What Do Real Estate Agents Do?

Connecting with a real estate agent is usually the first piece of advice for anyone looking to buy or sell a home or a commercial property. Is this just something that you do because it has always been done that way, or is there a very good reason to reach out to a professional agent before committing to a transaction? This is something that you likely never think about until you’re facing a life-changing decision. Now, the question of what do real estate agents do is more relevant than ever.

In this post, we’ll answer your questions about the different types of real estate agents and the value they can bring to the table.

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What Is a Real Estate Agent?

A real estate agent is simply someone in Ontario who has earned a licence by the province authorizing them to help people buy, sell, or rent properties. All licensed agents in Ontario must follow the code of ethics as laid out by the Trust in Real Estate Services Act.

The TL’DR version is that you are always a client or a self-represented party, never a customer. This critical distinction means that as a client, you are under the real estate agent’s protection, and they are legally bound to act in your best interests. As a self-represented party, it’s your responsibility to understand the nuances and legalities of the transaction and advocate for yourself. This requires a high degree of skill and experience, and is not advisable for those not well-versed in real estate.

A buying agent represents you when buying property. They must do everything legally permitted to help you obtain the best price and terms.
A selling agent, also called a listing agent, represents the seller of a property. Their goal is to advocate for their client’s interests by negotiating the highest possible price.

As you can imagine, the buyer and the seller are at odds on opposite sides of the transaction. That’s one of the reasons why skilled representation is so important. If the other party has an expert negotiating on their behalf, an inexperienced self-represented party is less likely to get a satisfactory outcome.

A commercial real estate agent is a licensed agent who represents businesses and industrial properties rather than residential homes. The licensing requirements are the same, but commercial transactions usually involve higher dollar amounts and longer timelines. As such, many professionals pursue specialized training to better serve their clients.

Curious about the differences between residential and commercial real estate? Learn more in the posts below:

What Do Realtors® Do?

A Realtor® is a licensed real estate agent who is also a member of the Canadian Real Estate Association (CREA). The difference is largely a matter of semantics, but there are some distinctions:

All real estate agents (and Realtors) in Ontario are required to stay up to date on the latest rules and best practices in the industry. Realtors often have access to additional training and professional development opportunities through CREA.

All real estate agents must abide by the laws as outlined by TRESA, which are then enforced by the Real Estate Council of Ontario (RECO). Realtors have an additional set of rules laid out by CREA that they must also follow.

As members of a professional association, Realtors have the authority to place the trademark REALTOR® by their name. Otherwise, they essentially do everything a certified real estate agent does, which is help clients get the best results when buying, selling, or renting property.

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What Does a Real Estate Agent Do for a Buyer and Seller?

Real estate agent responsibilities for the buyer boils down to finding the right property at a fair price and reasonable terms. They must provide honest advice at all times and focus on their client’s needs rather than their own interests. If an agent believes a property is unfit or unfairly priced, they must counsel their client accordingly. In addition, encouraging a client to buy a property simply because it offers a higher commission is highly unethical and forbidden by TRESA.

Real estate agent duties for a seller are similar. They must be transparent and loyal and work to obtain a fair price for their property. Like the buyer’s agent, they must also always disclose any pertinent information to their client that could influence their decisions.

For example: If a buyer agent overhears the homeowner whispering “I hope they offer the list price but I’d take $10,000 less,” they will inform their client. Likewise, if a listing agent hears a passing remark from a buyer that “this home is my favourite, I’m willing to pay more,” they will tell the existing homeowner.

An agent isn’t going to eavesdrop and report back on every single word. However, if the comment suggests flexibility on price or terms, they have a duty to disclose the information. Offhand remarks could potentially become very costly during negotiations.

These are all reasons why you do not want to be without representation. You will almost always achieve a better outcome when working with a skilled professional, whatever side of the transaction you are on.

Can a Realtor® Represent the Buyer and Seller

What happens if you decide to sell a property, and your real estate agent also happens to represent the buyer? This is known as a double-ended transaction as it allows the agent to earn commission on both ends.

Technically speaking, it is permitted, but only with full disclosure to both clients. More importantly, an agent’s ability to advocate for your needs could be compromised when representing two parties on opposite sides of a transaction.

Alternatively, a real estate brokerage can represent both the seller and the buyer with a different real estate agent for each. This allows enough separation to provide a high level of service to all clients.

Who should your real estate agent be? The posts below will give you unique insight to help you decide:

What Does a Real Estate Broker Do?

A real estate broker is a real estate agent with several years of experience and additional training and expertise. This allows them to perform more functions beyond helping clients buy or sell property.

These additional responsibilities include training and managing the real estate agents on their team. They also ensure each member upholds high ethical standards and dedication to service.

Planning to buy or sell commercial property? A commercial real estate Toronto specialist is an essential partner. Connect with me at OMarjanovic@kw.com or call 647.620.2882 to learn more.