Real estate agents play a pivotal role in the industry by facilitating property transactions for buyers and sellers. This article offers an in-depth analysis of the duties and responsibilities of real estate agents. Its primary focus is to address common inquiries and provide valuable insights on effectively serving customers and enhancing operational efficiency, thereby ensuring customer satisfaction.
What is it to be a Real Estate Agent?
A real estate agent is a licensed professional representing clients in property transactions. Real estate agents offer guidance and collaborate with other experts throughout the buying, selling, or renting procedures. This comprehensive guide sheds light on their roles and obligations, ensuring a smooth and successful experience.
An essential asset in any property transaction, a real estate agent is knowledgeable about the local housing market and advises clients on how best to approach transactions. Agents act as intermediaries between buyers and sellers, helping to negotiate a successful sale or purchase. They may also assist with financing and other aspects of the transaction, such as finding appropriate appraisers or inspectors.
1. Helping clients with representation.
Real estate agents are reliable advocates who assist clients in buying or selling property. They prioritize the best interests of their clients and provide tailored guidance throughout the process to ensure successful outcomes.
R.A. 9646, also known as the Real Estate Service Act (RESA Law), governs the real estate service sector in the Philippines. It covers various practitioners, including consultants, appraisers, assessors, brokers, and salespersons, as defined in Section 3(g) of the law.
2. Get in touch with clients.
Real estate agents maintain open and effective communication with clients during the buying or selling processes. They provide regular updates, address concerns, and offer professional advice to ensure a smooth and transparent experience.
3. Getting a grasp of the market.
A knowledgeable real estate agent stays informed about local market trends, property values, inventory levels, emerging trends, and opportunities. It allows them to provide informed advice and make strategic recommendations to clients. They conduct thorough market analyses, evaluate comparable properties, assess market conditions, and provide insights to help clients make informed decisions.
4. Property valuation and pricing.
Experienced real estate agents play a crucial role in determining optimal listing prices of properties. They evaluate property conditions, suggest repairs or improvements, and set competitive listing prices based on market conditions. Their expertise ensures customer satisfaction by offering fair pricing options.
| Market Value vs. Zonal Value in the Philippines Market Value represents the property’s current market price, while Zonal Value is the government-set assessed value for tax purposes. Understanding both is crucial for informed property transactions. |
5. Negotiating contracts.
Real estate agents are skilled negotiators who work on behalf of their clients to secure the best possible terms and conditions in a real estate transaction. They handle contract negotiations, ensuring all parties are satisfied with the final agreement.
Mastering the art of selling real estate requires strong negotiation skills. Skilled negotiators can secure favorable deals, devise solutions to obstacles, and maintain good relationships with all parties involved.
6. Creating professional connections and getting referrals.
Successful real estate agents build a strong network of industry professionals, leveraging connections to provide support and resources to clients. Access to valuable resources, referrals, and staying updated with the latest practices and technology gives them a competitive edge.
Here are some effective strategies to attract clients in the real estate industry, as recommended by Forbes Advisor in their 2023 Guide:
| ✔ | Consider purchasing real estate leads through a reliable (Customer Relationship Management (CRM) system). |
| ✔ | Engage with the local community to build connections and establish a reputation. |
| ✔ | Ask existing clients for referrals. |
| ✔ | Create a website and post regularly on social media platforms like Twitter, Facebook, Instagram, LinkedIn pages, and YouTube channels. |
| ✔ | Specialize in a niche to stand out in a competitive market. |
| ✔ | Incorporate cold calling into prospecting efforts. |
| ✔ | Host open houses to showcase properties. |
| ✔ | Contribute to news articles to enhance credibility and reach more people. |
| ✔ | Offer free services and join referral networks for networking opportunities. |
By implementing these strategies, you can significantly improve your chances of success in the real estate industry.
| Real estate agents are essential in guiding clients through property transactions. With market knowledge and expertise in loans and regulations, they provide valuable advice for successful deals. Staying updated on the real estate market is crucial for effective representation and client satisfaction. |
Sources:
Top CRM Companies in [the] Philippines – 2023 Reviews | GoodFirms
Forbes Advisor: How To Get Clients In Real Estate (2023 Guide)
Most Common Job Descriptions of Real Estate Agents
A. What agents should do for Buyers
Check out these ten most common job descriptions of real estate agents and what they do for buyers:
1. Helping buyers find their dream property hassle-free.
Real estate agents help buyers find suitable properties that align with their preferences and needs. They conduct market research, analyze listings, and provide valuable insights to help buyers make informed decisions.
