What Does a Real Estate Agent Do?
by Bright Ugochukwu
Oct 14, 2024
Real estate agents, with their expertise and knowledge, play a crucial role in the property market, helping individuals buy, sell, or lease properties.
In this article, we will discuss:
Takeaways
- Real estate agents assist clients in buying, selling, or renting properties.
- Agents can represent either the buyer or the seller, each with distinct responsibilities.
- Most agents earn a commission based on the sale price of the property.
- The commission is usually shared among the agents involved in a transaction.
- Becoming a real estate agent requires specific education and licensing.
Understanding the Role of a Real Estate Agent
What Does a Real Estate Agent Do?
A real estate agent is a licenced professional who helps people buy, sell, or lease properties. They act as a bridge between buyers and sellers, guiding them through the often complex process of property transactions.
Here are some key responsibilities:
- Market properties effectively to attract potential buyers.
- Negotiate contracts to ensure the best deal for their clients.
- Complete legal paperwork accurately and on time.
Differences Between Buyer’s and Seller’s Agents
Real estate agents can represent either buyers or sellers, and their roles differ significantly:
- Seller’s Agents (Listing Agents):
- Advise on pricing and preparing the property for sale.
- Market the property through various channels.
- Negotiate offers on behalf of the seller.
- Buyer’s Agents:
- Search for properties that meet the buyer’s needs.
- Help buyers make competitive offers.
- Guide clients through inspections and closing processes.
Legal Responsibilities of Real Estate Agents
Real estate agents have a duty to act in the best interests of their clients.
This includes:
- Disclosing any conflicts of interest.
- Maintaining confidentiality regarding client information.
- Adhering to local laws and regulations governing real estate transactions.
Pro Tip: These professionals guide clients through the maze of buying and selling, ensuring smooth transactions. Their invaluable insights into market trends help secure the best deals for their clients.
Understanding the role of a real estate agent is important for anyone looking to explore the property market successfully.
How Real Estate Agents Work
Steps in the Buying Process
When you decide to buy a property, a real estate agent can guide you through the process.
Here are the main steps:
- Initial Consultation: Discuss your needs and budget.
- Property Search: The agent finds homes that match your criteria.
- Viewings: Schedule visits to potential homes.
- Making an Offer: The agent helps you decide on a fair price and submits your offer.
- Negotiation: They negotiate with the seller on your behalf.
- Closing: Assist with paperwork and final steps to complete the purchase.
Steps in the Selling Process
Selling a home involves several key steps, which include:
- Home Evaluation: The agent assesses your home’s value.
- Listing: They create a listing to market your property.
- Showings: Schedule open houses and private viewings.
- Offers: Review and negotiate offers from potential buyers.
- Closing: Finalise the sale and handle all necessary paperwork.
Dual Agency and Its Implications
In some cases, a real estate agent may represent both the buyer and the seller, known as dual agency.
Here are some important points:
- Transparency: Agents must disclose their dual role to both parties.
- Conflicts of Interest: This can create conflicts. The agent must balance both clients’ interests.
- Legality: Dual agency is illegal in several states, so it’s essential to understand local laws.
Pro Tip: Real estate agents play a crucial role in making property transactions smoother and more efficient. Their expertise can save you time and money.
In summary, a real estate agent can help you navigate the complex market, whether you are buying or selling. They advocate for you and ensure they represent your interests. Choosing the right agent can make all the difference in your real estate journey!
Work-Life Balance of a Real Estate Agent
A real estate agent’s schedule is dynamic, flexible, and often demanding. Unlike traditional 9-to-5 jobs, real estate agents tailor their time to meet clients’ varied needs.
Their workday extends beyond standard office hours. It includes attending weekend showings and managing client calls late at night.
Additionally, the ability to work from home and manage their time independently makes this career attractive to many.
How Many Hours a Week Do Real Estate Agents Work?
Real estate agents typically work anywhere from 40 to 60 hours per week, depending on their client base and responsibilities.
Unlike traditional 9-to-5 jobs, their hours often include evenings and weekends to accommodate clients’ schedules.
Successful agents often dedicate extra time to networking, preparing listings, and attending open houses, making their workweek dynamic but demanding.
Do Real Estate Agents Work on Weekends?
Yes, real estate agents work on weekends because that’s when most clients are available to view properties or attend open houses.
Weekends are prime time for showings, networking events, and hosting open houses, making it one of the busiest periods for agents.
Can Real Estate Agents Work from Home?
Yes, many real estate agents work from home, leveraging technology to communicate with clients, conduct virtual showings, and manage listings online.
However, certain tasks, like meeting clients or showing properties, require being on-site. With a proper setup, remote work offers flexibility while staying productive.
Becoming a Real Estate Agent
Educational Requirements
You must meet some education requirements to start as a real estate agent.
Typically, this involves:
- Completing a real estate course.
- Understanding the basics of property laws and market trends.
- Gaining knowledge about the local real estate market.
Licencing and Certification
Once you’ve completed your education, obtaining your licence is next.
This usually includes:
- Passing your state’s real estate exam.
- Submitting an application to activate your licence.
- Joining a registered real estate brokerage.
Continuing Education and Professional Development
Even after becoming a licenced agent, it’s important to keep learning. Many states require ongoing education to maintain your licence.
This can include:
- Attending workshops and seminars.
- Participating in online courses.
- Staying updated on changes in real estate laws and market conditions.
Pro Tip: Becoming a real estate agent is more than selling properties. It’s about building relationships and understanding your client’s needs.
