Real estate professionals: how to find and choose an agent or broker

Understanding agency relationships in real estate

Real estate agency relationships in the United States are governed by state law and vary by state, but the core concept is the same: the agent you work with has a legal duty to represent your interests in the transaction. When you are a buyer working with a buyer's agent, that agent represents you. When you are a seller and list with a listing agent, that agent represents you. Dual agency, where one agent represents both buyer and seller in the same transaction, creates an inherent conflict of interest and is illegal in some states and disclosure-required in others.

The agency relationship should be disclosed and memorialized in a written agreement before you discuss much about your situation. A buyer representation agreement defines what the agent will do for you, the duration of the relationship, and how the agent is compensated. A listing agreement defines the listing price, the commission, and the term. Understanding what you are agreeing to before you sign either is essential.

How real estate commissions work

Real estate commission structures have changed significantly in recent years, particularly following the National Association of Realtors settlement in 2024, which changed how buyer agent compensation is disclosed and negotiated. Historically, the seller paid a total commission (often around 5 to 6 percent) split between the listing agent and the buyer's agent. Under current rules, buyers must now have a written agreement with their agent specifying compensation before touring homes, and the structure of who pays the buyer's agent is a matter of negotiation in each transaction.

What this means practically: as a buyer, you need a written buyer representation agreement that specifies how your agent is compensated before you start touring. As a seller, you negotiate the listing commission with your listing agent and separately consider what, if anything, you will offer to a buyer's agent. The total cost of real estate representation is negotiable; the specific structure varies by market, property type, and the specific services included.

Evaluating a real estate agent's track record

An agent's track record is visible in ways that most service businesses cannot match. Public records of closed transactions, days on market for listings, and list-to-sale-price ratios are available through your MLS or platforms that aggregate public data. An agent who consistently sells homes close to list price in typical market time is performing differently from one with a pattern of price reductions and long days on market. For buyers, an agent who knows the market and has helped buyers close on competitive offers in recent months is more useful than one who is new to the area or has been inactive.

Ask for referrals from recent clients, specifically clients who did similar transactions in the same price range and area as yours. Three referrals from transactions completed in the past year, with permission to call them, give you unfiltered feedback that no review platform can match. Ask the referral clients specifically: did the agent respond quickly when you had questions? Did they give you their honest opinion even when it was not what you wanted to hear? Would you use them again?