Listing Agent vs Selling Agent: Explaining The Difference
September 19, 2022
The real estate transaction process can be very complex and the various types of real estate agents don’t make it any easier. Buyer’s agents, seller’s agents, dual agents, listing agents, there are many different terms used to describe real estate agents. Some terms are interchangeable with each other while others have very specific meanings.
In order to understand real estate agents, it is important to understand the different types of agents and what they do. In this blog post, we define the two main different types of real estate agents: listing agent vs selling agent.
What Are Listing and Selling Agents?
A listing agent (otherwise known as a seller’s agent) is a real estate professional that help clients sell a house by marketing and listing the house on the market. They represent the sellers in a real estate transaction and use the best marketing practices to get your house sold as fast as possible.
A selling agent (otherwise known as a buyer’s agent), on the other hand, works with home buyers to help them find and buy a house. Selling agents are otherwise known as buyer’s agents. People can get mixed up between the terms seller’s agent and selling agent but the main difference between them is that a seller’s agent represents the seller and a selling agent represents the buyer.
What are the Responsibilities of a Listing Agent?
A good listing agent works in the best interest of the sellers to make sure they get the best deal when selling their houses. This means that they market their home to the best of their ability and negotiate the terms of the real estate contracts to best benefit their clients. Here are a few of the responsibilities of listing agents throughout the selling process.
- Correctly pricing the house being sold on the market with comparative market analysis.
- Hosting open houses to attract buyers
- Staging your house for professional photography and tours.
- Searching for and finding qualified buyers.
- Arrange for home inspections and appraisals.
- Assist with the closing process on the property sale.
- Use a Multiple Listing Service to expand the reach of potential buyers
What are the Responsibilities of a Selling Agent?
Selling agents work with home buyers to find the right property for them and to negotiate the best possible price for their new home. Buying a house is a big decision and selling agents are there to help guide their clients through the process. Here are some of the responsibilities of selling agents:
- Find the right house for their clients.
- Craft good offers and counteroffers to the listing agent.
- Help their clients get mortgage pre-approval.
- Arranging a home inspection for the potential property.
- Negotiate the terms for the purchase contract in the best interest of the buyer.
- Guide buyers to find financing for the house.
- Assist the buyer through the closing process.
The Listing and Selling Agent’s Commission
Altogether, the listing and selling agent are typically paid 6% of the property’s total sale value as a real estate agent commission. The commission fee of 6% is shared equally between the listing and selling agent, resulting in a 3% commission.
The commission is usually not a concern for the home buyer as the seller is the one who pays the agent’s fee. The funds for the commission come from the sale of the property and are seen as separate from closing costs.
What is a Dual Agent?
A dual agent is when a real estate agent acts as a listing agent and selling agent in a real estate transaction. The agent represents both the home buyer and seller for the same property in the transaction.
This can be a tricky situation for agents as they have a fiduciary duty to both parties which means that they have to look out for the best interest of the seller and buyer.
However, this can be difficult because sometimes the seller wants to sell at the highest price possible and the buyer wants to buy for the lowest amount possible. On top of that, dual agents get a higher commission the more a property sells for.
Another type of dual agency that brings fewer conflicts of interest is when two agents from the same brokerage represent the buyer and seller in the same real estate transaction.
Need a Good Listing or Selling Agent? Work With a Negotiator
Finding a real estate agent to work with is easy but finding a good real estate agent can be very difficult. Luckily, there is a new type of real estate agent organization that streamlines your search for a high-quality and experienced agent. This group of agents is called the Negotiators.
Negotiators are handpicked from amongst the top real estate agents in the country that have all proven their ability to go above and beyond for their clients. By hiring a Negotiator, you’ll have someone on your side who has a wealth of experience in the real estate market and an unrivaled work ethic working to get you the best deal possible.
Search for a local Negotiator if you want to work with a great real estate agent.