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  • What Does a Real Estate Agent Do? A Guide for Buyers and Sellers

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    If you’re planning on buying or selling your home this year, then chances are you’re considering working with a real estate agent. A great real estate agent can help make the homebuying or selling process easier, less stressful, and help you get the right deal. But, what exactly does a real estate agent do?

    In this Redfin article, we’ll outline what a real estate agent does and their responsibilities. Whether you’re selling a house in Baltimore, MD, or buying a home in Charlotte, NC, here’s what you can expect from your real estate agent throughout the process. 

    Key takeaways

    • A real estate agent is a licensed professional who represents buyers or sellers in a home purchase or sale.
    • A good real estate agent understands the local housing market, guides you through the buying or selling process, and advocates for your goals.
    • They typically earn a commission, often  a percentage of the home’s final sale price, though this amount is negotiable.

    What does a real estate agent do?

    A real estate agent is a licensed professional who assists clients in buying, selling, or renting properties. To become a real estate agent, individuals must complete state-required coursework and pass a licensing exam. Once licensed, agents typically work under a brokerage. 

    There are three common types of real estate agents:

    • Buyer’s agents: Buyer’s agents represent potential homebuyers. They show properties, answer questions along the way, and help make an offer on a home.
    • Seller’s agents: Sometimes called listing agents, a seller’s agent represents homeowners looking to sell. They market the property, attract buyers, and negotiate with potential buyers. 
    • Dual agents: Represent both the buyer and seller in the same transaction. This practice is restricted or prohibited in some states due to potential conflicts of interest, so check your local laws.

    What services do real estate agents provide?

    A professional real estate agent is your personal advocate. They should be able to give you the insight and support you need to make informed decisions, whether you’re selling or buying. All real estate agents should be able to provide the following services:

    Local market expertise
    • Provide knowledge about neighborhoods, home prices, and the local housing market. 
    • If you’re selling, your agent should know if now is a good time to sell, what other homes have recently sold for, and what buyers are looking for. 
    • If you’re buying, your agent should know the area’s inventory, find homes that match your criteria, and fit your budget.
    Schedule showings and open houses
    • Guide you through a house tour, point out features, and give you additional information about the property
    • Set up open houses for buyers to take a look
    Guidance on the mortgage process
    • Help you understand pre-approval requirements
    • Navigate financing options
    • Find lenders who match your needs
    Handle negotiations
    • Help you identify negotiation opportunities, concessions, and other compromises
    • Negotiate repairs or a lower price before the sale is finalized
    Manage necessary paperwork
    • Draft key documents like offer letters and purchase and sale agreements
    • Help you complete  additional paperwork like closing documents and more
    Oversee the closing process
    • Update you on the transaction, answer your questions, and actively check in
    • Recommend inspectors or other services like maintenance professionals or cleaners

    What do buyer’s agents do?

    • Find homes to tour: Your agent should help you find homes that meet your requirements and budget. They’ll send you potential homes, listen to your wants, and suggest neighborhoods that meet your criteria and budget. 
    • Give advice about a home: Real estate agents have experience touring and examining homes, so they can give you trusted advice about a property. For example, they may see red flags in a home that you may not. They likely have insight into why the home is on the market, if the sellers are in a hurry to sell, or if the home had recent renovations. 
    • Recommend lenders and more: Agents work with numerous lenders in the area, so they can recommend lenders that meet your needs. Buyer’s agents should also know about homebuyer assistance programs you may qualify for. If you need a specialized home inspection, like sewer or termite, your agent can connect you with the right professional. 
    • Write an offer and submit it: Your agent can guide you through the process of making an offer and negotiating the best deal. They’ll know what contingencies to include, what closing date to request, and more. 

    What do listing agents do?

