Real Estate Agents: An Overview
What is a real estate agent? When do you need to find one? How are they paid? Can you trust them? Do you really need one?
In real estate, as in any other industry, there are the good, the bad, and the ugly. The key is understanding what an agent does, knowing how to find a good agent, and doing your homework to make sure that agent is a good fit for you.
The difference between broker and agent is a little muddy. In some locations, the terms are used interchangeably. Someone called an agent in one part of the country might have the exact same job as a broker in another part of the country. In areas with brokers and agents, brokers are usually more senior, with additional training and more managerial responsibility at a real estate brokerage. In general, we use the term agent throughout this guide.
A Realtor is an official member of the National Association of Realtors, which is a national organization of real estate agents, brokers, and other real estate professionals. Membership in the NAR is voluntary, and is not required to work as an agent or broker.
If you're buying a home, your agent should work on your behalf to get you the right home, at the right price, in a timely manner. An agent should not pressure you into buying a home, try to convince you to spend more than you're comfortable spending, or require you to work with their preferred lender or inspector. Visit our page on Agent Roles for more information.
Tip!
Redfin agents work a little differently than many agents in the industry. We think these differences make buying or selling a home more fair to the consumer. Redfin agents are real, licensed agents. They're also employees with salary and benefits. Our agents don't receive a sales commission; instead, they're paid a bonus only when they make customers happy.
Find out what makes a Redfin agent different.
You're the best judge of the right time to find an agent. For some people, getting an agent will be the first item on the To Do list. This may be especially true of first-time buyers, or buyers who are relocating to a new area. The assistance of an agent early in the process can cut down on confusion and help a buyer organize the sometimes-messy process of shopping for a home.
Other buyers will prefer to do more homework before contacting an agent. These buyers may enjoy the research process, and may be more comfortable viewing open houses, driving through neighborhoods, reading books, and using online resources to narrow down their search before committing to an agent. Some resources we recommend:
- Home Buying for Dummies, by Eric Tyson and Ray Brown
- Buying a Home: The Missing Manual, by Nancy Conner
Choose the approach that's right for you. If you have questions that you want an agent to answer, or you want to tour a specific home or make an offer, it's probably the right time to start interviewing agents.
Actually, no. You don't need an agent.
For the vast majority of buyers, using an agent greatly simplifies the home-buying process. A good agent will be familiar with local real estate rules, regulations, and laws. A good agent will fight hard to get the buyer the best deal. A good agent will have solid connections to lenders, inspectors, and other service providers that a buyer might need in order to close a deal.
But some buyers can and do handle a home purchase without an agent. If you do decide to go this route, we strongly recommend that you find a good real estate attorney to help you deal with contracts and paperwork (some states require an attorney, whether you have an agent or not).
To find out what other Redfin users have to say about working without an agent, visit our forums.
You don't. Technically.
When a seller sells their home, they pay a commission to their own agent (the listing agent), and they also pay a commission to the buyer's agent. Usually, the buyer's agent and the listing agent get the same amount.
Of course, the seller has no money at all until the buyer buys the home and hands over the cash. Many people argue that this means the buyer is the one who really pays the agents, since it's the buyer's money.
Either way, buyers who decide to work without an agent are usually motivated by a desire to save money. The listing agent will still get their cut, but the buyer may be able to negotiate with the seller, and save the part of the commission that would normally go to pay the buyer's agent.
Before you sign any paperwork locking you into one agent (known as a buyer's agency agreement), you should make sure that you're comfortable with your choice of agent. It can be difficult to break-up with an agent once you've signed on.
To learn how to select an agent (and to prevent yourself from getting trapped with an agent you don't like), visit our page on How to Choose an Agent.