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What is a real estate agent?

Julie Nesbitt
Julie Nesbitt
One of the most complex and significant financial events in peoples' lives is the purchase or sale of real estate, be it a house, condo, townhouse or some other investment property. Because of this complexity and significance, people typically seek the help of real estate brokers and sales agents when buying or selling real estate. Nesbitt Realty brokers and sales agents have a thorough knowledge of the real estate market in Northern Virginia communities. Our brokers and agents know which neighborhoods will best fit our clients' needs and budgets. Nesbitt Realty real estate agents are familiar with local zoning and tax laws and know where to obtain financing. Agents and brokers also act as intermediaries in price negotiations between buyers and sellers. According to the Bureau of Labor Statistics:
  • Real estate brokers and sales agents often work evenings and weekends and usually are on call to suit the needs of clients.
  • A license to practice real estate is required in every State and the District of Columbia.
  • Although gaining a job may be relatively easy, beginning workers face competition from well-established, more experienced agents and brokers.
  • Employment is sensitive to swings in the economy, especially interest rates; during periods of declining economic activity and rising interest rates, the volume of sales and the resulting demand for sales workers fall.
You don't need to know everything about buying and selling real estate if you hire a real estate professional who understand real estate. Paraphrasing Henry Ford, when you hire people who are smarter than you are, it proves you are smarter than they are. A real estate broker or agent acts as an intermediary between sellers and buyers of real estate (or real property as it is known elsewhere) and attempts to find sellers who wish to sell and buyers who wish to buy real estate. When buying real estate, you may have several choices as to how you want a real estate firm and its agents to work with you. For example, you may want them to represent only you (as a buyer's agent). You may be willing for them to represent both you and the seller at the same time (as a dual agent). Or you may agree to let them represent only the seller (seller's agent or subagent). Some agents will offer you a choice of these services. Others may not. Realtor Logo If you are selling real estate, you may want to "list" your property for sale with a real estate firm. If so, you will sign a "listing agreement" authorizing the firm and its agents to represent you in your dealings with buyers as your seller's agent. You may also be asked to allow agents from other firms to help find a buyer for your property. For more information or to set up an appointment call Julie at (703)765-0300.

Basic Components of The Listing Agreement

Nesbitt Realty
Nesbitt Realty sells homes in Northern VA
The listing agreement is a contract between a property owner and a real estate professional. The listing agreement outlines the limits that the real estate agent has when you sell your property. All listing agreements will have the following components: Writing-For real estate contracts to be enforceable they must be in writing. Employment-The listing agreement is an agreement with the broker employing the agent or property owner. Compensation-The listing agreement will show amount paid to broker which is usually a percentage of the sales. Title-Some properties have more than one owner. In this case all owners have to agree to the listing agreement. Term-Because the broker acts on the seller's behalf the listing agreement should have a term. It usually is 180 days but not less than 60 days. Fine Print-Always read the fine print. If you do not understand something your agent or broker can explain.

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Properties in Focus

9516 Narragansett Pl, Vienna 22180
$1,100,000
View Details
Concord Green
5 bd
2 ba
2,192 sqft
On Site: 0 Days
Listing courtesy of Compass

7515 Nottoway Pl, Springfield 22150
$649,950
View Details
Springfield
3 bd
2 ba
1,547 sqft
On Site: 0 Days
Listing courtesy of Long & Foster Real Estate, Inc.

6445 Walters Woods Dr, Falls Church 22044
$1,650,000
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Walters Woods
4 bd
4 ba
3,332 sqft
On Site: 0 Days
Listing courtesy of Pearson Smith Realty, LLC

3329 Spring Ln, Falls Church 22041
$620,000
View Details
Carlyn Square
3 bd
2 ba
1,999 sqft
On Site: 0 Days
Listing courtesy of Samson Properties

7991 Audubon Ave #B4 (104), Alexandria 22306
$270,000
View Details
Colchester Towne Condo
2 bd
1 ba
886 sqft
On Site: 0 Days
Listing courtesy of Apex Home Realty