    • Help price your home: Your agent will help you determine the right price to list your home. They’ll use comparable properties, which are recently sold homes in the area similar to yours, to help determine your home’s value. Your agent will ask you questions about your home’s features to ensure they’re pricing your house competitively.
    • Suggest minor updates and staging: Your agent knows what will help your home stand out. For example, they may suggest quick upgrades like a fresh coat of paint, replacing lightbulbs, and removing personal belongings from the home. If you have worn furnishings, they may recommend using a professional stager to make your home look up-to-date. 
    • Market your home: Real estate agents are experts at marketing properties so they can help you sell your place. From coordinating listing photos and staging to marketing your home online and during home tours, your agent will highlight your home’s best features. They can also use their network to attract potential buyers. 
    • Analyze offers: The highest offer isn’t always the best offer. If you have multiple offers on your home, your agent can help you choose the right offer and negotiate the best deal for your needs.

    Real estate agent vs Realtor® 

    Your real estate agent may also be a Realtor®. A Realtor® is an agent or broker who belongs to the National Association of Realtors® (NAR). As of May 2025, there are about 1.45 million Realtors®. Realtors® must adhere to NAR’s Code of Ethics, which outlines professional standards for working with clients and other real estate professionals. 

    All Realtors® are real estate agents or brokers. However, not all real estate agents and brokers are Realtors®.

    Real estate agent vs broker

    You may have also heard the term real estate broker and wonder how that’s different from a real estate agent. A broker is a licensed agent who has earned additional certifications that allow them to manage a team of agents and open a brokerage company. Real estate agents must work under a brokerage. In states like Colorado and New Mexico, all agents need an associate broker’s license. 

    FAQs about real estate agents

    How do I find a real estate agent?

    There are plenty of ways to find a trusted real estate agent. For example, you can look online at real estate agents in your area, speak to family and friends, or ask your lender. 

    Who pays the real estate agent fees?

    Buyers and sellers negotiate who pays the real estate agent fees. Prior to the NAR settlement in 2024, sellers typically paid both buyer’s and seller’s agents. Redfin anticipates that sellers will continue to cover the buyer’s agent commission fee in many transactions, but increasingly, these fees will be negotiated as part of the offer.

    When am I obligated to work with a real estate agent?

    You’re generally not required by law to work with an agent to buy or sell a home. If you choose to work with an agent, you may need to sign an agreement that outlines services and compensation. Buyers may be asked to sign a buyer’s agency agreement, while sellers sign a listing agreement before putting a home on the market.

    At Redfin, buyer agreements are flexible. Before the first tour, clients sign a simple fee agreement online that doesn’t require exclusive representation. A buyer’s agency agreement is only needed when submitting an offer (unless required earlier by local law) and can be canceled if the offer isn’t accepted.

    Other brokerages may have stricter terms and may charge buyers even if they don’t purchase a home. Always review cancellation terms before signing.

    Do I need a real estate agent?

    It’s possible to buy or sell a home without a real estate agent. Keep in mind a great agent can offer you invaluable insight about the local housing market, advise you along the way, and make the process less stressful. 

    What is a closing agent?

    A closing agent is a real estate professional who manages the final steps of a real estate transaction. They ensure that all documents are properly executed and funds are distributed correctly. They coordinate between buyers, sellers, and lenders to verify that all legal and contractual obligations have been met before the property officially changes ownership.

    What does a commercial real estate agent do?

    A commercial real estate agent specializes in selling commercial real estate, like office buildings and shopping centers. They typically have the same responsibilities as residential real estate agents, but have additional experience in leasing commercial properties.

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    Alison Bentley

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  • Can You Negotiate Real Estate Commissions? Yes, and Here’s How

    Can You Negotiate Real Estate Commissions? Yes, and Here’s How

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    When buying or selling a home, understanding real estate commissions is essential. These fees, typically a percentage of the final sale price, compensate agents for their services in guiding you through the process. However, contrary to popular belief, real estate commissions aren’t set in stone and can be negotiated

    With recent changes due to the NAR settlement, you may be confused about how agents are paid and whether you can negotiate real estate fees. In this article, we’ll break down how commissions work, how Redfin handles them, and provide tips on negotiating to save you money.

    What is real estate commission, and how much is it?  

    A real estate commission is a payment the homebuyer or seller makes to their agent(s) for their services in helping them purchase or sell a home. The commission is often a percentage of the final home sale price and is exchanged during the final transaction at closing.

