Why Real Estate Agents Aren’t “just Salespeople”

When people outside the industry hear “real estate agent,” what do they often picture? A cheerful person showing a home to a young family? Maybe a slick go-getter who’s trying to wheel and deal though the negotiation process? In other words — they usually think of a salesperson.

But you and I know the truth: you’re not just selling houses. You’re a licensed fiduciary navigating one of the most complex, high-stakes transactions your clients will ever face in their life.

There’s a crisis happening in the real estate industry – many agents don’t know their own worth and it’s creating a certain reputation among the public. Lawsuits that throw out words like “cartel” aren’t helping. 

That being said, let’s set the record straight on the value you bring to your client’s kitchen table and why you’re worth every penny of your professional fee.

You carry a fiduciary duty

Think about your clients for a minute: When they go out to buy a car, furniture or clothes, the salesperson doesn’t need a license to help them, right? They don’t need to take state mandated exams to suggest a good microwave. They don’t have to sit in classrooms for continuing education to hand them that blouse in a size eight. They don’t face fiduciary obligations under the law. They’re there to sell your clients a product, and once they buy it, the relationship usually ends.

Unlike a car or furniture salesperson, your role doesn’t end with a handshake and a receipt. The moment you agree to represent a buyer or seller; you take on a fiduciary duty — a legal obligation to put your client’s interests ahead of your own.

Selling a home is not a simple transaction — it’s one of the most complicated and high-stakes legal and financial events in a person’s life. In 2023, 89% of buyers used a real estate professional in their transaction (NAR). That’s because the process is far more complex than most buyers and sellers realize.

A fiduciary duty isn’t just a feel-good promise. It comes with legal weight. If a real estate professional breaches that duty, they can face lawsuits, loss of their license, severe penalties, or even jail. This level of responsibility is why licensing exists in the first place. It ensures that professionals understand the law, know their ethical duties, and are trained to handle situations where someone’s financial future is at stake.

You’re managing legally binding contracts

You’re not just a “connector of buyers and sellers.” Unlike a typical salesperson,  you’re expected to understand contract law, enforce timelines, and guard your clients against liability. You’re the one steering them through a maze filled with legal landmines. A wrong step could be devastating. 

Inspection issues, financing hiccups, title concerns — any of these can cost your clients tens of thousands of dollars if mishandled. The median U.S. home price is hovering in the $400,000s. For most families, that’s the single largest purchase of their lives. A missed disclosure or bungled financing contingency isn’t just a paperwork error, it could mean a lost down payment, an unmanageable mortgage, or even the collapse of the entire transaction.

Financing, fraud and property rights — you’re the shield

Buying a home is often the single largest purchase of someone’s life. We’re talking hundreds of thousands, or even millions, of dollars. In July 2024, the median U.S. home price was approximately $422,000 (NAR).

Most people don’t pay cash for a home. They rely on mortgages, FHA loans, VA loans, jumbo loans, or other financing tools. Real estate professionals don’t originate these loans, but they must understand how they work to guide clients through the process.

• You understand how different loan types impact buying power.
• You spot red flags in contracts and disclosures.
• You recognize fraud risks and guide clients safely through them.
• You know the legal obligations tied to property rights, easements, and zoning.

Every step of the way, you’re safeguarding consumers in ways that go far beyond sales. Licensed professionals are held accountable to state boards and must follow strict codes of ethics. They can be fined, or even lose their license for dishonesty, negligence, or fraud. That accountability is part of what separates them from general salespeople. When you hire a licensed real estate professional, you’re hiring someone with oversight, regulation, and a legal duty to act honestly.

Why continuing education matters

Another reason licensing and continuing education are required is because real estate law isn’t one-size-fits-all. Each state has its own regulations around disclosures, contracts, agency relationships, fair housing laws and even how professional fees are handled.

Imagine if doctors or lawyers never updated their training. The same goes for real estate. Laws evolve. Markets shift. Financing tools change.

Continuing education ensures that real estate professionals stay up to date. Requirements vary by state — ranging from 14 to 45 hours per renewal cycle — but they all exist to ensure professionals don’t give outdated advice that could put clients at risk.

CE keeps you sharp, relevant, and ready to serve. It’s not just about meeting state requirements—it’s about honoring your duty to the people who trust you with their biggest asset.

The Bottom Line for Agents

Here’s the takeaway: you’re not “just selling houses.” You’re:

• A fiduciary with legal and ethical obligations.
• A contract navigator protecting clients from liability.
• A financial safeguard guiding the largest purchase of their lives.
• A professional required by law to stay educated and accountable.

That’s why you deserve to see yourself, and present yourself, as more than a salesperson. You’re a licensed professional, trusted advisor, and advocate. And the work you do isn’t just important—it’s indispensable.

Darryl Davis, CSP, has spoken to, trained, and coached more than 600,000 real estate professionals around the globe. He is a bestselling author for McGraw-Hill Publishing, and his book, How to Become a Power Agent in Real Estate, tops Amazon’s charts for most sold book to real estate agents.

This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners.

To contact the editor responsible for this piece: tracey@hwmedia.com