600 29th Rd S, Arlington 22202
$950,000
View Details
Oakcrest
4 bd
3 ba
1,800 sqft
On Site: 0 Days
Listing courtesy of Keller Williams Chantilly Ventures

10711 John Ayres Dr, Fairfax 22032
$774,900
View Details
Middleridge
4 bd
3 ba
1,956 sqft
On Site: 0 Days
Listing courtesy of Take 2 Real Estate LLC

5310 Kings Park Dr, Springfield 22151
$775,000
View Details
Kings Park
5 bd
3 ba
1,900 sqft
On Site: 0 Days
Listing courtesy of Keller Williams Chantilly Ventures

8434 Cherry Valley Ln, Alexandria 22309
$849,000
View Details
Riverside Estates
4 bd
3 ba
2,748 sqft
On Site: 0 Days
Listing courtesy of Long & Foster Real Estate, Inc.

5413 Wycklow Ct, Alexandria 22304
$625,000
View Details
Holland Towne
3 bd
2 ba
1,796 sqft
On Site: 0 Days
Listing courtesy of CENTURY 21 New Millennium

See more in Focus

Nesbitt Realty
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What do property managers and leasing agents do?

I recently received this email:
Will,   What all kinds of assistance do you provide? Do you check the background and credit of the perspective renter? If work needs to be done what happens? I know that the carpets will need to be cleaned before the renters would move into the place. Does one have to use your people to do any work necessary? What happens if I were to need a new renter, would your service handle that too? I have never used a service such as yours before, so I have a lot of questions. Thanks for your help. Sincerely, (name withheld)
Like most property managers, our services to the landlord are broken into two different jobs. The first task that landlords ask us to perform is often the task of finding a renter--to describe, explain and memorialize how we find your renter, write and sign a listing agreement. The listing agreement is not unlike the listing agreement a homeowner signs when he or she sells a house. The listing agreement is what lets us put a lockbox on the door. We need a listing agreement to put the property in the MLS (multiple listing service). The listing agreement describes the terms and conditions under which we get paid. We  get paid only if and when we find a renter. Most agencies charge between one-half to a full month's rent to get this service done. If our client is using our property management services, we let the client set the fee, but we take the time to explain how agents get paid.
MLS
The MLS is a database of homes listed for sale.
Like all listing agreements, the listing agreement will set a term or time period and then expires. In the past few years I can't remember having an expired listing agreement as we push hard to rent quickly. Once we find a prospective tenant, we take an application and proof of income. We then pull a background check to make determine a recommendation regarding the applicant. If the tenant can afford the property and has a good payment history we give a positive recommendation. If the tenant has a questionable credit history or if the tenant can't afford the property, we advise the landlord that we have an application but do not recommend proceeding with a lease. In some cases, we can provide solutions to guard the landlord against potentially problematic tenants, but still find a way to move forward with the applicant. After we are settled on a tenant, we prepare a lease and have it signed by the landlord and tenant. This is the end of our duties as a listing agent. But that's when our duties as a property manager begin. As a property manager, we collect the rents and make payments to the landlord as described in the property management agreement. From time to time, we respond to service calls from the tenant, dispatching appropriate handymen, electricians, plumbers, etc. to solve the problem. When this happens, we deduct the cost of these services from the rent collected and pay the landlord the remainder. From time to time we make inspections of the property and we occasionally recommend maintenance or upgrades.
Will Nesbitt examines some tools at Home Depot
Will Nesbitt examines some hardware at Home Depot
Unlike some property managers, we  collect fees only when the property is occupied. No rent equals no charge. If the property needs to be prepared prior to leasing, we can and will make some efforts to put the property in order. Some properties need a little clean-up to prepare for market. We don't charge for managing a clean-up. We simply pass the cost without mark-up back to the landlord. We will take some deposits from the landlord as required to take care of this clean-up. Some properties need something more than a clean-up. When a property needs a renovation, we may charge a fee to manage construction and clean-up to put the place in order. Eventually the renter moves out and we'll need a new renter. At that point, we'll sign a new listing agreement and start the process again. We manage houses, townhouses and condominiums. We bring a special expertise to condo management because we know how condos operate, but we don't limit our business to condos. It's hard to describe everything we do in a format like this, but that's what we do in a nutshell. There are additional services and limitations I'll describe when we go through the agreements, but this should be enough to get you started. For more information or to set up an appointment call Nesbitt Realty at (703)765-0300.