2. Showing off properties.
Agents arrange and conduct property showings for buyers, allowing them to explore and evaluate potential properties firsthand. They provide detailed information about the property’s features, amenities, and overall condition.
3. Negotiating purchase offers.
Real estate agents act as intermediaries between buyers and sellers during the negotiation process. They negotiate on behalf of the buyers to secure favorable purchase terms, including price, contingencies, and closing deadlines.
4. Helping with financing options.
Agents guide buyers regarding financing options and connect them with trusted lenders. They help buyers navigate the mortgage application process and understand the financial implications of their purchase.
5. Doing a Comparative Market Analysis (CMA).
A valuable method in evaluating property values, a Comparative Market Analysis (CMA) considers comparable properties, recent sales data, and market trends to provide comprehensive insights for informed real estate decisions. Buyers can assess property pricing and negotiate effectively with the help of CMAs.
6. Making home inspections easier.
Real estate agents organize inspections, coordinating with professional inspectors to ensure desired standards, identify potential issues, and offer valuable insights. Professional home inspections are essential when buying a home to check for structural issues, water damage, and other problems to ensure a worthy investment.
7. Managing transaction documents made easy.
Real estate agents help buyers navigate and complete paperwork, ensuring compliance with legal requirements. Ensuring a smooth and informed process, real estate agents offer valuable assistance regarding rights and responsibilities throughout the transactional journey.
8. Sharing market insights, keeping it real.
Agents inform buyers about market trends, neighborhood dynamics, and investment opportunities. They offer comprehensive market analysis and expert advice on real estate investments.
9. Collaborating with other professionals.
Real estate agents work closely with other professionals involved in the transaction, such as attorneys, appraisers, inspectors, and title companies. They facilitate smooth communication and collaboration to ensure a seamless buying experience for their clients.
10. Providing support after you make a purchase.
Salespersons of brokerage firms like HousingInteractive go the extra mile to assist buyers throughout the home-buying journey, even after the purchase. They are still there to address any post-purchase concerns, offer valuable recommendations for home improvements tailored to the buyer’s specific needs, and even provide reliable referrals to trusted service providers in the local area. With their expertise and dedication, agents ensure buyers feel supported and confident in their new homes long after finishing the deal.
| Real estate agents offer buyers comprehensive support throughout their property search and purchase journey. From market research to negotiations, inspections to legal paperwork, agents provide expert guidance to help buyers make informed decisions in the complex real estate market. |
Source:
What Is Comparative Market Analysis (CMA) in Real Estate?
B. How agents can best assist Sellers
Here is a round-up of 10 typical job descriptions for real estate agents and what sellers can expect from them:
1. Assessing the worth of your property.
Experienced real estate agents conduct thorough market research and careful analysis to determine the optimal value of a property. This comprehensive approach provides the knowledge and information needed for sellers to secure the best possible price in the ever-changing real estate market.
2. Getting your property ready for listing.
Experienced professionals are there to lend a helping hand to sellers throughout the entire process of preparing their property for listing. They offer expert guidance on staging, repairs, and strategic improvements, ensuring properties are perfectly enhanced to captivate potential buyers and leave a lasting impression.
3. Building a well-crafted marketing strategy.
Real estate agents develop and implement effective marketing strategies to attract potential buyers. It may include online listings, print advertisements, open houses, and networking.
By understanding consumer behavior and leveraging data-driven insights, real estate agents can help tailor sellers’ marketing efforts to maximize impact, build property awareness, and drive client interest.
4. Set up showings and tours.
Experienced agents efficiently coordinate and conduct property showings for potential buyers, highlighting unique features and addressing concerns with care and professionalism.
5. Real estate agents represent sellers during negotiations.
Highly skilled and experienced real estate agents represent sellers during negotiations and use their expertise to advocate for their client’s interests. By leveraging their in-depth market knowledge and negotiation strategies, agents ensure clients can secure the best possible terms and conditions to maximize profit and satisfaction.
