What Does a Real Estate Agent Do?
Denver, CO
Lawrence Family Properties, LLC Denver, CO
Published on December 14, 2021

What Does a Real Estate Agent Do?

Simply put, a real estate agent is someone who helps you make the home buying process easier and less stressful. As we have reiterated here, buying or selling a home is likely one of the largest life decisions a person will make. Doesn’t it make sense to have someone who is extremely knowledgeable in your corner to assist you in the decision-making process? We sure think so.

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Let’s take a look at how a reputable real estate agent can help you successfully navigate the real estate market, as well as the steps you can take to be absolutely sure you and your real estate agent are the best possible match.

 

What is a Real Estate Agent?

Real estate agents are licensed professionals who assist, organize, and oversee real estate transactions. They can work independently or as an employee for a larger brokerage. For their knowledge and expertise, they are typically paid a commission.

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There are two types of real estate agents involved in the sale of property:

  • Listing agents are real estate agents who represent the seller in a real estate transaction.
  • Buyer’s agents represent the buyer in a real estate transaction.

 

How Does a Real Estate Agent Help Buyers and Sellers?

 

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Area Knowledge

First and foremost, real estate agents should fully understand property values of properties in a specific location. Obviously, a home’s value in relation to its location is one of the most important factors in calculating a properties’ worth. However, location is not composed simply of the address. Location is made up of many different factors, including comparable home prices, neighborhood history, schools, proximity to businesses, access to transportation, as well as safety.

A good agent should understand each of these factors in any area you are buying or selling a home. With this knowledge they can help you price your home correctly or tell you if a property you’re considering purchasing is more expensive than average.

 

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Navigate the MLS

Between work and daily life, most people don’t have the time to conduct a truly thorough home search. It is your agent’s job to make sure they are constantly monitoring the areas multiple listing service (MLS). Homes can become available at any time. With today’s fast paces real estate environment, being the first to see a home and make an offer can be the deciding factor in purchasing your ideal property.

For sellers, listing a property on the MLS is the best way to get your property seen by as many potential buyers as possible. Only real estate agents can post an available property on the MLS, and it is not a simple process. Statistically speaking, homes listed on the MLS sell for 17% more than homes that are sold off the MLS. So, even if you are inclined to sell your home yourself, in order to avoid the 5% commission, you are potentially missing out on an additional 12% of your home’s value.

 

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Help with the Mortgage Process

Whether you’re a buyer or seller, your real estate agent should be assisting you with your properties financing. Getting preapproved for a loan is an important step in the home buying process and having an agent by your side is beneficial when discussing your home loan.  When it comes to your loan, your real estate agent has likely dealt with several mortgage lenders and can recommend those who make the process as smooth as possible. They should also be able to walk you through the entire loan process itself.

If you’re selling your home, your real estate agent will make sure that only preapproved buyers take interest in your home. Having your agent vet a potential buyer before the transaction moves forward will save you a headache down the road. Having a buyer back out because their financing is not in order is one of the most common ways contrasts are terminated.

 

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Negotiate on Your Behalf

In the majority of home sales or purchases the home inspection or home appraisal will reveal hidden issues, or an incorrect valuation of the property. It is your agent’s job to help you negotiate pricing adjustments that correctly reflect a properties’ value or assure that necessary repairs are made. The best real estate agents know how to negotiate with potential buyers or property owners, and they can help facilitate a compromise before a sale is finalized. Not only will they try to get you the best offer if you’re a seller, but they’ll also try and get you the best deal if you’re a buyer. Real estate agents can also make sure that there’s no one working on the home without authorization, and that a property owner has all the necessary permits and allocations for ongoing projects. A great agent should even suggest you walk away from a property if the home has issues that cannot be fixed or that seriously effect a properties value in the long term.

