What Is a Real Estate Agent, and Do I Need One?

A real estate agent is a licensed professional who represents someone in a real estate transaction, but the scope of their responsibilities goes far beyond opening doors or hosting showings.

In this article, we explain what real estate agents do, how much they earn, the different types of agents, and whether you should hire one. We’ll also walk through the steps to becoming an agent if you’re considering a career in real estate yourself.

If you’re looking for help now, Clever Real Estate can help you connect with top-rated local agents who provide full service — and sellers can save thousands with a pre-negotiated 1.5% listing fee.

What is a simple definition of a real estate agent?

A real estate agent is a licensed professional who represents buyers, sellers, or renters in real estate transactions. They help clients price homes, search for properties, negotiate deals, complete paperwork, and navigate the legal and logistical steps involved in transferring real estate.

What do real estate agents do?

What real estate agents do for sellers

Listing agents handle the entire selling process from start to finish, offering pricing expertise, marketing, negotiation skills, and transaction management. Common responsibilities include:

• Pricing the home accurately. Agents prepare a comparative market analysis (CMA) to estimate your home’s value based on recent nearby sales, local trends, and current competition.
• Guiding prep and improvements. They recommend repairs, staging strategies, or inexpensive updates that can help your home sell faster and for more money.
• Marketing the property. Agents list the home on the multiple listing service (MLS), coordinate professional photos, host open houses, and promote the listing across major real estate websites and social media.
• Managing showings and communication. They coordinate tours, respond to buyer inquiries, and provide feedback so you understand how the market is reacting.
• Negotiating offers. Agents help you evaluate offers, negotiate price and terms, and advocate for your best interests throughout the process.
• Handling contracts and closing. They guide you through paperwork, inspections, appraisals, and timelines to ensure a smooth closing.

What real estate agents do for buyers

Buyer’s agents help clients find the right home and navigate the complexities of making an offer and closing a deal. They typically:

• Identify suitable homes. Agents filter listings based on your needs, budget, and preferences, sometimes accessing homes before they hit the market.
• Spot red flags. They recognize potential issues with a property’s condition, pricing, or resale value.
• Write and negotiate offers. Agents help you craft competitive offers, negotiate pricing and concessions, and structure terms that protect your interests.
• Coordinate inspections and due diligence. They assist in scheduling inspections, reviewing reports, and advising next steps.
• Manage paperwork and timelines. Agents ensure deadlines are met and documents are completed accurately to avoid delays or legal issues.

What real estate agents do for renters

Some markets rely heavily on rental agents to help renters find available homes or apartments. Rental agents may:

• Match renters with appropriate properties. They help renters find units that fit their budget, needs, and location preferences.
• Coordinate showings. Agents schedule and host property tours for prospective tenants.
• Help with applications and approval. They assist renters with paperwork, screening requirements, and negotiating lease terms.

What do real estate agents make?

Real estate agents earn money primarily through commissions — a percentage of the home’s sale price, paid when the transaction closes. They typically do not earn hourly wages or salaries, so their income depends on the number and size of the transactions they complete.

In the U.S., the current average commission rate is 2.82% for listing agents and 2.75% for buyer's agents.

To put the percentages into real numbers, here’s what an agent could earn on a $500,000 home:

• At 2.5%, the agent would earn $12,500
• At 3%, the agent would earn $15,000

An agent’s income varies based on location, years of experience, number of transactions, specialty (residential vs. commercial), and their brokerage’s commission split. Newer agents often earn less because they close fewer deals, while experienced agents may earn significantly more — especially those who handle higher-priced properties or repeat referrals.

Commission rates can be lower if a client has leverage to negotiate fee reductions, like selling in a hot market or having a very desirable home.

Another option sellers have is to work with a low-commission brokerage. The top companies, like Clever Real Estate, guarantee rates as low as 1.5% while still offering full service from vetted agents. On a $500,000 house, that rate would save you $7,500 compared to 3%.

» Learn more about how commissions work and who pays.

Types of real estate agents

Real estate agent vs. Realtor

"Real estate agent" is a term for anyone with a license to arrange real estate transactions. "Realtor" is technically reserved for members of the National Association of Realtors (NAR), and written as REALTOR®, in all-caps, with the registered symbol.

NAR is a private trade association founded to advance the interests of real estate professionals. It currently has around 1.4 million members, more than two-thirds of all active U.S. real estate licensees.

So many agents are members of NAR that the word "realtor" — with a lowercase "R" — is often used as a generic term for real estate agents. However, officially, an agent must join NAR to become a REALTOR®.

In addition to the right to use the REALTOR® trademark, members receive benefits like access to exclusive tools and resources, networking opportunities, professional development, and group rates on insurance and other products.

Although most agents are REALTORS®, NAR is a private organization — not a licensing board. Membership is not necessary for an agent to practice real estate. Moreover, REALTOR® membership is open to any real estate professional, including non-agents.

