What’s a real estate agent and how do they earn commissions?

What is a real estate agent?

A real estate agent is a professional individual who helps people buy and sell properties, these properties range from house and lots for sale, farm lots, luxury condominiums, commercial properties, and high-rise buildings. With their resources and contacts, they can find any property the client asks for.

So, what does a real estate agent do?

Happy Woman Holding a House Key

Depending on what the task is, there is a specific agent for it. A listing agent will help and inform the seller on how to price their property. Meanwhile, a seller agent will market the property. Lastly, there is also an agent who helps clients to find properties.

Overall, the job of the real estate agent is to be the middleman between the buyer and seller, and vice versa. They make the house-hunting process and purchasing easier for both parties. 

But aside from selling and marketing properties, they need to promote themselves too. Real estate is a competitive industry and there are a lot of real estate agents out there. You need to make sure that you stay ahead of them to get the most sales. It is also important to build a good reputation to acquire more clients.   

These agents also do a ton of administrative tasks such as: researching and studying the market and news in the industry, files paperwork and documents, sets meetings and showings to name a few. They are well-equipped and trained to assist clients with the property search, documentation, negotiation, and acquisition.

How do they earn money?

Man Handing a House Key

Real estate agents make money through commissions. Commission is a percentage of the total sale of the property. So, the more expensive the property, the more money the agents make. 

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