top of page
Search

What Does a Real Estate Agent Do?

  • 7 hours ago
  • 6 min read



Who Are Real Estate Professionals?


Have you ever wondered what a real estate agent actually does? Today, we'll dive into the profession and responsibilities of a real estate agent. Before we dive into the world of real estate agents, let's grasp the broader picture of real estate professionals. Think of them as the unseen guides of the real estate landscape. They help buyers and sellers craft the paths through the labyrinth of transactions, legalities, and financial intricacies. They are your sherpas, mentors, and guardians as you traverse the terrain of property buying or selling.


Within the broader industry, there are various specialists: real estate agents, mortgage brokers, appraisers, property managers, home inspectors, lawyers, accountants, and more. They all serve a unique purpose, each playing a vital role in ensuring a seamless real estate experience. Today, we'll zoom in on the indispensable real estate agent.



Who Are Real Estate Agents?


Imagine you're embarking on a quest to find your dream home. You could be exploring the vibrant neighborhoods of Vancouver, the culturally rich regions of Montreal, or perhaps the serene landscapes of Prince Edward Island. You're submerged in a sea of digital property listings, attending open houses, and grappling with the gravity of this monumental decision. That's precisely where real estate agents come into play.


Real estate agents are the trailblazers of the real estate realm. They are licensed professionals, honed in the art of facilitating transactions and guiding buyers and sellers through the labyrinth of real estate deals.


What Do Real Estate Agents Do?


1. Market Analysis & Pricing Strategy

Agents use comparable property analysis and comparative market analysis to determine a property’s fair market value based on recent local sales and current inventory. This information helps sellers implement listing prices and strategies that help them get the most money possible for their homes. The same information also gives buyers a good indication of fair market value, and can help motivated buyers to score a great deal. For example, with support from their agent, buyers can determine fair market price, and identify opportunities where they might be able to get an accepted offer that's substantially under fair market value (i.e. a buyer could save $50k if they get an accepted offer at $1.1M on a home that's been listed on the market for 120 days at $1.25M, with a comparable assessed value of $1.2M).


Value: For sellers, pricing a home correctly from day one prevents it from sitting on the market too long or leaving money on the table. For buyers, assessing market comparables and market trends can help to determine where and when a good purchase deal can be found.


2. Expert Negotiation

Agents act as a professional buffer between buyers and sellers, handling high-stakes discussions regarding price, repair credits, and closing costs. Negotiations can get emotional and heated, especially if someone receives a low-ball offer on their treasured family home, or if a first-time buyer is attempting to break into the market with a reasonable offer, and a stubborn seller has unreasonable price expectations. Agents help to keep their clients level-headed and on the right track, so they can get to a deal that works for everyone, with a focus on the numbers, the business case, and a reasonable assessment of potential risks. Additionally, agents can help position their clients and angle for the best deal possible, whether buying or selling.


Value: They remove emotion from the process, using data and experience to secure the best possible terms without blowing up the deal.


3. Transaction Management & Compliance

The legal paperwork involved in a home sale is massive, including disclosures, contracts, and addenda that vary by Province/Territory. Agents know the general ins and outs of what risks to evaluate and explore, and they can guide you toward qualified professionals who can help you confirm key details (i.e. home inspectors, mortgage brokers, lawyers, accountants, surveyors, engineers, etc.)


Value: They ensure every deadline is met and every document is legally compliant, protecting you from potential lawsuits or a deal falling through due to administrative errors. They also ensure that you're covered by appropriate terms and conditions when drafting or accepting an offer.


4. Strategic Marketing & Exposure

For sellers, agents provide professional photography, staging advice, and placement on the Multiple Listing Service (MLS) and social media. A good agent will not only get your home out there in the public eye, they make the best features of your home stand out in the market.


Value: Broad exposure creates competition. More "eyes" on a property typically lead to more showings, which can sometimes generate multiple offers and a potentially higher final sale price.


5. Professional Network Access

Agents provide a "rolodex" of vetted service providers, including mortgage lenders, home inspectors, contractors, and title companies.


Value: You save time and avoid "lemon" vendors by using professionals who have a proven track record of getting the job done on time.


6. Hyper-Local Neighborhood Knowledge

Beyond the house itself, agents understand school districts, upcoming zoning changes, and "hidden" neighborhood vibes. These niche local details can help you identify future neighborhood potential and avoid potential local area risks and harms.


Value: This insight helps buyers avoid overpaying for a location that might be negatively impacted by future developments, and it can help you seek out promising upcoming neighborhoods.


7. Inspection & Repair Guidance

Once a home inspection report arrives, an agent helps interpret which issues are "deal-breakers" and which are minor. While this is ultimately a subjective evaluation that needs to be decided by the individual buyer, it's not always clear what should be considered a minor defect and what is a substantial cost. For the uninitiated, a home inspection report could read like Klingon to a Star Wars Fan! For example, Plastic plumbing pipes are not uncommon in homes that have been built since 1978. A good inspector might catch signs of polybutylene (Poly-B)/Kitec plumbing, which are defective materials that were commonly installed between 1978--2007. These piping materials later became known for their vulnerability to sudden leaks and bursts. A great inspector might indicate how concerning this defect is and if it's costly to replace, versus minimal, low-risk, and cheap to fix. However, it's your agent who will help you put this issue into perspective, collect contractor quotes where necessary, and make a final decision on whether or not the risk/cost is acceptable in your unique circumstances. They can then also help you to renegotiate a repair or discount where appropriate, or accept the defect and safeguard the deal when you already have a great deal going.


To put this into perspective, if you have a conditional offer at fair market price, and you discover Poly-B all over the house that will cost $50k to replace, then your agent will probably advise you to renegotiate for a replacement or for a price discount. However, if you get an accepted offer $100k below fair market value, and you discover $5-10k in minor upcoming repairs (common for most homes), your agent will probably advise you to cover these costs out of pocket, rather than risk blowing up the deal and potentially losing the home to another buyer.


Value: They help you navigate the "re-negotiation" phase, ensuring the home is structurally sound and safe before you commit to the purchase.


In conclusion, real estate professionals, especially real estate agents, are your trusted companions on this exhilarating adventure. They understand that it's not just about the transaction; it's about the entire experience. When you're out there house hunting, look for an agent who not only knows the market but also one who comprehends your unique wants, needs, and budget. Happy house hunting!


Recommended For You:


Find more great tips, strategies, and real estate information on our blog.


View new listings here.


I am a Victoria-based local realtor with eXp Realty. My commitment to honesty, integrity, loyalty, and hard work have been essential pillars for me because they drive a high standard of excellent service for my clients. Helping you realize your dream is my goal!


I service Vancouver Island, but my focus is on Victoria, Sooke, Saanich, Malahat, Shawnigan Lake, Cobble Hill, Duncan, and the rest of the Cowichan Valley.



 
 
 

Comments

bottom of page