Real estate agent vs. broker

A real estate broker is an agent with an "upgraded" license that authorizes them to perform certain duties agents with "basic" licenses can't, including opening their own brokerage and supervising other agents.

Broker licenses require additional education and experience compared to entry-level licenses. While new agents can typically get licensed after spending as few as 40 hours in a classroom and passing an exam, aspiring brokers must work as a full-time agent for multiple years before they're eligible to sit for the licensing exam.

Note: In some contexts, "broker" may mean "real estate brokerage" — a company that mediates real estate transactions between buyers and sellers.

Real estate agent vs. salesperson

There’s no practical difference between a real estate agent and a real estate salesperson — the terms are interchangeable.

Both refer to entry-level license holders who are authorized to assist clients with buying and selling real estate, but who must work under the supervision of a licensed broker.

Most states technically use the word salesperson for this license type, but in everyday language, people almost always say real estate agent. Agents/salespeople can’t work independently; they must affiliate with a broker, brokerage, or real estate agency.

The key distinction is between an agent/salesperson and a real estate broker.

Brokers hold a more advanced license, have additional experience and education, and are allowed to work independently, supervise agents, and often own or manage brokerages. Many agents remain in the salesperson role throughout their careers, while others eventually upgrade to a broker license to take on leadership or management responsibilities.

Real estate agent specializations

Real estate is a broad career field, so many experienced agents choose to specialize in a particular niche.

Here are some common specialties and relevant certifications:

• Luxury home specialist — Certifications like the Certified Luxury Home Marketing Specialist (CLHMS)
• Commercial real estate agent — May pursue CCIM (Certified Commercial Investment Member) training
• Buyer specialist — Accredited Buyer’s Representative (ABR)
• Seller/listing specialist — Seller Representative Specialist (SRS)
• Relocation specialist — Certified Relocation Professional (CRP)
• Green or energy-efficient homes — NAR’s Green Designation
• Property management — Certifications like CPM (Certified Property Manager)
• Short sale and foreclosure — Short Sales and Foreclosure Resource (SFR)
• Senior real estate specialist — Seniors Real Estate Specialist (SRES)
• Land and farm sales — Accredited Land Consultant (ALC)

Representation

The type of agent can also depend on who they represent in the transaction:

• A listing agent represents the seller's interests exclusively.
• A buyer's agent represents the buyer's interests exclusively.
• A dual agent represents both the seller and buyer in one single transaction. This isn’t something that is usually set up ahead of time. Instead, dual agency typically happens by chance, when a listing/seller’s agent ends up finding a buyer for their client. Thus, in the transaction involving that one property, the agent becomes a “dual” agent.
• Designated agency means that, within one transaction, the seller’s agent and the buyer’s agent are both represented by the same agency or brokerage. This is different from dual agency, where one agent represents both sides of a transaction.
• A transaction agent mediates a transaction between the seller and buyer but officially represents neither of them.

Do I need to hire a real estate agent?

Hiring an experienced real estate agent is wise whenever you buy or sell a home. Real estate transactions are complex financial decisions, and having an expert to guide you greatly increases your chances of a smooth, successful outcome.

For buyers, an agent makes the process far easier. About 90% of buyers say their biggest challenges are finding the right home, staying on top of paperwork, or understanding the purchase process — all of which are simpler with a professional on your side. Plus, the seller usually covers the buyer's agent fee.

For sellers, agents are an investment that often pays off. While selling your home yourself (FSBO) may seem cost-effective, FSBO sellers typically net a median of $55,000 less than those who work with agents.[1] Experienced agents help you price, market, and negotiate your home for maximum value, making their commission well worth it.

We recommend finding ways to save on your home sale without cutting corners, including working with a top agent who offers a lower commission rate.

How to become a real estate agent

Becoming a real estate agent involves completing state-required education, passing an exam, and affiliating with a licensed brokerage. While requirements vary by state, the overall process is similar nationwide.

Here’s a step-by-step breakdown:

1. Meet your state's basic requirements. You’ll need to meet your state’s minimum age requirement (usually 18 or 19) and have legal authorization to work in the U.S. Some states also require a high school diploma or equivalent.
2. Complete pre-licensing education. Before taking the licensing exam, you must complete a state-approved course that covers real estate law, contracts, financing, ethics, and other foundational concepts.
3. Pass your state's licensing exam. This exam tests national and state-specific real estate knowledge. Many states allow multiple attempts, but you must pass both sections to earn your license.
4. Find a broker who will “sponsor” your license. New agents must work under a licensed broker who provides supervision, training, and access to essential tools. Many brokerages offer mentorship programs for new agents.
5. Submit your application and pay licensing fees. Once you complete your education and pass the exam, you submit an application to your state’s licensing board along with the required fees.
6. Complete continuing education to maintain your license. Most states require ongoing coursework every renewal cycle to ensure agents stay current on laws, ethics, and market practices.

State-by-state guide

FAQ

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