“What does a real estate agent do” is a frequent question that is being asked. Let me see if I can demystify what a Real Estate Agent does during a transaction.

Many of the things a Real Estate Agent does are many times done outside of the public eye. What the public sees mostly is the interacting directly with our buyer or seller clients.

Depending on in what state you are buying or selling your real estate, you may have different types of real estate agents involved in the transaction. Each one of them may have different obligations they need to fulfill during a transaction that is either governed by local, State, or Federal laws/rules.

None of them are allowed to disclose the following information to either party, whether it is to a buyer or seller, unless agreed to in writing by both parties.

a)      Any material or confidential information (except adverse material facts or risks actually known by Licensee concerning the physical condition of the Property, and facts required by statue, rule, or other requiring entity).
b)      That a Buyer will pay more than the offered purchase price for the Property.
c)      That a Seller will accept less than the listed price for the Property.
d)      Other terms that would create a contractual advantage for one party over another party.
e)      What motivates a party to buy or sell the Property?

Most commonly, everybody knows the Buyer or Sellers Agent. That could be either a Broker or a Salesperson (some states). More and more, there are now also Transactional Agents that formerly where dual or limited agents. A Transactional agent does not represent a buyer or a seller. They are a neutral go between for both parties to help them complete a transaction.

A buyer’s agent is ONLY representing a buyer and not a seller at the same time! A buyer and seller are represented by the same Agent during the same transaction is commonly called a dual/limited agency and it is not legal in all states. In many cases the dual/limited agent has been replaced with a transactional agent and it has to be understood and agreed to in writing by all parties.

Feel free to contact us and ask for the Agency relationship brochure that explains the difference between a Buyers, Sellers and Dual/Limited Agents.

Due to the different in the governing bodies that govern what a Real Estate Broker/Agent is allowed to do, you need to check with your State directly. There are basic functions a broker does that is pretty much within reason the same in every state.

• Comparative Market Analysis (CMA) — an estimate of the home’s value compared with other properties located within the same neighborhood or within a certain distance of the subject property. (competition for the subject property)
• Total Market Overview — an objective method for determining a home’s value, where a CMA is subjective.
• MARKETING — Marketing the real property to prospective buyers.
• Facilitating a Purchase — guiding a buyer through the process.
• Facilitating a Sale — guiding a seller through selling process.
• FSBO document preparation — preparing necessary paperwork for “For Sale By Owner” sellers.
• Real estate appraisal — in most states. Other states a broker has to be licensed as an appraiser.
• Home Selling Kits — guides to how to market and sell a property.
• Real Estate consulting – based on the client’s needs.
• Leasing for a fee or percentage of the gross lease value.
• Property Management – In some states the broker has to hold a Property Management certification.
• Exchanging property.
• Auctioning property – unless the state requires an auctioneer license.
• Preparing contracts and leases. (not in all states)

When you have any questions about this or any other Real estate related topics, feel free to contact the Settles Team. We are never too busy to help you with any of your real estate related needs.