What Real Estate Agents Do

One of the most complex and significant financial events in peoples'

lives is the purchase or sale of a home or investment property. Because of this complexity and significance, people typically seek the help of real estate agents when buying or selling real estate.

Real estate agents have a thorough knowledge of the real estate market in their communities. They know which neighborhoods will best fit clients'

needs and budgets. They are familiar with local zoning and tax laws and know where to obtain financing. Agents also act as intermediaries in price negotiations between buyers and sellers.

During your initial meeting, agents typically help you determine the viability of your wants and needs in both a neighborhood and a home. In this prequalifying phase, the agent determines how much the buyer can afford to spend. The agent will help you find suitable financing, clue you in on current market conditions and tell you what to expect as you shop for a home. Your agent will also devise a strategy or shopping plan based on your needs, how much you can afford and current market conditions.

In addition, the agent and the buyer usually sign a loyalty contract which states that the agent will be the only one to show houses to buyers. An agent or broker then generates lists of properties for sale, their location and description and available sources of financing. In some cases, agents and brokers use computers to give buyers a virtual tour of properties in which they are interested. With a computer, buyers can view interior and exterior images or floor plans without leaving the real estate office.

Agents may meet several times with prospective buyers to discuss and visit available properties. Agents identify and emphasize the most pertinent selling points. To a young family looking for a house, they may emphasize the convenient floor plan, the area's low crime rate and the proximity to schools and shopping centers. To a potential investor, they may point out the tax advantages of owning a rental property and the ease of finding a renter. If bargaining over price becomes necessary, agents must follow their client's instructions carefully and may have to present counteroffers in order to get the best possible price.

Once both parties have signed the contract, the real estate broker or agent must make sure that all special terms of the contract are met before the closing date. For example, the agent must make sure that the mandated and agreed-upon inspections take place. Also, if the seller agrees to any repairs, the broker or agent must see that they are made. Increasingly, brokers and agents are handling environmental problems as well, by making sure that the properties they sell meet environmental regulations. For example, they may be responsible for dealing with lead paint on the walls.

While loan officers, attorneys or other persons handle many details, the agent must ensure that they are carried out.

To help you buy a home, your agent must have a vast working knowledge of the real estate market, including price trends, neighborhood conditions and amenities, real estate law, zoning issues, financing, taxes, insurance and negotiating. The best agents are also "street smart" in the psychology of home buying and the stresses that accompany it.

When you have a question, concern or idea as you shop, your agent should be able to respond either directly or by referring you to someone who can help. An agent cannot arrange a mortgage or other financial deal. Real estate agents can, however, recommend several mortgage companies, attorneys, inspectors and other professionals for the buyer to interview.

When you're ready to sell your home, your real-estate agent will take care of all the details and concerns of the selling process. Agents are responsible for placing advertisements, showing the property, running open houses and navigating the closing process. Additionally, most agents are trained to generate a Comparative Market Analysis (CMA) of your home to determine whether the asking price is relevant for the area and the current trends of the market. This analysis is also important when you consider buying a home. By running a CMA, your agent will be able to tell you if the property is priced appropriately. On a legal note, the insurance that an agent's broker holds will cover each transaction in which you use their services, should issues arise in the future.

On top of all the advantages of a real-estate agent's inside knowledge and information, you should also expect a strict fiduciary responsibility from your agent to ensure that your best interests are being represented in each transaction. If your agent is a member of a local and/or national Board of Realtors, you have the added assurance that they are held to a very strict code of ethics by an organization that takes their reputation seriously and does not look lightly on infringements of its rules and regulations. In some states agents are also required by the Real Estate Commission to complete additional hours of continuing education each year in order to remain licensed. Therefore, your agent will be expected to represent you at a very high standard of competency by agencies that have the clout to enforce it.