Whether you’re in the market to purchase a new home or looking to sell your own, most likely you are considering hiring a real estate agent to help. Real estate agents act in a variety of different capacities and it’s important to know the difference between a listing agent and a selling agent. Their titles might sound similar, but their roles in the transaction are different. A listing agent represents the seller, helping to market and sell a home. A selling agent, also known as a buyers agent, represents the buyer, helping to find and buy the right home.
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The Listing Agent
Listing agents represent the seller, but are not called the selling agent. Typically, they’ll sign an exclusive right-to-sell agreement with the seller in which they receive a commission for selling your home. The listing agent will set the price of the home based on neighborhood estimates and pricing and then bring in potential buyers to look at the home. They will show the home, helping stage it effectively, and will usually hire a professional photographer to showcase the home in the best light possible. They will also help evaluate potential buyers making sure you spend time evaluating only serious offers.
The listing agent also handles closing negotiations, closing paperwork and generally closes the deal. Most realtors take a commission of around 6 percent, sharing it with the sellers agent.
The Sellers Agent
Selling agents represent the buyer in a home sale. Before the contract is signed, the agent representing the buyer is often called the buyer’s agent. After all terms are agreed to by both parties and the house comes under contract, the buyer’s agent is then referred to as the selling agent. Why? Because they brought in the buyer who purchased the home. These two terms, selling agent and buyer’s agent, are used interchangeably and their functions the same.
A buyer’s agent will find homes for clients to view, setting up showing times with listing agents and guiding the buyer through closing paperwork. Their fees typically are paid out of the commission agreed to by the seller of the home.
Do You Really Need A Listing Agent? (Or A Sellers Agent?)
The ability to buy or sell a home via the internet has changed the real estate game. In 2017, over half of homes sold were done so through the internet. Even so, 89% of buyers found their home through an agent, and 90% of homeowners listed their home through a listing agent. Of course, you can put up a for sale sign in your yard or sift through home listings on your own. But, enlisting the professional help of a real estate agent should also be considered. In some cases, it might be required, as many listing agents will only accept offers from a buyer’s agent in order to have all parties involved represented neutrally.
Listing agents give you valuable access to their knowledge about the working real estate market. They can help price your home reasonably and comparably and give insight into what buyers are looking for in today’s housing market. If you are interested in working with either a listing or a selling agent, take the time to interview multiple agents. Ask for references from former clients and take a look at their list-to-sell ratio. Taking the time to find the right agent is an important step in helping you realize your home’s top value and getting you into your dream home.