    A common misconception is that there’s a set fee or percentage for real estate commissions across the industry. In reality, commissions are negotiated between the agent and the homebuyer or seller, and can vary.

    Can you negotiate real estate agent fees?

    Absolutely! Real estate commissions have always been negotiable, and that remains true even after the recent real estate commission changes. Commissions aren’t regulated by law, and can vary by area, giving both buyers and sellers the opportunity to negotiate these fees.

    Real estate agent showing houses

    5 Tips for negotiating real estate commissions 

    Negotiating realtor fees can seem like a daunting task, especially if you’re a first-time homebuyer or seller. However, negotiating real estate fees has always been allowed and there aren’t any laws against doing so. Let’s take a look at some of the strategies that can help you lower commission fees. 

    1. Do your research

    Understand the typical commission rates in your area so you have a starting point for negotiations. Rates can vary depending on the market, the property type, and the agent’s experience.

    2. Leverage competition

    Interview multiple agents and use competing offers as leverage to negotiate lower fees. Agents may be more willing to reduce their commission to win your business.

    3. Highlight your situation 

    If you’re selling a high-value property or buying in a hot market, mention this to the agent. A quicker sale or higher price point may motivate them to lower their fee.

    4. Ask about discounts for repeat business

    If you plan to sell or buy another property with the same agent, ask if they’d offer a discount for your loyalty.

    5. Be upfront about your budget

    Some agents may be willing to adjust their fees if they know you’re working within tight financial constraints, especially if it helps close the deal.

    Refinancing is something to be considered when wanting to lower costs.

    How does Redfin stand out when it comes to commissions?

    At Redfin, we’re committed to offering consumers the best value, which is why we charge sellers a listing fee as low as 1%.*

    For buyers, our fees vary depending on the market but remain competitive, as we understand that these costs can influence whether your offer is accepted or not. We also provide extra savings through our Sign & Save program. If you decide to hire your Redfin agent before your second home tour, we’ll reduce our fee by 0.25%.

    A final note on negotiating real estate commissions 

    Negotiating real estate commissions can seem intimidating, but it’s a perfectly acceptable and often beneficial part of the home buying or selling process. By doing your research, comparing agents, and understanding your leverage, you can potentially lower fees and save money. Remember, real estate commissions are flexible, and with recent changes in the industry, transparency and negotiation have become even more important. Whether you’re a buyer or seller, don’t hesitate to discuss fees with your agent and advocate for the best deal possible.

     

    *Listing fee subject to change, minimums apply. Any buyer’s agent fee the seller chooses to cover not included. Listing fee increased by 1% of sale price if buyer is unrepresented. Sell for a 1% listing fee only if you also buy with Redfin within 365 days of closing on your Redfin listing. We will charge a 1.5% listing fee, then send you a check for the 0.5% difference after you buy your next home with us. Learn more here.

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    Alison Bentley

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  • Who Pays the Real Estate Agent Commission?

    Who Pays the Real Estate Agent Commission?

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    Are you buying or selling a home? Then you might be wondering: “Who pays the real estate agent?” Traditionally, this cost has been shouldered by the seller, but recent changes have brought new dynamics into play. 

    The National Association of Realtors (NAR) and Multiple Listing Service (MLS) have implemented new rules about how real estate agents communicate about real estate fees. These changes went into effect on August 17th, 2024, and are intended to provide greater transparency and competition around fees. 

    In this Redfin article, you’ll learn everything you need to know about who pays the real estate agent, agent commissions, and the recent changes affecting them. 

    What is a real estate commission?

    A real estate commission is a payment the homebuyer or seller makes to their agent(s) for their services in helping them purchase or sell a home. The commission is often a percentage of the final home sale price and is exchanged during the final transaction at closing. 

    Who pays the real estate agent?

    Sellers have historically paid both the buyer and seller’s agent fees from the proceeds of the sale. But as of August 17, 2024, buyers will now agree to their agent’s fee in writing before touring. Buyers can still ask the seller to cover the buyer’s agent fee when they make an offer. 

