Real Estate Agent
A licensed professional who helps buyers and sellers complete real estate transactions, earning a commission based on the sale price.
What is Real Estate Agent?
A real estate agent is a licensed professional who represents buyers or sellers (or both, in dual agency) in real estate transactions. Agents must complete state-mandated pre-licensing education, pass a licensing exam, and work under the supervision of a licensed real estate broker. The term 'Realtor' specifically refers to an agent who is a member of the National Association of Realtors (NAR) and bound by its Code of Ethics—not all licensed agents are Realtors. Real estate agents earn income through commissions rather than salaries, typically receiving a percentage of the transaction price split between the listing agent's brokerage and the buyer's agent's brokerage. Agents who specialize in representing sellers are called listing agents (or seller's agents); those representing buyers are buyer's agents. A real estate broker holds a higher-level license and can operate independently or supervise other agents. Real estate agent duties include advising on pricing and market conditions, showing properties, preparing and submitting offers, negotiating contracts, coordinating inspections and due diligence, and guiding clients through the closing process.
Example
In 2024, the US had approximately 1.5 million active Realtors (NAR members). In a typical transaction, a buyer's agent and a listing agent each represent their respective clients, with total commission historically around 5%–6% of the sale price. Following the 2024 NAR commission settlement taking effect August 17, 2024, buyers are now required to sign written buyer representation agreements before touring homes, and seller offers of buyer's agent compensation are no longer displayed on MLS systems—representing the most significant structural change to US real estate commission practices in decades.