When it comes to selling a house, it's important to understand the role of a real estate agent. While both listing agents and selling agents can help you sell or purchase a home, they have distinct responsibilities and duties. A listing agent is best for selling houses and telling sellers about their options for pricing and marketing homes. However, if you want to find and buy a property, working with a selling agent is best. In this blog, we'll explore the main differences between listing agent vs. selling agent so that you can make an informed decision when choosing a professional to help you navigate the real estate market.
What Is a Listing Agent?
A listing agent is a real estate professional representing sellers when they want to sell their homes. A listing agent's primary role is to get the property listed on various websites and services to advertise the property and find interested buyers. To do this, agents must understand each service platform and their content requirements.
A listing agent has several key responsibilities when helping homeowners sell their properties. These include:
Pricing the Home
A listing agent thoroughly analyzes the local housing market to determine the best price for a seller's home. They consider factors such as the location, size, condition, and features of the house, as well as recent sales of similar properties in the area. By pricing the home correctly, the listing agent can help the seller maximize their profits and increase their chances of finding a buyer quickly.
Listing the Home
A listing agent creates a detailed listing of a seller's home, including information about its features and amenities. They also take high-quality photos and videos of the property to showcase it in the best light. The listing is then posted on various platforms to help it reach the broadest possible audience.
Scheduling, Promoting, and Managing Home Showings
A listing agent handles all negotiations on the seller's behalf. They ensure that the seller gets the best deal possible for their home and help them navigate any contingencies, such as inspections and home appraisals. They also confirm that all conditions are met before closing.
Negotiating With Potential Buyers
The listing agent handles all negotiations on the seller's behalf. They work to ensure that the seller gets the best deal possible for their home and will help them navigate any contingencies, such as inspections and home appraisals. They also work to ensure that all conditions are met before closing.
Assisting With Closing Paperwork
Once a real estate transaction is complete, a listing agent helps the seller sign all necessary documents at closing. They're also involved in any cleanup or repairs that are needed.
Providing Expertise and Knowledge of The Local Housing Market
A listing agent gives the seller valuable insights and advice on selling their home quickly and for the best price. They also keep the seller informed of any changes in the market and work with them to market the home effectively to potential buyers.
How Is a Listing Agent Compensated?
A listing agent typically receives compensation through commission on a property sale. Commission is a percentage of the home's sale price, typically around 2.3%. The seller pays this commission to the agent's brokerage, which is then divided between the brokerage and the listing agent. The commission is only paid once the sale closes and all the paperwork is signed. Some listing agents may charge a flat fee instead of commission – a fixed amount for their services, regardless of the home's sale price.
What Is a Selling Agent?
A selling agent represents a buyer when they want to buy a home. A selling agent's main role is to find the right home for their buyer by actively searching the local market and setting up property showings that match their client's criteria. Using a selling agent can save you time and hassle, as you'll have one professional to handle the entire process of buying a home from start to finish.
A selling agent has several key responsibilities when helping buyers find a home. These include:
Finding Potential Properties and Showing Them to Buyers
A selling agent sets up appointments for their buyer to see available properties. They also help the buyer narrow down their options and find homes that they actually want to buy.
Making Sure Buyers Pay a Fair Price
A selling agent negotiates the best price possible for their buyer during the negotiation process. They also help buyers stick to their price point and meet any other conditions of the sale.
Putting in an Offer on a House
Once the buyer has found a property they like, the selling agent will make an offer on their behalf. If the seller counters the offer, the selling agent will help their buyer revise it based on the seller's demands.
Negotiating With the Seller and the Listing Agent
A selling agent works with the seller to ensure all conditions are met before closing. After this, they'll negotiate with the listing agent on behalf of their buyer, who will be responsible for paying any additional costs that may come up during the real estate process.
Coordinating Appraisals and Inspections
A selling agent works with their buyer to get all the information they need from the listing agent and any other professionals involved in the sale. They also work with buyers to ensure that all conditions are met and to take care of any necessary inspections or appraisals before closing.
Helping Buyers Find Financing
A selling agent helps buyers find the right financing. They also help with the application and approval process for mortgages or home loans.
Assisting With Closing Paperwork
After the sale is finished, a selling agent will help their buyer sign all necessary documents at closing. They're also involved in any cleanup or repairs that are needed.
How Is a Selling Agent Compensated?
A selling agent, also known as a buyer's agent, typically receives compensation through commission on a property sale. However, homebuyers do not need to worry about paying anything for their services. Once the home sale has closed, the listing agent's brokerage pays the selling agent's fee. Buyers do not have to foot any of the bills. This is an advantage for buyers because they can access a selling agent's expertise and knowledge without paying for it themselves. Read more about how a selling agent is compensated here.
Can an Agent Take on Both Roles?
Yes, a real estate agent can work as both a listing agent and a selling agent, but they typically don't take on both roles for the same property. A selling broker vs. listing broker has distinct responsibilities and duties, and it's difficult for one agent to manage both roles for the same property effectively.
When a real estate agent takes on both roles, it's known as a dual agency. The agent must disclose their dual agency status to both parties and get written consent before proceeding. It's often considered a conflict of interest for the agent to represent both the buyer and the seller in a transaction. Read more on dual agency here.
When buying or selling a home, it's essential to understand the agent's role. By understanding the selling agent vs. listing agent's role, you can find the right real estate agent to help you navigate the process.
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