What is a Real Estate Agent?
A real estate agent is a licensed professional who represents buyers or sellers in real estate transactions. Agents must pass a state licensing exam, complete pre-licensing education (typically 60-180 hours depending on the state), and work under the supervision of a licensed real estate broker. They earn income primarily through commissions paid at closing.
Real estate agents serve as intermediaries between buyers and sellers, handling tasks such as listing properties, conducting showings, writing offers, negotiating terms, coordinating inspections, managing paperwork, and guiding clients through the closing process. While the terms agent, broker, and Realtor are often used interchangeably, they have distinct meanings.
Types of real estate agents
Listing agents represent sellers. They help price the property, create marketing materials, list on the MLS, conduct showings, evaluate offers, and negotiate on the seller's behalf through closing.
Buyer's agents represent purchasers. They help find suitable properties, write and submit offers, negotiate price and terms, coordinate inspections, and guide the buyer through financing and closing.
Dual agents represent both buyer and seller in the same transaction. This is legal in many states but requires disclosure and consent from both parties. It creates inherent conflicts of interest since one agent cannot fully advocate for opposing interests.
Agent vs. broker vs. Realtor
An agent holds a basic real estate license and must work under a broker. A broker holds an advanced license with additional education and experience requirements, and can operate independently, own a brokerage, and supervise agents. A Realtor is a trademarked term for any agent or broker who is a member of the National Association of Realtors (NAR) and follows its code of ethics. Not all agents are Realtors.
How agents work with investors
Real estate agents can be valuable partners for investors in several ways. Agents provide MLS access for comp research, often before data reaches public platforms. They can write offers and handle transaction coordination. Some agents specialize in investment properties and understand concepts like ARV, cap rate, and wholesale transactions.
However, the relationship between agents and wholesalers can be complicated. Some agents view wholesalers as competitors, while others actively partner with them for off-market inventory. Transparency about your role and intentions is essential for building productive agent relationships.
Licensing considerations for wholesalers
In most states, wholesaling (assigning contracts) does not require a real estate license because you are selling your contract interest, not the property itself. However, some states have enacted or proposed legislation requiring a license for certain wholesale activities. Texas, for example, requires wholesalers to disclose their role in writing. Knowing your state's requirements is essential for compliance.