Real Estate Agency

Real estate agents typically focus on residential or commercial properties as their area of expertise. In each case, depending on whether they work for the buyer or the seller, they are responsible for a separate set of responsibilities.

Agents who collaborate with the seller are referred to as listing agents, and they provide clients with advice on how to price the estate and arrange it for sale. This advice may include suggestions for last-minute upgrades that can increase the selling price or encourage buyers to make offers more quickly. Listing services, personal connections, and paid advertisements are seller agents' methods to market the property.

The buyer's agents search for available homes within the buyer's desired price range and satisfy the buyer's wish list. To assist potential buyers in formulating a reasonable offer, these brokers frequently examine the data from previous transactions involving homes comparable to those purchased.

Agents serve as intermediaries for the main parties, communicating offers, counteroffers, and other queries back and forth on their behalf. Once a bid is accepted, real estate agents on both sides of the transaction typically continue their job. This includes assisting their clients with the paperwork, communicating details, providing advice on inspections and relocating, and generally shepherding the deal through to its conclusion.

Customers must understand if a real estate agent promotes the buyer, the seller, or both parties in a negotiation. Clearly, the agent's loyalty can significantly impact a variety of aspects of the deal, including the price that is ultimately agreed upon. The legal concept known as "dual agency" is governed by state regulations that determine whether or not a real estate agent can legally represent both parties in a transaction. Agents must identify who they work for, ensuring that buyers and sellers are informed of any potential conflicts of interest.

Typically, an agent will be paid a commission equal to a certain percentage of the property's final sale price. When a home sells for a higher price, the commission that an agent receives also increases. 

Some real estate brokerages charge a reduced cost for more expensive homes, while others may handle the entire transaction for a flat price significantly less than the typical commission they would charge. A fee-for-service pricing structure is one that other organizations offer. This pricing model allows sellers to pay for specific aspects of the selling process, such as submitting their property to a multiple listing service (MLS).