Real estate sales agents guide a home sale or purchase from first conversation to closing: they price the property or find one, market it or evaluate it, draft and negotiate the contract, coordinate inspectors, lenders, and title companies, and keep every legal deadline on track. What real estate sales agents do for you depends on which side they represent, and since August 17, 2024, a buyer and agent must sign a written agreement setting the agent’s compensation before they can tour a home together, whether in person or virtually.
What a Listing Agent Does for Sellers
A seller’s agent starts with a comparative market analysis. The CMA pulls data on recently sold homes of similar size and features nearby to land on a realistic listing price, weighing days on market for comparable properties, seasonal trends, and upgrades or deferred maintenance that shift the home’s value relative to its neighbors.
Once the price is set, the agent advises on preparing the property. That might mean fresh paint and decluttering, or hiring a professional stager. The agent then lists the home on the Multiple Listing Service, arranges professional photography, and launches marketing through online platforms and print advertising. Open houses and private showings follow.
When offers come in, the agent reviews more than the headline number. They look at the buyer’s financing strength, the earnest money deposit (typically 1 to 3 percent of the purchase price), proposed contingencies, and the closing timeline. If terms aren’t right, the agent runs the counter-offer process until both sides agree and sign the purchase agreement, which opens escrow.
A good listing agent also prepares a seller net sheet early on. It estimates actual walk-away proceeds after the mortgage payoff, agent commissions, title insurance, transfer taxes, prorated property taxes, and any repair credits. Without this, sellers often overestimate what they’ll pocket.
What a Buyer’s Agent Does
Finding and Evaluating Homes
Buyer’s agents narrow the search using the MLS, filtering by price, location, school district, lot size, and anything else the buyer cares about. On tours, they flag things a first-time buyer might miss: aging roof systems, evidence of water intrusion, foundation cracks, outdated electrical panels. These observations don’t replace a professional inspection, but they help avoid wasting time on properties with obvious problems.
The Written Buyer Agreement
Before touring any home together, in person or virtually, a buyer and agent must sign a written buyer agreement. This requirement took effect August 17, 2024, as part of a nationwide settlement of litigation related to broker commissions. The agreement must state the specific amount or rate the agent will be paid; it cannot be open-ended or expressed as a range. Attending an open house on your own, or calling an agent to ask about their services, does not trigger the requirement.
Drafting the Offer and Managing Contingencies
Drafting the purchase agreement is where precision matters. The document sets the offer price, earnest money, financing terms, and the contingencies that let the buyer walk away if something goes wrong. The most common is the inspection contingency, which typically gives the buyer 7 to 10 days to hire an inspector and review results. If significant defects surface, the agent negotiates for repairs, a price reduction, or a credit toward closing costs. The agent also tracks the appraisal to make sure the property’s assessed value supports the loan.
Through the contract period, the buyer’s agent monitors every deadline: inspection responses, loan commitment dates, and the closing date. Missing a contractual deadline can mean forfeiting the earnest money deposit, so this timeline work is one of the less glamorous but most important parts of the job.
Behind the Scenes: Coordination, Disclosures, Records
Every transaction involves a small army of outside professionals, and the agent is the central point of contact. Mortgage lenders verify the buyer’s pre-approval and loan status. Escrow officers and title companies confirm the chain of title is free of liens or encumbrances. Home inspectors, appraisers, and sometimes surveyors or contractors all need scheduling. The agent keeps everyone on time so closing isn’t delayed.
Agents also distribute legally required disclosures and confirm all parties acknowledge them. The most familiar example is the lead-based paint disclosure. Federal law requires that before a buyer commits to a home built before 1978, the seller must disclose any known lead-based paint hazards, provide a lead hazard information pamphlet, and give the buyer at least 10 days to arrange a lead paint inspection. The agent makes sure the seller complies.
Federal law also prohibits agents from accepting referral fees, kickbacks, or anything of value for steering clients to a particular mortgage lender, title company, or other settlement service provider. Violations carry fines of up to $10,000, up to one year in prison, or both. Normal cooperative brokerage arrangements and affiliated business relationships are allowed when proper disclosures are made.
After closing, transaction files have to be retained. Most state licensing boards require brokers to keep them for at least three years, though some states require longer. The paperwork trail protects everyone if a dispute surfaces later.
Fiduciary Duties You’re Owed
When an agent represents you as a client, they owe you fiduciary duties rooted in agency law. These aren’t suggestions; violating them can lead to license suspension, revocation, or civil liability. The core duties:
- Loyalty: The agent must put your interests ahead of their own. They cannot steer you toward a property because it pays a higher commission or use confidential information to benefit themselves.
- Disclosure: The agent must tell you every material fact they know about a property or the other party that could affect your decision. A buyer’s agent who learns about foundation problems cannot keep that quiet; a seller’s agent who knows the buyer is shaky financially must say so.
- Confidentiality: Your financial situation, motivations, and negotiating position stay between you and your agent. This duty survives the end of the relationship.
- Obedience: The agent must follow your lawful instructions, even if they disagree with your strategy.
- Accounting: Any funds that pass through the agent’s hands, like an earnest money check, must be handled under strict trust account rules and accounted for to the penny.
- Reasonable care: The agent must perform their duties competently, using the skill and diligence the role demands.
Members of the National Association of REALTORS® also commit to a Code of Ethics that goes beyond state law, including mandatory fair housing training every three years.1National Association of REALTORS®. Code of Ethics and Standards of Practice Not every licensed agent is a REALTOR, though the terms often get used interchangeably.
One Boundary: Dual Agency
Dual agency is when a single agent or brokerage represents both the buyer and the seller in the same deal. One side wants the highest price, the other wants the lowest, and no agent can truly advocate for both. Roughly eight states ban it outright. Where it’s allowed, the agent must disclose the conflict and get written consent from both parties. Signing that consent gives up your right to the agent’s undivided loyalty, so be careful about what you reveal. Most experienced buyers and sellers use separate representation.
How Agents Get Paid
Compensation is fully negotiable and is not set by any law or regulation. Total commission on a residential sale has historically averaged roughly 5 to 6 percent of the sale price, split between the listing side and the buyer’s side. Each agent then splits their portion with their supervising brokerage. A newer agent might keep 50 to 60 percent of their share; experienced top producers often negotiate 80 percent or more.
The 2024 NAR settlement changed how buyer-agent pay works in practice. Listing brokers can still offer to pay the buyer’s agent, but that offer can no longer appear on the MLS; it’s handled through a separate broker-to-broker agreement. Seller concessions can still be advertised on the MLS, but they cannot be conditioned on or tied to payment to a buyer’s agent. Buyer agents also cannot accept compensation from any source that exceeds the amount set in their written buyer agreement.