What Does a Realtor Actually Do?

From the outside, a real estate agent's job can look like opening doors and filling out forms. In reality, most of the work happens where clients do not see it: researching prices, chasing deadlines, talking with lenders and other agents, and solving problems before they derail a closing. This guide walks through what a realtor does for buyers and for sellers, step by step, and just as importantly, what they do not do.

Realtor, agent or broker?

People use these words interchangeably, but they mean different things.

• Real estate agent or salesperson is someone licensed by the state to help people buy, sell or rent property, working under a supervising broker.
• Broker is a licensee with additional education and experience who can run a brokerage and supervise agents. Some brokers work directly with clients too.
• Realtor is a trademarked term for members of the National Association of Realtors (NAR), who agree to follow NAR's Code of Ethics. Many, but not all, licensed agents are Realtors.

For simplicity, this guide uses "realtor" and "agent" to mean a licensed professional representing you. Exact duties depend on your state's agency laws and your written agreement.

What a realtor does for buyers

Since 2024, agents who are MLS participants generally need a written agreement with a buyer before touring homes together. That agreement spells out the agent's services and compensation, and it is a good place to start understanding their role.

Before you start touring

1. Clarify goals and budget. A good agent asks about your must-haves, timeline, commute and how much you want to spend, not just what a lender says you can borrow.
2. Point you to financing. Agents encourage preapproval early and may suggest several lenders to compare. They do not approve loans themselves.
3. Explain the local market. How fast homes are selling, whether buyers are paying above or below list price, and which neighborhoods fit your priorities.
4. Review the buyer agreement. Including term length, compensation, and what happens if the seller does not pay all or part of the agent's fee.

Searching and touring

1. Set up searches and spot new listings through the MLS, sometimes including homes that are about to hit the market.
2. Schedule and attend showings, pointing out issues like water stains, odd additions or traffic noise you might miss while picturing your furniture.
3. Research specific homes, including price history, days on market, permits where available, HOA rules and seller disclosures.

Making an offer

1. Prepare a pricing analysis using comparable sales so your offer is grounded in data.
2. Draft the offer using your state's standard forms, including price, earnest money, contingencies and closing date.
3. Negotiate with the listing agent on price, terms, repairs and credits.

Under contract to closing

1. Track deadlines for inspection, appraisal, financing and title review. Missing one can cost you your earnest money or your leverage.
2. Coordinate inspections and help you decide what to ask for afterward.
3. Handle appraisal issues if the value comes in low, including renegotiation options.
4. Communicate with your lender, title or escrow company and the other agent to keep things moving.
5. Attend the final walk-through and help resolve last-minute problems before closing.

What a realtor does for sellers

A listing agent's work is front-loaded. The decisions made before the home goes live shape everything that follows.

Preparing to list

• Comparative market analysis. The agent studies recent sales, active competition and pending deals to recommend a list price.
• Preparation advice. Which repairs are worth making, what to declutter, and whether staging is likely to pay off.
• Disclosure guidance. The agent provides your state's disclosure forms and explains what they ask. You remain responsible for filling them out accurately.
• Listing agreement. Commission, term, marketing commitments and how buyer-agent compensation will be handled are all negotiated here.

Marketing and showings

• Arranging professional photos, floor plans or video.
• Writing the listing description and entering it in the MLS, which feeds many home search websites.
• Promoting the home to other agents and through the brokerage's channels.
• Scheduling showings, collecting feedback and running open houses if appropriate.

Offers and closing

• Reviewing each offer for price, financing strength, contingencies and timing, not just the top number.
• Negotiating counteroffers, inspection repair requests and appraisal gaps.
• Coordinating with the buyer's agent, title or escrow, and in some states attorneys, through closing.

What a realtor does when a deal hits trouble

Many transactions have at least one tense moment. How an agent handles it is often where they earn their fee. A few common examples:

The inspection turns up a surprise

Say the inspector finds an aging roof or a plumbing leak. A buyer's agent helps you get a specialist's opinion or repair estimate, then decide whether to ask for a repair, a credit, a price reduction or, if your contingency allows, to walk away. A listing agent helps the seller weigh those requests against the risk of the buyer leaving and the home going back on the market with a known issue to disclose.

The appraisal comes in low

If the lender's appraisal is below the contract price, the loan amount may shrink. Agents on both sides may review the appraisal for errors, submit additional comparable sales through the lender's reconsideration process, or negotiate a price change or split of the difference, depending on the contract terms.

Financing or closing is delayed

When an underwriter asks for more documents or a title issue appears, agents keep everyone informed, push for answers and, if needed, prepare a written extension so neither party loses rights under the contract by accident.

What realtors do not do

A big part of an agent's value is knowing when to send you to someone else. Agents generally should not, and in many cases legally cannot, do the jobs below.

In some states, attorneys routinely handle closings or contract review as standard practice. Your agent should tell you what is customary where you live.

How realtors get paid

Most agents are paid by commission when a sale closes, not by salary or by the hour. That raises some common questions.

• Do realtors get a base salary? Most do not. They are commonly independent contractors who receive a share of the commission paid to their brokerage. Some brokerages, including certain discount and builder sales models, do pay salaries.
• Do realtors get paid for showings? Generally not. A buyer's agent might show many homes over months and be paid only if you buy, though some buyer agreements include other fee structures.
• Who pays? It depends on what is negotiated. Sellers may pay their listing agent and may agree to cover some or all of the buyer's agent's compensation. Buyers may pay their own agent directly or negotiate for the seller to contribute.

All commissions are negotiable. The brokerage, not the individual agent, usually receives the payment and then splits it with the agent according to their arrangement, after which the agent covers their own business expenses.

Signs your agent is doing the job well

Use this checklist during your search or listing period.

• They explained the agency relationship and your agreement before you signed.
• They back up price recommendations with recent comparable sales, not gut feeling.
• They respond within a reasonable time and tell you how they prefer to communicate.
• They give you a written timeline of contract deadlines once you are under contract.
• They tell you things you may not want to hear, such as a price that is too high.
• They refer you to attorneys, inspectors and lenders rather than trying to play those roles.
• They disclose any referral fees or business relationships with the vendors they suggest.
• Their license is active and in good standing with your state real estate commission.

So, are realtors worth it?

That depends on your experience, your time and the complexity of your transaction. People do buy and sell successfully without agents, often with an attorney's help. But much of an agent's value sits in the less visible parts of the job: pricing well, catching deadline problems early and keeping a deal together when an inspection or appraisal goes sideways. Knowing what an agent actually does, and does not do, is the best way to decide whether you need one and to hold the one you hire to a high standard.

This guide is general information, not legal, tax or financial advice. Rules differ by state; confirm details with a licensed professional or your state real estate commission.