Understanding the Role of Real Estate Agents: A Comprehensive Guide

When it comes to buying or selling a home, the expertise of a real estate agent can be invaluable. These licensed professionals assist buyers and sellers in navigating the complex world of property transactions. At O1ne Mortgage, we understand the importance of having a knowledgeable agent by your side. If you need any mortgage services, don’t hesitate to call us at 213-732-3074. Let’s dive into what real estate agents do and how they can help you.

What Do Real Estate Agents Do?

Real estate agents specialize in either working with buyers or sellers, though some handle both. Regardless of their focus, their primary goal is to negotiate the best possible deal for their clients. Here’s a closer look at their roles:

What Does a Buyer’s Agent Do?

Finding the Perfect Home: A buyer’s agent works closely with you to understand your preferences and budget. They use their local market knowledge to find properties that meet your criteria, saving you valuable time.

Creating a Fair Offer: Once you find a property you like, your agent will help you draft a competitive offer that considers local market trends. This ensures your offer stands out to the seller.

Negotiating on Your Behalf: Your agent represents your interests during negotiations, aiming to secure the best price and terms, including contingencies and closing costs.

Facilitating the Transaction: From handling paperwork to recommending reputable home inspectors, your agent ensures everything is in order for a smooth transaction.

What Does a Seller’s Agent Do?

Establishing the Best Price: A listing agent reviews recently sold comparable properties to estimate your home’s value. They advise on the highest price buyers are likely willing to pay.

Marketing and Advertising Your Home: Seller’s agents list your property in the multiple listing service (MLS) and market it on social media and local outlets to attract potential buyers.

Preparing Your Home for Viewing: Agents use their experience to identify ways to improve your home’s appeal, ensuring it makes a great first impression on buyers.

Negotiating with the Buyer’s Agent: Your agent advocates for you during negotiations, keeping you updated and helping you make informed decisions.

Real Estate Agent vs. Real Estate Broker

While both real estate agents and brokers help people buy and sell homes, there are key differences. Real estate agents are licensed professionals who work under the supervision of brokers. Brokers, on the other hand, have additional training and have passed a broker’s licensing exam. They can work independently, oversee sales agents, or run their own firms.

Real Estate Agent vs. Realtor

The terms “real estate agent” and “Realtor” are often used interchangeably, but they are not the same. Realtors are real estate agents who are members of the National Association of Realtors (NAR) and adhere to its high ethical standards. Not all real estate agents are Realtors, but all Realtors are real estate agents.

How Are Real Estate Agents Compensated?

Real estate agents typically receive a commission paid by the seller, which is split between the buyer’s and seller’s agents. This commission is usually around 5% to 6% of the total sale price. For example, on a $400,000 house, a 6% commission would amount to $24,000, divided between the two agents.

Do You Need a Real Estate Agent?

While you are not required to have a real estate agent to buy or sell a property, their expertise can be beneficial. Sellers often avoid using agents to save on commission fees, but real estate contracts can be complex. Buyers, on the other hand, typically don’t pay commissions, so there’s little downside to using an agent. According to the National Association of Realtors (NAR), 86% of buyers worked with an agent or broker in 2022.

How to Find the Right Real Estate Agent for You

Choosing the right real estate agent can make the home transaction process smoother. Here are four steps to help you find the best agent:

Search for Reputable Agents: Ask for recommendations from people you trust and search online reviews for agents with a strong track record and positive reviews.

Meet with Multiple Agents: Speak with several agents to find the best fit. Studies show that many buyers and sellers only interview one agent, but meeting with multiple agents can help you make a more informed decision.

Prepare Questions: Have a list of questions ready for prospective agents. Buyers might ask about availability and communication methods, while sellers might inquire about marketing strategies and what happens if the home doesn’t sell at the list price.

The Bottom Line

If you’re planning to buy or sell a home, consider using a licensed real estate agent to guide you through the process and negotiate the best deal. And if you’re taking out a mortgage, O1ne Mortgage is here to help. Call us at 213-732-3074 for any mortgage service needs. Reviewing your credit report before applying for a mortgage can also improve your approval odds, so be sure to check your Experian credit report for free.

At O1ne Mortgage, we are committed to helping you achieve your homeownership dreams. Contact us today to learn more about how we can assist you with your mortgage needs.