How does a real estate agency work?

How does a real estate agency work?

Whether you’re buying, selling or managing property, real estate agencies play a central role in navigating the complexities of the market. These agencies connect buyers with sellers, tenants with landlords and investors with opportunities. They simplify transactions and help clients get the most from their property investments.

At MRI Software, we work with agencies of all sizes to streamline operations and enhance service delivery. From real estate portfolio management to commercial real estate software, our solutions are designed to support the full lifecycle of property transactions, offering transparency, efficiency and control.

What is a real estate agency?

A real estate agency is a business that represents clients in buying, selling, renting or managing property. Agencies employ licensed agents who provide advice, market insights and negotiation support throughout the transaction process. These professionals act as intermediaries between the parties involved, ensuring agreements are fair, legally sound and financially beneficial.

Real estate agencies serve a wide range of clients, from first-time buyers and tenants to seasoned investors and commercial landlords. Depending on the type of property and transaction, an agency may be involved in marketing, inspections contract negotiations or property upkeep.

Types of real estate agencies

Residential agencies

Residential agencies specialise in houses, flats and apartments. They assist people looking to buy or rent a home, as well as homeowners who wish to sell or lease their property. These agencies focus on location, lifestyle features and value for money.

Commercial agencies

Commercial agencies deal with office buildings, retail spaces and industrial sites. Their clients are usually investors, developers or business owners. These agencies offer specialised advice on zoning, lease structuring and yield optimisation.

Online agencies

Online agencies use digital platforms to list and market properties. They often provide reduced service packages at lower prices, relying on automation and self-service tools to assist clients. While less personalised, they appeal to tech-savvy users looking for flexible support.

Key functions of a real estate agency

Listing properties

Agencies compile property listings with photos, descriptions, pricing and location data. These listings are shared across websites, social platforms and internal databases to attract interest and generate leads.

Property valuation

Agencies assess the value of properties based on size, condition, comparable sales and local trends. Valuations help sellers set the right asking price and ensure buyers are making informed offers.

Marketing and advertising

Marketing strategies may include online ads, direct mail, social media content and virtual tours. The aim is to create visibility and drive enquiries, especially in competitive markets.

Property viewings

Agents coordinate inspections for interested parties. They guide buyers or tenants through the property, answer questions and highlight key features. In some cases, they may also arrange open homes or broker walkthroughs.

Negotiations and offers

Once a buyer or tenant makes an offer, the agency steps in to manage negotiations. Its goal is to secure favourable terms while maintaining clear communication between both parties.

Managing transactions

Agencies assist with contracts, legal checks and compliance requirements. They liaise with solicitors, lenders, inspectors and surveyors to ensure all steps are completed before settlement.

Property management

Some agencies also manage rental properties. Their tasks may include rent collection, tenant communication, maintenance scheduling, inspections and financial reporting. This is particularly valuable for landlords who prefer a hands-off approach.

How real estate agencies make money

Commission-based earnings

Most agencies earn commission on completed sales or rentals. This is usually a percentage of the sale price or total lease value. It aligns the agency’s incentives with their client’s success.

Fixed fees and charges

Some agencies offer fixed-fee packages for specific services. These might cover marketing, appraisals or listing support. Fixed fees are more common in online or hybrid agencies.

Additional revenue streams

Agencies may also generate income through property management fees, referral partnerships or premium marketing services. These options provide flexibility and recurring revenue beyond single transactions.

Buying a property through an agency

When a buyer contacts an agency, the process begins with an initial consultation. The agent helps clarify preferences, budget and desired location. They then search for properties that match those criteria and arrange viewings.

Once the buyer identifies a suitable property, the agent assists with preparing an offer. If the seller accepts, the buyer enters a due diligence phase. This includes inspections, valuation and, if required, financing approval.

The agent facilitates communication between the buyer, seller, lenders and legal representatives. Their job is to ensure the sale progresses smoothly, with contracts signed and ownership transferred by the agreed settlement date.

Selling a property through an agency

The selling process starts with a property appraisal and consultation. The agent advises on pricing, presentation and timing. Once the property is ready, they prepare marketing materials and launch the listing.

The agency manages enquiries and schedules viewings. When offers are submitted, the agent helps evaluate terms, negotiate with buyers and recommend the most suitable option.

Once a contract is signed, the agency works closely with the seller and solicitor to complete inspections, documentation and final handover. Their aim is to ensure a seamless experience from listing to settlement.

Why use a real estate agency?

Working with a real estate agency provides access to professional support, local expertise and reliable processes. Agents can reduce stress, avoid legal issues and often help clients secure better financial outcomes.

Agencies also bring established networks and marketing capabilities that individual sellers or buyers may not have. Their guidance is especially valuable during complex or high-value transactions.

Contact MRI Software

MRI Software offers purpose-built solutions for modern real estate agencies. Our software helps streamline workflows, automate tasks and manage sales, lettings and property portfolios in one place. Whether you’re looking to improve operations or grow your client base, we’re here to help. Contact us today to learn more.