6. Getting the contract ready.
They prepare and review all necessary legal documentation, including purchase agreements, disclosures, and addendums, ensuring compliance with relevant regulations and protecting the sellers’ rights.
7. Managing transactions.
Real estate agents ensure a smooth and timely closing by working closely with sellers, buyers, lenders, and other professionals involved in the transactions. Their expertise and attention to detail guide their clients with an in-depth understanding of local regulations that make selling property a seamless experience.
8. Updated Market Insights.
They provide sellers with up-to-date market insights and trends, helping them make informed decisions about pricing, timing, and other factors that could impact the sale.
9. Client Communication
Real estate agents maintain regular communication with sellers, keeping them informed about the progress of their listing, showing feedback, and any changes in the market conditions.
10. After-Sale Support
Real estate salespersons offer post-sale support to sellers, assisting with any necessary paperwork, coordinating inspections and repairs, and ensuring a successful closing and transition for all parties involved.
Remember, this is just a summary of the many responsibilities that real estate agents undertake. Their role is diverse and multifaceted, requiring a combination of knowledge, skills, and dedication to serve their clients effectively.
| Real estate agents are expert intermediaries between buyers and sellers. They provide valuable guidance throughout property transactions. With in-depth industry knowledge and exceptional communication and negotiation skills, they help clients successfully achieve their real estate goals. |
Ethical Responsibilities of a Real Estate Agent
A. Duty to clients.
A real estate agent has a fiduciary duty to act in the best interests of their clients. It includes providing accurate information, protecting confidential information, and advocating for clients’ needs throughout the buying or selling process.
B. Duty to the public.
Real estate agents must always be honest and ethical and act with integrity when dealing with the public. It means giving accurate and transparent information about properties, avoiding discrimination, and promoting fair and ethical behavior in the real estate industry.
C. Duty to other industry professionals.
Real estate persons should maintain professional relationships with their peers and collaborate in a manner that upholds the highest standards of professionalism. It includes respecting the rights and interests of other agents, cooperating in transactions, and adhering to ethical guidelines set forth by professional organizations.
D. Duty to oneself.
Staying compliant with industry regulations, laws, and best practices is essential to deliver the highest quality of service in real estate. Ongoing education and professional development help real estate agents keep up with industry trends and stay competitive. Commitment to training provides opportunities to upgrade knowledge and skills, enabling agents to build strong relationships with clients.
Legal Responsibilities
A. Adherence to Real Estate Laws and Regulations
A real estate agent must be well-versed in local, state, and federal real estate laws and regulations. They should ensure that all transactions and activities comply with these laws to protect their clients and maintain their reputation as a trustworthy professional.
B. Maintaining Confidentiality and Fiduciary Duties
Real estate agents have a fiduciary duty to act in the best interests of their clients, including sellers. It entails maintaining confidentiality about sensitive information and not disclosing any information that could harm their clients during negotiations.
C. Ethical Duties and Code of Conduct
Agents are expected to uphold high ethical standards in their interactions with clients, colleagues, and the public. It includes providing honest and transparent communication, avoiding conflicts of interest, and treating all parties respectfully and fairly.
By fulfilling these ethical responsibilities, real estate agents contribute to a trustworthy and reliable real estate industry, fostering positive relationships with clients, the public, and fellow professionals.
| Real estate agents play an essential role in the property transaction process. They know about the local housing market, advising clients during the transactions. Agents often serve as intermediaries between buyers and sellers, helping to negotiate a successful sale or purchase. Agents must understand the needs of buyers and sellers, research the local market, create marketing campaigns, negotiate transactions, and provide legal and ethical representation. |
Source:
Code of Ethics and Responsibilities for Real Estate Service Practitioners
Specialized Roles within Real Estate
Within the real estate industry, several highly specialized roles cater to different aspects of the industry. Let’s look into a few of them:
A. Residential real estate agents:
These professionals focus on helping individuals and families buy, sell, or rent residential properties such as houses, apartments, or condominiums. They possess in-depth knowledge of the local housing market, property values, and neighborhood amenities to assist clients in finding their dream homes.
