How does a real estate agency work?
Understanding the inner workings of a real estate agency can give you a clearer view of how properties are bought, sold, managed, and leased. Agencies act as the link between sellers and buyers, landlords and tenants, and investors and properties. Whether you’re navigating a commercial deal or looking for your next home, the role of an agency is central.
At MRI Software, we support these agencies by offering tailored solutions to simplify property transactions and portfolio oversight. Our tools help streamline workflows and improve efficiency across the board.
This guide explores how real estate agencies operate, their functions, how they generate income, and why working with one can benefit you.
Table of contents:
- What Is a real estate agency?
- Types of real estate agencies
- Key functions of a real estate agency
- How real estate agencies make money
- Buying a property through an agency
- Selling a property through an agency
- Why use a real estate agency?
- Contact MRI Software
- FAQs
What Is a real estate agency?
A real estate agency is a business that facilitates property transactions. These agencies are staffed by licensed agents who work on behalf of clients to buy, sell, lease, or manage residential and commercial properties. Their expertise covers everything from market evaluations and negotiations to compliance and client communication.
Agencies serve a wide mix of clients. These include homeowners, renters, investors, business owners, and developers. Depending on the transaction, they might take on tasks like listing a property, coordinating inspections, drafting agreements, or overseeing ongoing management duties.
Types of real estate agencies
Residential agencies
Residential agencies focus on helping people buy, rent, sell, or lease homes. They assist with property viewings, negotiations, appraisals, and legal documentation. Clients often include individuals and families looking for a home or landlords with residential rental properties.
Commercial agencies
These agencies specialise in non-residential properties such as retail centres, warehouses, and office buildings. They work with developers, investors, and corporations. Their services might include zoning research, lease structuring, asset performance analysis, and advice on investment yield.
Online agencies
Online or hybrid agencies operate through digital platforms. They often offer a simplified service structure, relying on automation and self-service tools. These platforms may offer lower fees in exchange for fewer touchpoints or reduced personal support.
Key functions of a real estate agency
Listing properties
Agencies list properties for sale or lease, making them visible to the public. Listings include photographs, descriptions, pricing, location details, and contact information. These listings are published on websites, social media, and real estate platforms.
Property valuation
Real estate agents conduct valuations to determine a property’s worth. They consider factors such as market trends, recent sales, location, property condition, and future development potential. Accurate valuations help sellers price their properties competitively.
Marketing & advertising
Agencies handle campaigns that generate interest in listed properties. This includes creating brochures, posting on property portals, organising virtual tours, and running ads on social media or print. Effective marketing helps shorten the time a property spends on the market.
Property viewings
Agents arrange inspections for prospective buyers or tenants. They coordinate times, present the property, answer questions, and gather feedback. These viewings often influence a buyer’s or tenant’s decision.
Negotiations & offers
When an offer is made, agents mediate the negotiation. Their role is to ensure clear communication, advocate for fair terms, and assist both parties in reaching an agreement. They manage expectations and help resolve issues before they escalate.
Managing transactions
Agencies coordinate all steps between offer acceptance and settlement. This includes liaising with solicitors, banks, building inspectors, and surveyors. They ensure contracts are exchanged, conditions are met, and the transfer of ownership is smooth.
Property management
Some agencies manage rental properties for landlords. Services might include collecting rent, arranging repairs, conducting routine inspections, handling tenant queries, and maintaining financial records. These services are especially helpful for landlords with large or remote portfolios.
How real estate agencies make money
Commission-based earnings
Most agencies earn income from commissions on property sales or lease agreements. This is usually a percentage of the final sale price or lease value. It aligns the agency’s success with the client’s outcome.
Fixed fees & charges
Some agencies, particularly online ones, offer fixed-rate service packages. These might cover listings, marketing, or contract preparation. These upfront fees provide cost certainty, though they may not include the full range of services.
Additional revenue streams
Agencies may also earn money from value-add services such as property management, advertising upgrades, or vendor-paid marketing. Some generate income through referral arrangements with finance brokers, conveyancers, or insurance providers.
Buying a property through an agency
When working with an agency to buy property, the process typically begins with a consultation. Agents learn about your needs, preferences, and budget. They then recommend suitable properties and coordinate viewings.
Once you’ve found the right property, the agent helps prepare and submit your offer. If accepted, they guide you through the due diligence stage. This might include organising building inspections, valuations, and liaising with your lender or solicitor.
Agents remain a key contact throughout the transaction. They help you understand each step and support the process until settlement is complete and ownership changes hands.
Selling a property through an agency
Selling begins with an appraisal. The agent assesses your property and recommends an asking price. They also suggest presentation tips and prepare your listing materials.
Once listed, the agency promotes your property, fields enquiries, and organises viewings. When offers come in, they help you compare terms and negotiate with buyers. Their goal is to secure a deal that meets your expectations.
From signed contracts to final handover, the agency manages each step, keeping you informed and ensuring the transaction runs smoothly.
Why use a real estate agency?
Working with a real estate agency can simplify complex processes. Agents understand local regulations, manage communication between parties, and bring experience that helps avoid common issues. Their involvement often reduces delays and provides peace of mind.
They also have access to broader networks, industry tools, and proven strategies for selling or managing properties. Whether you’re new to real estate or an experienced investor, having an agency on your side often means better results and fewer surprises.
Contact MRI Software
MRI Software offers tailored digital solutions for real estate agencies managing sales, leasing, and portfolio growth. Our technology supports everything from customer relationship management to marketing automation and compliance tracking.
To see how we can support your agency’s operations, contact MRI Software today on 09 883 3196.
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