Real estate transactions are typically facilitated by licensed professionals. A real estate agent is a licensed professional who helps clients buy, sell, or rent property. A Realtor is an agent who belongs to the National Association of Realtors (NAR) and adheres to its code of ethics. A broker holds a higher level of licensure, can own a brokerage, and may supervise other agents. The listing agent represents the seller, while the buyer's agent represents the buyer. In some cases, a single agent may represent both parties—a practice called dual agency that is heavily restricted or regulated in most jurisdictions.
Agents are typically compensated through a commission, a fee calculated as a percentage of the sale price. Traditionally in the United States, total commissions have ranged from \(5\%\) to \(6\%\), split between the listing and buyer's sides, though rates are negotiable. In 2024, a major NAR settlement changed how buyer agent commissions are disclosed and paid, requiring greater transparency and often shifting payment responsibilities. Sellers often stage the home—preparing it to appeal to buyers—and enhance curb appeal, the first impression from the home's exterior, to maximize sale price.
Agents share listings through the Multiple Listing Service (MLS), a database that allows cooperating brokers to see properties for sale. A listing agreement is the contract between seller and listing agent; under an exclusive right to sell arrangement, the agent earns a commission regardless of who ultimately finds the buyer. Some sellers choose to forgo agents entirely and sell as For Sale By Owner (FSBO), though they typically must still comply with disclosure requirements and may face challenges attracting buyers.