B. Commercial real estate agents:
Unlike residential agents, commercial real estate agents specialize in commercial properties such as office buildings, retail spaces, industrial facilities, and vacant land. They work closely with businesses, investors, and developers to identify suitable properties for their needs, negotiate leases or purchases, and provide guidance on market trends and investment opportunities.
C. Buyer’s agents vs. Seller’s agents:
In real estate transactions, two sides are typically involved—the buyer and the seller. Buyer’s agents exclusively represent the buyer’s interests, advocating for their needs, negotiating the best terms, and guiding them through the process. On the other hand, the seller’s agents represent the seller, helping them market their property effectively, attract potential buyers, and negotiate favorable terms that align with the seller’s goals.
These specialized roles within real estate showcase the diverse expertise required to navigate the industry and ensure optimal outcomes for all parties involved.
Licensing and Qualifications
Republic Act No. 9646, enacted on June 29, 2009, regulates the practice of real estate service in the Philippines. It establishes a Professional Regulatory Board of Real Estate Service and funding for its operation. To become a licensed real estate agent in the Philippines, one must complete a real estate education program and pass a licensure examination. These qualifications will equip agents in the profession with the knowledge and skills to succeed in the real estate industry.
A. Licensure Examination and Registration
| ✔ | The Board conducts licensure exams for real estate brokers, appraisers, and consultants at least once a year in designated locations and dates. |
| ✔ | Applicants must fulfill the following requirements: citizenship, relevant bachelor’s degree, good moral character, ten (10) years of experience as a broker/assessor/appraiser for consultants, and five (5) years of experience as an appraiser. |
| ✔ | Successful examinees need an average of 75% or higher to pass. |
| ✔ | Certificates and professional ID cards are issued upon payment of fees. |
| ✔ | Registration without examination is available for those already licensed by the DTI or who meet other criteria mentioned under Section 20 of the Board of Real Estate Service – Implementing Rules and Regulation. |
| ✔ | Certificates and ID cards may be revoked or suspended in cases of fraud, deceit, unprofessional or unethical behavior. |
| ✔ | The Board maintains an up-to-date roster of registered practitioners. |
| ✔ | Foreign practitioners needed in the Philippines can request and apply for a special/temporary permit through the Professional Regulatory Commission. |
| ✔ | Foreigners must have reciprocal arrangements with Filipino practitioners to practice within their country. |
B. The Practice of Real Estate Service
| ✔ | All individuals who wish to register as qualified applicants or accredited salespersons must take an oath before a Commission officer before engaging in the practice of real estate service. |
| ✔ | Real estate brokers and private appraisers must post a professional indemnity insurance/cash or surety bond every three (3) years. |
| ✔ | Section 3(g) covers any act or transaction involving real estate service practitioners. |
| ✔ | There are exemptions to the practice of real estate services, such as individuals dealing with their property, receivers, trustees, assignees in bankruptcy proceedings, attorneys-in-fact without compensation, and public officers performing their official duties. |
| ✔ | Real estate service providers must pass a Board licensure examination before practicing or providing services. |
| ✔ | Real Estate Salespersons must undergo training and seminars before obtaining accreditation, and they must work under the direct supervision of a broker. |
C. Violations
Real estate professionals who violate these rules and regulations will be subject to one or the other penalties:
| ✔ | face a fine of Php 100,000; |
| ✔ | at least two years imprisonment. |
| ✔ | While unlicensed practitioners will incur double penalties. |
Sources:
ra 9646.pdf
Implementing Rules and Regulations of Republic Act No. 9646 [ IRR ]
Real Estate Service | Professional Regulation Commission website
Special Temporary Permits | Professional Regulation Commission website
The Important Role of Real Estate Agents for Effective Representations: A Recap
Real estate agents offer valuable expertise in a marketplace that’s often competitive and confusing. Whether you’re a buyer or seller, an agent can help you navigate all the complex pricing structures, negotiation tactics, and paperwork involved in a real estate transaction. But their roles go far beyond these logistical matters. By serving as advocates for individuals and entire communities, agents help ensure every party’s rights are protected and concerns addressed. By understanding the importance of their roles, we can better appreciate the value and impact of real estate agents in the industry.
