What Real Estate Agents Actually Do—and Who They're Working For

The Two Sides of Every Transaction

Most home sales involve at least two licensed agents: one representing the seller and one representing the buyer. Despite working in the same industry—sometimes even the same brokerage—these agents serve opposite principals and owe different duties accordingly.

The listing agent (seller's agent) is hired by the homeowner to market the property, advise on pricing, and negotiate terms that favor the seller. Their fiduciary duty runs to the seller, meaning they are obligated to pursue the seller's best financial outcome.

The buyer's agent is hired by the purchaser to identify suitable properties, interpret market data, and negotiate on the buyer's behalf. Their duty runs in the opposite direction—to the buyer.

This structure matters because it shapes what information each agent can and should share. A listing agent is generally not obligated to volunteer information that could harm their seller's negotiating position, and vice versa. Many buyers mistakenly assume that any agent they speak with at an open house or listing is working for them—they are not.

What Agents Actually Do Day-to-Day

Beyond showing homes and opening lockboxes, agents perform a range of services that are easy to underestimate until something goes wrong.

• Buyer's agents run comparative market analyses (CMAs) to assess whether a listing is fairly priced, coordinate showings, help structure competitive offers, and guide buyers through contingencies and closing logistics. They are also typically the ones who recommend trusted professionals—from inspectors to title companies—though buyers should always independently verify these referrals.
• Listing agents advise sellers on pricing strategy, stage or prepare marketing materials, list the property on the Multiple Listing Service (MLS), field and vet offers, and negotiate counteroffers with an eye on the seller's net proceeds.

A significant part of both roles involves paperwork management: purchase agreements, addenda, disclosure forms, and deadlines. Missing a contingency deadline, for example, can cost a buyer their earnest money deposit. Understanding what your agent is tracking on your behalf—and when—is a reasonable expectation, not an imposition.

When you're ready to move toward an offer, it helps to understand what goes into a purchase offer and how negotiations typically unfold. Your agent's role in that process is to advocate for your position, not split the difference.

Dual Agency: When One Agent Represents Both Sides

Dual agency arises when a single agent—or two agents from the same brokerage—represents both the buyer and the seller in the same transaction. Most states require written disclosure and consent before this arrangement can proceed, but consent doesn't eliminate the inherent tension.

A true advocate cannot simultaneously negotiate the highest price for a seller and the lowest price for a buyer. In a dual agency situation, the agent typically shifts from a full fiduciary role to a more neutral, transactional one—sometimes called a transaction broker or facilitating agent depending on state law. They can share factual information but are restricted from advocating aggressively for either party.

If you find yourself in a potential dual agency scenario, it is worth asking whether you'd be better served requesting separate representation. Some states—including Florida and Texas—have moved toward transaction-broker models as a default, so the precise rules depend on where you are buying or selling.

Agency Disclosures and the 2024 Commission Changes

In most U.S. states, agents are required to provide a written agency disclosure form early in the relationship—often at the first substantive meeting. This document explains whether the agent represents you, the other party, or both. Reading it carefully before signing anything else is a practical first step.

The landscape of agent compensation also shifted meaningfully following the National Association of Realtors' 2024 antitrust settlement. Buyers are now required to sign written buyer-representation agreements—specifying how their agent will be compensated—before touring homes listed on MLS. Seller-paid buyer-agent commissions remain common in practice, but they are now a negotiated element of the transaction rather than a built-in default.

This change makes it more important than ever for buyers to have a direct conversation with any agent they work with: What are you charging? How will that be paid? What happens if the seller won't cover your fee? A good agent will answer these questions clearly and without defensiveness.

A related area where representation gaps can create problems is the home inspection. Your agent can recommend when to waive or include an inspection contingency, but the decision should be yours, informed by the property's condition. See our guide on why the home inspection matters more than listing photos for a closer look at what that process involves.

This article is for general informational purposes only and does not constitute legal or financial advice. Real estate laws and practices vary by state. Consult a licensed real estate professional or attorney for guidance specific to your situation and location.