Listing Agent vs. Selling Agent
In real estate sales, there are many terms that can confuse consumers. The jargon used in the industry almost seems endless.
Unfortunately, many real estate agents forget that buyers and sellers don’t always know our terminology.
Most don’t know there is a difference between a Realtor and a real estate agent. A real estate broker is also not the same.
Another example is the difference between a listing agent and a selling agent. A listing agent is the same as a seller’s agent, and a selling agent is the same as a buyer’s agent.
They are just descriptions of a real estate agent that are used interchangeably.
So, if you are wondering if there is a difference between the seller’s agent vs. listing agent, there is none!
The same can be said about a buyer’s agent, which has the exact same meaning as a selling agent.
The words agent and broker are often interchanged to make things even more confusing. The listing agent and listing broker mean the same thing. The selling agent and selling broker also have the same meaning.
Let’s take a more in-depth look at each type of agent’s different roles in a real estate transaction. A seller’s agent will have many different responsibilities than a buyer’s agent and vice versa.
Many consumers wonder what a real estate agent does. You’re about to see some of the finer points.
What is a Listing Agent in Real Estate
Listing Agent = Seller Agent.
The term listing agent refers to the person within a real estate company who will list your house for sale. Typically, you will sign a real estate contract allowing the agent to list your house for sale in the multiple listing service (MLS).
Most of the time, when you list your house, the agent will have an exclusive listing agreement. The exclusive listing agreement states that the company will get paid regardless if another company procures the buyer.
The homeowner agrees to work exclusively with one real estate agent to sell their home within a specific period. The typical time frame for signing a listing agreement is somewhere between three to six months, although it could be longer or shorter.
Under an exclusive right-to-sell listing agreement, you are entirely dependent on your real estate agent to sell the home. Given this, it is crucial to make an excellent choice. Asking the real estate agent the right questions beforehand helps.
The agent you hire agrees to market the property to the best of their ability and works as a fiduciary throughout the transaction. Under an exclusive right to sell agreement, the listing agency would still be due a commission even if the seller found a buyer on their own.
A listing agent does everything necessary for the seller to ensure they get the best results. The agent must price the property correctly and market the property to find potential buyers.
Most listing agents will aim to sell the home for the most money in the least amount of time with the fewest headaches.
What Does a Listing Agent Do?
You may be wondering what a listing agent responsibilities are in a real estate transaction?
When you are selling a home, one of the most vital tasks is picking an outstanding listing agent. Not enough emphasis is placed on this task by many sellers.
Like any other business, there are agents who have an exemplary track record of success. There are others who barely get by. The agent you select matters.
Many consumers don’t ask the right questions when interviewing real estate agents. Some don’t even take the time to interview multiple agents at all.
An exceptional listing agent will do many things for a seller, including the following tasks outlined here. These are the primary listing agent responsibilities.
Provide a Comparative Market Analysis and Marketing Plan
When selling a home, you should expect a Realtor to provide a comparative market analysis that details their expectations for the fair market value of your property. Agents will gather data on comparable sales to determine the correct list price for your home.
The CMA becomes more critical when real estate markets are shifting. For example, going from a seller’s market to a buyer’s market.
The critical components of the analysis will include your home’s gross living area, condition, amenities, bedroom/bath count, location, and potentially a few other variables.
A Realtor should also provide a detailed marketing plan. It will include what they will be doing both online and offline to sell the house.
Provides Professional Photography
One of the most vital tasks of a Realtor is providing professional photography. If a real estate agent is not going to do this, you might want to look for another person to list your home.
The vast majority of home buyers will visit some of the most popular real estate sites. They will make their decision whether to schedule an appointment to see a home based on the photography.
The photos online are the first showings on your home, not when the physically walk through the front door. You can’t afford anything less than the best.
Listing Your Home in The Multiple Listing Service
A seller’s agent is also responsible for not only adding your home to the Multiple Listing Service (MLS) but doing an excellent job describing your property’s best attributes. While great photography is vital, the description of your home should not be ignored.
When people like the photos, they will take the time to learn about your home’s best features. Skilled listing agents will take the time to craft a listing description that gives a buyer an excellent overview of the home’s best attributes.
Have a System For Scheduling Showings and Providing Feedback
The best Realtors have a well-oiled machine when it comes to setting up showing appointments and then getting feedback from selling agents after.
Many agents will use a professional service called Showingtime. They are a company dedicated to scheduling showings for real estate companies that do a significant volume of business.
After the showing, an email will go out to the selling agent asking for feedback. The owner of the house should receive feedback, so they know what is going on with their home sale.
Negotiating Offers and Home Inspections
The seller’s agent is also responsible for negotiating an offer from a buyer. A seller’s agent will attempt to get the best price.
The best listing agents will carefully cover the terms in an offer, going over the pros and cons of any contingencies contained in the agreement.
For example, depending on the type of real estate market, there could be a home inspection. Part of a seller’s agent’s job description will be to negotiate any inspection requests or seller’s concessions.
Seller agents will often find themselves doing more negotiations when real estate markets favor buyers.
Communicate With The Home Seller Until Closing
A good listing agent understands that ongoing communication is one of the most vital functions. Staying in touch with all parties on behalf of the seller is a crucial fiduciary responsibility.
Top agents understand this and regularly keep in touch with their seller clients. An experiences listing agent knows that a lot of time the closing process may be foreign to some sellers. It could be years since the last time they have sold a home.
