Real estate agents help people buy and sell property. They work on commission, receiving a percentage of the sales price. There are several key things that any real estate agent should know in order to do their job.

Agents should know the process of real estate sales is complex and often time-consuming. Because property costs a lot of money, people usually want to look at several places and take time to decide. Moreover, if real estate agents are selling houses instead of commercial property, they work with individuals who likely have a job during the day. Therefore, real estate agents often work in the evening and on weekends.

Real estate agents must know the various neighborhoods. If they represent someone who is selling their home, knowing about the conditions in each neighborhood helps the agent to assist the seller to price the house correctly. If the agent is representing buyers, then knowing the various neighborhoods enables the agent to help the buyer to find what they want.

Agents need to know how to research recently sold properties in the same area that are comparable. Researching similar properties and having that information on file allows an agent to justify the price of a property. That gives the agent a factual basis to tell their client a price is reasonable or not.

Moreover, real estate agents must know the laws governing buying and selling property in the state where they work. This is important to make sure the sale complies with the law. For example, some states require sellers to disclose anything negative about a property openly, while others only require a seller to do so if a buyer asks.

Because of the increasing complexities of real estate transactions and the rising use of litigation, perhaps the most important thing any agent should know is that they need to purchase an errors and omissions insurance policy. Sometimes an agent makes some type of error or an unintentional omission in disclosing a fact. The e&o insurance for real estate is the type of insurance that protects the agent. Therefore, agents should consider e&o insurance for real estate a cost of doing business. In case of a lawsuit, the insurance would pay, thus protecting the agent’s income and assets. Although it is an additional cost, there are cheap real estate errors and omissions insurance policies available if the agent shops around.