and a neighborhood resource for those folks.”

Your agent will market your home to attract the right buyers

Real estate agents also use marketing to grab a buyer’s attention, display the best features of your house in the best light possible, and inspire potential buyers to check out your home.

“Sellers sometimes focus on things that buyers couldn’t care less about,” notes Rolewicz. “We’re really trying to get that seller to turn the lens and look at their property through buyers’ eyes.”

Here are a few important ways real estate agents work to bring in buyers:

• Marketing: For most agents, real estate marketing includes listing your home on the Multiple Listing Service (MLS), but it also means using multiple tools to get the word out about your sale. That often includes everything from social media campaigns and answering emails to creating video walkthroughs, posting notices at events, and more.
• Staging: Home staging is a critical process real estate agents help you handle. In fact, a recent HomeLight survey found that a staged home can sell for up to 13% more than an unstaged home. During staging, your agent or a professional stager will work to arrange your home in a way that showcases its best features and helps potential buyers picture themselves living in your property.
• Photos: If your home’s listing doesn’t include outstanding, pro-level photographs, you could easily turn away potential buyers. Real estate agents will likely help find a professional photographer to help draw in buyers.

Your agent will evaluate offers and negotiate the best deal

Real estate agents are experienced negotiators who advocate for their clients’ interests. However, as Rolewicz explains, real estate agents will also fight to get you a better deal in areas that reach far beyond your house’s closing price.

“It depends on the seller’s needs,” says Rolewicz. “ We’re finding out when we’re in the listing consult, what does Mr. or Mrs. Seller want? It’s not only price. It could be timing, or whether you want to sell it first, or post occupancy.”

Rolewicz says real estate agents take time to assess the seller’s priorities and then they negotiate to secure the best deal possible. Here are a few things beyond your final selling price that real estate agents may end up fighting for on your behalf:

• Escalation clauses
• Homes with multiple offers
• Move-in dates
• Repairs and seller credits

More ways listing agents add value

Listing agents also hand clients even more, sometimes less tangible, support. For instance, they may help coach a buyer through the process, work to calm nerves, or simply stand in your corner. Overall, agents are experts in anticipating the seller’s needs and smoothing out a home selling process that may feel overwhelming otherwise.

What if I don’t use a listing agent?

Choosing to sell your home as “for sale by owner” (FSBO) means you’re taking on the responsibilities typically handled by a listing agent. Let’s explore what this entails.

Limited market exposure

When you sell your home without a listing agent, your property might not get the exposure it deserves. Listing agents have access to the MLS database of homes for sale. The MLS increases a property’s visibility to other agents and potential buyers, enhancing the chances of a quick sale. You could hire a flat-fee MLS service, but agents also often have a network of contacts and can use their marketing expertise to target the right audience. Without this access and expertise, your home may linger on the market longer than necessary, potentially leading to a lower selling price.

Navigating the selling process alone

Selling a home involves a lot of steps, from staging and showing the property to negotiating offers and navigating closing procedures. Without a listing agent, you’ll be responsible for all these tasks. You’ll need to figure out how to effectively market your home, schedule and conduct showings, and negotiate with potential buyers—all tasks that can be challenging and time-consuming. The legal and financial intricacies of a real estate transaction can also be complex, and without the proper expertise, it’s easy to make mistakes that could delay the sale or lead to legal issues. There are also a wide range of scams that top agents know how to spot and avoid.

Potential for financial loss

A key aspect of selling a home is determining the right listing price. Price it too high, and your home may not sell; too low, and you’re leaving money on the table. Real estate agents use their knowledge of the local market to set competitive prices, a skill that comes from experience and access to current market data. FSBO sellers may not have the resources or expertise to price their home accurately, which can result in a longer time on the market or a lower selling price. Sales data from NAR shows that FSBO homes sell at a median of $310,000, much lower than the median of agent-assisted homes at $405,000.

What if I am buying and selling at the same time?

If you’re buying and selling at the same time, there are now innovative new programs like HomeLight’s Buy Before You Sell. This modern solution is specifically designed to make the entire process much easier by unlocking the equity you have in your current home. Here’s how it works:

To learn more, see House Hunting: How to ‘Buy Before You Sell’ With HomeLight.

How to find a top real estate agent

Not only is it essential to have a real estate agent, but it’s also important to find the right one. That itself can be a daunting and challenging process.

The best place to start is to figure out what’s important to you in an agent and your expectations. Then it’s worth it to take your time and research all of your options. Drive around your community to find well-marketed agents, get recommendations from family/ friends, or use online resources. Leveraging a reputable agent-matching tool lets you review the top buyer agents in your area based on your specific needs. Also, don’t be afraid to look up your potential agent to ensure they’re licensed.

Finally, it’s important to ask potential agents questions and get a feel for what they are like to work with. Outside of background and experience, personality should be a driving factor.

“I think it’s super important to have that conversation [with the agent] so that if you don’t feel the click right away, move on and interview somebody else,” says Lynn.

Once you find your trusted agent, you’re on your way to a successful real estate journey. And since you now better understand their role, agents should make the process a little more straightforward and less nerve-wracking.

Writer McCoy Worthington contributed to this story.

Header Image Source: (Surface / Unsplash)