What Does a Realtor Actually Do?

Buying or selling a home can look fairly simple from the outside.

A buyer finds a home, makes an offer and gets the keys. A seller puts a property on the market, accepts an offer and eventually signs closing documents.

But there is a lot happening between those steps.

Real estate transactions involve contracts, deadlines, negotiations, inspections, financing, appraisals, disclosures, title/escrow and sometimes unexpected issues that need to be addressed along the way.

That is where professional representation comes in.

A Realtor's role isn't simply to help a buyer find a home or help a seller put one on the MLS. Representation means understanding your goals, helping you evaluate your options, advocating for your interests and managing the many moving pieces of a real estate transaction from the initial planning stages through closing.

What Does Real Estate Representation Actually Mean?

Representation is about more than completing paperwork.

When you hire a real estate professional to represent you, you are establishing a professional relationship with someone whose role is to guide you through the transaction and advocate for your interests within the scope of your agreement.

For buyers, that might begin with understanding what you can comfortably afford, where you want to live, what type of property fits your needs and what your priorities are.

For sellers, it might begin with understanding your timeline, evaluating the condition of your home, reviewing the current market and developing a strategy for pricing and preparing the property.

In both cases, good representation starts with the same thing:

Understanding what you are trying to accomplish and building a plan around it.

What Does a Real Estate Agent Actually Do?

Buyer and seller representation are different, but many of an agent's responsibilities come down to the same core areas: strategy, contracts, negotiation, communication, coordination and transaction management.

Research and Strategy

Good representation begins before a contract is ever signed.

For a buyer, an agent may help research properties, review comparable sales, evaluate neighborhoods and communities, discuss new construction versus resale and identify factors that could affect an offer.

For a seller, an agent may review comparable properties, current competition, recent sales and buyer activity while evaluating the home's condition and position in the market.

The goal isn't simply to provide numbers.

It's to help you understand what those numbers mean for your situation.

For example, a buyer may find a home listed at $400,000. The important question isn't only whether the buyer can afford $400,000. It may also be whether the home is priced appropriately, what comparable properties have sold for, how much competition exists and what terms could make sense in an offer.

For a seller, choosing a list price isn't simply about selecting the highest number. Pricing should consider the home's condition, location, competing inventory, recent comparable sales and current buyer activity.

That's strategy not just access to information.

Understanding More Than the Purchase Price

One of the most important parts of representation is helping clients understand that a real estate offer is more than a price.

Depending on the transaction, an offer may include:

• Financing terms
• Seller concessions
• Earnest money
• Inspection and due-diligence periods
• Closing dates
• Contingencies
• Requested buyer-broker compensation, when applicable
• Personal property
• Other contractual terms

Imagine a seller receives two offers at exactly the same purchase price.

One buyer may be requesting closing-cost assistance while another isn't. One may have different financing terms, a different closing date or different contingencies.

The purchase price is identical, but the offers are not.

The listing agent's role is to help the seller understand the entire offer.

On the other side, a buyer's agent helps the buyer develop an offer based on the property, current market conditions, financing and the buyer's priorities.

The client still makes the decision.

Representation provides the information, context and strategy behind that decision.

Negotiation Doesn't End With the First Offer

When people think about real estate negotiation, they often think about negotiating the purchase price.

That's certainly part of it, but negotiation can continue throughout a transaction.

Depending on the circumstances, negotiations may involve:

• Purchase price
• Seller concessions
• Closing dates
• Repairs
• Inspection findings
• Appraisal issues
• Buyer-broker compensation
• Personal property
• Other contract terms

Not every transaction will involve all of these items.

The important point is that an agent's job isn't simply to submit an offer and wait for closing.

When something changes, your agent helps you understand the situation, the options available under your contract and the possible implications of those choices.

What Happens After an Offer Is Accepted?

Getting an offer accepted is a major milestone.

But there is still a lot of work between under contract and closed.

