What does a real estate agent actually do?
A good agent helps you find the right home, negotiate the terms and price, and navigate the paperwork. Those are the three jobs buyers value most, and the data backs up how much they matter.
In NAR's 2025 Profile of Home Buyers and Sellers, 54 percent of buyers said their agent pointed out issues they would have missed, and 76 percent of first-time buyers valued the agent's guidance through the process. Agents were ranked the most useful information source by 85 percent of buyers, ahead of online listings. The listings help you look; the agent helps you actually buy.
What is the difference between a Realtor and a real estate agent?
People use the words interchangeably, but they are not identical. A real estate agent is licensed by the state to help people buy and sell, and works under a broker. A Realtor is an agent or broker who is a member of the National Association of Realtors and agrees to its Code of Ethics. REALTOR is a registered trademark of that association.
A broker has completed additional licensing beyond an agent and can operate independently and supervise agents, which is why you also see "broker vs agent" searches. The point that matters to you as a buyer: all Realtors are licensed agents or brokers, but not all agents are Realtors. The difference is membership and the ethics code, not a different legal ability to represent you. Choose on track record, communication, and fit, not on the label.
Buyer's agent vs listing agent: who works for whom?
A listing agent, also called the seller's agent, represents the seller's interests. A buyer's agent represents yours. The two roles have different loyalties, which is exactly why most buyers want their own representation in the negotiation and the paperwork.
On new construction, the builder's on-site sales agent works for the builder, not for you, so an independent buyer's agent still adds value. Dual agency, where one agent or brokerage represents both sides, is allowed in some states and restricted in others, and it must be disclosed.
What should you look for in an agent?
Look past the billboards and years-in-business and judge the things that actually move your purchase forward:
- Track record in your price range and area, not just years in the business.
- Communication style and responsiveness, since this is a multi-week working relationship.
- How they coordinate with your lender and whether they respect your pre-approval.
- A clear, plain explanation of the buyer agreement and their fee.
- References from recent clients you can actually contact.
- Honest expectation-setting on price, timeline, and cost.
How do most buyers find a good agent?
Referrals dominate. 43 percent of buyers used an agent found through a referral, and 18 percent used an agent they had worked with before. Treat a referral as a strong starting point, not a substitute for interviewing two or three agents and confirming fit for your specific price range and area. Source: NAR 2025 Profile of Home Buyers and Sellers.
What changed in 2024, and why you now talk fees up front
Since August 17, 2024, a buyer working with an MLS-participating agent signs a written agreement before touring a home, disclosing the agent's fee. So the compensation conversation now happens up front by rule.
Two of my related guides go deeper on the mechanics.
Go deeper: The NAR Settlement, Explained, How Real Estate Commission Works .
Red flags to watch for
A few warning signs tend to predict a rough transaction. Any one of these is worth a pause:
- Pressure to rush or to skip the written agreement.
- Vague or evasive answers about compensation.
- Poor responsiveness during your search.
- Dismissiveness about your budget or your pre-approval.
- Can't clearly explain what the buyer agreement commits you to.
- No real track record at your price point or property type.
When should you start looking?
Get pre-approved first, then interview agents. A pre-approval sets your real budget, signals that you are a serious buyer, and gives whoever you work with something concrete to plan around. Many first-time buyers say understanding the steps is the hardest part, so sequencing finance first makes the rest smoother.
Key terms, quickly defined
- Buyer's agent
- An agent who represents the buyer's interests in a purchase.
- Listing agent (seller's agent)
- An agent who represents the seller.
- Realtor
- A real estate agent or broker who is a member of the National Association of Realtors and agrees to its Code of Ethics. REALTOR is a registered trademark; all Realtors are licensed agents or brokers, but not all agents are Realtors.
- Real estate broker
- A licensee who has completed additional education and licensing beyond an agent, and can operate independently and supervise agents. Agents work under a broker.
- Dual agency
- One agent or brokerage representing both buyer and seller; allowed in some states, restricted in others, and always disclosed.
- Buyer-broker agreement
- The written contract, required before touring since August 2024, that sets the agent's services and fee.
- Referral
- The most common way buyers find an agent; a starting point, not a guarantee of fit.
- Pre-approval
- A lender's assessment of how much a buyer can borrow, best obtained before interviewing agents.
Frequently asked questions
More in this series
Questions to Ask a Real Estate Agent
The interview checklist: what to ask about track record, communication, the buyer agreement, and the fee before you sign.
Read guide →The NAR Settlement, Explained
What the 2024 settlement changed, why you now sign a written agreement before touring, and what it means for buyers.
Read guide →How Real Estate Commission Works
Who pays the agent, how compensation is negotiated after the settlement, and how it can show up in your transaction.
Read guide →