    Because of this change, the amount the seller has to pay a buyer’s agent varies from buyer to buyer. Redfin expects that sellers will continue to cover the buyer’s agent commission fee in many transactions, but increasingly, these fees will be negotiated as part of the offer. 

    Here are two options for how a seller might navigate the new commission process: 

    • The seller can leave it open-ended and ask buyers to make their best offers, which may include buyer agent compensation, and then negotiate from there.
    • Sellers can proactively offer a commission or a concession that the buyer could use to pay their agent as part of their home’s marketing strategy. They can still communicate this to buyers and agents when a buyer’s agent contacts the listing agent to schedule a showing.

    Why would a seller pay the buyer’s agent commission?

    Whether to offer any buyer agent commission, or how much, is part of an overall marketing strategy geared towards attracting buyers and achieving the sellers’ goals. 

    Instead of authorizing their agent to advertise a selling office commission (which must now be off the MLS in most markets), a seller may choose to offer the buyer a concession that the buyer can choose to use as they see fit. Or, they could instruct their agent to tell the buyer that they’re open to offers. That then puts the ball in the buyer’s court to decide if they want to request any concessions from the seller, or if they want to pay their agent directly.

    How did the NAR settlement affect agent commissions?

    Prior to the NAR settlement, the commission amount that the seller was willing to provide was advertised in the MLS, so that buyer agents would know in advance what a seller was offering to them if they brought a buyer for that listing. Some MLSs required that the listing make an offer of commission to buyers’ agents. Commissions were always negotiable, but were rarely negotiated in practice. Following the settlement, we’re seeing an increase in how often commissions are negotiated. 

    The NAR settlement also established rules designed to help make real estate fees more transparent and competitive. For example, agents must now provide a written agreement to homebuyers that explains their fees before touring. These agreements must also include a statement that all commissions are fully negotiable. 

    Some brokerages now require a full buyer agency agreement that requires the customer to commit to that agent exclusively before touring. Redfin does not. Redfin believes that we should earn a customer’s business. This is why Redfin discloses our fee upfront, but does not require a customer to exclusively commit to us in order to tour a home. 

    Unless otherwise specified by state law, a buyer doesn’t need to sign an exclusive, binding agency agreement to tour a home. 

    Can you negotiate real estate agent commissions?

    Yes, you can negotiate real estate agent commissions. Commissions are not set by law and are fully negotiable. The commission rates many brokerages charge often vary from area to area, and there are no laws or industry rules that set commission rates.

    How is Redfin different when it comes to commissions? 

    At Redfin, we’ve always believed that consumers should get the best deal. That’s why we charge sellers a listing fee as low as 1%.* 

    Our fees when serving buyers vary by market, but are competitive because we know they could make the difference in your winning or losing an offer. All things equal, a seller will prioritize the offer that is asking them to pay a lower buyer agent fee. 

    We also offer additional savings for buyers who make a commitment to hire us after the first tour. With our Sign & Save program, if you commit to hiring your Redfin agent before the second tour, we’ll reduce our fee by 0.25%. We earn customers’ business by providing the best service and value.

    Final thoughts

    The real estate commission landscape has shifted, offering more transparency and flexibility for buyers and sellers – goals that Redfin has always supported. Whether you’re searching for your dream home or looking to relocate, understanding these new rules can help you make smarter decisions and potentially save money in the process. 

    You can learn more about the NAR settlement here, and how Redfin has embraced this change and always championed better deals for the customer here. You can also connect with a Redfin agent to learn everything you need to know – regardless if you’re buying or selling. 

    The NAR settlement primarily applies to listings on an MLS, and MLS rules may vary. Rules regarding listings not on an MLS also vary widely from state to state. Talk to your agent to learn more. 

    *Listing fee subject to change, minimums apply. Any buyer’s agent fee the seller chooses to cover not included. Listing fee increased by 1% of sale price if buyer is unrepresented. Sell for a 1% listing fee only if you also buy with Redfin within 365 days of closing on your Redfin listing. We will charge a 1.5% listing fee, then send you a check for the 0.5% difference after you buy your next home with us. Learn more here.

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    Jamie Forbes

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