In summary, to become a realtor, you must meet age and educational requirements, attend a real estate course, and train as an apprentice. This path can lead to a rewarding career in real estate!
Compensation Models for Real Estate Agents
Real estate agents are compensated in various ways. Understanding these models can give you insight into how real estate agents get paid.
Commission-Based Compensation
Most real estate agents earn through commissions, which are a percentage of the property’s sale price. This model ties the agent’s pay to the sale’s success, motivating them to get the best deal for their clients.
The standard commission rate usually ranges from 5% to 10% and is split between the buyer’s and seller’s agents.
| Sale Price (₦) | Commission Rate (%) | Total Commission (₦) | Agent's Share (₦) |
|---|---|---|---|
| 10M | 5–10 | 500K–1M | 250K–500K |
| 20M | 5–10 | 1M–2M | 500K–1M |
| 50M | 5–10 | 2.5M–5M | 1.25M–2.5M |
Salary and Bonus Structures
Commission is the most common payment method. Some agents, especially at firms like Oparah Realty, receive a base salary plus bonuses based on their sales.
This model gives agents more financial stability and lets them focus on their clients without the pressure of commission-only income.
Referral Fees and Other Income Sources
Real estate agents can also earn money through referral fees. This occurs when they recommend clients to other agents or pros, like mortgage brokers or property managers.
These fees are usually negotiated. They can provide steady income, especially in slow markets.
Pro Tip: Understanding the various compensation models is essential for agents and clients. It helps set clear expectations and ensures everyone is on the same page regarding payment structures.
The compensation landscape for real estate agents is evolving. Traditional commission-based models are common, but salaries and referral fees are gaining traction. They offer agents more ways to earn.
Choosing the Right Real Estate Agent
Finding the right real estate agent can greatly impact your buying or selling experience.
Here are some helpful tips to guide you:
Questions to Ask Potential Agents
- What is your experience in the local market? Understanding the local market is crucial for pricing and negotiations.
- Can you provide references from past clients? Speaking with previous clients can give you insight into their performance.
- What is your communication style? Make sure their style aligns with your preferences for a smoother process.
Researching and Comparing Agents
- Online Reviews: Check for clients’ feedback on platforms like Google.
- Licencing Verification: Ensure agents are licenced and in good standing with local real estate boards.
- Interview Multiple Agents: Do not settle for the first agent; compare their skills and approaches.
The Importance of Referrals
- Ask Friends and Family: If someone you know has had a good experience, consider their agent.
- Networking: Attend local real estate events to meet agents in person.
- Social Media: Look for active and engaged agents in your community.
Pro Tip: Choosing the right agent is essential for a successful real estate transaction. Take your time to research and find someone who truly understands your needs.
The Future of Real Estate Agent Compensation
The estimated total pay for a Real Estate Agent in the Lagos area is NGN 700,000 monthly, with an average salary of NGN 100,000 per month.
Impact of Technology on Compensation
The rise of technology is reshaping how real estate agents earn their keep.
Online platforms are making it easier for buyers and sellers to connect directly, which could lead to lower commissions.
Agents may need to adapt by offering more value-added services to justify their fees.
Legal Changes and Their Effects
Legal changes in Lagos affect real estate, including property ownership, title registration, and transaction transparency.
Regulators want to reduce fraud in property deals and ensure that real estate agents and buyers follow due process.
These changes may affect agents’ commission rates and clients’ fee negotiations and encourage fairer, more transparent compensation models in the local market.
Emerging Trends in Agent Payment Models
As the industry evolves, we may see a variety of payment models emerge:
- Flat fees for specific services
- Salary plus bonuses for agents employed by larger firms
- Referral fees for agents who connect clients with other professionals
These changes could lead to a more competitive environment where agents must clearly demonstrate their value to clients.
Pro Tip: The future of real estate agent compensation is likely to be more diverse and client-focused, requiring agents to adapt to new market realities.
Wrapping Up: The Role of Real Estate Agents
In conclusion, real estate agents are vital to the property market.
They help buyers and sellers navigate the tricky process of transactions. They offer advice, handle negotiations, and ensure all paperwork is in order.
Their earnings usually come from commissions on the sale price, but this can vary depending on their agreement with the broker.
Whether you’re buying your first home or selling a property, a knowledgeable agent can make a big difference. So, if you’re considering entering the Lagos real estate market, remember that a good agent can be your best ally.
Frequently Asked Questions
What is the main job of a real estate agent?
A real estate agent helps people buy, sell, or rent properties. They guide clients through the whole process, from finding homes to closing deals.
How do buyer's agents and seller's agents differ?
Buyer’s agents work for people looking to buy homes, helping them find the right property. Seller’s agents assist people selling their homes, helping to price and market the property.
What are the legal duties of real estate agents?
Real estate agents must act in the best interest of their clients, keep information confidential, and be honest in all dealings.
How do real estate agents get paid?
Most real estate agents earn money through commissions, which are a percentage of the property’s sale price, paid when a deal is closed.
Do you need a real estate agent to buy or sell a home?
No, you can buy or sell a home without an agent, but having an agent can make the process easier and help you avoid mistakes.
What should I ask when choosing a real estate agent?
You should ask about their experience, how they plan to market your home, and what their fees are.
Can real estate make you rich?
Yes, real estate can make you rich, but success requires dedication, hard work, strategic planning, and consistent effort.
Many agents build wealth by investing in properties, diversifying their portfolios, or moving to real estate development. Top agents often earn six or seven figures a year, especially in high-demand markets like Lagos.