The responsibilities of a listing agent should not be taken lightly. The interests of the seller should always be on top of mind.
What is a Selling Agent?
Selling agent = Buyer’s agent
A selling agent helps a buyer purchase a home. Even though they have the same meaning, most people refer to the agent working with the buyer as a “buyer’s agent” vs. calling them a selling agent.
Selling agents share some of the same responsibilities as a seller’s agent but some differences too. There are numerous services to expect from a buyer’s agent. Some of them are summarized below.
A buyers agent will look for for the buyer’s best interests.
Find a Home That Matches a Buyer’s Criteria
The most obvious thing a selling agent does is assist in finding a home in the area that matches a buyer’s search criteria.
The best buyer’s agents will point out the strengths and weaknesses of properties as they are being viewed.
Prepare a Market Analysis
Once a desirable home is found, an excellent buyer’s agent will also perform a market analysis to ensure the buyer pays the fair market value. It is a task that both listing agents and selling agents share.
Write and Negotiate an Offer to Purchase
When a buyer is ready to move forward, a selling agent will prepare an offer for a buyer to sign.
A selling agent’s goal should be getting the best terms and conditions for the buyer without losing the house.
Sometimes buyers make foolishly low ball offers that insult a seller. Not a good business practice when you want a home.
Recommend an Excellent Home Inspector
Once the home is under contract, a selling agent will help the buyer find an excellent home inspector to thoroughly inspect the property.
When problems arise, the agent will negotiate items that should be corrected or get the buyer monetary compensation. Home inspections are one of the most significant hurdles in a real estate transaction. Sometimes these negotiations can get contentious, so it pays to have a pro in your corner.
Monitor and Be a Problem Solver in The Transaction Until Closing
Once the inspection period is over, a buyer’s agent will monitor the transaction and become a problem solver when any issues come up. In real estate, it is not uncommon to have things crop up that need addressing.
Buyer’s agents are often communicating with multiple parties until closing.
Dual Agency: Working as Both a Listing Agent and Selling Agent
Sometimes, a real estate agent will work with both a buyer and a seller in the same transaction. It is referred to as dual agency and should be avoided by buyers and sellers.
You should have your own agent!
With dual agency, the real estate agent becomes a neutral party. They no longer “represent” either party. By law, a dual agent cannot counsel and give advice.
The only party who benefits from dual agency is the real estate agent. The agent makes double the commission while neither the buyer nor seller gets the services they would if they had a respective seller’s or buyer’s agent.
Dual agency is a conflict of interest. Some states have banned the practice of dual agency and made it illegal because it doesn’t benefit consumers.
Dual representation really means no representation. There is no fiduciary duty or undivided loyalty to either party. For some odd reason many people think they get the best deal going to the listing agent. Not so!
Listing Agent vs. Selling Agent Commission
Sometimes people wonder whether the real estate commission is different between the listing agent vs. selling agent. It can be but most of the time it is not. In most real estate transactions, commissions are split equally between the listing broker and selling broker.
The listing agent sets the commission and offers a cooperation fee to the selling agent. The average commission across the country is between 5-6 percent. Commissions in real estate are completely negotiable.
In cases where there is no commission or a commission that is lower than a selling agent is willing to accept, they can collect a commission from the buyer. Doing so would not be unusual if a selling agent found a buyer a home being sold for sale by owner.
FSBO sellers often do not offer a traditional commission rate or any commission fee at all. Real Estate professionals should explain to prospective buyers upfront how the will get paid under these circumstances.
Buyers should not find out at the last minute. Agents need to remember that most consumers don’t know how the real estate industry works.
Concluding Thoughts
To summarize:
- Seller Agent vs. Listing Agent is the same thing
- Selling Agent vs. Buyer’s Agent is the same thing.
- Listing Agent vs. Listing Broker is the same thing.
- Selling Agent vs. Selling Broker is the same thing,
When you sell a home, you’ll hire a listing agent to get the job done. If you are planning on purchasing a house, you’ll hire a buyer’s agent to find properties that match your criteria.
Listing agents and buyer’s agents will work hand in hand to ensure their respective clients are treated fairly and represented well. They serve as a buffer between buyers and sellers to ensure the transactions proceed smoothly from start to finish.
Listing and selling agents typically share real estate commissions equally and do not get paid until the closing is recorded.
Whether you plan to buy or sell, make sure you do your homework and pick the best agent for your needs. Keep in mind there are skill differences between real estate agents who work for buyers vs. sellers.
Always work with someone trustworthy and puts your needs ahead of theirs.
About the author: Bill Gassett, a nationally recognized leader in his field, provided the above Real Estate information on listing agent vs selling agent. Bill can be reached via email at billgassett@remaxexec.com or by phone at 508-625-0191. Bill has helped people move in and out of many Metrowest towns for 35+ years.
Are you thinking of selling your home? I am passionate about real estate and love sharing my marketing expertise!
I service Real Estate Sales in the following Metrowest MA towns: Ashland, Bellingham, Douglas, Framingham, Franklin, Grafton, Holliston, Hopkinton, Hopedale, Medway, Mendon, Milford, Millbury, Millville, Natick, Northborough, Northbridge, Shrewsbury, Southborough, Sutton, Wayland, Westborough, Whitinsville, Worcester, Upton, and Uxbridge MA.