 

Paperwork, Documentation and Closing

Whether you’re selling or buying a home, you can expect to complete a lot of paperwork, some of which may be unfamiliar, especially if it’s your first home purchase. Your agent should make sure that you fully understand and complete your paperwork on time. They will constantly be double checking that everything you fill out is correct and that you address any outstanding issues as quickly as possible. Additionally, you will need to provide your lender with a ton of documentation. Your agent is there to make sure you are submitting the correct documents making the lending process move as smoothly as possible. Finally, the closing of a property transaction can be a daunting. Countless signatures on endless documents that many people do not fully understand. Your agent should be present at your closing and able to fully explain each and every document you are signing should questions arise.

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How Do You Find the Right Real Estate Agent?

As soon as you’re ready to set off on your home buying, or selling, journey, one of the first steps is finding the relationship that’s right for you and your needs. Here are some tips to help you choose a trustworthy agent.

 

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Talk To Friends and Family

Almost everyone knows someone who has recently bought or sold a home. Simply utilizing your friends and family to help you find a reputable and trustworthy agent might be the best way to find someone you want to work with. You’ll be spending a lot of time with your agent, it’s worth choosing someone who connects well with people whose opinions you trust.

 

Read the Reviews

If your search leads you to the internet to find an agent or research a recommendation, it is always in your best interest to thoroughly read an agent’s individual reviews. A truly happy client will take the time to write a review that describes exactly what they liked about working with an agent. Look for notes as to an agent’s responsiveness, negotiation skills, and knowledge of the market. On the other hand, if anyone was unhappy with their experience with an agent, they will likely have made it known. Any negative online reviews can be a red flag and you may want to consider continuing your search.

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Ask Questions

During your first meeting with a real estate professional the most important thing you can do is ask questions. Here are a few examples of what to ask your agent. Use these to gauge their knowledge of an area and to get a feeling for how they conduct business.

  • Do you work full time or part time as an agent? (Why would you want to work with someone who is only going to be working for your part time?)
  • Do you work with both buyers and sellers? (An agent who works on both sides will inherently be more knowledgeable in real estate.)
  • How many clients do you have right now? (An agent with too many clients may not be able to devote enough time to you.)
  • Have you helped buyers find homes in my desired area? (Obviously you want an agent who is familiar with your search area.)
  • What are the values of homes doing in this area? Are they trending up or down?
  • What are the schools like in this area?
  • Is this area safe?
  • Will I be working with you individually, or with an assistant, or a team? (Make sure your agent is going to be your primary contact and is not going to be passing you on to another representative.)
  • How does your commission work? (Make sure you fully understand how your agent will be paid. Traditionally both the buyers and seller’s agent’s commissions are paid fully by the buyer.)
  • How do you help buyers or sellers compete in this market? (The current market is extremely competitive, let them tell you how they can give you a leg up on the competition.)

It’s helpful to work with a real estate agent who can teach you things about the area. As mentioned above, it is probably the most important factor in your home search. Ideally your agent will be able to provide you with tons of information to help you make informed decisions regarding your search.

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We feel that talking to your agent should be like talking to a friend, not a salesperson. Being able to have a friendly, knowledgeable conversation is one of the easiest ways to gauge your agents’ abilities. If they don’t have clear and confident answers to all of the above questions, move on.

 

Check Your Agent’s License

Most states require that real estate agents register with a licensing board where state agents can record disciplinary actions or complaints. Before you agree to work with a certain agent, locate your state’s real estate licensing board and look up your agent. Make sure their license is in good standing, they have a clean record and there are no pending disciplinary actions.

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The Bottom Line

Hopefully this has clarified not only what a real estate agent does, but what a GOOD real estate agent does. Use this guide to help you in your search for an agent and hopefully you are able to find a great agent who fits all of your needs, knows the area, and makes the process as stress free as possible.

The agents at Lawrence Family Properties, LLC can answer any questions you have about the Denver Metropolitan area. Its where we live and where we work. Please reach out to our team with any questions you may have. We are here to help with any of your real estate needs and we strive to give you the confidence and knowledge you need to buy or sell your home.

 

Contact

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Lawrence Family Properties, LLC
Lawrence Family Properties, LLC Denver, CO
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(303) 578-9142
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