Listing Agent vs. Selling Agent: Understanding the Differences
Buying or selling a home can be a very complex and stressful experience for clients. That’s where a real estate agent’s education, experience, and specialties in the real estate field come into play.
According to the National Association of Realtors, 89% of home buyers use a real estate agent to help navigate the buying process. But when it comes down to what type of agent they should use, a common question among clients is about the difference between a listing agent and selling agent and the benefits each offer.
Definitions of a Listing and Selling Agent
A listing agent helps clients to market and sell their homes, navigate the paperwork, and negotiate offers.
A selling agent is a real estate professional who helps clients find and buy a new home.
Listing agents help clients market and sell their homes, while selling agents help them find and buy a new one. While their titles might sound similar, their roles in the transaction are fairly different. Both listing agents and selling agents often work together to close the deal.
Responsibilities of a Listing Agent
In short, the responsibilities of a listing agent can include the following:
- Marketing the property
- Negotiating the listing agreement
- Pricing the property
- Handling showings and open houses
- Advising the seller on necessary repairs or improvements
The Role of a Listing Agent in Real Estate
A listing agent’s job is to help clients sell their homes. They help the seller come up with an accurate asking price for their home, stage their home for pictures and tours, and market their home on platforms like MLS and Zillow.
A listing agent is also responsible for bringing buyers directly to the client and negotiating any offers made on the property. Finally, they help navigate any complicated paperwork and the steps needed to close the sale.
Responsibilities of a Selling Agent
The responsibilities of a selling agent revolve around helping home buyers find their dream property, including:
- Showing the property
- Negotiating the purchase agreement
- Communicating with the listing agent and the seller
- Coordinating inspections and appraisals
- Advising the buyer on the offer and negotiation process
The Role of a Selling Agent in Real Estate
A selling agent is an industry professional who assists clients in finding a new home or property. A selling agent can be a realtor, a real estate agent, or real estate broker.
Key Differences Between Listing Agents and Selling Agents
Those looking to only sell their home work with a listing agent to help price their home, find the right buyer, and close the sale. But sellers looking to both sell their home and simultaneously buy a new one will enlist the help of a selling agent to help find homes that match their needs, perform home tours, confirm fair prices, and assist throughout the closing process.
Working with a selling agent does cost more money as the seller is responsible for commission fees. But agents do a lot of the heavy lifting when selling a home so – between finding buyers and managing all the paperwork – the costs can be well worth it.
The listing agent and selling agent generally share the commission the property seller agreed to. For example, if the commission on a home is 8%, each agent would get 4%. If the listing agent does manage to find a buyer for the home on their own, they generally get to keep the entire commission. No matter how the home sells, the home seller pays out the same amount.
So How Do Clients Choose the Right Real Estate Agent?
Many factors play into how clients pick the right real estate agent for the job, including communication style, job specialties, technology, referrals, licensing, education, and experience. Let’s explore a few of these below.
1. Communication Style
Communication style is a vital part of why clients may choose one real estate agent over another. A good rule of thumb is to always clearly communicate with your clients, follow up on their calls, texts, and emails in a timely manner, be on time, and remain friendly and approachable.
2. Technology
While old-fashioned methods of picking a real estate agent (e.g., referrals, for-sale signs, etc.) may valuable during a client’s search, the ever-evolving internet offers a wealth of convenient and easy-to-navigate resources you’ll want to get familiar with. Especially when considering that 96% of buyers in 2022 reported using online tools to facilitate their home search
3. Referrals from Friends & Family
Clients aren’t only looking for agents who provide great service throughout the home buying process, but also those who go above and beyond and leave a lasting impression. According to the NAR, 89% of buyers would use their agent again or recommend them to others. As a real estate agent, it’s important to network. If people have had friends or family who recently worked with an agent, chances are they’ll give you a recommendation which is a great place to start.
4. Education
Holding an education from a reputable educator such as The CE Shop can be a strong deciding factor for clients when trying to decide on the right agent for their needs. Our certifications also help to build trust and credibility with clients.
Recap: Listing Agents and Selling Agents
The easiest way to remember the main difference between a listing and a selling agent is between the buyer and the seller. The listing agent helps clients to market and sell their homes, while selling agents help clients find and buy a new home.
Both are an essential part of the homebuying and selling process. A well-marketed home can be the difference between finding the highest buyer or settling for a lower price, which is where listing agents fulfill their job duties. Finding a home for the right price that meets a client’s needs can feel extremely daunting, which is why seller’s agents are in such high demand.
For most people, buying or selling a home is one of the largest financial transactions of their lifetime. So it’s important for you to be educated on the different roles in the real estate industry so you can help your clients easily and efficiently navigate the buying and selling process.
Continue Your Education on Listing Agents vs. Selling Agents
If you are an aspiring agent or already in the real estate industry, it pays to be knowledgeable and educated to create a seamless experience for your clients. Whether you want to become a selling agent or a listing agent or just want to better understand their job duties, The CE Shop offers the information, education, and licensing you need to lead a successful career through our pre-licensing courses. So, begin working towards your dream job today!