The most useful question about a real estate agent is not whether they are pleasant or experienced. It is who they legally represent. An agent can owe their duties to you, to the other side, or to both at once, and the answer changes what they are allowed to tell you.
Agent, Broker, Realtor
A real estate agent holds a state license to help people buy and sell property and must complete continuing education to keep it. If they are not themselves a broker, they work under one.
A broker has passed an additional exam with further experience and education requirements. Brokers can own firms and supervise agents.
A Realtor is an agent or broker who belongs to the National Association of Realtors and is bound by its code of ethics. It is a membership, not a higher license. Plenty of excellent agents are not members.
Who Works for Whom
This is the part buyers most often get wrong. Being helpful and being your representative are different things, and the agent showing you a house may owe their loyalty to the seller.
- Listing agent (seller’s agent) — represents the seller and works to get them the best price and terms.
- Buyer’s agent — represents you. Owes you loyalty and confidentiality, must disclose material facts about the property, may share what they know about the seller’s position, and must not repeat what you tell them in confidence.
- Dual agency — one agent, or one brokerage, representing both sides. Legal in some states and prohibited in others. It necessarily limits the advice either side receives, because the agent cannot advocate for two opposed positions at once. It must be disclosed and consented to in writing.
- Transaction broker — in some states, a neutral facilitator who represents nobody and simply moves the deal along.
Ask directly, early, and get the answer in writing: whom do you represent in this transaction? Until you have signed a representation agreement, an agent showing you houses may not be your agent at all — which means anything you say about how much you would really pay is not confidential.
Since August 2024, an agent who is an MLS participant generally must have a written agreement with you before touring a home. Read that agreement rather than signing it in a hurry: it sets out the term, the services, how the agent is paid, and whether it is exclusive. See how real estate agent commissions work.
Building a Shortlist
Before you contact anyone, write down what you actually need: area, property type, price range, must-haves, and which of those you would trade away. An agent cannot help you decide what you want, and a vague brief produces a long tour of unsuitable houses.
- Referrals — the best source. Ask people who recently completed a transaction like yours, and check whether the agent works mainly with buyers or sellers.
- Local search and listing sites — show who is genuinely active in your specific area, which matters more than firm size.
- Open houses — a free way to watch several agents work before committing to one.
- Your state licensing board — confirms the license is current and shows any disciplinary history. Worth two minutes.
Questions Worth Asking
- How many transactions have you closed in this area in the past year, and how many were with buyers like me?
- Whom will I actually be working with — you, or a team member?
- How are you compensated on this transaction, and by whom?
- What is the term of the agreement, and how do I end it if this is not working?
- How do you handle a situation where your brokerage represents both sides?
- What do you think this property is worth, and what are you basing that on?
Listen for evidence over enthusiasm. An agent who answers the valuation question with recent sold comparables is doing the job; one who answers it with confidence alone is not. See how to tell what a house is really worth.
Choosing a Listing Agent
Selling puts different things at stake. Ask each candidate for a written comparative market analysis and a marketing plan, then compare them properly.
Be careful of the agent who suggests the highest price. Some sellers choose on that number alone, which is exactly why it is sometimes offered — an overpriced listing goes stale, then reduces, and often ends below what a correctly priced one would have achieved. Ask what the recommendation is based on, and what the plan is if there is no offer in thirty days. Read the listing agreement terms before signing: see real estate listing agreements.