A real estate agent is a licensed professional in the real estate industry who serves as a liaison between sellers and buyers. That is, he/she helps buyers and sellers in their transactions, do paperwork, and serve as representative in negotiations. In return, the agent receives a commission for his/her role in the transaction.
What do real estate agents do?
Real estate agents do a lot of tasks during a real estate transaction. These tasks are different depending on the type of real estate transaction taking place. Furthermore, they do specialize in different areas of real estate. You can have rental property agents, commercial property agents, etc.
For every transaction, you could have a seller’s agent or listing agent who helps the seller and the buyer’s agent who helps the buyer. The seller’s agent work with the seller in preparing the property, listing price, negotiations, etc.
On the other hand, the buyer’s agent goes though property showings with the buyer. In addition, he/she advises the buyer on offers, negotiations, and does paperwork, etc.
The buyer’s agent does research on properties available on the market that fits the buyer’s interest and budget. They use comparative market analysis to determine the value of a property in a particular area. They do this analysis to make sure that the buyer is not paying more than what the property is worth.
How much commission real estate agents get?
The agents’ commissions are negotiable. There are many factors that can influence this compensation such as experience. In general, the commission is a percentage of the total cost of the property. According to Redfin.com, the estimated commission is between 5-6% of the total sale price of the property. The two agents will share this commission based on their negotiations. One agent can end up with 50% of the total commission.
Should I use a real estate agent?
Absolutely, yes. Real estate agents are licensed professionals who understand the market and will offer you insight into the market. They will help you with negotiations, showings, paperwork, and more importantly; they will help you buy the property at the best price possible or optimize your gain when selling.