Depending on the transaction, your agent may help coordinate or monitor:

• Earnest money
• Contractual deadlines
• Inspections and due diligence
• Seller disclosures
• Repair negotiations
• Financing milestones
• Appraisal
• Title and escrow communication
• Required documents and addenda
• Final walkthrough
• Closing

There may also be communication among the buyer, seller, lender, title and escrow professionals, inspectors, appraiser and the real estate professionals on both sides.

A missed deadline or unanswered question can matter.

Part of professional representation is keeping track of the transaction and recognizing when something needs attention.

What Happens When Something Doesn't Go According to Plan?

Hopefully, every transaction moves smoothly from contract to closing.

But real estate doesn't always follow a perfect checklist.

An inspection might uncover an unexpected issue.

An appraisal could come in below the contract price.

Financing may be delayed.

A repair may not be completed as expected.

A contractual deadline may be approaching while an important item is still outstanding.

These situations don't automatically mean the transaction will fall apart.

They mean decisions may need to be made.

This is one of the most important parts of representation: having someone who understands the transaction, can help explain what the contract provides and can coordinate with the appropriate parties while you decide how you want to proceed.

A Realtor shouldn't make important decisions for you.

A Realtor should help you make informed decisions for yourself.

Representation Is Also About Communication

There are a lot of people involved in a typical real estate transaction.

Depending on the transaction, that might include:

The buyer.
The seller.
The buyer's agent.
The listing agent.
The lender.
The title and escrow company.
The home inspector.
The appraiser.
Insurance professionals.
Contractors or other specialists.

You shouldn't have to figure out on your own who needs what information or when something should happen.

Your agent helps keep communication moving between the appropriate parties and follows the transaction through the different stages toward closing.

That behind-the-scenes coordination is something consumers don't always see when they first begin buying or selling a home.

What About Buyer Representation Agreements?

Buyer representation has received a lot of attention in recent years.

Under current National Association of REALTORS® MLS policy, an MLS participant working with a buyer generally must have a written buyer agreement in place before touring a home with that buyer, whether the tour is in person or live virtually.

The agreement establishes important details about the professional relationship, including the services being provided and how the real estate professional will be compensated.

Real estate commissions and broker fees are negotiable. They are not set by law.

Arizona REALTORS® also provides buyer-representation forms for Arizona transactions that define the relationship between the buyer and brokerage.

Signing a buyer representation agreement does not necessarily mean a buyer will pay their agent's entire compensation directly out of pocket. Depending on the transaction and the terms of the agreement, compensation may be negotiated from a seller or another source.

Before signing a representation agreement whether you're buying or selling ask questions.

Understand the services being provided, the length of the agreement, your responsibilities, the brokerage's responsibilities and how compensation works.

Choosing Representation Is About More Than Finding an Agent

Whether you're buying or selling, don't be afraid to interview the person who may represent you.

Ask questions such as:

How will we communicate?

What services do you provide?

How do you approach negotiations?

What happens once I'm under contract?

How will you help me keep track of important deadlines?

Who will I be communicating with throughout the transaction?

You should understand what you're signing and what you can expect from the professional representing you.

Most importantly, you should feel comfortable asking questions throughout the process.

A good real estate relationship should help you become more informed, not less involved.

Your Next Move Should Start With a Plan

Whether you're buying your first home, moving into something larger, relocating to Arizona, purchasing new construction or preparing to sell a home you've owned for years, every real estate transaction is different.

There isn't one strategy that works for everyone.

Your financial situation, timeline, property, market conditions and long-term goals all matter.

That's why good representation starts before the offer or listing agreement.

It starts with understanding where you are, where you're trying to go and building a plan to get there.

A Realtor's value isn't simply opening a door or putting a sign in the yard. It's the guidance, strategy, negotiation, advocacy and transaction management that happen from the first conversation through closing.

Thinking about buying or selling a home in Arizona? Our team would be happy to help you understand your options and build a plan for your next move.

Your next move starts with a plan. 

Call or text us at 623-263-2184 - Aracely Regalado 

Visit aracely.felixhometeam.com to get started.

This article is for general educational purposes only and is not intended as legal, tax, lending or financial advice. Real estate contracts and individual circumstances vary. Consumers should review their agreements carefully and consult the appropriate professional when legal, tax, lending or financial advice is needed.