What do real estate agents do?

When selling property, brokers and agents arrange for title searches to verify ownership and for meetings between buyers and sellers during which they agree to the details of the transactions and in a final meeting, the new owners take possession of the property. They also may help to arrange favorable financing from a lender for the prospective buyer; often, this makes the difference between success and failure in closing a sale. In some cases, brokers and agents assume primary responsibility for closing sales; in others, lawyers or lenders do.

Duties to Sellers

Agents and brokers spend a significant amount of time looking for properties to sell. They obtain listings---agreements by owners to place properties for sale with the firm. When listing a property for sale, agents and brokers compare the listed property with similar properties that recently sold, in order to determine a competitive market price for the property. Following the sale of the property, both the agent who sold it and the agent who obtained the listing receive a portion of the commission. Thus, agents who sell a property that they themselves have listed can increase their commission. The listing firm and its agents must
  • promote the sellers' best interests
  • be loyal to the seller
  • follow the sellers' lawful instructions
  • provide the seller with all material facts that could influence your decisions
  • use reasonable skill, care and diligence, and
  • account for all monies they handle for the seller.
Once you have signed the listing agreement, the firm and its agents may not give any confidential information about you to prospective buyers or their agents without your permission so long as they represent you.

Duties to Buyers

If the real estate firm and its agents represent you, they must
  • promote the buyers' best interests
  • be loyal to the buyer
  • follow the buyers' lawful instructions
  • provide the buyer with all material facts that could influence your decisions
  • use reasonable skill, care and diligence, and
  • account for all monies handled for the buyer.
Before showing residential properties to potential buyers, agents meet with them to get an idea of the type of home the buyers would like. In this prequalifying phase, the agent determines how much the buyers can afford to spend. In addition, the agent and the buyer usually sign a loyalty contract, which states that the agent will be the only one to show houses to the buyer. An agent or broker then generates lists of properties for sale, their location and description, and available sources of financing. In some cases, agents and brokers use computers to give buyers a virtual tour of properties that interest them. Agents may meet several times with prospective buyers to discuss and visit available properties. Agents identify and emphasize the most pertinent selling points. To a young family looking for a house, for example, they may emphasize the convenient floor plan, the area's low crime rate, and the proximity to schools and shopping. To a potential investor, they may point out the tax advantages of owning a rental property and the ease of finding a renter. If bargaining over price becomes necessary, agents must follow their client's instructions carefully and may have to present counteroffers to get the best possible price. Once the buyer and seller have signed a contract, the real estate broker or agent must make sure that all special terms of the contract are met before the closing date. The agent must make sure that any legally mandated or agreed-upon inspections, such as termite and radon inspections, take place. In addition, if the seller agrees to any repairs, the broker or agent ensures they are made. Increasingly, brokers and agents are handling environmental problems as well, by making sure that the properties they sell meet environmental regulations. For example, they may be responsible for dealing with lead paint on the walls. Loan officers, attorneys, or other people handle many details, but the agent must ensure that they are carried out. Most real estate brokers and sales agents sell residential property. A small number---usually employed in large or specialized firms---sell commercial, industrial, agricultural, or other types of real estate. Every specialty requires knowledge of that particular type of property and clientele. Selling or leasing business property requires an understanding of leasing practices, business trends, and the location of the property. Agents who sell or lease industrial properties must know about the region's transportation, utilities, and labor supply. Whatever the type of property, the agent or broker must know how to meet the client's particular requirements. Brokers and agents do the same type of work, but brokers are licensed to manage their own real estate businesses. Agents must work with a broker. They usually provide their services to a licensed real estate broker on a contract basis. In return, the broker pays the agent a portion of the commission earned from the agent's sale of the property. Brokers, as independent businesspeople, often sell real estate owned by others; they also may rent or manage properties for a fee.